HHS Awards $16.3M Facilities Support Contract to CAS FSE JV II LLC for NIOSH Operations

Contract Overview

Contract Amount: $16,281,951 ($16.3M)

Contractor: CAS FSE JV II LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-10-14

End Date: 2026-11-02

Contract Duration: 749 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: O&M SERVICES FOR NIOSH PITTSBURGH, MORGANTOWN, CINCINNATI & SPOKANE

Place of Performance

Location: SPOKANE, SPOKANE County, WASHINGTON, 99207

State: Washington Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.3 million to CAS FSE JV II LLC for work described as: O&M SERVICES FOR NIOSH PITTSBURGH, MORGANTOWN, CINCINNATI & SPOKANE Key points: 1. Contract value of $16.3M for facilities support services. 2. Competition was full and open after exclusion of sources. 3. Risk is moderate due to the time and materials pricing structure. 4. Sector is Facilities Support Services, a common government need.

Value Assessment

Rating: good

The contract is a definitive contract with a time and materials pricing structure. While not ideal for cost control, it's common for services where scope can fluctuate. Benchmarking against similar facilities support contracts is difficult without more granular data on service levels.

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'. This indicates a competitive process was intended, but specific sources may have been excluded prior to the main competition. The price discovery relies on the negotiation of labor rates and material costs within the T&M structure.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process, though the T&M structure warrants careful monitoring to ensure cost efficiency.

Public Impact

Ensures continued operation of critical NIOSH facilities in multiple locations. Supports public health research and safety initiatives. Provides essential maintenance and operational services for government infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed strictly.
Potential for scope creep without clear performance metrics.
Dependence on a single contractor for critical facility operations.

Positive Signals

Full and open competition, even with source exclusion, suggests a robust process.
Contract duration provides stability for service continuity.
Awarded to a joint venture, potentially fostering small business participation.

Sector Analysis

Facilities Support Services are crucial for maintaining government infrastructure and enabling agency operations. Spending in this sector is consistent across agencies, with costs varying based on facility size, complexity, and geographic location. This contract appears to be within a reasonable range for the scope described.

Small Business Impact

The data indicates the contractor is a joint venture (CAS FSE JV II LLC). While not explicitly stated if small businesses are involved, joint ventures often serve as a vehicle for small business participation and subcontracting. Further investigation would be needed to confirm the extent of small business involvement.

Oversight & Accountability

The contract is managed by the Centers for Disease Control and Prevention (CDC) under the Department of Health and Human Services (HHS). Standard government oversight mechanisms for contract performance, invoicing, and compliance are expected to be in place.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Time and Materials pricing structure.
Potential for limited competition due to source exclusion.
Lack of explicit small business participation details.
Contract duration extends over two fiscal years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.3 million to CAS FSE JV II LLC. O&M SERVICES FOR NIOSH PITTSBURGH, MORGANTOWN, CINCINNATI & SPOKANE

Who is the contractor on this award?

The obligated recipient is CAS FSE JV II 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 $16.3 million.

What is the period of performance?

Start: 2024-10-14. End: 2026-11-02.

What specific services are included under 'Facilities Support Services' for NIOSH, and how do they align with the T&M pricing structure?

Facilities Support Services typically encompass a broad range of activities including maintenance, repair, custodial services, groundskeeping, and potentially security. The Time and Materials (T&M) pricing structure means the government pays for the actual labor hours and material costs incurred by the contractor, plus a markup. This structure is often used when the exact scope or duration of work is uncertain at the time of contract award, but it necessitates rigorous oversight to prevent cost overruns and ensure fair pricing.

What were the key factors in excluding certain sources prior to the full and open competition, and did this exclusion impact the final price?

The exclusion of sources prior to full and open competition usually occurs due to specific requirements, past performance, or unique capabilities needed for the contract. The rationale for exclusion is typically documented in the contract file. While full and open competition aims for the best price, excluding potential bidders could theoretically limit the competitive landscape, potentially impacting the final price if fewer highly competitive firms were involved.

How will the CDC monitor the Time and Materials aspect of this contract to ensure cost-effectiveness and prevent potential fraud or abuse?

The CDC will likely employ several oversight mechanisms. This includes detailed review of contractor invoices, requiring justification for labor hours and material costs, and potentially conducting audits. Establishing clear ceiling prices, requiring competitive bidding for subcontracts, and defining specific performance metrics will also be crucial in managing the T&M contract effectively and ensuring taxpayer funds are used judiciously.

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: 75D301-24-R-72963

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 100 E CAMPUS VIEW BLVD, STE 250, COLUMBUS, OH, 43235

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $44,432,112

Exercised Options: $16,603,429

Current Obligation: $16,281,951

Actual Outlays: $9,730,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline