State Department awards $16M+ task order for staffing support to HCI Management Services Company

Contract Overview

Contract Amount: $16,015,375 ($16.0M)

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: $35.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FTO STAFFING TASK ORDER IN SUPPORT OF T DIRECTORATE

Place of Performance

Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071

State: Nebraska Government Spending

Plain-Language Summary

Department of State obligated $16.0 million to HCI MANAGEMENT SERVICES COMPANY for work described as: FTO STAFFING TASK ORDER IN SUPPORT OF T DIRECTORATE Key points: 1. Contract awarded as a delivery order under an existing contract, indicating potential for streamlined procurement. 2. The firm fixed-price contract type suggests that costs are largely predetermined, offering some budget predictability. 3. The duration of 455 days implies a medium-term need for the services provided. 4. The contract is not subject to small business set-aside provisions. 5. The specific nature of 'staffing task order' suggests a focus on personnel augmentation rather than a broad service.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more detailed cost breakdowns or comparisons to similar staffing support contracts within the State Department or other federal agencies. The firm fixed-price structure provides some cost certainty, but the overall value for money depends heavily on the efficiency and effectiveness of the staffing services provided by HCI Management Services Company. Further analysis would require understanding the labor categories, rates, and expected outcomes against the total award amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under an existing contract and is noted as 'NOT AVAILABLE FOR COMPETITION'. This suggests it was likely procured through a sole-source or limited competition vehicle, potentially due to specific requirements, existing relationships, or the nature of the task order. The lack of open competition means there was no opportunity for multiple vendors to bid, which can limit price discovery and potentially lead to higher costs than a fully competed contract.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price through competitive bidding. Oversight is crucial to ensure the price is fair and reasonable.

Public Impact

The primary beneficiaries are the T Directorate within the Department of State, which will receive essential staffing support. The services delivered will likely involve providing personnel to fill specific roles, enhancing the operational capacity of the T Directorate. The geographic impact is centered around the Department of State's operational locations, primarily in Nebraska where the contractor is based. Workforce implications include the potential for direct employment by HCI Management Services Company to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if the contract were competed.
The 'staffing task order' nature could lead to over-reliance on external personnel rather than internal capacity building.
Performance metrics and quality control for the staffing services need rigorous monitoring to ensure value.

Positive Signals

Awarding a delivery order under an existing contract can expedite the procurement process.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, HCI Management Services Company, likely has a pre-existing relationship or demonstrated capability with the agency.

Sector Analysis

The Facilities Support Services sector (NAICS 561210) encompasses a broad range of services related to the operation and maintenance of facilities. This contract, specifically for staffing support within the State Department's T Directorate, fits within this broader category by providing the human capital necessary for facility-related functions. Comparable spending in this sector across the federal government is substantial, covering everything from janitorial services to specialized technical support. The State Department's reliance on such services highlights the critical role of contractors in maintaining government operations.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to HCI Management Services Company, without specific small business designation noted, suggests it is not being utilized as a direct vehicle for small business participation. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but would depend on HCI Management Services Company's own subcontracting plan and the nature of the staffing requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a delivery order under an existing contract, the initial oversight framework is likely established. Accountability measures would be tied to the performance standards outlined in the task order and the firm fixed-price terms. Transparency is facilitated by federal procurement databases, but detailed performance data and cost justifications for sole-source awards may be limited.

Related Government Programs

Department of State Facilities Management Contracts
Federal Staff Augmentation Services
Government Support Services Contracts
T Directorate Operational Support

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns if scope is not well-defined.
Performance monitoring is critical for value realization.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $16.0 million to HCI MANAGEMENT SERVICES COMPANY. FTO STAFFING TASK ORDER IN SUPPORT OF T DIRECTORATE

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 $16.0 million.

What is the period of performance?

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

What is the track record of HCI Management Services Company with the Department of State and other federal agencies?

HCI Management Services Company has a history of performing contracts with federal agencies, including the Department of State. Analyzing their past performance on similar staffing or facilities support contracts is crucial. This includes reviewing past performance evaluations, any reported contract disputes, and their success in meeting delivery timelines and quality standards. A review of federal procurement data (e.g., FPDS) would reveal the types and values of contracts previously awarded to HCI Management Services Company, providing insight into their experience and reliability. Understanding their performance on prior State Department contracts, in particular, would offer the most relevant context for this current award.

How does the awarded amount compare to similar staffing support contracts for federal agencies?

Direct comparison of the $16 million award for 455 days of staffing support is difficult without knowing the specific labor categories, skill levels, and number of personnel required. However, general benchmarks for federal staffing augmentation can be established. For instance, average hourly rates for various professional and administrative roles within the federal government can be found through OPM salary data and contractor rate disclosures. If this task order involves a large number of high-skilled personnel, the $16 million figure might be reasonable. Conversely, if it's for a smaller team or lower-skilled roles, it could indicate a less competitive price. A detailed cost analysis comparing the proposed labor rates and estimated hours against market data and historical State Department staffing contracts would be necessary for a definitive value assessment.

What are the primary risks associated with a sole-source award for staffing services?

The primary risks associated with a sole-source award for staffing services include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or provide exceptional service, and a lack of transparency in the procurement process. Without multiple bids, the government cannot be assured it is receiving the best possible price or the most suitable vendor. There's also a risk that the selected contractor may not have the most efficient or effective staffing solutions available in the market. Furthermore, sole-source awards can sometimes indicate a lack of strategic workforce planning, leading to reactive rather than proactive staffing solutions. Robust oversight and performance management are critical to mitigate these risks.

How effective is the firm fixed-price contract type in managing costs for staffing services?

The firm fixed-price (FFP) contract type is generally effective in managing costs for staffing services when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. For staffing, this means the government knows the total cost upfront, assuming the number of hours and rates are fixed. However, if the requirements change or the contractor mismanages resources, the FFP structure might not incentivize efficiency as much as other contract types. It's crucial that the initial scope and estimated effort are accurate to ensure the FFP price represents good value. The government's role in monitoring performance and ensuring the contractor meets obligations is still paramount.

What are the historical spending patterns for staffing support within the Department of State's T Directorate?

Analyzing historical spending patterns for staffing support within the Department of State's T Directorate is essential for contextualizing this $16 million award. This would involve examining previous task orders or contracts awarded for similar services, noting the award amounts, durations, contractors, and competition levels. Significant year-over-year increases or decreases in spending could indicate changes in operational needs, budget allocations, or procurement strategies. Understanding if this is a recurring need or a new requirement helps assess the long-term financial implications. If historical data shows consistent sole-source awards for staffing, it might point to systemic issues in workforce planning or procurement processes within the T Directorate.

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: $27,323,336

Exercised Options: $27,323,336

Current Obligation: $16,015,375

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