Department of Defense awards $42.5M janitorial services contract for Pentagon facilities to DIDLAKE INC

Contract Overview

Contract Amount: $42,506,953 ($42.5M)

Contractor: Didlake Inc

Awarding Agency: Department of Defense

Start Date: 2022-05-27

End Date: 2026-12-31

Contract Duration: 1,679 days

Daily Burn Rate: $25.3K/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 $42.5 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 on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration spans over 4 years, suggesting a long-term need for these services. 3. The service area is extensive, covering multiple floors and buildings within the Pentagon complex. 4. The contract was not competed, raising questions about potential cost savings through competition. 5. The North American Industry Classification System (NAICS) code 561720 points to a standard janitorial services market. 6. The contract value is substantial, reflecting the scale and importance of maintaining the Pentagon's facilities.

Value Assessment

Rating: fair

The contract value of $42.5 million over approximately 4.5 years averages to about $9.4 million annually. Without specific benchmarks for janitorial services at comparable large federal facilities, it is difficult to definitively assess value for money. However, the firm-fixed-price structure provides cost certainty. The absence of competition may have prevented potentially lower pricing that could have been achieved through a competitive bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This approach limits the government's ability to solicit bids from multiple providers and potentially secure more favorable pricing or innovative solutions. The specific justification for the sole-source award is not provided in the data.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential services due to the lack of competitive pressure. A sole-source award bypasses the market's natural price discovery mechanisms.

Public Impact

The primary beneficiaries are the personnel working within the Pentagon, ensuring a clean and functional work environment. Essential janitorial and custodial services are delivered across a wide range of Pentagon facilities. The geographic impact is concentrated within Arlington, Virginia, at the Pentagon complex. The contract supports jobs within the custodial services sector, though specific workforce numbers are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source award raises concerns about transparency and potential for inflated pricing.
No data provided on contractor performance history or specific service quality metrics.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract (over 4 years) indicates a stable and ongoing need for services.
Extensive scope covers critical facilities within the Department of Defense headquarters.

Sector Analysis

The janitorial services industry is a significant component of the facilities management sector, characterized by a mix of large corporations and numerous small businesses. Federal contracts for these services are common across various agencies and facilities. While specific market size data for federal janitorial services is not readily available, the overall facilities management market is substantial. This contract represents a significant portion of spending within this niche for the Department of Defense, particularly for a single, high-profile location like the Pentagon.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information regarding subcontracting opportunities for small businesses (sb: false). This suggests that the primary contractor, DIDLAKE INC, is likely a larger entity, and the contract does not appear to have explicit provisions to benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contract management and inspection offices. As a definitive contract, it is subject to standard oversight mechanisms. However, the data does not specify the exact oversight bodies or detailed accountability measures in place. Transparency is limited by the sole-source nature of the award, with no public justification provided for bypassing competition.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Federal Janitorial and Custodial Services
General Services Administration (GSA) Schedules for Facilities Services
Pentagon Operations and Maintenance

Risk Flags

Sole-source award bypasses competitive bidding process.
Lack of transparency regarding justification for sole-source award.
Potential for non-competitive pricing.
No explicit small business subcontracting requirements mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 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 $42.5 million.

What is the period of performance?

Start: 2022-05-27. End: 2026-12-31.

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

Information regarding DIDLAKE INC's specific track record on government contracts is not provided in the data snippet. To assess their performance, one would need to review past performance evaluations, contract histories, and any reported disputes or awards. Without this context, it's difficult to gauge their reliability and quality of service for this significant Pentagon contract. Further research into federal procurement databases like SAM.gov or FPDS would be necessary to uncover their performance history and suitability for this role.

How does the annual cost of this contract compare to similar janitorial services at other large federal facilities?

The annual cost for this contract is approximately $9.4 million ($42.5M / ~4.5 years). Benchmarking this against similar facilities is challenging without specific data on the square footage, scope of services, and prevailing market rates for comparable federal buildings. Large, high-security facilities like the Pentagon may command higher service costs due to stringent requirements and operational complexities. However, the absence of competition makes a direct value-for-money assessment difficult. A comparative analysis would ideally involve looking at contracts for other major federal agency headquarters or large government complexes.

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

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may pay more than necessary for the services. Additionally, sole-source contracts can reduce transparency and limit opportunities for innovative solutions that might be offered by other qualified vendors. There's also a risk of vendor complacency if there's no ongoing threat of losing the contract to a competitor. Ensuring fair pricing and adequate service levels requires robust government oversight and negotiation in sole-source situations.

What is the expected impact of this contract on the operational effectiveness of the Pentagon?

This contract is crucial for maintaining the operational effectiveness of the Pentagon by ensuring a clean, safe, and functional working environment for thousands of personnel. Reliable janitorial services contribute to health and hygiene standards, prevent wear and tear on facilities, and support the overall morale and productivity of the workforce. The extensive scope covering multiple buildings and areas indicates a comprehensive approach to facility upkeep, which is vital for the smooth functioning of the Department of Defense's headquarters.

What has been the historical spending trend for janitorial services at the Pentagon prior to this contract?

The provided data does not include historical spending trends for janitorial services at the Pentagon. To analyze this, one would need access to previous contract awards for similar services at this location. Understanding past spending patterns would help determine if the current $42.5 million award represents an increase, decrease, or stable level of investment in these services over time. It would also provide context for evaluating the current contract's value and the impact of the sole-source award.

Are there specific performance metrics or service level agreements (SLAs) tied to this contract?

The provided data snippet does not detail specific performance metrics or Service Level Agreements (SLAs) associated with this contract. While it is a firm-fixed-price contract, the quality and timeliness of the janitorial services would typically be governed by contractual clauses outlining expected standards. Effective oversight would involve monitoring adherence to these standards. Without explicit mention of SLAs, it's assumed standard government contract performance expectations apply, but the specifics would need to be reviewed in the full contract document.

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: HQ003422R0039

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: $132,967,904

Exercised Options: $53,686,202

Current Obligation: $42,506,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline