State Dept. Awards $28.9M for OTB/TDA Support to HCI Management Services
Contract Overview
Contract Amount: $28,901,599 ($28.9M)
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: $14.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: INCREMENTAL FUNDING FOR OTB/TDA
Place of Performance
Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071
State: Nebraska Government Spending
Plain-Language Summary
Department of State obligated $28.9 million to HCI MANAGEMENT SERVICES COMPANY for work described as: INCREMENTAL FUNDING FOR OTB/TDA Key points: 1. Significant funding for facilities support services. 2. HCI Management Services Company is the sole awardee. 3. Contract duration extends to March 2025. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract is a Time and Materials type, which can lead to cost overruns if not managed tightly. The total award value is substantial, and the lack of a fixed price makes direct comparison difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded as a delivery order under an unspecified contract, and is noted as 'NOT AVAILABLE FOR COMPETITION'. This suggests limited or no competitive bidding, potentially impacting price discovery and value for money.
Taxpayer Impact: Taxpayer funds are committed to a sole-source award without clear evidence of competitive pricing, raising concerns about efficiency.
Public Impact
Ensures continued operational support for OTB/TDA facilities. Potential for increased costs due to Time and Materials pricing. Lack of competition limits transparency and potential savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials pricing
- Lack of competition
- No small business participation
Positive Signals
- Ensures continuity of essential services
Sector Analysis
Facilities Support Services (NAICS 561210) are crucial for government operations. Spending in this sector can vary widely, but large, sole-source contracts warrant scrutiny for cost-effectiveness compared to competitive benchmarks.
Small Business Impact
The data indicates no small business participation in this contract award. This is a missed opportunity to support small businesses and could indicate a lack of outreach or specific requirements that favored larger entities.
Oversight & Accountability
The limited competition and Time and Materials pricing structure necessitate robust oversight from the Department of State to ensure costs are reasonable and services are delivered effectively.
Related Government Programs
- Facilities Support Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks transparency.
- Time and Materials pricing poses cost overrun risk.
- No competitive bidding may lead to inflated prices.
- Absence of small business participation.
- Contract duration extends over several years.
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 $28.9 million to HCI MANAGEMENT SERVICES COMPANY. INCREMENTAL FUNDING FOR OTB/TDA
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 $28.9 million.
What is the period of performance?
Start: 2019-09-30. End: 2025-03-31.
What is the justification for awarding this contract on a limited/sole-source basis, and what steps were taken to ensure fair pricing?
The justification for limited competition is not detailed in the provided data. Typically, such awards occur when only one source can fulfill the requirement due to unique capabilities, urgency, or specific circumstances. Without this justification, it's difficult to assess if fair pricing was achieved through negotiation or if the government accepted the vendor's proposed rates.
How does the per-unit cost of these facilities support services compare to industry benchmarks or similar government contracts?
A direct per-unit cost benchmark is not available due to the Time and Materials contract type and the lack of specific service details. To assess value, a detailed analysis of labor rates, overhead, and material markups against industry standards and comparable government contracts would be required. The absence of this comparison makes it hard to determine if the $28.9 million is a fair price.
What mechanisms are in place to monitor and control costs under this Time and Materials contract to prevent overspending?
Effective oversight of Time and Materials contracts relies on stringent monitoring of labor hours, material costs, and adherence to pre-negotiated rates. The Department of State should have established procedures for regular reporting, audits, and approval processes to ensure that all expenditures are justified, reasonable, and directly related to the contract's scope of work.
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: $28,901,599
Exercised Options: $28,901,599
Current Obligation: $28,901,599
Actual Outlays: $11,507,500
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: 2025-06-05
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