DoD's $251M Fire Protection Contract with CGH-GLOBAL Raises Questions on Value and Competition
Contract Overview
Contract Amount: $25,113,849 ($25.1M)
Contractor: Cgh-Global Emergency Management Strategies LLC
Awarding Agency: Department of Defense
Start Date: 2021-11-01
End Date: 2026-10-31
Contract Duration: 1,825 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIRE PROTECTION AND EMERGENCY SERVICES
Place of Performance
Location: CAVALIER, PEMBINA County, NORTH DAKOTA, 58220
Plain-Language Summary
Department of Defense obligated $25.1 million to CGH-GLOBAL EMERGENCY MANAGEMENT STRATEGIES LLC for work described as: FIRE PROTECTION AND EMERGENCY SERVICES Key points: 1. The contract's significant value of $251M warrants scrutiny for cost-effectiveness. 2. Competition was 'Full and Open After Exclusion of Sources,' suggesting potential limitations. 3. The 'Definitive Contract' type and 'Firm Fixed Price' indicate a defined scope but may limit flexibility. 4. The sector is 'All Other Support Services,' which is broad and requires specific justification for the high value.
Value Assessment
Rating: questionable
The contract value of $251M for 'All Other Support Services' is substantial. Benchmarking against similar fire protection and emergency services contracts is crucial to determine if this represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The competition method 'Full and Open Competition After Exclusion of Sources' implies that while the competition was open, certain sources were initially excluded. This could impact the breadth of competition and potentially the final price achieved.
Taxpayer Impact: The significant taxpayer investment of $251M necessitates a thorough review to ensure it delivers optimal value and avoids potential overspending due to limited competitive dynamics.
Public Impact
Ensures critical fire protection and emergency services for the Department of the Air Force. Supports national security by maintaining essential operational readiness. The large contract value could impact the market for similar services, potentially influencing pricing for other agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on 'All Other Support Services'.
- Potential for limited competition due to source exclusion.
- High contract value requires strong justification.
- Firm Fixed Price may not account for unforeseen service needs.
Positive Signals
- Ensures essential services are provided.
- Firm Fixed Price provides cost certainty for the government.
- Long duration (1825 days) suggests a stable, ongoing need.
Sector Analysis
This contract falls under 'All Other Support Services,' a broad category. For fire protection and emergency services, typical spending benchmarks vary widely based on scope, location, and specific requirements. The $251M value suggests a large-scale, long-term requirement.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Analysis should confirm if opportunities were adequately provided for small business participation through subcontracting or if the nature of the requirement precluded it.
Oversight & Accountability
Oversight is critical for a contract of this magnitude. The Department of the Air Force must ensure rigorous performance monitoring, adherence to contract terms, and effective financial management to safeguard taxpayer funds.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value without clear service definition.
- Potential for reduced competition due to source exclusion.
- Lack of small business participation.
- Long contract duration requires sustained oversight.
- Broad 'Other Services' category may obscure specific risks.
Tags
all-other-support-services, department-of-defense, nd, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to CGH-GLOBAL EMERGENCY MANAGEMENT STRATEGIES LLC. FIRE PROTECTION AND EMERGENCY SERVICES
Who is the contractor on this award?
The obligated recipient is CGH-GLOBAL EMERGENCY MANAGEMENT STRATEGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $25.1 million.
What is the period of performance?
Start: 2021-11-01. End: 2026-10-31.
What specific services are included under 'All Other Support Services' for fire protection and emergency response, and how does the $251M price align with the scope and market rates for these services
The 'All Other Support Services' designation is vague and requires detailed clarification. A comprehensive breakdown of services, including personnel, equipment, training, and response protocols, is necessary. Benchmarking this against industry standards and similar government contracts for fire protection and emergency management is essential to validate the $251M cost and ensure it reflects fair market value for the defined scope.
How did the 'exclusion of sources' in the 'Full and Open Competition' process impact the competitive landscape and potentially the final contract price?
The exclusion of specific sources, even in a full and open competition, can limit the number of bidders and the diversity of proposals. This may reduce downward pressure on pricing and could result in a higher cost to the government than if all potential qualified sources were allowed to compete. Understanding the rationale for exclusion is key to assessing its impact on price discovery and overall value.
What mechanisms are in place to ensure the effectiveness and efficiency of CGH-GLOBAL's fire protection and emergency services over the 5-year contract period?
Effectiveness will be measured through key performance indicators (KPIs) related to response times, incident resolution, compliance with safety standards, and personnel qualifications. Regular performance reviews, site inspections, and feedback from end-users within the Department of the Air Force are crucial. The firm fixed-price nature requires careful monitoring to ensure service quality is maintained without compromising safety or operational readiness.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other 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: FA465921R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 851 OHIO PIKE STE 203, CINCINNATI, OH, 45245
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,113,849
Exercised Options: $25,113,849
Current Obligation: $25,113,849
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-11-01
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-10-23
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