FEMA awards $33.1M for facilities support in Anniston, AL, with 5 bidders indicating competitive pricing

Contract Overview

Contract Amount: $33,098,264 ($33.1M)

Contractor: HME, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-08-01

End Date: 2025-08-13

Contract Duration: 2,204 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITIES OPERATIONS AND SUPPORT SERVICES FOR CDP IN ANNISTON, AL PHASE IN AND BASE PERIODS (08/01/2019 - 07/31/2020)

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.1 million to HME, INC. for work described as: FACILITIES OPERATIONS AND SUPPORT SERVICES FOR CDP IN ANNISTON, AL PHASE IN AND BASE PERIODS (08/01/2019 - 07/31/2020) Key points: 1. Contract value of $33.1M over its period of performance suggests a significant investment in facilities operations. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a robust bidding process, likely driving competitive pricing. 3. The definitive contract type with a firm fixed price structure offers cost certainty for the government. 4. Performance is located in Anniston, Alabama, impacting the local economy and workforce. 5. The contract falls under Facilities Support Services, a critical component of government operations. 6. The duration of 2204 days (approx. 6 years) indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of $33.1M for facilities operations and support services over approximately six years appears reasonable given the scope. Benchmarking against similar large-scale facilities management contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the total value should be monitored against performance metrics to ensure continued efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', with 5 bidders participating. This suggests a competitive process, though the exclusion of certain sources might warrant further investigation into the rationale. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source awards.

Taxpayer Impact: With five bidders, taxpayers benefit from a competitive environment that likely suppressed prices and encouraged efficient service delivery. This level of competition helps ensure that federal funds are used judiciously for essential facilities support.

Public Impact

The primary beneficiaries are the Department of Homeland Security (FEMA) through the reliable operation of facilities in Anniston, Alabama. Services delivered include comprehensive facilities operations and support, ensuring functional and safe government infrastructure. The geographic impact is concentrated in Anniston, Alabama, potentially creating local employment opportunities and supporting the regional economy. Workforce implications may include direct hires by the contractor and indirect economic benefits to local service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the competition, while allowing for 5 bidders, could limit the full spectrum of competitive pricing.
The long contract duration, while providing stability, requires diligent oversight to prevent cost creep or performance degradation over time.

Positive Signals

The use of full and open competition (even with exclusions) and the participation of multiple bidders are positive indicators of a healthy procurement process.
The firm fixed-price contract type provides cost predictability for the government.
The contract supports essential government operations, ensuring continuity of services.

Sector Analysis

Facilities Support Services represent a significant segment within the broader professional, scientific, and technical services sector. This contract, valued at $33.1M, falls within the mid-to-large range for individual federal facilities management awards. The market is characterized by a mix of large, established service providers and smaller, specialized firms. Government spending in this area is consistent, driven by the need to maintain a vast portfolio of federal buildings and installations.

Small Business Impact

The data indicates 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 HME, INC. engages in such practices. Without specific subcontracting plans detailed, it's difficult to assess the direct benefit to the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases, though detailed performance reports are typically internal. The Inspector General for the Department of Homeland Security would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Other Agency Facilities Operations Support

Risk Flags

Potential for cost overruns if scope creep occurs.
Risk of service quality degradation over the long contract duration.
Dependence on a single contractor for critical facility operations.
Need for vigilant oversight to ensure compliance and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.1 million to HME, INC.. FACILITIES OPERATIONS AND SUPPORT SERVICES FOR CDP IN ANNISTON, AL PHASE IN AND BASE PERIODS (08/01/2019 - 07/31/2020)

Who is the contractor on this award?

The obligated recipient is HME, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $33.1 million.

What is the period of performance?

Start: 2019-08-01. End: 2025-08-13.

What is the track record of HME, INC. in performing similar facilities support contracts for the federal government?

Assessing the track record of HME, INC. requires a review of their past performance on federal contracts, particularly those involving facilities operations and support services. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the scale and complexity of previous projects. A history of successful contract completion, positive performance reviews, and adherence to timelines and budgets would indicate a reliable contractor. Conversely, a history of issues could signal potential risks for this current contract. Specific data on HME, INC.'s past performance is not provided in the initial data but would be crucial for a comprehensive risk assessment.

How does the awarded price compare to similar facilities support contracts awarded by FEMA or other agencies?

A direct comparison of the $33.1M contract value to similar facilities support contracts requires access to a broader dataset of federal procurements. Factors such as the specific services included, geographic location, contract duration, and the level of service required (e.g., 24/7 operations vs. standard business hours) significantly influence pricing. However, given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and 5 bidders, it suggests the pricing is likely competitive within its specific service category and geographic area. Further analysis would involve benchmarking against contracts with comparable scope and duration to determine if the price is at, below, or above market rates.

What are the primary risks associated with this facilities support contract, and how are they being mitigated?

Key risks for this facilities support contract include potential service disruptions, cost overruns (despite the fixed-price nature, scope creep is a risk), contractor performance issues, and unforeseen facility maintenance needs. Mitigation strategies typically involve robust contract management by FEMA, including regular performance reviews, clear communication channels, and defined remedies for non-performance. The firm fixed-price structure itself mitigates some financial risk for the government by capping costs. The long duration also presents a risk of contractor complacency or evolving needs not being met, necessitating proactive contract administration and potential modifications.

How effective has FEMA been in managing facilities support contracts of this scale and duration in the past?

FEMA's effectiveness in managing large-scale, long-duration facilities support contracts can be evaluated by examining their historical contract performance data, including metrics on cost control, service delivery quality, and contractor performance ratings. Agencies with mature contract management processes tend to achieve better outcomes. FEMA, as a major agency within DHS, likely has established procedures for contract oversight. However, the effectiveness can vary depending on the specific contracting office, the complexity of the facilities managed, and the resources allocated to contract administration. A review of FEMA's Inspector General reports or GAO audits related to facilities management could provide insights into their past effectiveness.

What is the historical spending trend for facilities operations and support services by FEMA or DHS?

Analyzing historical spending trends for facilities operations and support services by FEMA or the broader Department of Homeland Security (DHS) would reveal patterns in demand and investment. This contract's $33.1M value should be viewed in the context of overall agency spending on facilities. If historical data shows a consistent or increasing need for such services, it validates the ongoing requirement. Conversely, a declining trend might prompt questions about the necessity or scale of current spending. Understanding these trends helps in assessing the long-term strategic importance and budgetary implications of such contracts.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FA2019R00000001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 B JEFFERSON AVE, OAK RIDGE, TN, 37830

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $36,833,037

Exercised Options: $35,997,720

Current Obligation: $33,098,264

Actual Outlays: $8,212,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline