HHS awards $9.8M for facilities support, raising questions about competition and value

Contract Overview

Contract Amount: $9,836,895 ($9.8M)

Contractor: NVE, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-28

End Date: 2026-05-29

Contract Duration: 608 days

Daily Burn Rate: $16.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BRIDGE MRC O&M SUPPORT SERVICES

Place of Performance

Location: LAUREL, PRINCE GEORGES County, MARYLAND, 20708

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.8 million to NVE, INC for work described as: BRIDGE MRC O&M SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition may indicate a lack of market responsiveness or specialized contractor needs. 3. Performance period extends over 600 days, requiring ongoing scrutiny of service delivery. 4. The contract's fixed-price nature provides some cost certainty, but value depends on efficient execution. 5. Facilities support services are critical for agency operations, but this award lacks a competitive benchmark. 6. The absence of small business set-asides warrants examination of subcontracting opportunities.

Value Assessment

Rating: questionable

Benchmarking the value of this $9.8 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to assess if NVE, Inc.'s pricing is aligned with market rates for facilities support services. The fixed-price contract type offers some cost control, but the overall value proposition hinges on the contractor's efficiency and the necessity of the services provided. Further analysis would require comparing the scope of work and pricing to similar sole-source or competitively awarded contracts for comparable facilities support services within the federal government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically reserved for situations where only one responsible source can provide the required services. The lack of competition means that multiple bidders were not considered, which can limit price discovery and potentially lead to higher costs for the government. It also raises questions about whether a broader market search was adequately conducted to ensure no other qualified vendors could meet the requirements.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding. This can result in a less efficient use of public funds if the awarded price is not optimized against market alternatives.

Public Impact

The Food and Drug Administration (FDA) will benefit from continued facilities support services, ensuring operational continuity. Services include maintenance, repair, and operational support for FDA facilities, crucial for its mission. The contract's geographic impact is primarily within Maryland, where the FDA's facilities are located. The contract supports NVE, Inc.'s workforce, contributing to employment in the facilities management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if market rates are not met due to lack of competition.
No explicit small business set-aside, potentially limiting opportunities for smaller firms.

Positive Signals

Fixed-price contract provides cost certainty for the government.
NVE, Inc. is likely providing essential services to the FDA.
The contract duration allows for stable service provision.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of services essential for the operation and maintenance of buildings and grounds. This contract falls within the broader professional, scientific, and technical services industry. The federal government is a significant consumer of these services, with spending often driven by the need for specialized maintenance, security, and operational support across its vast real estate portfolio. Benchmarking this specific contract's value is difficult without more detail on the scope of services, but overall federal spending in facilities management is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside. While NVE, Inc. may be a small business itself, the award was not specifically designated for small business participation. This means that opportunities for subcontracting to small businesses were not mandated as part of the procurement strategy. Further investigation into NVE, Inc.'s subcontracting plan would be necessary to understand the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Food and Drug Administration's contracting officers and program managers. As a delivery order under a larger contract vehicle (indicated by 'br': 16179, likely a Basic Ordering Agreement or Indefinite Delivery Contract), oversight may also be influenced by the terms of that parent agreement. Transparency is limited due to the sole-source nature of the award. There is no explicit mention of an Inspector General's jurisdiction for this specific award, though the HHS IG generally oversees agency spending.

Related Government Programs

Facilities Operations and Maintenance Services
Government Building Management
Professional, Scientific, and Technical Services
Health and Human Services Agency Support

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed performance data makes value assessment difficult.
Absence of small business set-aside requires further review of subcontracting plans.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.8 million to NVE, INC. BRIDGE MRC O&M SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NVE, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2024-09-28. End: 2026-05-29.

What is the track record of NVE, Inc. in performing similar facilities support services for the federal government?

Information regarding NVE, Inc.'s specific track record for federal facilities support services is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar government contracts. Understanding their experience with contracts of comparable size, scope, and complexity, particularly within agencies like the FDA, is crucial for evaluating their capability and reliability. Without this historical performance data, it is difficult to definitively assess their suitability and the potential risks associated with this award.

How does the pricing of this contract compare to similar facilities support services awarded competitively?

Direct comparison of pricing is not feasible for this contract due to its sole-source nature. Competitive awards allow for benchmarking against multiple bids, revealing market-driven price points for specific services. Since this contract was not competed, there is no readily available data to assess if NVE, Inc.'s pricing is favorable, average, or high relative to what other qualified vendors might have offered. To perform such a comparison, one would need to identify similar facilities support contracts awarded competitively by the FDA or other federal agencies with comparable scopes of work and then analyze their per-unit costs or total contract values against the services rendered.

What are the primary risks associated with awarding a sole-source contract for facilities support services?

The primary risks associated with a sole-source award for facilities support services include a lack of competitive pressure, which can lead to inflated pricing and reduced incentive for efficiency. There's also a risk that the government may not be aware of or have access to potentially more innovative or cost-effective solutions offered by other vendors. Furthermore, the justification for a sole-source award needs to be robust; if it's not truly the only source, the government may be missing out on better value. Finally, without competition, there's a reduced ability to assess the contractor's performance against market alternatives, making it harder to ensure optimal value for taxpayer money.

What is the expected effectiveness of NVE, Inc. in delivering these facilities support services?

The expected effectiveness of NVE, Inc. in delivering these facilities support services is presumed to be adequate, given the sole-source award by the FDA. However, without a competitive process or detailed performance history provided, it's difficult to quantify this expectation. The effectiveness will largely depend on the contractor's internal capabilities, adherence to the contract's terms and conditions, and the oversight provided by the FDA. The fixed-price nature of the contract incentivizes NVE, Inc. to perform efficiently to maximize profit, which can contribute to effectiveness. Ongoing monitoring and performance evaluations by the FDA will be critical to ensuring the services meet the required standards.

What are the historical spending patterns for facilities support services at the FDA or HHS?

Historical spending patterns for facilities support services at the FDA or HHS are not detailed in the provided data. To analyze this, one would need to access federal procurement databases (like USASpending.gov or FPDS) and filter for contracts categorized under NAICS code 561210 (Facilities Support Services) awarded by the Department of Health and Human Services and its sub-agencies, including the FDA, over several fiscal years. This would reveal trends in contract values, types of services procured, dominant contractors, and whether spending has been primarily through competitive or sole-source awards. Such an analysis would provide context for the current $9.8 million award.

What specific services are included under 'Facilities Support Services' for this contract?

The provided data indicates the contract is for 'Facilities Support Services' (NAICS 561210) but does not detail the specific services included. Typically, this category encompasses a broad range of activities such as building operations and maintenance, groundskeeping, custodial services, security, pest control, and potentially specialized technical support for building systems (HVAC, electrical, plumbing). For this particular contract with the FDA, the exact scope would be defined in the contract's Statement of Work (SOW). Understanding the precise services is crucial for evaluating the contract's value and comparing it to other similar procurements.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75F40124R00200

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13800 COPPERMINE RD, HERNDON, VA, 20171

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $9,836,895

Exercised Options: $9,836,895

Current Obligation: $9,836,895

Actual Outlays: $7,776,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75F40124D00066

IDV Type: IDC

Timeline