DoD's $44M Janitorial Services Contract Awarded to DIDLAKE INC Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $44,159,666 ($44.2M)

Contractor: Didlake Inc

Awarding Agency: Department of Defense

Start Date: 2002-11-14

End Date: 2008-01-31

Contract Duration: 1,904 days

Daily Burn Rate: $23.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.2 million to DIDLAKE INC for work described as: Key points: 1. The contract's value of $44.16 million over its lifetime raises questions about cost-effectiveness given the lack of competitive bidding. 2. The sole-source award suggests potential missed opportunities for better pricing and service innovation through a competitive process. 3. A long contract duration of 1904 days (over 5 years) may indicate a need for regular performance reviews to ensure continued value. 4. The firm fixed-price contract type provides cost certainty but could limit flexibility if service needs evolve. 5. The absence of small business set-asides or subcontracting requirements warrants examination for potential impacts on smaller businesses. 6. The contract's performance context is within janitorial services, a sector with established market rates that could be used for benchmarking.

Value Assessment

Rating: questionable

Benchmarking the value of this $44.16 million janitorial services contract is challenging without comparable sole-source awards. However, the lack of competition inherently limits the government's ability to secure the best possible pricing. Firm fixed-price contracts can be efficient, but without competitive pressure, it's difficult to ascertain if DIDLAKE INC's pricing aligns with market rates for similar services. Further analysis would require detailed service scope and comparison to publicly available janitorial service costs in the Virginia region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses the standard procurement process where multiple vendors submit bids. While sole-source awards are permissible under specific circumstances (e.g., only one responsible source exists), they typically result in higher prices and reduced innovation compared to fully competed contracts. The lack of bidders means the government did not benefit from price discovery through a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competition. The government missed the opportunity to leverage market forces to drive down costs and potentially secure more favorable terms.

Public Impact

The primary beneficiaries of this contract are the facilities and personnel within the Department of Defense that require janitorial services. The contract delivers essential cleaning and maintenance services, contributing to a safe and sanitary working environment. Services are geographically concentrated in Virginia, impacting the local economy and workforce in that region. The contract supports jobs within the janitorial services sector, potentially benefiting a local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Long contract duration without re-competition could reduce incentive for contractor efficiency.
Sole-source awards can set a precedent for future non-competitive procurements.
Absence of small business participation requirements limits economic opportunities for smaller firms.

Positive Signals

Firm fixed-price contract provides budget certainty.
Contract awarded to a single entity simplifies management.
Long-term award suggests a stable, ongoing need for services.

Sector Analysis

Janitorial services fall under the broader facilities maintenance and management sector. This sector is characterized by a mix of large, established companies and numerous small businesses. Government contracts for these services are common across various agencies, supporting operational readiness and workplace environments. The market size for government janitorial services is substantial, with spending often influenced by facility size, location, and specific service requirements. Benchmarking against similar government contracts for janitorial services would typically involve analyzing contract value relative to square footage cleaned and frequency of service.

Small Business Impact

This contract does not appear to have included small business set-aside provisions, nor are there explicit indications of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate. This could mean that a significant portion of the contract value did not flow down to the small business ecosystem, potentially missing opportunities to foster growth and competition among smaller service providers.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) or the contracting officer's representative (COR) within the Department of Defense. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature and the lack of readily available public performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for Facilities Maintenance
Department of Defense Facilities Management Contracts
Commercial Janitorial Services Market

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.2 million to DIDLAKE INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is DIDLAKE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $44.2 million.

What is the period of performance?

Start: 2002-11-14. End: 2008-01-31.

What is the track record of DIDLAKE INC with federal contracts, particularly in janitorial services?

Information regarding DIDLAKE INC's specific track record with federal contracts, especially in janitorial services, is not detailed in the provided data. The data indicates a single, large definitive contract awarded in 2002. To assess their track record thoroughly, one would need to examine past performance reviews, any prior contract awards (federal or commercial), and their history of meeting delivery schedules and quality standards. A deeper dive into contract databases like FPDS-NG or SAM.gov could reveal more about their federal contracting history, including any potential issues or commendations.

How does the $44.16 million contract value compare to industry benchmarks for janitorial services of similar scope and duration?

Directly comparing the $44.16 million value without a detailed scope of work (e.g., square footage, frequency of cleaning, specific services like floor waxing or window washing) is difficult. However, for a contract spanning approximately five years (1904 days), this represents an average annual value of roughly $8.83 million. This figure would need to be benchmarked against the cost per square foot or cost per facility for similar government or large commercial janitorial contracts in the Virginia region. Given it was sole-sourced, there's a strong possibility this value is higher than what could have been achieved through competitive bidding, as market competition typically drives prices down.

What specific justifications were provided for awarding this contract on a sole-source basis?

The provided data simply states 'NOT COMPETED' and 'sole-source' without detailing the specific justification. Federal regulations (like the FAR) allow for sole-source procurements under limited circumstances, such as when only one responsible source can satisfy the requirement, or in cases of urgent need where competition is not feasible. Without access to the contract file or justification documentation (e.g., a Justification and Approval - J&A document), it's impossible to know the precise reasons. Common justifications include unique capabilities, proprietary technology, or the expiration of a previous contract where a transition to a new vendor would be impractical or excessively costly.

What are the potential risks associated with a long-term, sole-source contract for janitorial services?

The primary risks associated with a long-term, sole-source contract for janitorial services include potential cost overruns due to a lack of competitive pricing pressure, reduced service quality over time if performance monitoring is lax, and a lack of innovation. The contractor may have less incentive to improve efficiency or adopt new technologies if they are guaranteed the business for an extended period without competition. Furthermore, if the contractor's performance deteriorates significantly, the government faces challenges in switching providers mid-contract without incurring substantial costs or disruptions, especially if the sole-source justification was based on unique capabilities.

How has federal spending on janitorial services evolved over time, and does this contract represent a significant portion of that spending?

Federal spending on janitorial services is a consistent and significant component of overall facilities maintenance budgets across numerous agencies. While this specific $44.16 million contract is substantial for a single award, it represents a fraction of the total federal expenditure on such services nationwide. Historical spending patterns show a continuous need for these services, often managed through a mix of large indefinite-delivery/indefinite-quantity (IDIQ) contracts, schedule contracts, and individual competitive or sole-source awards. Analyzing trends would require looking at aggregate spending data for NAICS code 561720 (Janitorial Services) across the government over several fiscal years.

What performance metrics or oversight mechanisms were likely in place to ensure DIDLAKE INC met the contract's requirements?

For a contract of this magnitude and duration, standard oversight mechanisms would likely include a Contracting Officer's Representative (COR) responsible for monitoring performance, ensuring compliance with the Statement of Work (SOW), and approving invoices. Performance metrics would be defined in the SOW and could include standards for cleanliness, response times for service requests, adherence to safety protocols, and employee conduct. Regular performance evaluations, possibly using a Contractor Performance Assessment Reporting System (CPARS), would be crucial. However, the effectiveness of these mechanisms is often amplified by competitive pressure, which is absent in a sole-source award.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8641 BREEDEN AVE, MANASSAS, VA, 20110

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline