State Department Awards $86.4M Task Order to HCI Management Services for Facilities Support

Contract Overview

Contract Amount: $86,408,632 ($86.4M)

Contractor: HCI Management Services Company

Awarding Agency: Department of State

Start Date: 2019-09-30

End Date: 2025-03-31

Contract Duration: 2,009 days

Daily Burn Rate: $43.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INCREMENTALLY FUND FTO TASK ORDER

Place of Performance

Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071

State: Nebraska Government Spending

Plain-Language Summary

Department of State obligated $86.4 million to HCI MANAGEMENT SERVICES COMPANY for work described as: INCREMENTALLY FUND FTO TASK ORDER Key points: 1. Significant contract value of $86.4 million over five years. 2. Limited competition due to 'NOT AVAILABLE FOR COMPETITION' designation. 3. Potential risk associated with time and materials pricing model. 4. Facilities Support Services sector, NAICS 561210, is a common area for government contracting.

Value Assessment

Rating: questionable

The contract is a Time and Materials (T&M) type, which can lead to cost overruns if not managed carefully. Without a fixed price or ceiling, it's difficult to assess value against similar contracts without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is designated as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of robust competition and the T&M pricing structure may result in higher overall costs for the taxpayer compared to a competitively bid fixed-price contract.

Public Impact

Taxpayers may be paying more than necessary due to limited competition. The long duration of the contract (ending 2025) means sustained potential for cost inefficiencies. Lack of transparency in pricing for facilities support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Time and Materials pricing
Lack of detailed cost data

Positive Signals

Long-term contract provides stability for services
Services are essential for agency operations

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a wide range of services necessary for the operation and maintenance of government facilities. Spending in this sector is substantial across federal agencies.

Small Business Impact

There is no indication of small business participation in this contract. The awardee, HCI Management Services Company, is not identified as a small business. Further analysis would be needed to determine if subcontracting opportunities were offered to small businesses.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' designation warrants closer oversight to ensure the justification for limited competition is valid and that pricing is reasonable. Regular performance reviews are crucial for T&M contracts.

Related Government Programs

Facilities Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of competitive bidding may lead to inflated prices.
Limited transparency in cost breakdown.
Long contract duration increases exposure to potential inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $86.4 million to HCI MANAGEMENT SERVICES COMPANY. INCREMENTALLY FUND FTO TASK ORDER

Who is the contractor on this award?

The obligated recipient is HCI MANAGEMENT SERVICES COMPANY.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $86.4 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-03-31.

What is the specific justification for awarding this contract on a limited competition basis?

The provided data states 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source award or a situation where only one responsible source can fulfill the requirement. A detailed justification, often found in contract award documents, would explain why full and open competition was not feasible, such as unique capabilities, urgent needs, or specific security requirements.

How can the agency ensure cost control with a Time and Materials contract?

The Department of State can implement stringent oversight mechanisms, including detailed review of labor hours and material costs, regular performance evaluations, and potentially establishing cost ceilings or incentivizing efficiency. Clear performance metrics and regular communication with the contractor are vital to manage costs effectively under a T&M contract.

What is the potential impact on service quality given the pricing structure and competition level?

While limited competition and T&M pricing can raise cost concerns, they do not inherently dictate service quality. The agency must have robust performance standards and monitoring in place. If the contractor is incentivized and managed effectively, quality can be maintained or even improved. However, without competitive pressure, there's a risk of complacency if oversight is weak.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ho-Chunk, Inc.

Address: 1 MISSION DR, WINNEBAGO, NE, 68071

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $86,408,632

Exercised Options: $86,408,632

Current Obligation: $86,408,632

Actual Outlays: $32,914,931

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 19AQMM19D0150

IDV Type: IDC

Timeline