Department of Defense awards $26.1M janitorial services contract for Pentagon facilities to DIDLAKE INC

Contract Overview

Contract Amount: $26,093,518 ($26.1M)

Contractor: Didlake Inc

Awarding Agency: Department of Defense

Start Date: 2020-06-01

End Date: 2022-09-30

Contract Duration: 851 days

Daily Burn Rate: $30.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ABILITYONE CUSTODIAL SERVICES, PENTAGON (FLOORS 1, 5, BASEMENT, MEZZANINE, PENTAGON LIBRARY AND CONFERENCE CENTER, NORTH VILLAGE/COMPOUND, PENTAGON ATHLETIC CENTER)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to DIDLAKE INC for work described as: ABILITYONE CUSTODIAL SERVICES, PENTAGON (FLOORS 1, 5, BASEMENT, MEZZANINE, PENTAGON LIBRARY AND CONFERENCE CENTER, NORTH VILLAGE/COMPOUND, PENTAGON ATHLETIC CENTER) Key points: 1. Contract awarded to DIDLAKE INC. for janitorial services across multiple Pentagon locations. 2. The contract value is approximately $26.1 million over its duration. 3. Services include cleaning for various Pentagon floors, the library, conference center, and athletic facilities. 4. The contract was not available for competition, indicating a sole-source or limited competition award. 5. The contract type is Firm Fixed Price, providing cost certainty for the government. 6. The duration of the contract is 851 days, spanning from June 2020 to September 2022. 7. The North American Industry Classification System (NAICS) code for this service is 561720 (Janitorial Services).

Value Assessment

Rating: fair

The contract value of $26.1 million for janitorial services at the Pentagon appears to be within a reasonable range for the scale and complexity of the facilities. However, without specific benchmarks for janitorial services in high-security, large-scale government buildings, a precise value-for-money assessment is challenging. The firm fixed-price structure helps manage cost overruns, but the absence of competitive bidding limits the ability to confirm optimal pricing against market alternatives. Further analysis would require detailed cost breakdowns and comparisons to similar contracts in comparable locations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was designated as 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source award or a situation where full and open competition was not feasible. The specific reasons for this designation are not provided in the data. A lack of competition means that the government did not solicit bids from multiple vendors, potentially limiting the opportunity to secure the most competitive pricing and innovative solutions available in the market.

Taxpayer Impact: When a contract is not competed, taxpayers may not benefit from the cost savings and improved service offerings that can arise from a competitive bidding process. This can lead to higher overall costs for the government.

Public Impact

The primary beneficiaries are the personnel working within the Pentagon and its associated facilities, who will experience improved cleanliness and hygiene. The services delivered include comprehensive janitorial and cleaning services for a significant portion of the Pentagon complex. The geographic impact is concentrated within Arlington, Virginia, specifically at the Pentagon and its adjacent buildings. The contract supports jobs within the janitorial services sector, contributing to employment for the cleaning staff employed by DIDLAKE INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may have resulted in a higher price than could have been achieved through open competition.
Absence of detailed justification for the sole-source award raises questions about procurement transparency and fairness.
The fixed-price nature, while providing cost certainty, might not incentivize the contractor to seek efficiencies beyond the contract scope.

Positive Signals

The firm fixed-price contract type provides budget predictability for the government.
The contract covers a comprehensive scope of janitorial services for critical government facilities.
The contractor, DIDLAKE INC., is responsible for delivering these essential services over a defined period.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry, characterized by a large number of providers ranging from small local businesses to large national corporations. Government contracts for such services are substantial, often awarded through competitive bidding processes. This particular contract, however, was not competed, suggesting specific circumstances or a pre-existing relationship that bypassed the typical market engagement. Benchmarking this contract's value is difficult without comparable sole-source awards for similar facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and that there is no indication of subcontracting requirements for small businesses (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The award to DIDLAKE INC., a single entity, suggests it is likely a larger business or an organization capable of handling the full scope of services independently.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and the Washington Headquarters Services (WHS) acquisition personnel. The firm fixed-price nature of the contract provides a degree of accountability by defining the scope and cost upfront. Transparency regarding the justification for the sole-source award would be crucial for a thorough assessment of accountability, but this information is not readily available in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Pentagon Maintenance Contracts
Federal Facilities Management Services
Department of Defense Cleaning Services
Janitorial Services for Government Buildings
Washington Headquarters Services Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for above-market pricing due to lack of competition.
Limited transparency on contractor selection rationale.
No small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to DIDLAKE INC. ABILITYONE CUSTODIAL SERVICES, PENTAGON (FLOORS 1, 5, BASEMENT, MEZZANINE, PENTAGON LIBRARY AND CONFERENCE CENTER, NORTH VILLAGE/COMPOUND, PENTAGON ATHLETIC CENTER)

Who is the contractor on this award?

The obligated recipient is DIDLAKE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2020-06-01. End: 2022-09-30.

What is the track record of DIDLAKE INC. in performing similar government contracts?

Information regarding DIDLAKE INC.'s specific track record on similar government contracts is not provided in the data snippet. To assess their performance history, one would need to consult contract databases like the Federal Procurement Data System (FPDS) or the General Services Administration (GSA) schedules for past performance reviews, contract awards, and any reported issues or successes. A thorough review would examine the types of services rendered, contract values, duration, and client agencies to understand their capabilities and reliability in fulfilling government requirements, particularly for large-scale facility maintenance.

How does the per-day cost of this contract compare to industry benchmarks for similar facilities?

The total contract value is $26,093,517.69 over 851 days, equating to approximately $30,662 per day. Benchmarking this figure against industry standards for janitorial services at large, high-security government facilities like the Pentagon is complex. Typical janitorial costs can vary widely based on square footage, service intensity, labor rates, and specific requirements (e.g., security clearances for staff, specialized cleaning). Without detailed breakdowns of services provided per day and comparable data for similar government installations or large corporate campuses, it is difficult to definitively state whether this daily rate represents excellent, fair, or questionable value. Further analysis would require access to detailed service level agreements and cost data from comparable contracts.

What are the specific risks associated with a sole-source award for essential janitorial services?

The primary risk associated with a sole-source award for essential janitorial services is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bids, the government may pay more than necessary. Another risk is reduced service quality or innovation, as the contractor may have less incentive to exceed basic requirements or adopt cost-saving efficiencies. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or missed opportunities to engage with a broader range of capable vendors, including small businesses. Ensuring robust contract oversight becomes even more critical in such scenarios.

What is the historical spending pattern for janitorial services at the Pentagon?

The provided data snippet focuses on a single contract awarded from June 2020 to September 2022. To understand the historical spending pattern for janitorial services at the Pentagon, a broader analysis of past contracts for these services would be necessary. This would involve examining contract awards over several fiscal years, identifying the incumbent contractors, the value and duration of those contracts, and whether they were competed or sole-sourced. Understanding these patterns would reveal trends in spending, contractor stability, and the government's approach to procuring these essential services for the facility over time.

What are the implications of the Firm Fixed Price (FFP) contract type for this janitorial service?

A Firm Fixed Price (FFP) contract type means that the contractor, DIDLAKE INC., is obligated to perform the specified janitorial services for a predetermined price, regardless of the actual costs incurred. This structure offers significant cost certainty and predictability for the government (Washington Headquarters Services), as the total expenditure is known upfront. It shifts the risk of cost overruns from the government to the contractor. For the contractor, it incentivizes efficient performance and cost management to maximize profit. However, it can also mean that the government may not benefit from cost savings if the contractor's actual costs are lower than anticipated, and it places a higher burden on the contractor to accurately estimate all potential costs during the bidding phase.

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: HQ003420R0205

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8641 BREEDEN AVE STE 101, MANASSAS, VA, 20110

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: $26,093,518

Exercised Options: $26,093,518

Current Obligation: $26,093,518

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline