DoD's $78M Janitorial Services Contract Awarded to Huntsville Rehabilitation Foundation Raises Questions
Contract Overview
Contract Amount: $78,390,424 ($78.4M)
Contractor: Huntsville Rehabilitation Foundation
Awarding Agency: Department of Defense
Start Date: 2015-11-01
End Date: 2020-10-31
Contract Duration: 1,826 days
Daily Burn Rate: $42.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF CUSTODIAL SERVICE "B"
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $78.4 million to HUNTSVILLE REHABILITATION FOUNDATION for work described as: IGF::CL::IGF CUSTODIAL SERVICE "B" Key points: 1. Significant contract value of $78.4 million over five years. 2. Sole-source award to Huntsville Rehabilitation Foundation lacks competitive bidding. 3. Potential for inflated costs due to limited competition. 4. Focus on janitorial services within the Defense sector.
Value Assessment
Rating: questionable
The contract value of $78.4 million for janitorial services over five years appears high, especially given the lack of competition. Benchmarking against similar government contracts for janitorial services would be necessary to determine if the pricing is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award likely results in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be overpaying for janitorial services due to the absence of competitive bidding. The long-term nature of the contract (five years) locks in potential inefficiencies. Limited transparency into the justification for a sole-source award for janitorial services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value for services
Positive Signals
- Contract awarded to a rehabilitation foundation, potentially supporting a social mission.
Sector Analysis
The Department of Defense frequently contracts for a wide range of support services, including janitorial services. Spending benchmarks for such services can vary widely based on location, scope, and contract type, but a $78 million sole-source award warrants scrutiny.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to perform these services.
Oversight & Accountability
The sole-source nature of this award raises questions about the oversight process and whether alternative, more competitive options were adequately explored. Robust justification for sole-source awards is crucial for accountability.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- High contract value for janitorial services warrants further investigation.
- Potential for taxpayer overpayment due to limited competition.
- Long contract duration may obscure performance issues.
Tags
janitorial-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.4 million to HUNTSVILLE REHABILITATION FOUNDATION. IGF::CL::IGF CUSTODIAL SERVICE "B"
Who is the contractor on this award?
The obligated recipient is HUNTSVILLE REHABILITATION FOUNDATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $78.4 million.
What is the period of performance?
Start: 2015-11-01. End: 2020-10-31.
What is the specific justification for awarding this janitorial services contract on a sole-source basis to Huntsville Rehabilitation Foundation?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available, or in cases of urgent need. Without this information, it's difficult to assess the validity of the procurement method and its impact on value for money.
How does the $78.4 million contract value compare to industry benchmarks for similar janitorial services provided to large government facilities?
Benchmarking this $78.4 million contract against industry standards for janitorial services is challenging without more specific details on the scope of work, square footage, service frequency, and geographic location. However, the absence of competition suggests the price may not be optimized, potentially exceeding typical market rates for comparable services.
What mechanisms are in place to ensure the effectiveness and quality of janitorial services provided under this sole-source contract?
While the data indicates a firm-fixed-price contract, which shifts some risk to the contractor, the lack of competition means oversight is critical for ensuring service quality. The Department of Defense would typically rely on contract performance monitoring, quality assurance surveillance plans, and regular inspections to ensure the contractor meets the required standards.
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: W9124P15R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2939 JOHNSON RD SW, 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: $81,836,490
Exercised Options: $81,740,930
Current Obligation: $78,390,424
Actual Outlays: $3,820,299
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2015-11-01
Current End Date: 2020-10-31
Potential End Date: 2020-10-31 00:00:00
Last Modified: 2025-04-21
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