State Department awards $3M+ facilities support task order to HCI Management Services Company

Contract Overview

Contract Amount: $3,074,151 ($3.1M)

Contractor: HCI Management Services Company

Awarding Agency: Department of State

Start Date: 2025-04-01

End Date: 2026-06-30

Contract Duration: 455 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRM STAFFING TASK ORDER IN SUPPORT OF FASTC

Place of Performance

Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071

State: Nebraska Government Spending

Plain-Language Summary

Department of State obligated $3.1 million to HCI MANAGEMENT SERVICES COMPANY for work described as: TRM STAFFING TASK ORDER IN SUPPORT OF FASTC Key points: 1. Contract awarded as a delivery order under an existing contract. 2. Focus on facilities support services, indicating a need for operational continuity. 3. The contract duration of 455 days suggests a medium-term operational requirement. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. No small business set-aside, raising questions about broader economic impact.

Value Assessment

Rating: fair

The total award amount of $3,074,150.55 for a 455-day period needs further benchmarking against similar facilities support contracts. Without comparable data on the scope of services and specific deliverables, assessing value for money is challenging. The firm-fixed-price structure is a positive indicator for cost control, but the absence of detailed performance metrics or pricing breakdowns limits a comprehensive value assessment. The contract's nature as a delivery order under a potentially larger IDIQ could mean pricing was established previously, but its current competitiveness is unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, or for urgent requirements where competition is not feasible. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a fully competed contract. The rationale for the sole-source award needs to be clearly documented to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards limit taxpayer value by removing the downward price pressure that competition provides. This can result in the government paying more than it might have in a competitive scenario.

Public Impact

The Department of State benefits from continued facilities support services, ensuring operational readiness. Services likely include maintenance, repair, and management of government facilities. Geographic impact is concentrated in Nebraska, where the contractor is based. Workforce implications may involve the utilization of local labor for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can reduce transparency and accountability.
Absence of small business participation limits economic opportunity.
Scope of services is not detailed, making performance assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Delivery order structure implies an existing relationship or framework.
Contract duration suggests a stable, ongoing need for services.

Sector Analysis

Facilities Support Services fall under the broader commercial and professional services sector. This sector is characterized by a wide range of providers, from large facility management corporations to specialized service firms. The market size is substantial, driven by the ongoing need for operational maintenance and management of physical infrastructure across government and private entities. This contract represents a specific instance of federal spending within this sector, contributing to the overall demand for such services. Benchmarking would involve comparing this award to other federal contracts for similar services, considering factors like contract size, duration, and scope.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This indicates a missed opportunity to leverage federal contracting to support the small business ecosystem. Without a small business focus, the potential for economic impact on smaller enterprises within the facilities support sector is limited, and larger businesses will be the primary beneficiaries of this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver services within the agreed-upon cost. Transparency could be enhanced by making the justification for the sole-source award publicly available and by detailing the performance metrics used to evaluate the contractor's success. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Facilities Maintenance and Operations
Professional and Management Support Services
Government Contracting Vehicles
Department of State Operations

Risk Flags

Sole-source award limits competition.
Lack of small business participation.
Scope of services not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.1 million to HCI MANAGEMENT SERVICES COMPANY. TRM STAFFING TASK ORDER IN SUPPORT OF FASTC

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 $3.1 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-06-30.

What is the specific scope of facilities support services required under this task order?

The provided data does not detail the specific scope of facilities support services. Typically, such services can encompass a wide range of activities including, but not limited to, building maintenance, janitorial services, groundskeeping, security system maintenance, HVAC repair, electrical services, plumbing, and space management. For this particular task order, the exact deliverables and service level agreements would be outlined in the task order itself, which is not available in the provided data. Understanding the precise scope is crucial for evaluating the value for money and assessing the contractor's performance effectively.

What is the historical spending pattern for facilities support services by the Department of State, particularly in Nebraska?

The provided data does not include historical spending patterns for facilities support services by the Department of State, either overall or specifically in Nebraska. To assess historical trends, one would need to access federal procurement databases (like FPDS or USASpending.gov) and filter for contracts awarded by the Department of State for NAICS code 561210 (Facilities Support Services) over several fiscal years. Analyzing this data would reveal the frequency, value, and types of facilities support contracts previously awarded, helping to contextualize the current $3.07 million award. It would also indicate if HCI Management Services Company has been a frequent recipient of such contracts.

What is the justification for awarding this contract on a sole-source basis?

The justification for awarding this contract on a sole-source basis is not provided in the given data. Federal regulations (like the FAR) permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Common reasons include unique proprietary technology, specialized expertise, or the need to maintain continuity of essential services where switching contractors would be detrimental. A formal justification document, often referred to as a Justification and Approval (J&A), would typically be required and should be publicly accessible for transparency, detailing the rationale and demonstrating that competition was not feasible or would not be in the government's best interest.

How does the firm-fixed-price contract type impact risk allocation and potential for cost overruns?

A firm-fixed-price (FFP) contract shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the government with budget certainty and protects against cost overruns, as the contractor absorbs any expenses exceeding the agreed-upon price. However, this also means the contractor may build in a higher contingency into their price to account for potential risks. For the government, the primary risk with FFP contracts lies in ensuring the scope of work is clearly defined to prevent disputes and change orders, and in verifying that the contractor delivers the required quality and performance within the fixed price.

What is the track record of HCI Management Services Company in performing federal facilities support contracts?

The provided data indicates HCI Management Services Company is the contractor, but it does not offer details on their track record in performing federal facilities support contracts. To assess their performance history, one would need to consult federal procurement databases (e.g., FPDS, SAM.gov) for past contract awards and performance evaluations. Key information to look for includes the number and value of previous contracts, the agencies they've served, the types of services rendered, and any reported performance issues or successes. A strong track record with positive past performance reviews would suggest a lower risk for this current task order, while a history of issues might raise concerns about the contractor's reliability and capability.

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

Solicitation ID: 19AQMM19R0366

Pricing Type: FIRM FIXED PRICE (J)

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: $3,074,151

Exercised Options: $3,074,151

Current Obligation: $3,074,151

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