HUD's Broadcast Operations Center contract awarded to Omnitec Solutions for $18.4M over 5 years

Contract Overview

Contract Amount: $18,429,345 ($18.4M)

Contractor: Omnitec Solutions, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-02-01

End Date: 2015-05-08

Contract Duration: 1,922 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF HUD'S BROADCAST OPERATIONS CENTER, INCLUDING PRODUCTION AND DISTRIBUTION OF ALL BROADCASTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $18.4 million to OMNITEC SOLUTIONS, LLC for work described as: OPERATION OF HUD'S BROADCAST OPERATIONS CENTER, INCLUDING PRODUCTION AND DISTRIBUTION OF ALL BROADCASTS Key points: 1. Contract value appears reasonable for comprehensive broadcast operations and production services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract duration of over 5 years may indicate a need for stable, long-term service provision. 4. The contract falls within the motion picture and video production sector, supporting government communications. 5. Performance context is tied to the operation and distribution of HUD's broadcasts.

Value Assessment

Rating: good

The contract value of $18.4 million over approximately five years for operating a broadcast operations center, including production and distribution, appears to be within a reasonable range for such specialized services. Benchmarking against similar government contracts for broadcast production and management would provide a more precise value-for-money assessment. However, given the scope of services, the pricing seems competitive, especially considering the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations might have had limitations, the final award was made after a broad competitive process. The presence of 13 bidders suggests a healthy level of competition, which typically leads to better price discovery and more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential broadcast services.

Public Impact

The primary beneficiary is the Department of Housing and Urban Development (HUD), which receives essential broadcast production and distribution services. Services delivered include the operation of a broadcast operations center, production of broadcasts, and distribution of all broadcast content. The geographic impact is centered in the District of Columbia, where the contract is managed and likely where many of the broadcast activities take place. Workforce implications include the creation of jobs in broadcast production, technical operations, and media distribution, both within the contractor's organization and potentially supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if broadcast needs expand beyond initial agreements.
Reliance on a single contractor for critical broadcast infrastructure could pose a risk if performance falters.

Positive Signals

Full and open competition indicates a structured procurement process.
A significant number of bidders (13) suggests market interest and potential for quality service.
The firm-fixed-price contract type helps control costs for the government.

Sector Analysis

This contract falls within the Information Technology and Services sector, specifically focusing on motion picture and video production (NAICS 512110). The market for government broadcast services is competitive, with numerous firms offering specialized production, distribution, and technical support. Spending in this area is often driven by the need for effective public outreach, training, and dissemination of information by federal agencies. Comparable spending benchmarks would involve analyzing other agencies' contracts for similar broadcast operations and media production services.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Omnitec Solutions engages them. Without specific subcontracting plans or data, it's difficult to assess the direct impact on the small business ecosystem, though larger contracts often involve some level of subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD) contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and delivery schedules. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Government Communications Services
Federal Media Production
Public Affairs Broadcasts
Agency Outreach Programs

Risk Flags

Potential for vendor lock-in due to specialized services.
Risk of performance issues impacting agency communications.
Technological obsolescence in broadcast media.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $18.4 million to OMNITEC SOLUTIONS, LLC. OPERATION OF HUD'S BROADCAST OPERATIONS CENTER, INCLUDING PRODUCTION AND DISTRIBUTION OF ALL BROADCASTS

Who is the contractor on this award?

The obligated recipient is OMNITEC SOLUTIONS, 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 $18.4 million.

What is the period of performance?

Start: 2010-02-01. End: 2015-05-08.

What is Omnitec Solutions, LLC's track record with federal contracts, particularly in broadcast operations?

Omnitec Solutions, LLC has a history of federal contracting, with this HUD contract being a significant award. Analyzing their past performance on similar contracts, including any awards or penalties, would provide insight into their reliability and capability. Federal procurement data often details past performance evaluations, which can highlight strengths or weaknesses. A review of their contract history would reveal if they have successfully managed projects of similar scope and complexity, particularly in the realm of broadcast production, operations, and distribution for government agencies. Understanding their experience with firm-fixed-price contracts and adherence to delivery schedules is also crucial for assessing their track record.

How does the $18.4 million contract value compare to similar government broadcast operations contracts?

Benchmarking the $18.4 million contract value against similar federal contracts for broadcast operations and production is essential for assessing value for money. While specific comparable data is not provided, contracts for operating broadcast centers, producing multimedia content, and distributing it across various platforms can range significantly based on scope, duration, and technical requirements. Contracts awarded through full and open competition, like this one, generally indicate competitive pricing. However, a detailed analysis would require comparing the specific services, deliverables, and contract duration against a portfolio of recent awards for similar services to determine if Omnitec's pricing is at, above, or below market rates.

What are the primary risks associated with this broadcast operations contract for HUD?

Key risks for this contract include potential technological obsolescence in broadcast equipment and distribution methods, requiring continuous investment and adaptation by the contractor. There's also a risk of performance degradation if the contractor fails to meet service level agreements for production quality or timely distribution. Dependence on a single contractor for critical communication infrastructure presents a risk if the contractor faces financial instability or operational failures. Furthermore, changes in HUD's strategic communication priorities or budget allocations could impact the scope or necessity of the broadcast operations, leading to potential contract modifications or disputes. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks.

How effective has HUD's broadcast operations center been in achieving its communication goals under this contract?

Assessing the effectiveness of HUD's broadcast operations center requires evaluating the reach, engagement, and impact of the broadcasts produced and distributed. Metrics such as viewership numbers, audience feedback, website traffic driven by broadcasts, and the successful dissemination of key housing and urban development information would be key indicators. The contract's success hinges on its ability to support HUD's mission by effectively communicating with its target audiences, stakeholders, and the public. Without specific performance reports or impact assessments from HUD, a definitive judgment on effectiveness is challenging, but the longevity of the contract suggests a level of satisfaction with the services provided.

What are the historical spending patterns for HUD's broadcast operations and related services?

Historical spending patterns for HUD's broadcast operations and related services would reveal trends in investment in communication infrastructure and content production. Analyzing past contracts, including their values, durations, and awarded contractors, can indicate whether spending has been consistent, increasing, or decreasing. Understanding these patterns helps contextualize the current $18.4 million award. For instance, if previous spending was significantly lower, it might suggest an expansion of services or increased costs. Conversely, if it's consistent with prior investments, it indicates a stable operational budget for these functions. This historical data is vital for budget planning and assessing long-term resource allocation for HUD's communication needs.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type signifies a procurement process that, while initially having some restrictions or exclusions, ultimately allowed for broad participation from all eligible responsible sources. This means that after certain initial conditions or limitations were considered, the government opened the competition to the widest possible range of bidders. This approach aims to balance specific requirements or circumstances with the principle of maximizing competition. For taxpayers, this typically results in better pricing and a wider selection of qualified vendors, as it prevents undue restriction on the bidding pool and encourages competitive offers. It suggests that the agency sought the best value through a robust, albeit initially nuanced, competitive process.

Industry Classification

NAICS: Information › Motion Picture and Video Industries › Motion Picture and Video Production

Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6701 DEMOCRACY BLVD STE 300, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $18,429,346

Exercised Options: $18,429,345

Current Obligation: $18,429,345

Contract Characteristics

Cost or Pricing Data: NO

Timeline