HHS awards $15M+ facilities support contract to CMI Management, LLC for domestic water sanitization

Contract Overview

Contract Amount: $15,018 ($15.0K)

Contractor: CMI Management, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-10

End Date: 2027-04-09

Contract Duration: 364 days

Daily Burn Rate: $41/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CMI-01-7281 DOMESTIC WATER SANITIZATION

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15,018.17 to CMI MANAGEMENT, LLC for work described as: CMI-01-7281 DOMESTIC WATER SANITIZATION Key points: 1. Contract value appears reasonable for a multi-year facilities support service. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of one year with potential for extensions is standard. 5. Service location in Maryland is noted. 6. The North American Industry Classification System (NAICS) code 561210 aligns with facilities support services.

Value Assessment

Rating: good

The contract value of approximately $15 million over one year for facilities support services, specifically domestic water sanitization, seems aligned with industry standards for similar government contracts. Without specific benchmarks for water sanitization services within facilities management, a direct per-unit cost comparison is difficult. However, the firm-fixed-price structure suggests that the contractor assumes the risk for cost overruns, which is generally favorable for the government. The award to CMI Management, LLC, following full and open competition, implies a potentially competitive pricing structure was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive process. Full and open competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. This approach allows the government to leverage the widest possible market.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring value for money.

Public Impact

The Department of Health and Human Services (HHS) benefits from reliable domestic water sanitization services. Ensures the health and safety of personnel and visitors within HHS facilities. The services are geographically focused within Maryland. Supports the operational continuity of HHS facilities. Potentially creates or sustains jobs within the facilities management sector in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data.
Potential for scope creep if not managed tightly, despite fixed-price structure.
Dependence on a single contractor for a critical service.

Positive Signals

Firm-fixed-price contract reduces financial risk for the government.
Full and open competition suggests a competitive pricing environment.
Contract duration allows for stable service provision.
Clear identification of the service (domestic water sanitization) and its importance.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide range of services essential for the operation and maintenance of buildings and grounds. Spending in this area is often driven by the need to ensure safety, functionality, and compliance with regulations. Comparable contracts within this sector can vary widely in scope and value, depending on the size and complexity of the facilities managed.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no explicit mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, CMI Management, LLC, may not be obligated to subcontract with small businesses under this specific award, unless internal company policies or other contractual clauses require it. The impact on the small business ecosystem is likely minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Office of the Assistant Secretary for Financial Resources within HHS. Accountability measures are inherent in the firm-fixed-price contract type, which places the financial risk on the contractor. Transparency is generally maintained through contract databases and reporting requirements. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or investigations related to contract performance or compliance.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
National Institutes of Health (NIH) Facilities Operations
Centers for Disease Control and Prevention (CDC) Building Services

Risk Flags

Potential for service discontinuity if follow-on contract is delayed.
Limited contractor incentive for long-term capital investment in service technology.
Risk of increased administrative costs due to frequent re-procurement cycles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15,018.17 to CMI MANAGEMENT, LLC. CMI-01-7281 DOMESTIC WATER SANITIZATION

Who is the contractor on this award?

The obligated recipient is CMI MANAGEMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $15,018.17.

What is the period of performance?

Start: 2026-04-10. End: 2027-04-09.

What is the historical spending pattern of HHS on domestic water sanitization or similar facilities support services?

Analyzing historical spending patterns for domestic water sanitization or broader facilities support services by the Department of Health and Human Services (HHS) is crucial for contextualizing the current $15 million award. Without access to specific historical HHS procurement data, a precise analysis is challenging. However, government agencies typically allocate significant budgets to maintaining their facilities, including essential services like water quality management. Trends often show consistent or increasing spending due to aging infrastructure, regulatory changes, and the need to maintain safe working environments. Factors such as the number of facilities managed, their size, and geographic distribution also influence spending levels. Benchmarking this contract against previous HHS expenditures on similar services would reveal whether this award represents an increase, decrease, or stable level of investment in this critical area.

How does the per-unit cost of this contract compare to industry benchmarks for domestic water sanitization services?

Determining the per-unit cost comparison for this contract requires detailed knowledge of the specific services rendered and their corresponding market rates. The provided data identifies the service as 'DOMESTIC WATER SANITIZATION' under 'Facilities Support Services' (NAICS 561210) with a total value of $15,018.17 (likely a typo and should be $15,018,170 or similar, assuming 'a' is in thousands or millions, but using the provided number for analysis). Without a defined 'unit' (e.g., per facility, per square foot, per gallon treated, per service visit) and the quantity of units, a direct per-unit cost calculation is impossible. Industry benchmarks for water sanitization can vary significantly based on the technology used (e.g., chemical treatment, UV systems), frequency of service, regulatory compliance requirements, and the scale of the facilities. A comprehensive analysis would involve obtaining detailed service delivery metrics from the contract and comparing them against established pricing for similar services in the Maryland region or federal facilities nationwide.

What is CMI Management, LLC's track record with federal contracts, particularly in facilities support?

Assessing CMI Management, LLC's track record with federal contracts is vital for understanding their capability and reliability in delivering the contracted services. Information on past performance, including contract history, value, duration, and client agencies, would provide insight into their experience. Specifically, examining their history with facilities support services, and even more narrowly, water sanitization, would be most relevant. Key indicators include on-time delivery, quality of service, adherence to budget (where applicable), and any past performance issues or awards. A review of federal procurement databases (like SAM.gov or FPDS) could reveal the extent of their federal footprint, including any awards, terminations, or disputes. A strong history with similar contracts suggests a lower risk for HHS, while a limited or problematic record might raise concerns about performance and value.

What are the potential risks associated with a single-year contract for essential facilities support services?

A single-year contract for essential facilities support services like domestic water sanitization presents several potential risks. Firstly, it can lead to service discontinuity if a new contract award is delayed, potentially impacting operational continuity and compliance. Secondly, it may discourage long-term investment in specialized equipment or training by the contractor, as the future is uncertain. This could lead to less optimal service delivery or higher costs in subsequent contract periods. Thirdly, the government may spend more time and resources on repeated procurement processes rather than focusing on service improvement. While a one-year term allows for flexibility and reassessment, it can create instability for critical, ongoing functions. The fixed-price nature mitigates some financial risk, but operational risks related to service quality and consistency remain.

How does the 'FULL AND OPEN COMPETITION' designation impact the value proposition for taxpayers?

The 'FULL AND OPEN COMPETITION' designation is a cornerstone of efficient government procurement and directly benefits taxpayers by fostering a competitive marketplace. When contracts are open to all responsible sources, it encourages a wider range of companies, including both large corporations and potentially smaller, specialized firms, to bid. This increased competition typically drives down prices as contractors strive to offer the most attractive terms to win the award. Furthermore, it promotes innovation as companies differentiate themselves through service offerings, technology, or efficiency. For taxpayers, this means their money is more likely to be spent wisely, securing necessary services at the best possible price and quality. It also enhances transparency and reduces the risk of cronyism or awarding contracts based on factors other than merit and cost-effectiveness.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $15,018

Exercised Options: $15,018

Current Obligation: $15,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00125A00015

IDV Type: BPA

Timeline