State Department awards $30.3M task order for overseas training and facilities management to MG Facility Services, LLC

Contract Overview

Contract Amount: $30,308,357 ($30.3M)

Contractor: MG Facility Services, LLC

Awarding Agency: Department of State

Start Date: 2024-09-29

End Date: 2026-09-28

Contract Duration: 729 days

Daily Burn Rate: $41.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER FOR LABOR, COURSE SUPPORT, AND RTC FOR THE OVERSEAS TRAINING AND FACILITIES MANAGEMENT PROGRAM IN SUPPORT OF ATA.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55416

State: Minnesota Government Spending

Plain-Language Summary

Department of State obligated $30.3 million to MG FACILITY SERVICES, LLC for work described as: TASK ORDER FOR LABOR, COURSE SUPPORT, AND RTC FOR THE OVERSEAS TRAINING AND FACILITIES MANAGEMENT PROGRAM IN SUPPORT OF ATA. Key points: 1. The contract focuses on essential support services for overseas training and facilities, indicating a critical need for operational continuity. 2. The award to MG Facility Services, LLC suggests a reliance on established capabilities for these specialized functions. 3. The duration of the contract (729 days) points to a medium-term commitment for ongoing support. 4. The 'Not Available for Competition' status warrants scrutiny regarding the justification for limited competition. 5. The use of Time and Materials pricing could introduce cost variability if not carefully managed. 6. The contract's value is significant within the facilities support services sector, highlighting the importance of this function.

Value Assessment

Rating: fair

The contract value of $30.3 million over approximately two years for facilities support services is substantial. Benchmarking this against similar overseas support contracts is challenging without more detailed service descriptions. The Time and Materials (T&M) pricing structure, while flexible, carries inherent risks of cost overruns if not rigorously monitored and controlled. The absence of a defined ceiling for T&M could lead to expenditures exceeding initial expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' (NAF) designation, indicating that the Department of State did not conduct a competitive solicitation. This typically occurs when a specific justification, such as the need for a unique capability or to support an existing system, is presented and approved. The lack of a competitive process means that the government did not explore multiple vendor options or receive bids from various companies.

Taxpayer Impact: A sole-source award limits the government's ability to leverage competitive pressures to secure the best possible pricing and terms for taxpayers. It bypasses the opportunity for multiple companies to bid, potentially leading to higher costs than if a full and open competition had been conducted.

Public Impact

Personnel at U.S. embassies and diplomatic missions overseas will benefit from reliable training facilities and operational support. The contract ensures the continuity of essential facilities management services, contributing to the safety and functionality of diplomatic infrastructure. Geographic impact is global, covering overseas training and facilities managed by the Department of State. The contract supports the operational readiness and effectiveness of diplomatic personnel through well-maintained facilities and training environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing without a defined ceiling.
Limited transparency and potential for reduced value for money due to sole-source award.
Risk of vendor lock-in if unique capabilities are not clearly defined and justified.
Challenges in performance monitoring and accountability without a competitive baseline.

Positive Signals

Addresses critical operational needs for overseas training and facilities management.
Provides continuity of essential services for diplomatic missions.
Awarded to a contractor with an existing presence or capability in this specialized area.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a range of services necessary for the operation and maintenance of buildings and grounds. This contract falls within this sector, specifically addressing the unique demands of supporting overseas diplomatic operations. The market for such services can be specialized, often requiring contractors with experience in secure environments and international logistics. Comparable spending benchmarks would depend heavily on the specific scope of services, geographic locations, and security requirements.

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 for small businesses stemming from a small business set-aside. The primary contractor, MG Facility Services, LLC, is likely a large business given the contract value. Opportunities for small businesses would typically arise if MG Facility Services, LLC chooses to subcontract portions of this work, which is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Given the overseas nature of the services, there may be additional layers of regional or mission-specific oversight. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award; however, contract award details are typically made public through federal procurement databases. Inspector General jurisdiction would likely extend to this contract, allowing for audits and investigations into waste, fraud, or abuse.

Related Government Programs

Overseas Building Operations
Diplomatic Security Services
Global Facilities Management
International Training Programs
Department of State Operations Support

Risk Flags

Sole-source award requires strong justification to ensure fair value.
Time and Materials pricing introduces cost uncertainty without a ceiling.
Overseas operations present unique logistical and security risks.
Contract duration of over two years necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $30.3 million to MG FACILITY SERVICES, LLC. TASK ORDER FOR LABOR, COURSE SUPPORT, AND RTC FOR THE OVERSEAS TRAINING AND FACILITIES MANAGEMENT PROGRAM IN SUPPORT OF ATA.

Who is the contractor on this award?

The obligated recipient is MG FACILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $30.3 million.

What is the period of performance?

Start: 2024-09-29. End: 2026-09-28.

What is the specific justification for awarding this contract on a sole-source basis, and what unique capabilities does MG Facility Services, LLC possess that preclude competition?

The justification for a sole-source award, often termed 'Not Available for Competition' (NAF), typically stems from specific circumstances outlined by the agency. For the Department of State, this could involve requirements for continuity of essential services in high-risk or remote overseas locations, the need to support specialized existing infrastructure or systems where only one contractor has the requisite knowledge and access, or urgent situations demanding immediate support that cannot be met through a competitive process. Without the agency's formal justification document, it is impossible to definitively state MG Facility Services, LLC's unique capabilities. However, such justifications often cite factors like proprietary technology, unique operational experience in specific challenging environments, or the need to maintain seamless operations with minimal disruption, especially in sensitive diplomatic contexts. The government is required to document and justify these sole-source awards, and this documentation is usually available through federal procurement portals or upon request, providing more insight into the specific rationale.

How does the Time and Materials (T&M) pricing structure for this $30.3 million contract compare to industry standards for similar overseas facilities management services, and what controls are in plac

Time and Materials (T&M) contracts are common for services where the scope of work is not clearly defined or is expected to fluctuate, such as facilities support. For overseas operations, T&M can offer flexibility in responding to unforeseen issues or changing requirements. However, it also presents a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is directly tied to the labor hours and material costs incurred. Industry standards for T&M in this sector often include negotiated labor rates, material markups, and, crucially, a ceiling price or not-to-exceed (NTE) amount to cap the government's liability. The provided data indicates the contract type is T&M but does not specify a ceiling price. Effective controls to manage cost risks in T&M contracts typically involve robust oversight by contracting officers, detailed tracking and reporting of labor hours and material usage, regular audits of invoices, and strong performance management to ensure efficiency. The Department of State would need to implement stringent monitoring and potentially establish an NTE if one is not already defined to mitigate the inherent risks of this contract type.

What is the historical spending pattern for overseas training and facilities management by the Department of State, and how does this $30.3 million award fit within that trend?

Analyzing historical spending patterns for overseas training and facilities management by the Department of State is crucial for contextualizing this $30.3 million award. While specific historical data is not provided, such spending is typically driven by the number of diplomatic missions, the condition and age of overseas facilities, and the evolving requirements for diplomatic personnel training and support. Spending in this category can fluctuate based on geopolitical events, infrastructure modernization initiatives, and security directives. A $30.3 million award over approximately two years represents a significant, but potentially consistent, investment in maintaining the operational capabilities of U.S. diplomatic presence abroad. If the Department has consistently awarded similar-sized contracts for these services over the years, this award would align with established spending trends. Conversely, a substantial increase or decrease compared to historical averages might indicate a shift in program priorities, budget allocations, or the scope of services required. A deeper analysis would involve examining prior contract awards for similar services, their values, durations, and the number of contractors involved over the past 5-10 years.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how will MG Facility Services, LLC's performance be measured?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are essential components of any service contract, particularly for critical functions like overseas facilities management. While the specific KPIs and SLAs for this contract are not detailed in the provided data, they would typically be defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For facilities management, common KPIs might include response times for maintenance requests, uptime percentages for critical building systems (e.g., HVAC, power), preventative maintenance completion rates, safety incident rates, and customer satisfaction scores from personnel utilizing the facilities. SLAs would set specific, measurable targets for these KPIs, often with associated remedies or incentives for performance. MG Facility Services, LLC's performance would likely be measured through regular reporting, site inspections, audits, and feedback mechanisms from the Department of State personnel at the overseas locations. The contracting officer's representative (COR) would be responsible for monitoring performance against these established metrics and ensuring compliance with the contract terms.

What is the track record of MG Facility Services, LLC in performing similar government contracts, particularly those involving overseas operations and facilities management?

Assessing the track record of MG Facility Services, LLC is vital for understanding their capability to successfully execute this $30.3 million task order. A review of their past performance, particularly with government contracts, would reveal their experience in managing complex projects, adhering to timelines and budgets, and meeting performance standards. Specifically, their history with overseas operations and facilities management would be a key indicator, as these environments often present unique logistical, security, and cultural challenges. Information on past performance can typically be found in federal procurement databases (like SAM.gov or FPDS), which may contain details on previous awards, contract values, and performance evaluations. Government agencies often conduct pre-award surveys and review past performance information to assess a contractor's reliability and capability. A strong track record with similar contracts would provide greater confidence in MG Facility Services, LLC's ability to deliver on the requirements of this Department of State task order, while any history of performance issues would raise concerns and necessitate closer scrutiny.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM24R0227

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1601 UTICA AVE S STE 211, MINNEAPOLIS, MN, 55416

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

Financial Breakdown

Contract Ceiling: $39,431,413

Exercised Options: $30,308,357

Current Obligation: $30,308,357

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM24D0070

IDV Type: IDC

Timeline