DoD's $22M Custodial Services Contract with DIDLAKE INC Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $21,983,740 ($22.0M)
Contractor: Didlake Inc
Awarding Agency: Department of Defense
Start Date: 2015-03-30
End Date: 2020-04-15
Contract Duration: 1,843 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF CUSTODIAL SERVICES-HQ
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to DIDLAKE INC for work described as: IGF::OT::IGF CUSTODIAL SERVICES-HQ Key points: 1. The contract awarded to DIDLAKE INC for custodial services is valued at $21.98 million over its duration. 2. The contract was not available for competition, raising questions about potential price inflation and lack of market testing. 3. The fixed-price contract type offers some cost certainty, but the absence of competition limits the ability to assess true market value. 4. The sector is Facilities Support Services, a common area for government contracting.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without competitive benchmarks. Given the lack of competition, it's questionable whether the $21.98 million represents a fair market price for janitorial services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This significantly impacts price discovery, as there was no active bidding process to drive down costs or ensure the best value.
Taxpayer Impact: The lack of competition may have resulted in taxpayers paying more than necessary for these custodial services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding for essential janitorial services. The long duration of the contract (over 5 years) limits opportunities for re-evaluation and potential cost savings. The Department of Defense relies on these services, making their cost and effectiveness crucial for operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration without re-competition
Positive Signals
- Fixed-price contract type provides some cost predictability
Sector Analysis
This contract falls within the Facilities Support Services sector, which includes a wide range of maintenance and operational services for government buildings. Spending in this sector is substantial, and competitive bidding is typically expected to ensure value.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation warrants further oversight to ensure the justification was sound and that opportunities for future competition are explored.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification for limited competition
- Long contract duration without re-competition
Tags
janitorial-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to DIDLAKE INC. IGF::OT::IGF CUSTODIAL SERVICES-HQ
Who is the contractor on this award?
The obligated recipient is DIDLAKE INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2015-03-30. End: 2020-04-15.
What was the specific justification for limiting competition on this $22 million custodial services contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' but does not detail the specific justification. Typically, such limitations require a strong rationale, such as unique capabilities, urgent needs, or specific circumstances. Without this justification, it's difficult to assess the validity of the sole-source award and its impact on value.
How does the $21.98 million contract value compare to industry benchmarks for similar janitorial services in Virginia?
Benchmarking this contract's value is challenging without more granular data on the scope of services, square footage, and specific tasks performed. However, a $22 million expenditure over five years for janitorial services is substantial. A competitive process would have provided a clearer indication of fair market value against industry standards.
What measures are in place to ensure the effectiveness and quality of custodial services provided by DIDLAKE INC under this contract?
While the contract type is fixed-price, ensuring service quality relies on robust performance monitoring and quality assurance processes by the Defense Logistics Agency. The data does not specify these oversight mechanisms, but effective contract management is crucial to guarantee that the services meet DoD standards despite the lack of competition.
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: SP470515R2003
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: $21,983,740
Exercised Options: $21,983,740
Current Obligation: $21,983,740
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2015-03-30
Current End Date: 2020-04-15
Potential End Date: 2020-04-15 00:00:00
Last Modified: 2020-04-13
More Contracts from Didlake Inc
- Custodial Services AT the Pentagon (1ST, 3RD, 4TH, 5TH, BS, MZ) — $74.1M (Department of Defense)
- Federal Contract — $44.2M (Department of Defense)
- Abilityone Custodial Services, Pentagon (floors 1, 5, Basement, Mezzanine, Pentagon Library and Conference Center, North Village/Compound, Pentagon Athletic Center) — $42.5M (Department of Defense)
- Custodial Services — $39.5M (Department of Defense)
- Forrestal Janitorial Contract — $27.0M (Department of Energy)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)