State Department Awards $31.9M Staffing Contract to HCI Management Services Company
Contract Overview
Contract Amount: $31,892,474 ($31.9M)
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: $15.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: STAFFING CONTRACT FOR FASTC&NCR
Place of Performance
Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071
State: Nebraska Government Spending
Plain-Language Summary
Department of State obligated $31.9 million to HCI MANAGEMENT SERVICES COMPANY for work described as: STAFFING CONTRACT FOR FASTC&NCR Key points: 1. Contract awarded for facilities support services, indicating a need for operational assistance. 2. HCI Management Services Company is the sole awardee, raising questions about competition. 3. The contract spans nearly six years, suggesting a long-term requirement. 4. The Time and Materials pricing structure can lead to cost overruns if not managed closely.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, without a clear ceiling or fixed price, makes a direct value assessment difficult. Without comparative data on similar staffing contracts, it's hard to determine if $31.9 million over six years is a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source selection. This lack of competition may have impacted price discovery, potentially leading to a higher cost than if multiple vendors had bid.
Taxpayer Impact: The absence of competitive bidding could mean taxpayers are paying more than necessary for these facilities support services.
Public Impact
Citizens rely on the Department of State for essential government functions, which require adequate staffing. The use of a sole-source contract raises concerns about government efficiency and responsible spending. Long-term contracts can provide stability but also risk locking the government into potentially suboptimal arrangements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Time and Materials pricing
- Long contract duration without clear performance metrics
Positive Signals
- Addresses a stated need for facilities support
- Potential for stable service delivery
Sector Analysis
Facilities Support Services (NAICS 561210) encompass a broad range of services essential for government operations. Spending in this sector can vary widely based on agency size and mission complexity. Benchmarks are difficult without specific service details.
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 if opportunities were missed.
Oversight & Accountability
The award was made by the Department of State. Oversight would typically involve contract performance monitoring and financial reviews to ensure compliance and value for money.
Related Government Programs
- Facilities Support Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition limits price discovery.
- Time and Materials pricing structure poses cost overrun risk.
- Contract duration is long, potentially locking in suboptimal terms.
- No clear performance metrics indicated in the data.
- Awardee is not a small business.
Tags
facilities-support-services, department-of-state, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $31.9 million to HCI MANAGEMENT SERVICES COMPANY. STAFFING CONTRACT FOR FASTC&NCR
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 $31.9 million.
What is the period of performance?
Start: 2019-09-30. End: 2025-03-31.
What specific facilities support services are included in this contract, and how were the labor rates and estimated hours determined?
The provided data does not detail the specific services rendered under this "Staffing Contract for FastC&NCR." Understanding the exact scope of work, including the types of personnel, their roles, and the estimated hours required, is crucial. Without this, it's impossible to assess if the Time and Materials rates are reasonable or if the total estimated cost aligns with industry standards for comparable services.
What justification was provided for awarding this contract on a limited/non-competitive basis, and were alternative solutions explored?
The data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would require the official justification for this determination. Typically, such decisions are made when only one source can fulfill the requirement due to unique capabilities, urgent needs, or specific circumstances. Without this justification, it's difficult to assess the necessity of the limited competition and whether it truly served the government's best interest.
How is the performance of HCI Management Services Company being monitored to ensure effective service delivery and cost control under the Time and Materials structure?
Effective oversight of Time and Materials contracts is critical to prevent cost overruns. The Department of State should have mechanisms in place for regular performance reviews, verification of hours worked, and validation of the necessity of the labor provided. Without clear performance metrics and diligent monitoring, the risk of inefficient spending and substandard service delivery increases significantly.
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: $31,892,474
Exercised Options: $31,892,474
Current Obligation: $31,892,474
Actual Outlays: $12,470,674
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
Start Date: 2019-09-30
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2026-01-08
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