State Department awards $5.9M facilities support contract to HCI Management Services Company

Contract Overview

Contract Amount: $5,887,361 ($5.9M)

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: $12.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TPM STAFFING TASK ORDER

Place of Performance

Location: WINNEBAGO, THURSTON County, NEBRASKA, 68071

State: Nebraska Government Spending

Plain-Language Summary

Department of State obligated $5.9 million to HCI MANAGEMENT SERVICES COMPANY for work described as: TPM STAFFING TASK ORDER Key points: 1. Contract focuses on facilities support services, a critical but often overlooked area of government operations. 2. The award was made on a non-competitive basis, raising questions about potential cost savings and market fairness. 3. The duration of 455 days suggests a need for ongoing, consistent support for facilities management. 4. The contract's value is relatively modest in the context of large federal service contracts. 5. Performance metrics and specific deliverables will be key to assessing the value derived from this award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparison points. The fixed-price nature suggests some cost certainty, but the lack of competition limits the ability to assess if the price reflects the best possible market value. The contract value of approximately $5.9 million over 455 days translates to roughly $12,939 per day, which needs to be evaluated against the specific scope of facilities support provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach limits the number of potential providers and may result in higher costs for the government compared to a fully competitive process. Without a competitive solicitation, it is difficult to ascertain the full range of market capabilities and pricing structures that might have been available.

Taxpayer Impact: Sole-source awards can mean taxpayers may not be getting the most cost-effective solution available in the market, as the benefits of competition in driving down prices are absent.

Public Impact

The primary beneficiaries are the Department of State personnel and operations that rely on well-maintained facilities. Services delivered likely include maintenance, repairs, janitorial services, and potentially security support for government facilities. The geographic impact is localized to the specific facilities managed by the Department of State in Nebraska. Workforce implications may include direct employment by HCI Management Services Company or its subcontractors for the provision of these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Potential for reduced service quality due to absence of market pressure.
Limited transparency into the justification for sole-source award.

Positive Signals

Fixed-price contract provides some cost predictability.
Focus on essential facilities support services ensures operational continuity.
Contract duration suggests a stable, ongoing need for these services.

Sector Analysis

Facilities support services represent a significant segment of the government contracting market, encompassing a wide range of activities from routine maintenance to specialized technical support. This contract falls within the broader professional, scientific, and technical services sector. Comparable spending benchmarks for facilities management at federal agencies can vary widely based on the size and complexity of the facilities, but typically involve significant annual outlays.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are direct subcontractors to HCI Management Services Company.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award, with justification for this approach being a key area for review.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Department of Veterans Affairs Healthcare Facilities Management

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Performance metrics and oversight details are not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.9 million to HCI MANAGEMENT SERVICES COMPANY. TPM STAFFING 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 $5.9 million.

What is the period of performance?

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

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

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further documentation from the Department of State, the precise rationale remains unclear. This lack of transparency is a common concern with sole-source procurements, as it bypasses the competitive process designed to ensure best value for taxpayers.

How does the daily rate of approximately $12,939 compare to market benchmarks for similar facilities support services?

The daily rate of approximately $12,939 for facilities support services, derived from the total award of $5,887,360.79 over 455 days, is difficult to benchmark precisely without a detailed breakdown of the services included. Facilities support can encompass a wide array of tasks, from janitorial and groundskeeping to complex building systems maintenance and security. General market data suggests that comprehensive facilities management contracts for large government facilities can range significantly. However, given the lack of competition, it is plausible that this rate may be higher than what could be achieved through a competitive bidding process. A direct comparison would require access to similar sole-source or competitively awarded contracts for facilities support within the same geographic region and of comparable scope.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. These are critical components that define the expected quality and timeliness of the facilities support services to be delivered by HCI Management Services Company. Typically, such contracts would include metrics related to response times for maintenance requests, uptime of critical building systems, cleanliness standards, and customer satisfaction. The absence of this information in the summary data makes it challenging to assess how contractor performance will be monitored and evaluated, and whether the government will receive the full value for the funds expended.

What is HCI Management Services Company's track record with federal facilities support contracts?

Information regarding HCI Management Services Company's specific track record with federal facilities support contracts is not detailed in the provided data. To assess their capability and past performance, a review of their contract history with federal agencies would be necessary. This would include examining previous awards, contract values, performance evaluations, and any instances of contract disputes or terminations. Understanding their experience in delivering similar services, particularly to agencies with complex facility needs like the Department of State, would provide valuable insight into their reliability and expertise.

What is the historical spending pattern for facilities support services at this specific Department of State location in Nebraska?

The provided data does not include historical spending patterns for facilities support services at this specific Department of State location in Nebraska. To understand the historical context, one would need to analyze past contracts awarded for similar services at this site. This analysis would reveal whether the current award represents an increase or decrease in spending, whether the services have been consistently provided by the same contractor, and if there have been any significant changes in the scope or cost of services over time. Such historical data is crucial for identifying trends and assessing the long-term financial commitment to facilities support.

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: $10,454,177

Exercised Options: $10,454,177

Current Obligation: $5,887,361

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