HGS Engineering Inc. awarded $1.47M for OSH Program Reviews, with 2 delivery orders

Contract Overview

Contract Amount: $1,466,815 ($1.5M)

Contractor: HGS Engineering Inc

Awarding Agency: Department of Labor

Start Date: 2024-06-17

End Date: 2027-06-16

Contract Duration: 1,094 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OJC OCCUPATIONAL SAFETY AND HEALTH (OSH) PROGRAM REVIEWS

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36201

State: Alabama Government Spending

Plain-Language Summary

Department of Labor obligated $1.5 million to HGS ENGINEERING INC for work described as: OJC OCCUPATIONAL SAFETY AND HEALTH (OSH) PROGRAM REVIEWS Key points: 1. Value for money appears fair given the contract type and duration, but detailed cost breakdowns are needed for a definitive assessment. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a time and materials contract type potentially leading to cost overruns if not closely managed. 4. Performance context is tied to occupational safety and health program reviews, a critical function for worker protection. 5. This contract fits within the Facilities Support Services sector, supporting administrative functions. 6. The contract duration of approximately three years allows for sustained support but requires ongoing performance monitoring.

Value Assessment

Rating: fair

The contract's total value of $1.47 million over approximately three years for facilities support services related to OSH program reviews suggests a moderate investment. Without specific details on the scope of services per delivery order or comparable contract pricing for similar support, a precise value-for-money assessment is challenging. The time and materials pricing structure, while common, necessitates careful oversight to ensure costs remain aligned with the value delivered and do not escalate beyond reasonable market rates for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two delivery orders suggests a structured approach to tasking under the contract. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down costs and ensure that the services procured are offered at a fair market price.

Public Impact

The primary beneficiaries are the Department of Labor's Office of the Assistant Secretary for Administration and Management, which receives administrative support. The services delivered are facilities support, crucial for the operational efficiency of the OSH program reviews. The geographic impact is focused on Alabama (ST: AL, SN: ALABAMA), where the services are being rendered. Workforce implications are primarily related to the contractor's personnel performing the support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type poses a risk of cost escalation if not managed diligently.
Limited public information on the specific deliverables for each delivery order makes it difficult to fully assess performance.
The contract's duration of nearly three years requires sustained oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
The contract supports critical occupational safety and health program reviews, aligning with a key government function.
The contractor, HGS ENGINEERING INC, has been awarded multiple delivery orders, indicating ongoing engagement and potential for successful performance.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services that enable the functioning of government facilities and administrative operations. The market for these services is competitive, with numerous providers capable of offering specialized support. The total value of $1.47 million is moderate for a multi-year federal contract in this space, suggesting it is likely for a specific set of support functions rather than a comprehensive facilities management agreement.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The competition was open, meaning small businesses could have participated if they met the qualifications, but no specific allocation was mandated.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's contracting officers and the Office of the Assistant Secretary for Administration and Management. As a time and materials contract, rigorous monitoring of labor hours and material costs is essential to ensure accountability and prevent overspending. Transparency is facilitated by the contract's public award data, but detailed performance reports and cost justifications would be necessary for a comprehensive assessment of accountability.

Related Government Programs

Occupational Safety and Health Administration (OSHA) Program Support
Federal Facilities Management Contracts
Administrative Support Services Contracts
Department of Labor Support Services

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Scope Definition Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $1.5 million to HGS ENGINEERING INC. OJC OCCUPATIONAL SAFETY AND HEALTH (OSH) PROGRAM REVIEWS

Who is the contractor on this award?

The obligated recipient is HGS ENGINEERING INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $1.5 million.

What is the period of performance?

Start: 2024-06-17. End: 2027-06-16.

What is the specific scope of work for the OJC OCCUPATIONAL SAFETY AND HEALTH (OSH) PROGRAM REVIEWS under this contract?

The provided data indicates the contract is for 'OJC OCCUPATIONAL SAFETY AND HEALTH (OSH) PROGRAM REVIEWS' and falls under 'Facilities Support Services'. However, the specific deliverables, tasks, and objectives for these reviews are not detailed in the summary data. Typically, such reviews might involve site assessments, compliance checks, documentation analysis, and reporting related to occupational safety and health standards. The two delivery orders suggest distinct phases or components of this overarching program review effort. Further details would be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How does the time and materials pricing structure compare to fixed-price contracts for similar facilities support services?

Time and materials (T&M) contracts, like this one, offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the actual cost of materials used, plus a fee or profit. This contrasts with fixed-price contracts, where the price is set regardless of the contractor's actual costs. T&M contracts are often used when the scope of work is not clearly defined or is expected to change. While they can be advantageous for adapting to evolving needs, they carry a higher risk of cost overruns for the government if not meticulously monitored. For facilities support, fixed-price contracts might be preferred for routine services with predictable requirements, potentially offering better cost certainty. However, for specialized or evolving support needs like program reviews, T&M can be appropriate if managed effectively.

What is the track record of HGS ENGINEERING INC with federal contracts, particularly in facilities support?

HGS ENGINEERING INC has been awarded this contract with two delivery orders totaling $1.47 million. The data does not provide a comprehensive history of their federal contracting performance. To assess their track record, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. The award of multiple delivery orders under this current contract may suggest satisfactory performance to date, but a broader analysis of their history across various agencies and contract types would be necessary for a complete picture of their reliability and capability in facilities support.

What are the potential risks associated with the 'Facilities Support Services' for OSH Program Reviews?

Potential risks associated with facilities support for OSH Program Reviews could include inadequate support leading to delays in review processes, insufficient documentation management affecting compliance tracking, or issues with site access and logistics for review teams. If the support involves technical aspects of safety and health, risks could also include errors in data collection or reporting. Furthermore, under a time and materials contract, there's a risk of inefficient labor utilization or inflated material costs if oversight is lax. Ensuring the contractor's personnel are qualified and that support aligns precisely with the needs of the OSH program review teams is critical to mitigating these risks.

How does spending on OSH Program Reviews compare to other administrative support functions within the Department of Labor?

The provided data focuses solely on this specific contract for OSH Program Reviews, totaling $1.47 million. It does not offer comparative spending data for other administrative support functions within the Department of Labor. To make such a comparison, one would need access to the Department's overall budget, detailed spending reports across various administrative categories (e.g., IT support, HR services, financial management, general administrative services), and potentially data from similar contracts awarded to other entities. Without this broader context, it's impossible to determine if this spending level is high, low, or average relative to other departmental needs.

What is the significance of the North American Industry Classification System (NAICS) code 561210 for this contract?

The NAICS code 561210 designates 'Facilities Support Services'. This classification indicates that the primary business activity of the contractor, HGS ENGINEERING INC, under this contract is providing a comprehensive array of services to support the operation and maintenance of facilities. This can include services such as building operations, maintenance, cleaning, security, and groundskeeping, tailored to the specific needs of the client agency. For this contract, it means the support provided is geared towards enabling the operational functions of the OSH Program Reviews, likely encompassing logistical, administrative, or maintenance-related tasks necessary for those reviews to be conducted effectively.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C2-24-Q-00035

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1121 NOBLE ST, ANNISTON, AL, 36201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,592,200

Exercised Options: $2,155,320

Current Obligation: $1,466,815

Actual Outlays: $910,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA22D0021

IDV Type: FSS

Timeline