Missile Defense Agency awards $43.3M janitorial services contract to Huntsville Rehabilitation Foundation, a non-competitive sole-source award

Contract Overview

Contract Amount: $43,340,433 ($43.3M)

Contractor: Huntsville Rehabilitation Foundation

Awarding Agency: Department of Defense

Start Date: 2020-06-01

End Date: 2025-06-30

Contract Duration: 1,855 days

Daily Burn Rate: $23.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MANAGEMENT, SUPERVISION, EQUIPMENT AND SUPPLIES REQUIRED TO OPERATE MDA CUSTODIAL SERVICES IN MULTIPLE LOCATIONS TO MAINTAIN FACILITIES WITH A PROFESSIONAL APPEARANCE.

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $43.3 million to HUNTSVILLE REHABILITATION FOUNDATION for work described as: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MANAGEMENT, SUPERVISION, EQUIPMENT AND SUPPLIES REQUIRED TO OPERATE MDA CUSTODIAL SERVICES IN MULTIPLE LOCATIONS TO MAINTAIN FACILITIES WITH A PROFESSIONAL APPEARANCE. Key points: 1. Contract awarded to a non-profit organization focused on employing individuals with disabilities. 2. The contract value represents a significant investment in facility maintenance for the MDA. 3. Sole-source award indicates limited competition, potentially impacting price negotiation. 4. Contract duration of over five years suggests a long-term need for these services. 5. The firm-fixed-price structure shifts cost risk to the contractor. 6. Performance is expected across multiple MDA locations, requiring broad logistical capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this janitorial services contract is challenging due to its sole-source nature and the specific mission of the contractor. While the total award amount is substantial, the per-year cost appears reasonable for comprehensive facility maintenance across multiple locations. Without competitive bids, it's difficult to definitively assess if this represents the best possible value for the government. However, the contractor's social mission may justify a premium or different evaluation criteria.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is often used when a specific capability or unique circumstance justifies bypassing full and open competition. In this case, the contractor's mission to employ individuals with disabilities is likely the primary driver for the sole-source designation. The lack of competition means that price discovery through market forces was not utilized.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. However, the award supports a social mission that aligns with government objectives for employing individuals with disabilities.

Public Impact

Individuals with disabilities employed by the Huntsville Rehabilitation Foundation benefit through job opportunities and skills development. The Missile Defense Agency facilities will receive professional custodial services, ensuring a safe and presentable working environment. The contract supports operations across multiple MDA locations, contributing to the agency's overall mission readiness. The contract has positive workforce implications by creating and sustaining employment for a vulnerable population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits opportunities for cost savings through market forces.
Sole-source awards can set a precedent for future non-competitive procurements if not carefully justified.
Ensuring consistent service quality across multiple, potentially geographically dispersed, locations requires robust contractor oversight.

Positive Signals

Supports a contractor with a strong social mission to employ individuals with disabilities.
Firm-fixed-price contract shifts cost risk to the contractor, providing budget certainty.
Long-term contract (over 5 years) indicates a stable and ongoing need for these essential services.

Sector Analysis

The janitorial services sector is a mature market with numerous providers. However, this contract falls under government services procurement, specifically supporting a defense agency. Government contracts for custodial services often involve large-scale operations and specific security or clearance requirements. The value of this contract is significant within the context of facility support services for a major defense organization.

Small Business Impact

This contract was awarded to the Huntsville Rehabilitation Foundation, a non-profit organization, and does not appear to include a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The focus on employing individuals with disabilities by the prime contractor may influence the overall small business ecosystem engagement.

Oversight & Accountability

Oversight for this contract would typically reside with the Missile Defense Agency's contracting office and program managers. Accountability measures would be defined in the contract's performance work statement, with regular inspections and performance reviews. Transparency is generally maintained through contract award databases, though the specifics of performance monitoring are internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for custodial services
Department of Defense facility maintenance contracts
Other agency contracts for janitorial and cleaning services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for performance variability across multiple locations.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.3 million to HUNTSVILLE REHABILITATION FOUNDATION. THE CONTRACTOR SHALL PROVIDE ALL LABOR, MANAGEMENT, SUPERVISION, EQUIPMENT AND SUPPLIES REQUIRED TO OPERATE MDA CUSTODIAL SERVICES IN MULTIPLE LOCATIONS TO MAINTAIN FACILITIES WITH A PROFESSIONAL APPEARANCE.

Who is the contractor on this award?

The obligated recipient is HUNTSVILLE REHABILITATION FOUNDATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $43.3 million.

What is the period of performance?

Start: 2020-06-01. End: 2025-06-30.

What is the track record of the Huntsville Rehabilitation Foundation in performing similar government contracts?

Information regarding the Huntsville Rehabilitation Foundation's specific track record with government contracts, particularly for janitorial services of this scale, is not detailed in the provided data. As a non-profit organization with a social mission, their performance history would need to be evaluated against their mission objectives and contractual requirements. A review of past performance evaluations, if available through federal procurement databases (like SAM.gov or FPDS), would be necessary to fully assess their capabilities and reliability in fulfilling this significant contract for the Missile Defense Agency. The sole-source nature of this award suggests that either they are the only entity capable of fulfilling the unique requirements or that the agency has prior positive experience with them.

How does the annual cost of this contract compare to industry benchmarks for similar services?

The total contract value is $43,340,432.82 over approximately five years (June 1, 2020, to June 30, 2025), equating to roughly $8.67 million per year. Benchmarking this against industry standards for janitorial services is complex due to the sole-source award and the specific context of supporting a defense agency like the MDA. General industry data for commercial janitorial services might not fully capture the scope, security requirements, and specialized needs of a government facility. However, for large-scale, multi-location facility maintenance contracts, this annual figure could be considered within a reasonable range, provided the scope of work is comprehensive. Without competitive bids, a precise value-for-money assessment relative to market rates is difficult.

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

The primary risks associated with a sole-source award for essential facility services like janitorial support include a lack of price competition, which can lead to higher costs for the government compared to a competitively bid contract. There's also a potential for reduced incentive for the contractor to innovate or improve efficiency, as they face no direct market pressure from competitors. Furthermore, reliance on a single provider can create vulnerability if the contractor experiences performance issues, financial instability, or decides to terminate the contract, potentially disrupting essential operations. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations.

How does the contractor's mission to employ individuals with disabilities align with government procurement goals?

The government actively promotes the employment of individuals with disabilities through various initiatives and set-aside programs. The Javits-Wagner-O'Day (JWOD) Act, now managed under the AbilityOne program, directs federal agencies to purchase specific products and services from non-profit agencies that employ individuals with significant disabilities. While this contract is noted as 'NOT COMPETED' and the contractor is 'HUNTSVILLE REHABILITATION FOUNDATION', it strongly suggests alignment with these government objectives. Awarding contracts to such organizations not only fulfills essential service needs but also supports social equity, workforce inclusion, and provides meaningful employment opportunities for a population that often faces barriers to employment.

What is the expected impact of this contract on the Huntsville Rehabilitation Foundation's operations and mission?

This substantial contract, valued at over $43 million, is expected to have a significant positive impact on the Huntsville Rehabilitation Foundation's operations and its ability to fulfill its mission. It provides a stable, long-term revenue stream that enables the organization to sustain and potentially expand its employment programs for individuals with disabilities. The scale of the contract likely necessitates growth in staffing, training, and operational infrastructure for the foundation. Successfully executing this contract will enhance the foundation's reputation and capacity, potentially positioning it for future large-scale government or commercial contracts, thereby furthering its social objectives.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ085820R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2939 JOHNSON RD, HUNTSVILLE, AL, 35805

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,788,652

Exercised Options: $45,788,652

Current Obligation: $43,340,433

Actual Outlays: $9,919,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline