Treasury's $4.2M facility maintenance contract for AFRH-DC awarded to CMI Management, LLC without competition

Contract Overview

Contract Amount: $4,213,349 ($4.2M)

Contractor: CMI Management, LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPREHENSIVE FACILITY MAINTENANCE SERVICE FOR THE ENTIRE ARMED FORCES RETIREMENT HOME WASHINGTON, DC CAMPUS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20011

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.2 million to CMI MANAGEMENT, LLC for work described as: COMPREHENSIVE FACILITY MAINTENANCE SERVICE FOR THE ENTIRE ARMED FORCES RETIREMENT HOME WASHINGTON, DC CAMPUS. Key points: 1. This contract represents a significant investment in maintaining the Armed Forces Retirement Home campus. 2. The lack of competition raises questions about potential overpayment and the absence of market-driven pricing. 3. Performance risk is moderate, given the critical nature of facility maintenance for resident well-being. 4. The contract duration of two years suggests a need for ongoing, consistent service delivery. 5. This falls within the broader Facilities Support Services sector, crucial for government operations. 6. The firm-fixed-price structure aims to control costs, but without competition, its effectiveness is limited.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids. Without comparison to other proposals or market rates for similar comprehensive facility maintenance services at retirement homes, it's difficult to ascertain if the $4.2 million price tag represents fair market value. The firm-fixed-price (FFP) structure is generally good for cost control, but its effectiveness is diminished when competition is absent, potentially allowing the contractor to set a price that is not optimally cost-effective for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning CMI MANAGEMENT, LLC was the only entity considered. The absence of a competitive bidding process means that the government did not explore offers from other qualified vendors. This limits the opportunity for price discovery and potentially leads to a higher price than what might have been achieved in a competitive environment. The rationale for a sole-source award, if any, is not provided but typically involves unique capabilities or urgent needs.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the lack of competition. Without bids from multiple companies, there's no assurance that the government secured the best possible price or value for the facility maintenance services.

Public Impact

Residents of the Armed Forces Retirement Home in Washington, D.C. will benefit from consistent and reliable facility maintenance. Services include general maintenance, repairs, and upkeep of the entire campus infrastructure. The geographic impact is localized to the AFRH-DC campus in Washington, D.C. The contract supports jobs within the facilities management and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits opportunities for exploring innovative solutions from other providers.
Potential for complacency in service delivery without competitive pressure.

Positive Signals

Firm-fixed-price contract type helps to lock in costs.
Contract duration of two years provides stability for service delivery.
Focus on comprehensive facility maintenance ensures critical infrastructure is maintained.

Sector Analysis

This contract falls under the Facilities Support Services sector, which encompasses a wide range of services necessary for the operation and maintenance of buildings and grounds. The market for facility maintenance is generally competitive, with numerous providers offering specialized services. However, specific contracts for large, complex campuses like the Armed Forces Retirement Home, especially when awarded sole-source, can deviate from typical market dynamics. Comparable spending benchmarks are difficult to establish without more specific service details and competitive data.

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. The award to CMI MANAGEMENT, LLC, a single entity, suggests that small businesses were not actively solicited or considered as prime contractors for this specific requirement. Further analysis would be needed to determine if CMI MANAGEMENT, LLC intends to utilize small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services for an agreed-upon price. Transparency is limited by the sole-source nature of the award; details regarding the justification for this approach are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Operations
Retirement Home Services
Department of Defense Facilities Management (related due to AFRH mission)

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for uncompetitive pricing
Limited transparency on award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.2 million to CMI MANAGEMENT, LLC. COMPREHENSIVE FACILITY MAINTENANCE SERVICE FOR THE ENTIRE ARMED FORCES RETIREMENT HOME WASHINGTON, DC CAMPUS.

Who is the contractor on this award?

The obligated recipient is CMI MANAGEMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the track record of CMI MANAGEMENT, LLC in performing similar comprehensive facility maintenance services for government entities?

Information regarding CMI MANAGEMENT, LLC's specific track record for comprehensive facility maintenance services, particularly for large government facilities or retirement homes, is not readily available in the provided data. A thorough review of past performance evaluations, contract history with federal agencies, and client testimonials would be necessary to assess their capabilities and reliability. Without this data, it's difficult to definitively gauge their experience and success in fulfilling contracts of this scope and complexity. Further investigation into their contract awards and performance metrics would be required to provide a comprehensive assessment.

How does the awarded price of $4.2 million compare to market rates for similar facility maintenance contracts?

Direct comparison of the $4.2 million award to market rates for similar facility maintenance contracts is difficult without more specific details on the scope of services and the size/complexity of the Armed Forces Retirement Home campus. However, the sole-source nature of this award raises concerns that the price may not reflect the most competitive market rate. Typically, competitive bidding processes allow for price discovery and negotiation, leading to potentially lower costs for the government. Without a benchmark derived from multiple bids or publicly available cost data for comparable facilities, it is challenging to definitively state whether this price is optimal or inflated.

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

The primary risks associated with a sole-source award for facility maintenance services include potential for higher costs due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and limited ability to benchmark pricing against market alternatives. Without competitive pressure, the contractor may have less motivation to offer the most cost-effective solutions or to maintain the highest service standards. Furthermore, the government misses the opportunity to explore potentially better or more cost-effective services offered by other qualified vendors. This can lead to a less optimal use of taxpayer funds and potentially lower overall value for the services rendered.

What is the expected impact of this contract on the operational effectiveness of the Armed Forces Retirement Home?

This contract is expected to have a positive impact on the operational effectiveness of the Armed Forces Retirement Home by ensuring the continuous and reliable maintenance of its facilities. Comprehensive facility maintenance is critical for providing a safe, comfortable, and functional living environment for the residents. By securing these services through a dedicated contract, the AFRH can focus on its core mission of caring for veterans, rather than diverting resources and attention to managing in-house maintenance operations. The two-year duration provides stability, allowing for consistent upkeep and timely repairs, thereby minimizing disruptions to daily life for the residents.

What has been the historical spending pattern for facility maintenance at the Armed Forces Retirement Home?

The provided data does not include historical spending patterns for facility maintenance at the Armed Forces Retirement Home. To assess historical spending, one would need to review previous contracts awarded for similar services at this location. Analyzing past expenditures would allow for a comparison with the current $4.2 million award, helping to identify trends in cost, contract duration, and service scope. Understanding historical spending is crucial for evaluating whether the current contract represents an increase, decrease, or stable level of investment in facility maintenance.

Are there any specific performance metrics or service level agreements (SLAs) outlined in the contract to ensure quality?

The provided data indicates the contract is 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' type and specifies the service as 'Facilities Support Services.' However, it does not detail specific performance metrics or Service Level Agreements (SLAs). While a firm-fixed-price contract implies a defined scope of work, the absence of explicit performance metrics makes it challenging to objectively measure the quality and effectiveness of the services provided by CMI MANAGEMENT, LLC. Robust SLAs are crucial for ensuring accountability and guaranteeing that the facility maintenance meets the required standards for the retirement home's residents.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 20342325Q00006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CMI Management LLC

Address: 5285 SHAWNEE ROAD, SUITE 510, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,547,381

Exercised Options: $6,547,381

Current Obligation: $4,213,349

Actual Outlays: $3,284,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline