HHS awarded $21.8M for facility operations and maintenance to Wolverine Services, LLC

Contract Overview

Contract Amount: $21,764,687 ($21.8M)

Contractor: Wolverine Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2009-07-01

End Date: 2014-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200-2009-29950 / FACILITY OPER & MAINT / WOLVERINE

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.8 million to WOLVERINE SERVICES, LLC for work described as: 200-2009-29950 / FACILITY OPER & MAINT / WOLVERINE Key points: 1. The contract was awarded on a cost-plus-award-fee basis, indicating potential for performance-based incentives. 2. The duration of the contract was 5 years, suggesting a need for sustained facility support. 3. The contract was not competitively procured, raising questions about potential price efficiencies. 4. The services provided fall under Facilities Support Services, a broad category with many potential providers. 5. The award was made by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. 6. The contract value of $21.8 million over five years averages to approximately $4.36 million annually.

Value Assessment

Rating: fair

The contract's cost-plus-award-fee structure allows for flexibility but requires careful monitoring of costs and performance to ensure value. Without competitive bidding, it is difficult to benchmark the pricing against market rates or other similar contracts. The annual average of $4.36 million for facility operations and maintenance needs to be compared with similar facilities of comparable size and complexity to assess its reasonableness. The absence of a specific Price Cost Unit (CPU) makes direct per-unit cost comparison 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 open to competition from other potential vendors. This approach is typically used when a specific vendor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process, potentially leading to higher costs.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government did not have the opportunity to solicit the best possible pricing from multiple qualified vendors.

Public Impact

The primary beneficiaries are the Centers for Disease Control and Prevention (CDC), which receives essential facility operations and maintenance services. The services ensure the operational readiness and safety of CDC facilities, supporting its critical public health mission. The contract impacts the workforce through employment opportunities for personnel involved in facility management and maintenance. Geographic impact is localized to the facilities managed by Wolverine Services, LLC under this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in suboptimal pricing.
Cost-plus-award-fee structure requires robust oversight to prevent cost overruns.
The specific performance metrics and award fee criteria are not detailed, making it hard to assess value for money.
The contract's duration of five years could lock in costs without periodic re-evaluation of market competitiveness.

Positive Signals

The cost-plus-award-fee structure incentivizes good performance.
The contract duration suggests a stable, long-term need for these services, indicating a potentially reliable provider.
Wolverine Services, LLC is responsible for comprehensive facility operations and maintenance, ensuring continuity of essential services.

Sector Analysis

Facility operations and maintenance is a significant sector within government contracting, encompassing a wide range of services from janitorial to complex building systems management. The market is characterized by a mix of large, diversified service providers and smaller, specialized firms. Government spending in this area is substantial, driven by the need to maintain extensive real property portfolios across various agencies. This contract fits within the broader Facilities Support Services category, which is a common requirement for agencies like the CDC.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to Wolverine Services, LLC, and information regarding their size status or subcontracting plans for small businesses is not provided. Without specific set-aside provisions or clear subcontracting goals, the direct impact on the small business ecosystem is unclear, and opportunities for small businesses to participate in this contract may be limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the contracting officer and the Centers for Disease Control and Prevention (CDC) program officials. The cost-plus-award-fee structure necessitates diligent monitoring of expenditures and performance against defined award criteria to ensure accountability and value. Transparency regarding the specific award fee criteria and performance evaluations would enhance oversight. The Inspector General of the Department of Health and Human Services would have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Facility Support Services
Health and Human Services Agency Operations
Centers for Disease Control and Prevention Support Contracts

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for cost overruns in CPAF contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.8 million to WOLVERINE SERVICES, LLC. 200-2009-29950 / FACILITY OPER & MAINT / WOLVERINE

Who is the contractor on this award?

The obligated recipient is WOLVERINE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2009-07-01. End: 2014-06-30.

What is the track record of Wolverine Services, LLC in performing similar facility operations and maintenance contracts for the federal government?

Assessing the track record of Wolverine Services, LLC requires a review of their past performance on federal contracts, particularly those involving facility operations and maintenance. This would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any documented issues or disputes, and the successful completion of similar scope and scale contracts. Without access to specific past performance data for Wolverine Services, LLC, it is difficult to definitively assess their capabilities and reliability for this particular contract. However, the award of this contract by the CDC suggests they met certain minimum requirements, though the sole-source nature limits insight into their competitive standing.

How does the annual cost of this contract compare to similar facility maintenance contracts at other federal agencies?

To compare the annual cost of this contract, which averages approximately $4.36 million, to similar contracts, one would need access to a database of federal procurement data that allows for filtering by service type (facility operations and maintenance), agency, contract value, and contract duration. Benchmarking would involve identifying contracts with comparable facility sizes, complexity, and geographic locations. Given this contract was sole-source, a direct price comparison is challenging. However, if comparable competitively awarded contracts exist, their average annual costs could serve as a benchmark. Without such comparative data readily available, it's difficult to definitively state whether this contract represents good or poor value from a pricing perspective.

What are the primary risks associated with a sole-source award for facility operations and maintenance services?

The primary risks associated with a sole-source award for facility operations and maintenance services include a lack of price competition, which can lead to higher costs for the government compared to a competitively bid contract. There's also a potential risk of reduced innovation and service quality, as the incumbent contractor may face less pressure to improve. Furthermore, without a competitive process, it can be harder to ensure that the selected contractor is truly the best value provider available in the market. The government also misses out on the opportunity to discover new or more efficient service providers. Finally, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process.

How effective are cost-plus-award-fee contracts in ensuring value for money in facility maintenance services?

Cost-plus-award-fee (CPAF) contracts can be effective in ensuring value for money for facility maintenance services, provided they are structured with clear, measurable performance objectives and well-defined award fee criteria. The 'cost-plus' component covers allowable costs, while the 'award fee' provides an incentive for the contractor to exceed minimum performance standards. For facility maintenance, this could include metrics related to response times, preventative maintenance completion rates, energy efficiency improvements, or customer satisfaction. However, the effectiveness hinges on robust government oversight to monitor costs, verify performance, and fairly administer the award fee. If the award criteria are vague or the oversight is weak, CPAF contracts can lead to cost overruns without commensurate performance improvements.

What is the historical spending trend for facility operations and maintenance services by the Centers for Disease Control and Prevention?

To determine the historical spending trend for facility operations and maintenance services by the Centers for Disease Control and Prevention (CDC), one would need to analyze historical federal procurement data over several fiscal years. This analysis would involve identifying all contracts awarded by the CDC for services categorized under facility support, maintenance, operations, and similar terms. Aggregating the total obligated amounts for these contracts year over year would reveal spending trends. This data could indicate whether CDC's spending in this area is increasing, decreasing, or remaining stable, and whether this specific contract represents a continuation of past spending patterns or a significant deviation.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2008N10250

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 3201 C ST, STE 400N, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $150,849,705

Exercised Options: $52,169,451

Current Obligation: $21,764,687

Timeline