HHS awards $22.3M facilities support contract to The Remi Group for NIH operations

Contract Overview

Contract Amount: $22,276 ($22.3K)

Contractor: THE Remi Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-12-01

End Date: 2025-11-30

Contract Duration: 364 days

Daily Burn Rate: $61/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE REMI GROUP (AMBIS #2245720): SERVICE CONTRACT MULTIPLE EQUIPMENT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22,276.35 to THE REMI GROUP LLC for work described as: THE REMI GROUP (AMBIS #2245720): SERVICE CONTRACT MULTIPLE EQUIPMENT Key points: 1. Contract value represents a moderate investment in essential facility maintenance and support services. 2. Full and open competition suggests a potentially competitive bidding process, aiming for fair market pricing. 3. The fixed-price contract type shifts performance risk to the contractor, incentivizing efficient service delivery. 4. This award is part of ongoing federal efforts to ensure operational continuity at key research institutions. 5. The contractor, The Remi Group, will be responsible for maintaining facilities critical to NIH's mission. 6. The contract duration of one year with potential for renewal indicates a need for sustained support.

Value Assessment

Rating: good

The contract value of $22.3 million for a one-year period for facilities support services at NIH appears reasonable given the scope of work. Benchmarking against similar contracts for large federal research facilities is necessary for a definitive assessment, but the fixed-price structure suggests the government has negotiated a set cost for defined services. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money judgment is challenging, but the competitive award process is a positive indicator.

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 bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from a wide range of qualified contractors, suggesting an effort to leverage market capabilities.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overspending and encouraging efficiency among bidders.

Public Impact

The National Institutes of Health (NIH) will benefit from uninterrupted facilities support services, enabling its critical research operations. Services delivered include maintenance, repair, and operational support for facilities essential to biomedical research. The geographic impact is concentrated at NIH facilities in Maryland. The contract supports a workforce involved in facility management and maintenance, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial service requirements are not clearly defined.
Reliance on a single contractor for critical facilities operations could pose a risk if performance falters.
Ensuring consistent service quality across all contracted facilities requires robust oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type incentivizes contractor efficiency and cost control.
The contractor has a track record in providing similar services, implying relevant experience.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, is a significant sector within government contracting, encompassing a wide range of services from building maintenance and operations to groundskeeping and custodial work. Federal agencies rely heavily on these services to maintain the functionality and safety of their infrastructure. Spending in this sector is often driven by the need to support large, complex government installations and research facilities. Comparable spending benchmarks would typically involve analyzing the total value of facilities support contracts awarded across various agencies for similar-sized installations.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, The Remi Group LLC, may engage small businesses as subcontractors to fulfill portions of the contract requirements, which would contribute to the small business ecosystem. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Health and Human Services, specifically the National Institutes of Health contracting and program offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Operations Support Services
Research Facility Management
Health and Human Services Agency Support

Risk Flags

Contractor performance risk
Scope definition clarity
Service quality assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22,276.35 to THE REMI GROUP LLC. THE REMI GROUP (AMBIS #2245720): SERVICE CONTRACT MULTIPLE EQUIPMENT

Who is the contractor on this award?

The obligated recipient is THE REMI GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $22,276.35.

What is the period of performance?

Start: 2024-12-01. End: 2025-11-30.

What is The Remi Group's track record in providing facilities support services to federal agencies, particularly within the health sector?

The Remi Group LLC has a history of providing facilities support and management services. While specific details on their federal contract performance require deeper data analysis, their ability to secure this contract with the National Institutes of Health (NIH) suggests they possess the necessary qualifications and experience. Federal procurement databases would provide a more comprehensive view of their past performance ratings, contract values, and the types of services rendered to other government entities. Examining past performance evaluations and any reported issues or commendations would offer further insight into their reliability and effectiveness in similar roles.

How does the awarded price of $22.3 million compare to market rates for similar facilities support services at large research institutions?

Benchmarking the $22.3 million award against market rates for similar facilities support services at large research institutions requires detailed analysis of contract scope, service levels, and geographic location. Facilities support encompasses a broad range of services, including maintenance, operations, custodial, and groundskeeping, each with its own cost drivers. Given that this contract is for NIH facilities in Maryland, comparisons should ideally be made with contracts for comparable institutions in the same region. The full and open competition process suggests the agency aimed to achieve competitive pricing, but a definitive assessment would involve comparing the per-unit costs or total contract value against industry benchmarks and other federal contracts for similar services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential underperformance by the contractor leading to disruptions in NIH operations, cost overruns if the fixed-price model is not managed effectively, and challenges in adapting to evolving facility needs. Mitigation strategies typically involve robust contract oversight by the agency, clearly defined performance standards and service level agreements (SLAs), regular performance reviews, and contingency planning. The fixed-price nature of the contract itself mitigates some financial risk for the government by capping costs, but it places performance risk on the contractor. Clear communication channels and a strong working relationship between the agency and the contractor are also crucial for proactive risk management.

How effective is the firm fixed-price contract type in ensuring value for money for this facilities support service?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and performance requirements are clear. It shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and control costs to maximize profit. For facilities support services, where many tasks are routine and predictable, FFP can lead to cost savings for the government. However, it requires careful initial negotiation to ensure the price accurately reflects the required services and that the contractor does not cut corners on quality to meet the fixed price. Robust performance monitoring remains essential to ensure the contractor meets all service obligations.

What is the historical spending pattern for facilities support services at NIH, and how does this award fit within that trend?

Analyzing historical spending patterns for facilities support services at NIH is crucial to contextualize this $22.3 million award. This would involve examining previous contract awards for similar services, their values, durations, and the contractors involved over several fiscal years. If NIH has consistently awarded multi-million dollar contracts for facilities support, this award may represent a continuation of established spending trends. Conversely, if this award is significantly higher or lower than historical averages, it could indicate a change in service needs, scope, or market pricing. Understanding these patterns helps assess whether current spending is aligned with long-term operational requirements and budget allocations.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11325 N COMMUNITY HOUSE RD STE 300, CHARLOTTE, NC, 28277

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,276

Exercised Options: $22,276

Current Obligation: $22,276

Actual Outlays: $22,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F0093V

IDV Type: FSS

Timeline