HHS Funds Facilities Support Services for NIH with $218.75M Delivery Order to LogZone Inc

Contract Overview

Contract Amount: $218,750 ($218.8K)

Contractor: Logzone Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $601/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PARTIALLY OBLIGATE FUNDING (4/1/26-6/30/26) AND EXERCISE OF OPTION YEAR THREE (3) FOR THE PERIOD OF APRIL 1, 2026, THROUGH MARCH 31 AND PAY CONTRACTOR'S REA.

Place of Performance

Location: HAMILTON, RAVALLI County, MONTANA, 59840

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $218,750 to LOGZONE INC for work described as: TO PARTIALLY OBLIGATE FUNDING (4/1/26-6/30/26) AND EXERCISE OF OPTION YEAR THREE (3) FOR THE PERIOD OF APRIL 1, 2026, THROUGH MARCH 31 AND PAY CONTRACTOR'S REA. Key points: 1. The contract is for facilities support services, a critical but often overlooked area of government operations. 2. LogZone Inc. is the incumbent contractor, suggesting potential for institutional knowledge but also a need to ensure continued value. 3. The contract's value of $218.75M over one year indicates a significant investment in maintaining government facilities. 4. The procurement method, 'Full and Open Competition after Exclusion of Sources,' warrants scrutiny to understand the rationale for excluding other potential bidders.

Value Assessment

Rating: fair

The contract value of $218.75M for a 364-day period suggests a high per-diem cost. Benchmarking against similar facilities support contracts is necessary to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition after Exclusion of Sources' implies that while the competition was intended to be open, specific sources were excluded. This could limit price discovery and potentially lead to higher costs if the excluded sources could have offered better terms.

Taxpayer Impact: The significant funding obligated raises questions about whether the exclusion of sources led to a suboptimal price for taxpayers.

Public Impact

Ensures continued operation of critical NIH facilities, supporting vital research and public health initiatives. Potential for increased costs due to limited competition, impacting the efficient use of taxpayer funds. Dependence on a single contractor for essential services could pose a risk if performance issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about price reasonableness.
High annual cost for facilities support services.
Contract duration and value require careful monitoring.

Positive Signals

Continuation of essential services for NIH.
Incumbent contractor likely possesses significant institutional knowledge.

Sector Analysis

Facilities Support Services are essential for the operational continuity of government agencies. Benchmarks for this sector vary widely based on the scope of services, facility size, and geographic location. The $218.75M annual value places this contract in the upper tier for such services.

Small Business Impact

The data provided does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

The 'Full and Open Competition after Exclusion of Sources' method requires robust justification to ensure accountability and prevent potential favoritism. Oversight should focus on the rationale for exclusion and the fairness of the subsequent award process.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition may inflate costs.
Lack of transparency in source exclusion.
High annual expenditure requires justification.
Potential for contractor lock-in.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $218,750 to LOGZONE INC. TO PARTIALLY OBLIGATE FUNDING (4/1/26-6/30/26) AND EXERCISE OF OPTION YEAR THREE (3) FOR THE PERIOD OF APRIL 1, 2026, THROUGH MARCH 31 AND PAY CONTRACTOR'S REA.

Who is the contractor on this award?

The obligated recipient is LOGZONE INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $218,750.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What was the specific justification for excluding certain sources in this 'Full and Open Competition after Exclusion of Sources' procurement, and how did this impact the final price?

The justification for excluding sources typically relates to specific technical requirements, past performance, or unique capabilities that only a limited number of contractors possess. Understanding this rationale is crucial. If the exclusion significantly narrowed the field, it could have limited competitive pressure, potentially leading to a higher price than a truly open competition might have yielded. A thorough review of the source selection documentation is needed.

How does the per-unit cost of these facilities support services compare to industry benchmarks for similar-sized facilities and service scopes?

Benchmarking the per-unit cost is essential for assessing value. Without specific breakdowns of services (e.g., maintenance, janitorial, security), a precise comparison is difficult. However, the overall annual cost of $218.75M for a 364-day period suggests a substantial investment. Comparing this to government-wide or industry-specific cost data for facilities management is critical to identify potential overspending or cost efficiencies.

What are the key performance indicators (KPIs) for this contract, and how will LogZone Inc.'s performance be measured to ensure effectiveness and taxpayer value?

Effective oversight requires clearly defined KPIs tied to service delivery, response times, and facility upkeep. The contract should outline specific metrics and acceptable performance thresholds. Regular performance reviews and audits by the NIH are necessary to ensure LogZone Inc. is meeting its obligations and delivering value for the $218.75M investment. Any deviations from expected performance should trigger corrective actions.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4845 UNIVERSITY SQUARE, SUITE 5, HUNTSVILLE, AL, 35816

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $218,750

Exercised Options: $218,750

Current Obligation: $218,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99023D00006

IDV Type: IDC

Timeline