HHS awards $24M for facilities management at Humphrey Building, with a 4-year duration

Contract Overview

Contract Amount: $24,024,570 ($24.0M)

Contractor: Emcor Government Services, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-01

End Date: 2025-06-30

Contract Duration: 1,582 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPLETE FACILITIES MANAGEMENT - HUBERT H. HUMPHREY BUILDING COMPLEX

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.0 million to EMCOR GOVERNMENT SERVICES, INC for work described as: COMPLETE FACILITIES MANAGEMENT - HUBERT H. HUMPHREY BUILDING COMPLEX Key points: 1. Contract value appears reasonable given the 4-year term and scope of services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include service disruptions or cost overruns if not managed effectively. 4. Performance will be key to ensuring the operational integrity of a major federal building. 5. This contract falls within the facilities support services sector, a common government need.

Value Assessment

Rating: good

The contract value of approximately $24 million over four years for facilities management of the Hubert H. Humphrey Building Complex seems within a reasonable range for a facility of this size and importance. Benchmarking against similar large-scale federal building management contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the overall value depends heavily on the quality and efficiency of the services delivered by EMCOR Government Services, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The specific number of bidders is not provided, but the method of competition suggests a robust market for facilities support services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of qualified contractors.

Public Impact

Federal employees and visitors to the Hubert H. Humphrey Building will benefit from maintained and functional facilities. Services include a wide range of facility support, ensuring a safe and operational environment. The geographic impact is concentrated in Maryland, where the building is located. This contract supports jobs within the facilities management sector, likely benefiting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if contractor performance falters.
Reliance on a single contractor for critical building operations.
Scope creep could lead to cost increases beyond the initial award.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm-fixed-price contract type helps control costs.
Long-term contract (over 4 years) allows for stable service provision and potential for economies of scale.

Sector Analysis

Facilities support services, including building operations and maintenance, represent a significant segment of government contracting. This sector encompasses a broad range of activities necessary for the upkeep of federal properties. Spending in this area is consistent across various agencies managing large physical infrastructures. Comparable contracts often involve extensive maintenance, repair, and operational support for government buildings nationwide.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated for small businesses within this award. The primary contractor, EMCOR Government Services, Inc., will manage the services, and their approach to utilizing small businesses for any support roles is not specified in this data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services. Transparency is generally maintained through contract databases, though specific performance metrics and reporting details are not provided here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Operations and Maintenance
Government Facilities Management Services
Department of Health and Human Services Contracts
Hubert H. Humphrey Building Complex Services

Risk Flags

Contract performance risk
Cost overrun potential
Service disruption risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.0 million to EMCOR GOVERNMENT SERVICES, INC. COMPLETE FACILITIES MANAGEMENT - HUBERT H. HUMPHREY BUILDING COMPLEX

Who is the contractor on this award?

The obligated recipient is EMCOR GOVERNMENT SERVICES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2021-03-01. End: 2025-06-30.

What is EMCOR Government Services, Inc.'s track record with similar federal facilities management contracts?

EMCOR Government Services, Inc. has a substantial history of performing federal contracts, including those related to facilities management and base operations support. They have held numerous contracts with various agencies such as the Department of Defense, Department of Homeland Security, and other civilian agencies. Their experience often includes a wide array of services such as maintenance, repair, custodial services, groundskeeping, and energy management for large federal installations and office buildings. A review of their past performance evaluations and contract history within federal procurement databases would provide specific details on their success rates, any past performance issues, and their capacity to handle contracts of this magnitude and complexity.

How does the awarded price compare to market rates for similar facilities management services?

The awarded contract value of approximately $24 million over four years for the Hubert H. Humphrey Building Complex needs to be benchmarked against market rates for similar facilities management services. This involves comparing the scope of work, square footage managed, types of services provided (e.g., HVAC, electrical, plumbing, janitorial, security), and geographic location. Without specific details on the service level agreements and the exact breakdown of costs, a precise comparison is difficult. However, given the full and open competition, it suggests the price is likely competitive within the market for large-scale federal building management. Further analysis would require access to detailed cost breakdowns and industry benchmarks for facilities management in the Maryland region.

What are the primary risks associated with this facilities management contract?

The primary risks associated with this facilities management contract include potential service disruptions if the contractor, EMCOR Government Services, Inc., fails to meet performance standards. This could impact the daily operations of the Hubert H. Humphrey Building and the agencies housed within it. Another risk is cost overruns, particularly if unforeseen maintenance issues arise or if the firm-fixed-price contract does not adequately account for all potential operational demands. There's also a risk related to contractor performance and responsiveness to urgent needs. Effective contract management, clear performance metrics, and robust oversight are crucial to mitigating these risks.

How effective is the current facilities management at the Humphrey Building complex?

The effectiveness of the current facilities management at the Hubert H. Humphrey Building complex is directly tied to the performance of EMCOR Government Services, Inc. under this contract. While the contract award itself suggests a perceived capability, ongoing effectiveness is measured through performance metrics, user satisfaction, and the absence of significant operational disruptions. The Department of Health and Human Services, as the contracting agency, is responsible for monitoring these aspects. Without specific performance reports or feedback from building occupants, a definitive assessment of effectiveness cannot be made solely from the contract data. The duration of the contract (ending June 2025) provides a timeframe for evaluating sustained performance.

What are the historical spending patterns for facilities management at the Humphrey Building complex?

Historical spending patterns for facilities management at the Hubert H. Humphrey Building complex prior to this $24 million award would provide valuable context. Understanding previous contract values, durations, and the contractors involved can reveal trends in costs and service scope. For instance, if previous contracts were significantly lower or higher, it could indicate changes in service requirements, inflation, or market dynamics. Analyzing spending over multiple years would help determine if the current award represents an increase, decrease, or stable level of investment in maintaining the facility. This historical data is crucial for assessing the long-term financial commitment and value proposition of facilities management for this specific government asset.

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: Miller Electric Company

Address: 6363 WALKER LN, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $25,484,631

Exercised Options: $24,024,570

Current Obligation: $24,024,570

Actual Outlays: $21,475,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00121A00002

IDV Type: BPA

Timeline