DHS awards $16.5M facilities support contract to Atigun Group, Inc. for CDP operations

Contract Overview

Contract Amount: $16,461,712 ($16.5M)

Contractor: Atigun Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-01

End Date: 2026-07-31

Contract Duration: 729 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITIES OPERATIONS SUPPORT SERVICES (FOSS) AT THE CENTER FOR DOMESTIC PREPAREDNESS (CDP) IN ANNISTON, AL

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.5 million to ATIGUN GROUP, INC. for work described as: FACILITIES OPERATIONS SUPPORT SERVICES (FOSS) AT THE CENTER FOR DOMESTIC PREPAREDNESS (CDP) IN ANNISTON, AL Key points: 1. Contract provides essential facilities operations support for the Center for Domestic Preparedness. 2. Competition was full and open, indicating a broad market search. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Performance period spans two years, with potential for extensions. 5. The award value represents a portion of broader DHS facilities management spending. 6. Geographic focus is Anniston, Alabama, supporting a key national preparedness facility.

Value Assessment

Rating: good

The contract value of $16.5 million over two years for facilities operations support at a specialized training center appears reasonable. Benchmarking against similar facilities support contracts for government training sites would provide a more precise value assessment. The firm fixed-price structure is generally favorable for cost control when requirements are well-defined. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive nature of the award suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while a broad solicitation was issued, specific sources may have been excluded based on prior performance or other criteria. Eight bids were received, suggesting a healthy level of competition for this specialized service. The number of bidders implies that multiple firms were capable of meeting the requirements, which typically aids in achieving a competitive price.

Taxpayer Impact: The full and open competition, with eight bidders, suggests that taxpayer dollars were likely used efficiently by allowing market forces to drive the pricing. This approach minimizes the risk of overpayment compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of Homeland Security and the Federal Emergency Management Agency, ensuring the operational readiness of the Center for Domestic Preparedness. Services include maintaining and operating facilities crucial for training first responders and emergency management personnel. The geographic impact is concentrated in Anniston, Alabama, supporting a vital national asset located there. Workforce implications include employment opportunities for skilled personnel in facilities management and operations within the Anniston area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if facility needs evolve beyond initial contract parameters.
Reliance on contractor's ability to maintain specialized facility systems.
Ensuring consistent service quality across the entire performance period.

Positive Signals

Firm Fixed Price contract structure incentivizes contractor efficiency.
Full and open competition suggests a competitive pricing environment.
Defined performance period provides clear expectations for service delivery.

Sector Analysis

This contract falls within the Facilities Support Services sector, a significant segment of the government contracting market. This sector encompasses a wide range of services essential for maintaining government infrastructure, including maintenance, repair, operations, and custodial services. The total addressable market for facilities management within the federal government is substantial, with agencies like DHS consistently awarding contracts to ensure the operational integrity of their diverse real estate portfolios. This specific contract supports a unique national training facility, highlighting the specialized nature of some facilities support needs.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. While the prime contractor is Atigun Group, Inc., there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Performance will be monitored against the contract's terms and conditions, including service level agreements and delivery schedules. Transparency is facilitated through contract award databases, and any significant issues or disputes would typically be handled through established contractual dispute resolution processes. Inspector General involvement would be contingent on findings of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Facilities Operations
Federal Emergency Management Agency Support Services
Center for Domestic Preparedness Operations
Government Facilities Maintenance Contracts
National Preparedness Training Facilities

Risk Flags

Potential for performance issues impacting critical training operations.
Risk of cost escalation if unforeseen facility maintenance needs arise.
Dependence on contractor's ability to maintain specialized security and safety systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.5 million to ATIGUN GROUP, INC.. FACILITIES OPERATIONS SUPPORT SERVICES (FOSS) AT THE CENTER FOR DOMESTIC PREPAREDNESS (CDP) IN ANNISTON, AL

Who is the contractor on this award?

The obligated recipient is ATIGUN GROUP, 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 $16.5 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-07-31.

What is the historical spending pattern for facilities operations support at the Center for Domestic Preparedness?

Analyzing historical spending for facilities operations support at the Center for Domestic Preparedness (CDP) is crucial for understanding cost trends and identifying potential anomalies. Without specific historical data for the CDP, we can look at broader trends within FEMA or DHS for similar facilities. Typically, such contracts involve recurring costs for maintenance, utilities, security, and specialized operational support. Fluctuations in spending can be attributed to facility upgrades, changes in operational tempo, or shifts in contracting strategies. For instance, if previous contracts were sole-source or had fewer bidders, the current $16.5 million award under full and open competition might represent a more cost-effective outcome. A detailed review of prior contract awards, including their values, durations, and competition levels, would reveal whether the current award is in line with historical expenditures or represents a significant deviation, potentially due to increased scope or market rate adjustments.

How does the awarded price compare to similar facilities support contracts for government training centers?

Comparing the $16.5 million award for facilities operations support at the Center for Domestic Preparedness (CDP) to similar contracts requires identifying benchmarks for government training centers of comparable size and complexity. Facilities support contracts can vary widely based on the specific services required (e.g., HVAC, electrical, plumbing, groundskeeping, specialized safety systems) and the geographic location's cost of living and labor. For a two-year contract supporting a national training facility, this value suggests a significant scope of work. If comparable facilities of similar size and mission (e.g., other FEMA training sites, military base support facilities) have recently been contracted for similar services at a lower or higher price point, it would indicate whether this award is competitive. Factors like the age of the facility, the intensity of its use, and the specific technological requirements can all influence pricing, making direct comparisons challenging without detailed service scope alignment.

What is Atigun Group, Inc.'s track record with federal contracts, particularly in facilities support?

Atigun Group, Inc.'s track record with federal contracts is a key indicator of their capability and reliability in performing the awarded services. A review of their contract history, accessible through federal procurement databases like SAM.gov or FPDS, would reveal the types of contracts they have held, their values, the agencies they have served, and their performance ratings, if available. Specifically, looking for prior awards related to facilities operations, maintenance, or support services for government installations would be most relevant. Positive performance indicators would include successful completion of similar contracts, favorable past performance reviews, and a history of timely delivery and adherence to contract terms. Conversely, any history of contract disputes, performance issues, or significant overruns would raise concerns. Understanding their experience with the Department of Homeland Security or similar agencies would also provide valuable context for their suitability for this role.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks associated with this facilities operations support contract include service disruptions due to contractor performance issues, cost overruns if the firm fixed-price model proves inadequate for unforeseen circumstances, and challenges in adapting to evolving operational needs at the CDP. Mitigation strategies are embedded within the contract structure and oversight mechanisms. The firm fixed-price nature shifts significant cost risk to Atigun Group, Inc., incentivizing efficient management. The two-year base period with options allows for performance evaluation before committing to longer terms. Oversight by FEMA contracting officers and program managers will monitor performance against contract requirements and service level agreements. Clear communication channels and defined dispute resolution processes are also critical for mitigating potential conflicts or performance gaps. Furthermore, the competitive award process itself helps mitigate the risk of selecting an underqualified contractor.

How does the 'Full and Open Competition After Exclusion of Sources' classification impact price discovery and taxpayer value?

The 'Full and Open Competition After Exclusion of Sources' classification for this contract suggests a nuanced approach to competition. While the solicitation was broadly advertised, certain potential bidders may have been excluded based on specific criteria, such as past performance, technical capabilities, or security clearances. This exclusion, if applied judiciously and based on objective requirements, can still lead to robust price discovery by ensuring that the remaining pool of bidders is highly qualified and capable of meeting the demanding needs of the Center for Domestic Preparedness. Having eight bidders participate indicates sufficient market interest. The impact on taxpayer value hinges on whether the exclusions were justified and did not unduly limit competition to the point of inflating prices. If the excluded sources were truly incapable or unsuitable, then the competition among the remaining qualified bidders likely yielded a fair market price. However, if exclusions were arbitrary, it could have inadvertently reduced competitive pressure.

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: 70FA2024R00000001

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 425 3RD ST, MACON, GA, 31201

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

Financial Breakdown

Contract Ceiling: $42,726,404

Exercised Options: $16,642,133

Current Obligation: $16,461,712

Actual Outlays: $7,254,366

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline