GSA awards $8.5M facilities support contract to HOSPITAL HOUSEKEEPING SYSTEMS LLC for 4 years

Contract Overview

Contract Amount: $8,488,943 ($8.5M)

Contractor: Hospital Housekeeping Systems LLC

Awarding Agency: General Services Administration

Start Date: 2022-07-06

End Date: 2026-07-05

Contract Duration: 1,460 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MIGRATED DHAFE OM CANNON HOLLOMAN AND KIRTLAND, EXERCISING OY1

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $8.5 million to HOSPITAL HOUSEKEEPING SYSTEMS LLC for work described as: MIGRATED DHAFE OM CANNON HOLLOMAN AND KIRTLAND, EXERCISING OY1 Key points: 1. Contract awarded via BPA Call under full and open competition. 2. Services include facilities support, aligning with NAICS code 561210. 3. Contract duration is 1460 days, ending July 2026. 4. Base value of $8.49M, with potential for modifications. 5. Contractor is HOSPITAL HOUSEKEEPING SYSTEMS LLC. 6. Performance location is Texas.

Value Assessment

Rating: fair

The contract value of $8.49M over four years for facilities support services appears to be within a reasonable range for a federal contract of this nature. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for housekeeping and facilities management at military installations or federal buildings would provide a clearer picture of whether the pricing is competitive. The Time and Materials (T&M) pricing structure can sometimes lead to cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The award was made via a Blanket Purchase Agreement (BPA) Call, suggesting that a broader BPA was previously established through competition, and this call represents a specific task order. The level of competition for the underlying BPA would be a key factor in determining price discovery, but for this specific call, the number of bidders is not provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a fair market price.

Public Impact

The primary beneficiaries are likely the personnel and operations at Holloman and Kirtland Air Force Bases, which will receive essential facilities support services. Services delivered include housekeeping and facilities maintenance, contributing to the operational readiness and living conditions at these installations. The geographic impact is concentrated in Texas, where the contract will be performed. This contract supports the maintenance and upkeep of federal facilities, indirectly impacting the workforce by ensuring a functional working environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure if not managed effectively.
Scope creep could increase the overall cost beyond the initial award amount without adequate oversight.
Dependence on a single contractor for critical facilities support services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract is a BPA Call, potentially leveraging pre-negotiated favorable terms from a larger BPA.
Contract duration of four years provides stability for service delivery.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a significant segment of the broader facilities management industry. This sector encompasses a wide range of services including maintenance, repair, cleaning, and operational support for commercial and institutional buildings. Federal spending in this area is substantial, driven by the need to maintain government-owned properties, including military bases, administrative buildings, and research facilities. Comparable spending benchmarks would typically be found within government-wide contracts for facility maintenance and support, or through analysis of similar service contracts awarded to other federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside requirement. However, the prime contractor, HOSPITAL HOUSEKEEPING SYSTEMS LLC, may choose to subcontract portions of the work to small businesses as part of their own business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service, which awarded the contract. The contract type (Time and Materials) necessitates close monitoring of labor hours and material costs to ensure compliance with the agreed-upon rates and prevent overspending. Accountability measures would be tied to performance metrics and service level agreements outlined in the BPA Call. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported.

Related Government Programs

Facilities Maintenance Contracts
Base Operations Support (BOS)
Government-wide Acquisition Contracts (GWACs)
Services-Disabled Veteran-Owned Small Business (SDVOSB) Set-Aside Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Scope definition clarity for broad 'Facilities Support Services'.
Contractor performance history not detailed.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $8.5 million to HOSPITAL HOUSEKEEPING SYSTEMS LLC. MIGRATED DHAFE OM CANNON HOLLOMAN AND KIRTLAND, EXERCISING OY1

Who is the contractor on this award?

The obligated recipient is HOSPITAL HOUSEKEEPING SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2022-07-06. End: 2026-07-05.

What is the track record of HOSPITAL HOUSEKEEPING SYSTEMS LLC with federal contracts?

Information regarding HOSPITAL HOUSEKEEPING SYSTEMS LLC's specific track record with federal contracts is not detailed in the provided data snippet. A comprehensive analysis would require examining their past performance on similar contracts, including any reported issues, contract terminations, or positive performance reviews. Federal procurement databases (like FPDS) and contractor performance assessment reporting tools (like CPARS) would be essential resources to evaluate their history. Understanding their experience with large-scale facilities support services, particularly in environments similar to military bases, would be crucial for assessing their capability to fulfill this contract effectively.

How does the awarded value compare to similar facilities support contracts?

The awarded value of approximately $8.49 million over four years for facilities support services at Holloman and Kirtland Air Force Bases needs to be benchmarked against comparable federal contracts. Without specific details on the scope of services (e.g., square footage cleaned, types of maintenance performed, staffing levels), a direct comparison is difficult. However, federal contracts for base operations support or facilities maintenance at similar-sized installations can range from several million to tens of millions of dollars annually. The Time and Materials (T&M) nature of this contract means the final cost could fluctuate based on actual hours worked and materials used, making a precise comparison challenging until the contract period concludes. Further analysis would involve identifying contracts with similar service requirements and geographic locations.

What are the primary risks associated with this Time and Materials (T&M) contract?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. T&M contracts pay the contractor for the actual cost of labor and materials, plus a fee or profit. This structure can incentivize longer task durations or higher labor rates if oversight is insufficient. Key risks include scope creep, where the work expands beyond the original intent without a corresponding increase in contract ceiling or modification, and potential inefficiencies in labor application. To mitigate these risks, the contracting agency must implement robust monitoring of labor hours, review material invoices, and ensure that the work performed is necessary and efficient. Establishing clear milestones and performance metrics is also crucial.

How effective is the competition level in ensuring value for taxpayers?

The contract was awarded under 'full and open competition' via a BPA Call. This indicates that multiple bidders were likely considered, which generally promotes price competition and can lead to better value for taxpayers. However, the effectiveness is also dependent on the competition for the underlying BPA and the specific number of bids received for this particular call. If the BPA itself had limited competition, or if only a few vendors responded to this specific call, the price discovery might be less robust. Continuous monitoring of performance and cost against market rates throughout the contract's life is essential to ensure sustained value.

What is the historical spending trend for facilities support services at these bases?

Historical spending data for facilities support services at Holloman and Kirtland Air Force Bases is not provided in the current data. To assess historical spending patterns, one would need to examine past contracts awarded for similar services at these specific installations or within the broader Air Force facilities management portfolio. Analyzing trends in contract values, duration, and contractor performance over several fiscal years would reveal whether spending has increased, decreased, or remained stable. This historical context is vital for understanding if the current $8.49 million award represents an escalation, a continuation, or a reduction in investment for these services.

What are the implications of the 'Facilities Support Services' designation for service delivery?

The designation 'Facilities Support Services' (NAICS 561210) is broad and encompasses a wide array of potential tasks, including but not limited to, cleaning, maintenance, repair, groundskeeping, pest control, and potentially minor renovations. The specific services covered under this contract would be detailed in the Statement of Work (SOW) associated with the BPA Call. The effectiveness of service delivery hinges on a clearly defined SOW, measurable performance standards, and diligent oversight by the contracting agency. The contractor's ability to provide a comprehensive suite of services efficiently and effectively will determine the overall success of the contract in meeting the operational needs of the bases.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFWA22Q0017

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12495 SILVER CREEK RD, DRIPPING SPRINGS, TX, 78620

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,701,517

Exercised Options: $9,531,852

Current Obligation: $8,488,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QFRA20A0001

IDV Type: BPA

Timeline