DoD Awards $67M Firm Fixed Price Contract for Custodial Services to Huntsville Rehabilitation Foundation
Contract Overview
Contract Amount: $66,953,547 ($67.0M)
Contractor: Huntsville Rehabilitation Foundation
Awarding Agency: Department of Defense
Start Date: 2020-11-01
End Date: 2026-04-30
Contract Duration: 2,006 days
Daily Burn Rate: $33.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CUSTODIAL SERVICE BASIC (B) NEW CONTRACT FOR CUSTODIAL
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $67.0 million to HUNTSVILLE REHABILITATION FOUNDATION for work described as: CUSTODIAL SERVICE BASIC (B) NEW CONTRACT FOR CUSTODIAL Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. The contract value is substantial for janitorial services. 3. Limited competition could impact price discovery and value for taxpayers. 4. The sector is general services, with specific NAICS code 561720.
Value Assessment
Rating: fair
The contract value of $67M over its period is significant for custodial services. Benchmarking against similar contracts is difficult without more detailed service scope and location data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source approach. This limits the government's ability to solicit competitive bids and potentially secure lower prices.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competitive procurement.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The contract supports a specific organization, potentially aligning with social or economic objectives. Long-term contract duration (2026) indicates a sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for service type
Positive Signals
- Potential support for a specific organization
Sector Analysis
This contract falls within the general services sector, specifically janitorial services (NAICS 561720). Spending benchmarks for custodial services vary widely based on facility size, location, and service intensity.
Small Business Impact
The data indicates the awardee is Huntsville Rehabilitation Foundation. Further analysis would be needed to determine if this organization qualifies as a small business or if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract's limited competition status warrants oversight to ensure fair pricing and performance. The Department of the Army is the contracting agency.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- High contract value
- Lack of detailed service scope for benchmarking
- Firm Fixed Price contract type may not be optimal for all service variations
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 $67.0 million to HUNTSVILLE REHABILITATION FOUNDATION. CUSTODIAL SERVICE BASIC (B) NEW CONTRACT FOR CUSTODIAL
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 $67.0 million.
What is the period of performance?
Start: 2020-11-01. End: 2026-04-30.
What is the justification for limiting competition on this custodial services contract?
The justification for limiting competition is not provided in the data. Typically, justifications include factors like urgency, unique capabilities, or specific socio-economic program requirements. Without this information, it's difficult to assess if the limited competition is warranted or if it represents a missed opportunity for cost savings through a broader bidding process.
How does the per-unit cost of these custodial services compare to industry benchmarks, considering the contract's scope?
A direct per-unit cost comparison is not feasible with the provided data. The total contract value is $67M, with a base of $33.3M. To benchmark effectively, we would need details on the square footage serviced, frequency of services, specific tasks performed (e.g., deep cleaning, waste management), and geographic locations covered.
What is the potential impact on service quality and efficiency given the contract's structure?
The impact on service quality and efficiency is uncertain without knowing the specific performance metrics and Service Level Agreements (SLAs) in the contract. A firm fixed-price contract generally incentivizes the contractor to control costs, which could potentially lead to efficiency gains. However, a lack of competition might reduce the pressure to innovate or exceed basic service requirements.
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: W9124P20R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2939 JOHNSON RD, 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: $117,989,529
Exercised Options: $117,989,529
Current Obligation: $66,953,547
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-11-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-09
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