Army awards $12.8M custodial services contract to Global Connections to Employment, Inc. at Fort Knox

Contract Overview

Contract Amount: $12,870,592 ($12.9M)

Contractor: Global Connections to Employment, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-01-31

Contract Duration: 548 days

Daily Burn Rate: $23.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL SUPPORT SERVICES AT FT. KNOX

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC. for work described as: CUSTODIAL SUPPORT SERVICES AT FT. KNOX Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the government. 2. The contract duration is 548 days, indicating a medium-term service requirement. 3. Awarded to a single vendor, raising questions about the extent of competition. 4. The service falls under janitorial services, a common and essential facility support function. 5. The contract is notated as 'NOT COMPETED UNDER SAP', suggesting it may have bypassed standard competitive procedures for smaller acquisitions. 6. The vendor, Global Connections to Employment, Inc., is the sole awardee. 7. The contract is a definitive contract, implying a standard agreement for services.

Value Assessment

Rating: fair

Benchmarking the value of this custodial services contract is challenging without more detailed service requirements and performance metrics. The firm-fixed-price structure helps control costs, but the lack of competition could lead to suboptimal pricing. Comparing this $12.8 million award over approximately 1.5 years to similar large-scale custodial contracts at military installations would be necessary to assess value for money. Without market data on per-square-foot cleaning costs or labor rates for the region, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was not competed under the Simplified Acquisition Procedures (SAP), and the specific competition method is not detailed. The 'NOT COMPETED UNDER SAP' notation suggests it might have been awarded through other non-competitive or limited-source procedures. Without further information on the solicitation process, it's impossible to determine the number of bidders or the level of competition achieved. This lack of transparency in the procurement process hinders a full assessment of its competitiveness.

Taxpayer Impact: A lack of robust competition can potentially lead to higher prices for taxpayers, as the government may not benefit from the most cost-effective solutions offered by a wider pool of vendors.

Public Impact

The primary beneficiaries are the Department of the Army and personnel at Fort Knox, who will receive essential custodial support services. The contract ensures a clean and sanitary environment within the facilities at Fort Knox, Kentucky. The geographic impact is localized to Fort Knox, Kentucky. The contract supports employment through the awarded vendor, Global Connections to Employment, Inc., though specific workforce implications are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear competition details may indicate potential for higher costs.
Limited transparency in the procurement process raises concerns about best value.
Firm-fixed-price contracts can sometimes disincentivize contractor innovation if not managed carefully.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Awarding to a single vendor simplifies contract administration.
Ensures essential facility maintenance services are provided.

Sector Analysis

Custodial services represent a significant segment within the broader facilities management and support services industry. This sector is characterized by a mix of large, established providers and smaller, specialized firms. Government contracts for custodial services are common across federal agencies, particularly for maintaining large installations like military bases. Spending benchmarks for such services can vary widely based on facility size, type, geographic location, and the specific scope of work (e.g., standard cleaning vs. specialized bio-cleaning).

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). There is no information provided regarding subcontracting plans or set-asides for small businesses. This suggests that the primary focus of this procurement was not on engaging the small business ecosystem, and opportunities for small business subcontractors may be limited unless initiated by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and facility management divisions. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services to an acceptable standard. Transparency is limited by the lack of detailed competition information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Services
Facility Maintenance and Repair Contracts
Government Janitorial Services
Department of Defense Support Contracts

Risk Flags

Lack of Competition
Limited Transparency in Procurement
Potential for Suboptimal Pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC.. CUSTODIAL SUPPORT SERVICES AT FT. KNOX

Who is the contractor on this award?

The obligated recipient is GLOBAL CONNECTIONS TO EMPLOYMENT, 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 $12.9 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-01-31.

What is the track record of Global Connections to Employment, Inc. with federal contracts, particularly for custodial services?

Information regarding the specific track record of Global Connections to Employment, Inc. for federal contracts, especially in custodial services, is not provided in the given data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review past performance evaluations, contract history, and any reported issues or successes. Understanding their experience with similar-sized contracts and their performance metrics on previous government engagements is crucial for assessing reliability and capability. Without this historical data, it's difficult to gauge their proven ability to meet the demands of this $12.8 million Fort Knox contract effectively.

How does the awarded price compare to market rates for similar custodial services in Kentucky?

The provided data does not include sufficient detail to benchmark the awarded price against market rates. Key factors such as the square footage of facilities to be cleaned, the frequency of cleaning, specific services included (e.g., deep cleaning, waste removal, disinfection), and labor costs in the Fort Knox, Kentucky region are missing. To perform a meaningful comparison, one would need to gather data on per-square-foot cleaning costs, average hourly wages for custodial staff in the area, and typical overhead/profit margins for janitorial service providers in Kentucky. Without these granular details, assessing whether $12.8 million over approximately 1.5 years represents a competitive market price is speculative.

What are the specific risks associated with awarding a large custodial contract without clear evidence of robust competition?

The primary risk associated with awarding a large contract like this without clear evidence of robust competition is the potential for paying a higher price than necessary. When a contract is not openly competed, the government may not benefit from the price reductions and service innovations that typically arise from a competitive bidding process. This can lead to suboptimal value for taxpayer dollars. Additionally, a lack of competition can reduce the incentive for the awarded contractor to maintain high performance standards over the contract's duration, as alternative providers are not readily available. This situation could also limit future flexibility if the government decides to re-compete the service.

How effective are firm-fixed-price contracts in ensuring quality service delivery for custodial needs?

Firm-fixed-price (FFP) contracts are generally effective in ensuring quality service delivery for predictable needs like custodial services, provided the scope of work is well-defined. The FFP structure establishes a set price, incentivizing the contractor to manage costs efficiently while meeting the specified performance standards. For custodial services, this means the contractor is motivated to perform the required cleaning tasks within budget to maximize profit. However, the effectiveness hinges on clear performance work statements (PWS) and robust government oversight to ensure standards are met. If the PWS is vague or oversight is weak, the contractor might cut corners to increase profit, potentially impacting quality despite the FFP structure.

What is the historical spending pattern for custodial services at Fort Knox or similar Army installations?

The provided data does not offer historical spending patterns for custodial services at Fort Knox or similar Army installations. To analyze this, one would need to research past contracts for these services at the installation or comparable bases. This would involve examining contract values, durations, awardees, and competition levels over several years. Understanding historical spending can reveal trends in contract costs, identify potential cost savings or increases, and highlight shifts in procurement strategies (e.g., moving from competitive to sole-source awards). Without this historical context, it's difficult to assess if the current $12.8 million award is consistent with past investments or represents a significant deviation.

Are there any specific performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not specify the performance metrics or service level agreements (SLAs) associated with this custodial services contract. While the contract is firm-fixed-price, the quality and extent of services delivered are typically governed by a Performance Work Statement (PWS) or similar document. This document would outline the specific tasks, standards, and metrics the contractor must meet. Without access to the PWS, it is impossible to determine how performance will be measured, what constitutes acceptable quality, or what remedies exist for non-performance. Robust SLAs are critical for ensuring the government receives the expected value and maintains sanitary conditions.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W9124D24R0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1221 W LAKEVIEW AVE BLDG A, PENSACOLA, FL, 32501

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: $14,184,725

Exercised Options: $14,184,725

Current Obligation: $12,870,592

Actual Outlays: $1,727,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline