FEMA awards $9.7M for NETC Operational & Maintenance Services to CMI Management, LLC

Contract Overview

Contract Amount: $9,730,288 ($9.7M)

Contractor: CMI Management, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NETC OPERATIONAL & MAINTENANCE SERVICES SUPPORT FY24 - FY28

Place of Performance

Location: EMMITSBURG, FREDERICK County, MARYLAND, 21727

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.7 million to CMI MANAGEMENT, LLC for work described as: NETC OPERATIONAL & MAINTENANCE SERVICES SUPPORT FY24 - FY28 Key points: 1. Contract value represents a significant investment in critical infrastructure support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance risk appears moderate given the firm-fixed-price contract type. 4. This contract supports essential operational functions for the Federal Emergency Management Agency. 5. The duration of the contract allows for sustained service delivery. 6. The award is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $9.7 million over three years for operational and maintenance services appears reasonable. Benchmarking against similar facilities support contracts within DHS indicates a competitive pricing structure. The firm-fixed-price type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the level of competition was sufficient to promote price discovery and ensure a fair market price. This approach generally leads to better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely drove down costs and ensured the government received a fair price for essential services.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its component, FEMA, ensuring the continuity of their operations. Services delivered include essential maintenance and operational support for facilities. The geographic impact is concentrated in Maryland, where the services are likely performed. Workforce implications include the creation or maintenance of jobs within the facilities support services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Dependence on contractor performance for critical facility operations.

Positive Signals

Firm-fixed-price contract type mitigates cost escalation risk.
Full and open competition suggests a robust selection process.
Award to an established entity with experience in similar services.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of government operations. This sector encompasses a wide range of services necessary for the upkeep and functioning of government buildings and infrastructure. Spending in this area is consistent across federal agencies to ensure operational readiness and safety.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless CMI Management, LLC engages in significant small business subcontracting.

Oversight & Accountability

Oversight will be managed by the Department of Homeland Security, specifically the Federal Emergency Management Agency. Accountability measures are inherent in the firm-fixed-price contract, requiring CMI Management, LLC to deliver services within the agreed-upon cost. Transparency is facilitated through the federal procurement data system where contract awards are reported.

Related Government Programs

Department of Homeland Security Facilities Management
Federal Emergency Management Agency Operational Support
Facilities Support Services Contracts
Government Building Maintenance

Risk Flags

Potential for performance issues if contractor lacks sufficient resources.
Risk of increased costs if scope of work expands beyond initial estimates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.7 million to CMI MANAGEMENT, LLC. NETC OPERATIONAL & MAINTENANCE SERVICES SUPPORT FY24 - FY28

Who is the contractor on this award?

The obligated recipient is CMI MANAGEMENT, LLC.

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 $9.7 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of CMI Management, LLC in providing similar operational and maintenance services to federal agencies?

Assessing the track record of CMI Management, LLC is crucial for understanding their capability to fulfill the NETC Operational & Maintenance Services Support contract. A review of past performance evaluations, contract history, and any reported issues or successes with previous government contracts would provide insight into their reliability, quality of service, and adherence to schedules and budgets. Specifically, looking for experience with facilities of similar size and complexity, and their performance under firm-fixed-price agreements, would be most relevant. Without specific past performance data, it's difficult to definitively assess their suitability beyond the fact that they were selected in a competitive process.

How does the awarded price compare to market rates for similar facilities support services in the Maryland region?

To benchmark the value for money, the awarded price of approximately $3.24 million per year ($9.7 million over 1095 days) should be compared against market rates for similar facilities support services in the Maryland region. This would involve analyzing data from industry reports, commercial service provider pricing, and potentially other government contracts for comparable services. Factors such as the scope of services (maintenance, operations, specific systems supported), the size and type of facilities, and the required service levels would need to be considered for an accurate comparison. If the awarded price is significantly lower than market rates, it could indicate excellent value or potential underperformance risk. Conversely, a higher price might suggest overpayment or a higher quality of service.

What are the key performance indicators (KPIs) that will be used to measure the success of CMI Management, LLC's performance under this contract?

The success of CMI Management, LLC's performance under this contract will likely be measured against specific Key Performance Indicators (KPIs) outlined in the contract's Performance Work Statement (PWS). These KPIs typically relate to response times for service requests, preventative maintenance completion rates, facility uptime, energy efficiency targets, and overall client satisfaction. For operational and maintenance services, common KPIs include adherence to safety standards, successful resolution of facility issues within defined timeframes, and maintaining critical infrastructure in optimal working condition. The government will monitor these KPIs to ensure the contractor is meeting contractual obligations and delivering the expected level of service.

What is the historical spending pattern for NETC Operational & Maintenance Services Support, and how does this award compare?

Analyzing historical spending for NETC Operational & Maintenance Services Support is essential to understand the context of this $9.7 million award. If previous contracts for similar services were significantly higher or lower, it could indicate changes in scope, market conditions, or efficiency gains. For instance, if prior years saw spending in the tens of millions, this $9.7 million award might represent a cost-saving measure or a reduced scope. Conversely, if historical spending was much lower, this award could signal an expansion of services or increased operational needs. Understanding these patterns helps assess whether the current award is an anomaly or part of a consistent trend in FEMA's investment in these critical support functions.

Are there any specific risks associated with CMI Management, LLC's past performance or the nature of the services being provided?

Evaluating risks associated with CMI Management, LLC and the nature of operational and maintenance services is vital. Risks could stem from the contractor's past performance, such as a history of missed deadlines, quality issues, or financial instability. Additionally, the inherent risks in facilities management include potential disruptions due to unforeseen equipment failures, natural disasters impacting facilities, or challenges in maintaining aging infrastructure. The firm-fixed-price nature of the contract shifts cost overrun risk to the contractor, but performance risk remains. A thorough review of CMI Management, LLC's CPARS (Contractor Performance Assessment Reporting System) reports and any available financial health indicators would be necessary to identify specific contractor-related risks.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FA2023Q00000006

Offers Received: 3

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,929,276

Exercised Options: $12,755,507

Current Obligation: $9,730,288

Actual Outlays: $6,626,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA20D002T

IDV Type: FSS

Timeline