HUD awards $17.7M for HQ Operations and Maintenance, with CMI Management, LLC securing the contract

Contract Overview

Contract Amount: $17,741,515 ($17.7M)

Contractor: CMI Management, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2022-11-27

End Date: 2024-11-26

Contract Duration: 730 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HQ OPERATIONS AND MAINTENANCE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $17.7 million to CMI MANAGEMENT, LLC for work described as: HQ OPERATIONS AND MAINTENANCE SERVICES Key points: 1. Value for money appears fair given the scope of facilities support services required. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, primarily related to performance execution and timely delivery of services. 4. Performance context is tied to maintaining critical HUD headquarters facilities. 5. Sector positioning is within facilities support services, a common government contracting area.

Value Assessment

Rating: fair

The contract value of $17.7 million over two years for HQ operations and maintenance services seems within a reasonable range for a federal agency of HUD's size. Benchmarking against similar facilities support contracts for large federal buildings would provide a clearer picture of value. However, without specific details on the scope of services (e.g., janitorial, HVAC, security, repairs), a precise value-for-money assessment is challenging. The firm-fixed-price structure aims to control costs, but the ultimate value depends on the quality and efficiency of the services provided by CMI Management, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders (no) suggests a reasonable level of competition for these services. This competitive process is designed to encourage fair pricing and ensure that the government receives the best value. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the contract is awarded to the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the employees and visitors of the Department of Housing and Urban Development (HUD) headquarters, who will experience maintained and functional facilities. The services delivered include essential operations and maintenance for HUD's main office, ensuring a safe and productive work environment. The geographic impact is concentrated in the District of Columbia, where HUD's headquarters is located. Workforce implications include potential job creation or retention by CMI Management, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if CMI Management, LLC faces staffing or resource challenges.
Ensuring consistent quality of maintenance and operational services across all aspects of HUD's HQ facilities.
Managing the transition of services from any previous provider to CMI Management, LLC effectively.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps to control costs for the government.
The contract duration of two years provides stability for service delivery.

Sector Analysis

The facilities support services sector is a significant component of government contracting, encompassing a wide range of services necessary for the operation and maintenance of federal buildings. This contract falls within the broader administrative and support services industry. Comparable spending benchmarks for similar facilities management contracts at federal agencies can vary widely based on the size and complexity of the facilities, but a $17.7 million award over two years for a major agency headquarters is not unusual. The market is typically competitive, with many firms offering these types of services.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless CMI Management, LLC voluntarily engages small businesses as subcontractors. Further analysis would be needed to determine if subcontracting opportunities exist or are being utilized.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Department of Housing and Urban Development. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver specified services. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for HUD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Operations and Maintenance
Government Facilities Management Contracts
Administrative Support Services
Department of Housing and Urban Development Contracts

Risk Flags

Potential for performance issues if contractor resources are insufficient.
Risk of increased costs if unforeseen maintenance issues require extensive repairs beyond routine scope.
Dependency on contractor's ability to maintain consistent service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $17.7 million to CMI MANAGEMENT, LLC. HQ OPERATIONS AND 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 Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2022-11-27. End: 2024-11-26.

What is the track record of CMI Management, LLC in performing similar federal contracts?

Assessing the track record of CMI Management, LLC is crucial for understanding their capability to fulfill this contract. A review of past performance evaluations, contract awards, and any reported issues or successes on similar federal contracts would provide valuable insight. Specifically, looking at their experience with large-scale facilities operations and maintenance for government agencies, particularly headquarters or high-traffic buildings, is important. Information on their past performance regarding on-time delivery, quality of service, and adherence to budget would help gauge their reliability and suitability for this role. Without specific past performance data, it's difficult to definitively assess their capabilities beyond what is indicated by winning this current award.

How does the awarded amount compare to similar facilities maintenance contracts at other federal agencies?

The awarded amount of $17.7 million over two years for HUD's HQ operations and maintenance needs to be benchmarked against similar contracts to assess value. Factors such as the square footage of the facility, the specific services included (e.g., HVAC, janitorial, security, landscaping, repairs), the geographic location (which impacts labor costs), and the contract type (firm-fixed-price) all influence pricing. For instance, a contract for a similarly sized agency headquarters in a high-cost-of-living area might approach or exceed this figure, while a smaller facility or one in a lower-cost area might be significantly less. A comprehensive comparison would involve analyzing data from contracts with comparable scopes of work and agency sizes to determine if this award represents a competitive and fair price.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract likely revolve around performance execution and service quality. Ensuring that CMI Management, LLC consistently delivers all required operations and maintenance services to the standard expected by HUD is paramount. Potential risks include service disruptions due to contractor staffing issues, unforeseen maintenance emergencies, or failure to meet specific performance metrics. Mitigation strategies typically involve clear performance standards and service level agreements (SLAs) within the contract, regular performance reviews, and the ability for the government to take corrective action if performance falters. The firm-fixed-price nature of the contract also incentivizes the contractor to manage risks effectively to maintain profitability.

How effective is the firm-fixed-price contract type in ensuring cost control for this specific service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring cost control for services where the scope of work is well-defined and predictable, such as routine operations and maintenance. Under an FFP contract, the contractor assumes the risk of cost overruns, providing a strong incentive to manage expenses efficiently. For HUD's HQ operations and maintenance, this means CMI Management, LLC is responsible for delivering the agreed-upon services within the $17.7 million budget. This structure helps the government avoid unexpected cost increases. However, if unforeseen circumstances arise that significantly alter the scope or require extensive unplanned work, an FFP contract might lead to change orders, potentially increasing the overall cost if not managed carefully.

What is the historical spending pattern for HUD's headquarters operations and maintenance services?

Understanding the historical spending for HUD's headquarters operations and maintenance services is essential for context. Analyzing previous contracts for these services, including their values, durations, and the contractors involved, can reveal trends in cost, service scope, and contractor performance. For example, has spending increased or decreased over time? Have there been consistent providers, or has the contract changed hands frequently? Comparing the current $17.7 million award to past expenditures can indicate whether this represents an increase, decrease, or stable level of investment in facility upkeep. This historical perspective helps in evaluating the current contract's value and the agency's long-term commitment to its facilities.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 86614322Q00002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ameresco Inc

Address: 5285 SHAWNEE ROAD, SUITE 510, ALEXANDRIA, VA, 22312

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,741,515

Exercised Options: $17,741,515

Current Obligation: $17,741,515

Actual Outlays: $17,741,515

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06Q16BQDS106

IDV Type: IDC

Timeline