Department of the Army awards $2.49M janitorial services contract to CW Resources, Inc. for New York facilities

Contract Overview

Contract Amount: $2,487,408 ($2.5M)

Contractor: CW Resources, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUILDINGS 10150, 20350, AND 795 DFA

Place of Performance

Location: FORT DRUM, JEFFERSON County, NEW YORK, 13602

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $2.5 million to CW RESOURCES, INC. for work described as: BUILDINGS 10150, 20350, AND 795 DFA Key points: 1. Contract value appears reasonable for the scope of janitorial services over a one-year period. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period is standard for this type of service contract. 5. This contract falls within the broader facilities maintenance and support services sector. 6. The award to a single entity suggests potential consolidation or specific capabilities required.

Value Assessment

Rating: fair

The contract value of approximately $2.49 million for one year of janitorial services across three specified buildings seems within a reasonable range for large-scale facilities. However, without specific details on the square footage, frequency of service, and scope of work, a precise value-for-money assessment is challenging. Benchmarking against similar large federal janitorial contracts in the New York region would be necessary for a more definitive comparison. The absence of competitive bidding limits the ability to confirm if the pricing reflects market rates or if a more cost-effective solution could have been secured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or capable of meeting the government's needs. The lack of competition means that potential cost savings that could arise from multiple bidders vying for the contract were not realized. This limits the government's ability to leverage market forces to ensure the most competitive pricing and potentially explore innovative service delivery methods.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the benefit of competitive pricing, potentially leading to a higher cost than if the contract had been competed among multiple qualified vendors.

Public Impact

The primary beneficiaries are the Department of the Army personnel and visitors at the New York facilities, who will experience maintained cleanliness and hygiene standards. The services delivered include comprehensive janitorial and custodial support for Buildings 10150, 20350, and 795 DFA. The geographic impact is localized to the specific military installations in New York where these buildings are located. The contract supports the operational readiness and professional appearance of the facilities, indirectly benefiting the military workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce opportunities for other capable vendors to secure government contracts.
Limited transparency in the justification for sole-source award could obscure potential inefficiencies.

Positive Signals

Contract ensures essential janitorial services are maintained for critical facilities.
Firm fixed-price contract type provides cost certainty for the government.
Award to CW Resources, Inc. likely leverages established service delivery capabilities.

Sector Analysis

This contract falls within the broader Facilities Support Services sector, specifically focusing on janitorial and cleaning services. This sector is characterized by a mix of large, established providers and smaller, specialized firms. Federal spending in this area is substantial, driven by the need to maintain a vast array of government buildings and installations nationwide. Benchmarks for janitorial services can vary significantly based on facility size, location, and the specific services required, but typically involve competitive bidding to ensure value.

Small Business Impact

The contract details indicate that this was not a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to CW Resources, Inc., a single entity, does not inherently signal opportunities for small businesses unless CW Resources, Inc. itself actively engages them. Further investigation into CW Resources, Inc.'s subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army administrative and facilities management departments. Accountability measures would be tied to the performance standards outlined in the contract's statement of work and delivery orders. Transparency is limited due to the sole-source nature and the lack of readily available public justification for this procurement method.

Related Government Programs

Federal Building Maintenance Contracts
Department of Defense Facilities Management
Janitorial Services for Government Facilities
Base Operations Support Contracts

Risk Flags

Sole-source award limits competition and potential value.
Lack of detailed performance metrics in public data.
Potential for higher costs due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.5 million to CW RESOURCES, INC.. BUILDINGS 10150, 20350, AND 795 DFA

Who is the contractor on this award?

The obligated recipient is CW RESOURCES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the specific justification provided by the Department of the Army for awarding this janitorial services contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to meet the agency's needs, or in rare cases, when a compelling urgency exists. For this contract, the Department of the Army would have had to document why other qualified vendors could not be considered. This could be due to highly specialized requirements, the need for continuity of service with a specific incumbent, or unique facility conditions. Without access to the contract file or official justification documents, the precise reasons remain unknown, which limits transparency and the ability to assess if competitive alternatives were truly unavailable.

How does the awarded price of $2.49 million compare to similar janitorial service contracts for federal facilities of comparable size and location in New York?

A direct comparison of the $2.49 million award for janitorial services to similar contracts is challenging without more granular data on the scope of work, square footage serviced, frequency of cleaning, and specific services included (e.g., specialized floor care, window cleaning). However, for large federal facilities in a high-cost-of-living area like New York, this annual figure is not inherently excessive. To provide a robust benchmark, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (like 561720 for janitorial services) awarded by agencies in the same geographic region. Factors such as the number of buildings, their condition, and the level of service required (e.g., high-traffic areas vs. administrative offices) significantly influence pricing. The lack of competition for this specific award makes it harder to ascertain if this price represents optimal value.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure service quality?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this janitorial services contract. Typically, such contracts include detailed requirements regarding cleanliness standards, response times for reported issues, waste management protocols, and inspection procedures. Performance would likely be monitored through regular site inspections, user feedback, and potentially automated tracking systems. Failure to meet these KPIs or SLAs could result in contractually defined remedies, such as price adjustments or corrective action plans. The effectiveness of oversight and the clarity of these performance metrics are crucial for ensuring the government receives the expected level of service quality and value for its investment.

What is the track record of CW Resources, Inc. in performing similar large-scale janitorial contracts for the federal government?

CW Resources, Inc. has a history of performing government contracts, including those related to facilities maintenance and services. Information regarding their specific track record on large-scale janitorial contracts would typically be available through federal procurement databases like SAM.gov or through past performance evaluations. Assessing their past performance would involve reviewing contract histories, any reported issues or disputes, customer satisfaction ratings, and their experience with similar contract types (e.g., firm-fixed-price) and scopes of work. A positive track record with similar contracts would lend confidence to their ability to execute this current award effectively, while any past performance issues would raise concerns about potential risks.

Are there any specific security or background check requirements for personnel performing janitorial services in these Department of the Army facilities?

Given that these services are being performed within Department of the Army facilities, it is highly probable that personnel employed by CW Resources, Inc. would be subject to specific security and background check requirements. The level of scrutiny typically depends on the facility's security designation and the areas the personnel will access. Standard procedures often involve background investigations to ensure personnel do not pose a security risk. This could range from basic checks for unescorted access to more thorough investigations for personnel requiring access to sensitive areas. The contract itself would stipulate these requirements, and compliance would be a condition of performance.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 MYRTLE ST, NEW BRITAIN, CT, 06053

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

Financial Breakdown

Contract Ceiling: $2,626,529

Exercised Options: $2,626,529

Current Obligation: $2,487,408

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124J21D0020

IDV Type: IDC

Timeline