HHS Awards $36M for Janitorial Services to Goodwill Industries of North Georgia
Contract Overview
Contract Amount: $36,151,666 ($36.2M)
Contractor: Goodwill Industries of North Georgia, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2012-09-23
End Date: 2018-09-22
Contract Duration: 2,190 days
Daily Burn Rate: $16.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF JANITORIAL/CUSTODIAL/SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $36.2 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC. for work described as: IGF::CT::IGF JANITORIAL/CUSTODIAL/SERVICES Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. Significant contract value over six years suggests a substantial need for services. 3. Fixed-price contract type aims to control costs, but initial price discovery is unclear. 4. Services are essential for maintaining facilities, impacting operational efficiency.
Value Assessment
Rating: fair
The contract value of $36.15M over six years is substantial. Without comparable contract data or a clear justification for the price, it's difficult to assess its fairness against market rates for janitorial services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This approach may limit price discovery and potentially lead to higher costs than a competitive process.
Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible price for these essential services.
Public Impact
Essential facility maintenance ensures a safe and healthy environment for CDC operations. Support for a non-profit organization like Goodwill Industries aligns with social impact goals. Long-term contract provides stability for service provider and consistent service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited price transparency
Positive Signals
- Support for non-profit
- Long-term service provision
Sector Analysis
This contract falls under general services, specifically janitorial and custodial. Spending benchmarks for such services vary widely based on facility size, location, and service level, making direct comparison challenging without more detail.
Small Business Impact
The contract was awarded to Goodwill Industries of North Georgia, Inc., a non-profit organization. While not a small business in the traditional sense, its mission-driven nature and community impact are notable.
Oversight & Accountability
Oversight would focus on ensuring service delivery meets contractual requirements and that the limited competition was justified. Performance metrics and regular reviews are key accountability mechanisms.
Related Government Programs
- Janitorial Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Risk of service quality decline over the contract's long duration.
- Limited transparency in initial price determination.
- Dependence on a single provider for essential services.
Tags
janitorial-services, department-of-health-and-human-services, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $36.2 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC.. IGF::CT::IGF JANITORIAL/CUSTODIAL/SERVICES
Who is the contractor on this award?
The obligated recipient is GOODWILL INDUSTRIES OF NORTH GEORGIA, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $36.2 million.
What is the period of performance?
Start: 2012-09-23. End: 2018-09-22.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require access to the contract file to understand the specific justification (e.g., sole-source justification, urgent need) and the process used to determine price reasonableness, such as cost analysis or comparison to historical pricing.
What are the risks associated with a non-competitive award for janitorial services, and how are they mitigated?
The primary risk is paying a higher price than could be achieved through competition. Mitigation strategies include rigorous price negotiation, clear performance standards, and regular performance monitoring to ensure value for money. The long duration also presents a risk if service quality degrades over time.
How effectively does this contract support the Centers for Disease Control and Prevention's mission and operational needs?
Janitorial services are critical for maintaining a clean, safe, and functional working environment, which directly supports the CDC's mission. Ensuring consistent, high-quality service delivery through this contract is essential for operational continuity and employee well-being.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2012N14279
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 235 PEACHTREE ST NORTH TOWER 23RD FLR, ATLANTA, GA, 30303
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,731,263
Exercised Options: $36,423,500
Current Obligation: $36,151,666
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2012-09-23
Current End Date: 2018-09-22
Potential End Date: 2018-09-22 00:00:00
Last Modified: 2019-07-31
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