Treasury's $17.9M Facilities Maintenance Contract with CMI Management Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $17,902,209 ($17.9M)
Contractor: CMI Management, LLC
Awarding Agency: Department of the Treasury
Start Date: 2019-10-31
End Date: 2024-12-31
Contract Duration: 1,888 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FACILITIES MAINTENANCE SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20011
Plain-Language Summary
Department of the Treasury obligated $17.9 million to CMI MANAGEMENT, LLC for work described as: FACILITIES MAINTENANCE SERVICES Key points: 1. The contract awarded to CMI MANAGEMENT, LLC for facilities maintenance services is valued at $17.9 million. 2. Competition was listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', raising questions about true market reach. 3. The contract duration is 1888 days, ending in December 2024. 4. The sector is Facilities Support Services, a common area for government spending.
Value Assessment
Rating: fair
The contract's price is difficult to assess without specific task order details or comparable contract data. The 'DEFINITIVE CONTRACT' type suggests a broad scope, and the fixed price nature aims for cost certainty, but the benchmark of $17.9M over nearly 5 years requires further validation against market rates for similar services in the DC area.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, specific sources were excluded. This limits the potential for broader competition and may impact price discovery, potentially leading to less competitive pricing than a truly open bid.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential facilities maintenance services.
Public Impact
Taxpayers may be overpaying due to restricted competition in a critical service area. The long-term nature of the contract (nearly 5 years) locks in current pricing, potentially missing out on future cost savings. Lack of transparency in the 'exclusion of sources' could mask inefficiencies or preferential treatment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of clear per-unit cost benchmark
- Potential for inflated pricing due to restricted source exclusion
Positive Signals
- Firm Fixed Price contract type
- Defined scope of services
Sector Analysis
Facilities maintenance is a crucial but often overlooked sector for government operations, encompassing building upkeep, repairs, and custodial services. Benchmarks for this sector vary widely based on facility size, complexity, and geographic location. The $17.9M spend over nearly five years for services in DC suggests a significant operational footprint.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the contract was awarded to a larger entity, potentially missing opportunities to support small businesses in the facilities maintenance sector.
Oversight & Accountability
The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants closer oversight to ensure the exclusion of sources was justified and did not unduly restrict competition. Accountability for the final pricing and service delivery rests with the Bureau of the Fiscal Service.
Related Government Programs
- Facilities Support Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Limited competition justification unclear
- Potential for non-competitive pricing
- Lack of small business participation
- Long contract duration may not reflect current market value
Tags
facilities-support-services, department-of-the-treasury, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $17.9 million to CMI MANAGEMENT, LLC. FACILITIES MAINTENANCE SERVICES
Who is the contractor on this award?
The obligated recipient is CMI MANAGEMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $17.9 million.
What is the period of performance?
Start: 2019-10-31. End: 2024-12-31.
What specific criteria were used to exclude sources in this 'full and open competition'?
The exclusion of specific sources in a 'full and open competition' typically requires a documented justification, such as specialized capabilities, existing infrastructure integration, or unique security requirements. Without this justification, the exclusion raises concerns about whether the competition was truly maximized and if the government secured the most advantageous pricing and service offerings available in the market.
How does the $17.9M contract value compare to industry benchmarks for similar facilities maintenance services in the Washington D.C. area?
A direct comparison is challenging without detailed task order specifics. However, for a nearly five-year contract covering comprehensive facilities maintenance for a significant government presence in D.C., $17.9 million is within a plausible range. Further analysis would require benchmarking against contracts for similar facility sizes, types of services (e.g., HVAC, janitorial, groundskeeping), and prevailing labor rates in the region.
What is the potential risk of cost overruns or service deficiencies given the limited competition structure?
The primary risk stems from the 'exclusion of sources,' which inherently limits competitive pressure. This could lead to less incentive for the contractor to optimize costs or enhance service quality beyond the contract minimums. While a firm fixed price mitigates direct cost overrun risk for the government, the initial price might be higher than it would be under broader competition, and service deficiencies could still arise if not rigorously monitored.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 20342319Q00001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CMI Management LLC
Address: 5285 SHAWNEE RD STE 510, ALEXANDRIA, VA, 22312
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,902,209
Exercised Options: $17,902,209
Current Obligation: $17,902,209
Actual Outlays: $17,652,209
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-10-31
Current End Date: 2024-12-31
Potential End Date: 2025-07-17 00:00:00
Last Modified: 2025-06-17
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