HHS awards $28.3M for NIOSH facilities support, with RWD Consulting LLC managing operations and maintenance

Contract Overview

Contract Amount: $28,303,767 ($28.3M)

Contractor: RWD Consulting LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2018-07-03

End Date: 2024-01-02

Contract Duration: 2,009 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS AND MAINTENANCE - NIOSH [IGF::OT::IGF]

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $28.3 million to RWD CONSULTING LLC for work described as: OPERATIONS AND MAINTENANCE - NIOSH [IGF::OT::IGF] Key points: 1. Contract value appears reasonable given the duration and scope of facilities support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is firm-fixed-price, which shifts cost risk to the contractor. 4. Performance is ongoing, with a significant portion of the contract term completed. 5. Services fall under facilities support, a common requirement across federal agencies. 6. The contract is managed by CDC, a key agency within HHS.

Value Assessment

Rating: good

The contract's total value of $28.3 million over approximately 5.5 years suggests an average annual spend of around $5.1 million. This figure seems within a reasonable range for comprehensive facilities support services for a research institute like NIOSH. Benchmarking against similar contracts for facilities maintenance and operations at federal research facilities would provide a more precise value-for-money assessment. However, the firm-fixed-price structure indicates that the contractor bears the primary responsibility for 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 After Exclusion of Sources,' indicating that the initial solicitation was broad, but specific sources were later excluded. While this suggests an initial intent for wide competition, the exclusion of sources warrants further investigation to understand the rationale and potential impact on the competitive landscape. The presence of two bidders, as indicated by the 'no' field, suggests some level of competition, but the exact number of proposals received and evaluated would offer a clearer picture of the competitive intensity.

Taxpayer Impact: The use of full and open competition, even with potential source exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, driving down prices and improving service quality. The final price is likely a result of this competitive process.

Public Impact

The National Institute for Occupational Safety and Health (NIOSH) benefits from uninterrupted facilities support, enabling its research and public health mission. Essential services include maintenance, repair, and operational support for NIOSH facilities. The contract supports the operational continuity of a critical federal research agency. Workforce implications include employment for personnel involved in facilities management and support services, likely concentrated in the service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition process raises questions about the breadth of initial competition and potential fairness.
The specific reasons for excluding certain sources are not detailed, which could obscure potential competitive disadvantages.
The contract duration is substantial, requiring ongoing monitoring to ensure continued value and performance.
The 'PA' (Pennsylvania) state code might indicate a specific geographic focus for service delivery, potentially limiting broader economic impact if not managed inclusively.

Positive Signals

The use of a firm-fixed-price contract type effectively transfers cost overrun risk to the contractor.
The contract was awarded through a competitive process, suggesting an effort to secure favorable pricing.
The services provided are essential for the operational continuity of a key federal research institution.
The contract has been active for a significant period, indicating a stable and ongoing relationship for critical services.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. This sector is crucial for government operations, ensuring that federal buildings and research facilities are functional, safe, and well-maintained. Spending in this area is consistent across many agencies, with benchmarks varying based on facility size, complexity, and geographic location. The market for these services is generally competitive, with numerous providers ranging from small local businesses to large national corporations.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have a significant small business subcontracting plan mandated. Consequently, the direct impact on the small business ecosystem for this specific contract may be limited, with larger, established firms likely being the primary awardees or subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. The firm-fixed-price nature of the contract shifts some financial risk to the contractor, but performance monitoring remains crucial. Transparency is facilitated through contract databases like FPDS, which provide basic award details. Specific Inspector General (IG) jurisdiction would depend on the agency's internal structure and the nature of any potential issues, but the HHS OIG generally has oversight over HHS contracts.

Related Government Programs

Facilities Operations and Maintenance
Research Facility Support Services
Federal Building Management
Health and Human Services Agency Support
Centers for Disease Control and Prevention Contracts

Risk Flags

Potential for reduced competition due to source exclusion.
Need for ongoing performance monitoring to ensure service quality.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $28.3 million to RWD CONSULTING LLC. OPERATIONS AND MAINTENANCE - NIOSH [IGF::OT::IGF]

Who is the contractor on this award?

The obligated recipient is RWD CONSULTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2018-07-03. End: 2024-01-02.

What is the track record of RWD CONSULTING LLC in performing federal contracts, particularly in facilities support services?

Information on RWD CONSULTING LLC's specific track record is limited within the provided data. However, the existence of this contract with HHS suggests they have successfully bid on and are performing federal work. To assess their track record thoroughly, one would need to examine their contract history across all federal agencies, looking at performance reviews, past performance questionnaires, any contract modifications (especially for cost increases or scope changes), and any reported disputes or terminations. A history of successful, on-time, and within-budget performance on similar-sized contracts would indicate a strong track record. Conversely, frequent issues or negative past performance could be a red flag.

How does the awarded amount of $28.3 million compare to similar facilities support contracts awarded by the CDC or other HHS agencies?

The total award of $28.3 million over approximately 5.5 years equates to an average annual value of roughly $5.1 million. To benchmark this effectively, we would need to compare it against contracts for similar services (operations, maintenance, facilities support) awarded by the CDC or other HHS agencies of comparable size and complexity. Factors such as the square footage of facilities managed, the specific services included (e.g., HVAC, janitorial, security, groundskeeping), and the geographic location significantly influence pricing. Without access to a detailed database of comparable contracts, it's difficult to definitively state if this amount is high or low. However, for a research institute like NIOSH, this annual spend appears to be within a plausible range for comprehensive support.

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

Key risks include potential performance deficiencies by the contractor (RWD CONSULTING LLC), leading to disruptions in NIOSH operations. Cost overruns, although mitigated by the firm-fixed-price structure, could still arise from unforeseen circumstances requiring contract modifications. There's also a risk related to the 'Full and Open Competition After Exclusion of Sources' designation; if the exclusion process was not fully justified or transparent, it could indicate a risk of reduced competition or perceived unfairness. Mitigation strategies likely involve robust performance monitoring by the CDC, clear contract terms, and adherence to procurement regulations. The firm-fixed-price contract itself is a primary risk mitigation tool for the government regarding cost.

What is the historical spending pattern for facilities support services at NIOSH or comparable CDC facilities?

The provided data only details this specific contract award. To understand historical spending patterns, one would need to analyze NIOSH's procurement history for facilities support services over several preceding years. This would involve identifying all contracts related to facilities operations and maintenance, their values, durations, and awarded contractors. Comparing this contract's value ($28.3M over ~5.5 years) to previous spending levels would reveal whether this represents an increase, decrease, or stable investment in these services. Understanding these patterns helps assess budget trends, identify potential shifts in service providers, and evaluate the long-term cost-effectiveness of federal facilities management.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the fairness and competitiveness of the award process?

This designation suggests that the initial solicitation aimed for broad competition, but certain potential offerors were subsequently excluded from the final competition phase. The reasons for exclusion must be legally justifiable, often related to factors like security, capability, or specific technical requirements that only certain sources could meet. While 'full and open' competition is generally preferred, the exclusion of sources can limit the number of bidders and potentially reduce the competitive pressure on pricing. It implies a more controlled competition than a purely unrestricted process. Taxpayers benefit when exclusions are based on objective criteria and do not unduly restrict competition, ensuring that the best value is still achieved.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2018N67782

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1775 T ST NW, WASHINGTON, DC, 20009

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,303,767

Exercised Options: $28,303,767

Current Obligation: $28,303,767

Actual Outlays: $12,408,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline