National Gallery of Art Awarded a Contract to DANCO INCORPORATED for $5,530,467.90

Summary of Award

**Summary of the Government Contract with DANCO INCORPORATED**

On August 22, 2018, the National Gallery of Art, through its Procurement Contracts Office, signed a significant indefinite delivery/definite quantity (IDV) contract with DANCO INCORPORATED, a corporate entity based in Chantilly, Virginia. This contract, identified by the award ID "CONT_IDV_33301118DFI1919TW_3355" and the PIID "33301118DFI1919TW," pertains to carpet replacement services within the scope of housekeeping and related functions.

The contract awarded to DANCO falls under the category of "housekeeping - carpet laying/cleaning," with a product or service code (PSC) of S214. It is classified under the North American Industry Classification System (NAICS) code 238330, which is specifically associated with flooring contractors. These classifications highlight the technical nature of the contract, centered on the provision of specialized flooring services within public spaces. The agreement represents a firm fixed price arrangement, a common contract type that fixes payment at an agreed sum, regardless of the actual costs incurred. This pricing model is beneficial for the government as it minimizes the risk of cost overruns while ensuring the contractor, in this case, DANCO, manages its expenses efficiently to remain profitable. The contract has a detailed structure with a performance period starting on August 24, 2018, and extending through August 23, 2024. This six-year span underscores the ongoing nature of the carpet replacement and maintenance services required by the National Gallery of Art, reflecting a long-term commitment to facility maintenance and aesthetic upkeep. Although the total obligation for the contract at signing was zero, the contract's value including base and all possible options is estimated at $5,530,467.90. This reflects the full potential commitment from the government for the duration of the agreement, contingent upon the need for services and availability of funding throughout the specified term. From the procurement perspective, the solicitation process brought three offers, indicating a competitive environment and adherence to "full and open competition" practices. In this context, "full and open competition" ensures that government contracts are accessible to a wide range of bidders, helping to foster fair and equitable opportunities for businesses. This contract was not set aside for any specific type of business, which implies that all qualifying entities had the opportunity to compete. DANCO INCORPORATED emerged as the successful bidder, and the contract was not subject to any special preferences or initiatives, such as small business or minority business set-asides. Classified as a "corporate entity not tax exempt" and a "small business," DANCO stands out due to its status as a U.S.-owned business, structured as a Subchapter S Corporation. This structure allows earnings and profits to be passed directly to shareholders without being subject to corporate tax rates, thus supporting business financial health. DANCO’s operational base is situated at 3856 Dulles South Court, Ste F, Chantilly, VA 20151 in Fairfax County. The location signifies the strategic position accommodating government operational centers, including those that may fall under the jurisdiction of the National Gallery of Art. Being centrally located in Northern Virginia, DANCO can effectively serve a range of governmental clients efficiently. Despite the significant financial implications and strategic importance of the contract, details regarding transactions associated with this award are not provided in the data. The absence of transactional data could imply that specific orders under the IDV contract might not yet be executed, or the data compilation is pending further updates. Additionally, the contracting process did not involve labor standards specifications or specific construction wage rates applicability, likely due to the nature of the work being classified as maintenance rather than construction. Furthermore, aspects related to interagency contracting authority were noted but deemed "not applicable," indicating that the services required under this contract are primarily intended for the designated awarding agency—the National Gallery of Art. In summary, this contract documented between the National Gallery of Art and DANCO INCORPORATED is a strategic engagement centered on maintaining the museum's facilities through specialized carpet services over six years. It reflects significant governmental investment in maintaining quality and standards within public institutional settings while ensuring competitive procurement practices and effective financial management through a firm fixed price structure.