DoD's $11.7M contract for Shelters Operations and Support awarded to HF GROUP INC

Contract Overview

Contract Amount: $11,685,108 ($11.7M)

Contractor: HF Group Inc

Awarding Agency: Department of Defense

Start Date: 2019-11-01

End Date: 2020-12-31

Contract Duration: 426 days

Daily Burn Rate: $27.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SHELTERS OPERATIONS AND SUPPORT

Place of Performance

Location: COMPTON, LOS ANGELES County, CALIFORNIA, 90220

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to HF GROUP INC for work described as: SHELTERS OPERATIONS AND SUPPORT Key points: 1. Contract value of $11.7M for shelter operations and support. 2. Awarded by the Department of the Air Force, a component of the DoD. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Duration of 426 days, indicating a medium-term operational support requirement. 5. No small business set-aside was applied to this contract. 6. The contract was not competed, raising questions about potential value for money.

Value Assessment

Rating: questionable

The contract's value of $11.7M for shelter operations and support is difficult to benchmark without specific service details. The Cost Plus Fixed Fee (CPFF) pricing structure carries inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure is often used when the scope of work is not well-defined, but it can reduce the incentive for cost control by the contractor. Without comparable contracts or detailed performance metrics, assessing the true value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. Sole-source awards are typically justified when only one vendor possesses the necessary capabilities, or in urgent situations. The lack of competition means that the government did not benefit from a competitive bidding process, which usually drives down prices and encourages innovation. This approach limits the government's ability to explore alternative solutions or secure the best possible pricing.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a bidding process, there's less assurance that the price reflects the most economical option available in the market.

Public Impact

Provides essential shelter operations and support services, likely for military personnel or disaster relief efforts. Benefits military readiness and operational capabilities by ensuring adequate shelter infrastructure. Geographic impact is specified as California, indicating a focus on a particular region. Workforce implications include employment opportunities for personnel involved in shelter management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type can incentivize higher spending and lacks strong cost control mechanisms.
Lack of transparency regarding the justification for a sole-source award.
Absence of small business participation could limit opportunities for smaller enterprises in this sector.

Positive Signals

Ensures critical shelter operations and support are maintained, contributing to mission readiness.
Awarded to a specific contractor, HF GROUP INC., indicating a potentially established relationship or specialized capability.
Contract duration suggests a sustained need for these services.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. This specific award relates to shelter operations and support, a niche within broader facility management and operational support services. The market for such services can be substantial, particularly for government agencies requiring specialized support for infrastructure and personnel. Benchmarking this contract's value against similar government contracts for operational support or facility management would provide further context on its cost-effectiveness.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The absence of small business participation in this sole-source award means that opportunities for smaller enterprises to contribute to this specific contract are limited. This could potentially impact the broader small business ecosystem if such contracts were consistently awarded without set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature and CPFF structure, enhanced oversight may be warranted to scrutinize costs and ensure performance aligns with the fixed fee. Transparency regarding the justification for the sole-source award and detailed reporting on costs incurred would be crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Management
Air Force Base Operations Support
Emergency Shelter Services Contracts
Cost-Plus Contracts
Sole-Source Procurement

Risk Flags

Sole-source award may not represent best value.
CPFF contract type carries inherent risk of cost overruns.
Lack of competition limits price discovery.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to HF GROUP INC. SHELTERS OPERATIONS AND SUPPORT

Who is the contractor on this award?

The obligated recipient is HF GROUP INC.

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 $11.7 million.

What is the period of performance?

Start: 2019-11-01. End: 2020-12-31.

What specific services are included under 'Shelters Operations and Support' for this contract?

The provided data abbreviates the service as 'SHELTERS OPERATIONS AND SUPPORT' (d: 'SHELTERS OPERATIONS AND SUPPORT'). Without further details from the contract's statement of work, it is difficult to ascertain the precise nature of these services. Generally, 'shelter operations and support' could encompass a wide range of activities, including but not limited to: facility maintenance and repair, security services, logistical support (e.g., supplies, food, water), personnel management, environmental services, and potentially the setup or dismantling of temporary shelters. Given the award is from the Department of the Air Force, these shelters might be for military personnel, temporary housing during exercises, or disaster response scenarios. The Cost Plus Fixed Fee (CPFF) structure suggests that the scope might have been somewhat uncertain at the time of award, requiring flexibility in service delivery.

What is the justification for awarding this $11.7M contract on a sole-source basis?

The data indicates this contract was awarded as 'NOT COMPETED' (ct: 'NOT COMPETED'), which typically signifies a sole-source or limited competition award. The specific justification for this sole-source award is not provided in the abbreviated data. Government agencies typically justify sole-source awards under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without access to the Justification for Other Than Full and Open Competition (JOFOC) document, it's impossible to determine the precise rationale. However, the lack of competition means taxpayers may not have received the benefit of a lower price that could have resulted from a competitive bidding process.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact the value for money in this contract?

The Cost Plus Fixed Fee (CPFF) pricing structure, indicated by 'pt': 'COST PLUS FIXED FEE', means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure can be useful when the scope of work is not precisely defined or is expected to change, it shifts much of the cost risk to the government. The contractor has less incentive to control costs because their profit (the fixed fee) is not directly tied to the total cost incurred. This can potentially lead to higher overall expenditures compared to fixed-price contracts, where the contractor bears more of the cost risk. Therefore, for this $11.7M contract, the CPFF structure raises concerns about achieving optimal value for money, necessitating robust government oversight to manage costs effectively.

What is the historical spending pattern for 'Shelters Operations and Support' by the Department of the Air Force?

The provided data only contains information for a single contract awarded on November 1, 2019, with an end date of December 31, 2020, totaling approximately $11.7 million. This single data point does not allow for an analysis of historical spending patterns. To understand historical spending, one would need to examine contract awards for similar services over multiple fiscal years, across different Air Force commands, and potentially compare it to spending by other branches of the Department of Defense or other federal agencies. Without a broader dataset, it's impossible to determine if this $11.7M represents an increase, decrease, or stable level of investment in shelter operations and support services.

What are the potential risks associated with HF GROUP INC. as the contractor for this service?

The provided data identifies HF GROUP INC. as the contractor (co: 'HF GROUP INC.') but offers no information regarding their track record, past performance, or financial stability. Therefore, assessing specific risks associated with HF GROUP INC. is not possible based solely on this data. However, general risks associated with any contractor, especially under a sole-source CPFF contract, include potential performance issues, cost overruns beyond initial estimates, delays in service delivery, and inadequate quality control. To evaluate contractor-specific risks, one would need to review past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), financial health reports, and any history of disputes or litigation involving HF GROUP INC.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852719R0045

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 203 W ARTESIA BLVD, COMPTON, CA, 90220

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,406,465

Exercised Options: $12,406,465

Current Obligation: $11,685,108

Actual Outlays: $1,428,093

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852716D0057

IDV Type: IDC

Timeline