HHS awards $7.3M for facilities maintenance at Hubert H. Humphrey Building, with a 417-day duration

Contract Overview

Contract Amount: $7,304,763 ($7.3M)

Contractor: CMI Management, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-07-01

End Date: 2026-08-22

Contract Duration: 417 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMERCIAL FACILITIES MAINTENANCE (CFM) SERVICES HUBERT H. HUMPHREY BUILDING BASE TASK ORDER #1

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.3 million to CMI MANAGEMENT, LLC for work described as: COMMERCIAL FACILITIES MAINTENANCE (CFM) SERVICES HUBERT H. HUMPHREY BUILDING BASE TASK ORDER #1 Key points: 1. The contract value of $7.3 million for a 417-day period suggests a monthly expenditure of approximately $175,000. 2. The award was made under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework for services. 3. The contract type is Firm Fixed Price (FFP), which shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 561210 points to Facilities Support Services. 5. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting goals mentioned. 6. The geographic location is Maryland (MD), specifically at the Hubert H. Humphrey Building. 7. The contractor, CMI MANAGEMENT, LLC, is responsible for delivering these services.

Value Assessment

Rating: fair

The contract value of $7.3 million over 417 days equates to roughly $17,500 per day or $175,000 per month. Without specific service details or benchmarks for facilities maintenance in a large federal building, it's difficult to definitively assess value. However, this daily rate appears within a reasonable range for comprehensive facility management services in a major metropolitan area. Further comparison to similar large-scale federal building maintenance contracts would be needed for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit offers. The use of a BPA Call indicates that a broader agreement was previously competed, and this task order was then issued from that established agreement. The specific number of bidders for this task order is not provided, but the 'full and open' designation implies a competitive process was followed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality, as multiple companies vie for the contract.

Public Impact

Federal employees and visitors working in or utilizing the Hubert H. Humphrey Building will benefit from maintained facilities. The services delivered include comprehensive facilities maintenance, ensuring operational readiness and a safe working environment. The geographic impact is localized to the Hubert H. Humphrey Building in Maryland. The contract supports jobs within the facilities maintenance sector, likely benefiting the local Maryland workforce employed by CMI MANAGEMENT, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements (SLAs) in the provided data makes it challenging to gauge contractor performance expectations.
The absence of small business subcontracting goals could mean limited opportunities for small businesses to participate in this contract's execution.
The Firm Fixed Price (FFP) contract type, while shifting risk, could lead to contractor reluctance to perform work beyond the strict scope if not carefully managed.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The Firm Fixed Price (FFP) contract type provides cost certainty for the government.
The contract is managed through a Blanket Purchase Agreement (BPA) Call, implying a streamlined procurement process for pre-qualified services.
The contractor, CMI MANAGEMENT, LLC, has been selected to provide these essential services.

Sector Analysis

The Facilities Support Services sector (NAICS 561210) encompasses a wide range of services necessary for the operation and maintenance of commercial and institutional facilities. This includes services like cleaning, pest control, and general maintenance. The federal government is a significant consumer of these services, awarding billions annually to ensure the upkeep of its vast real estate portfolio. This contract for the Hubert H. Humphrey Building fits within this broader market, representing a typical expenditure for maintaining a large federal office complex.

Small Business Impact

This contract was not set aside for small businesses, and the provided data does not indicate any specific small business subcontracting requirements. This means that the primary contractor, CMI MANAGEMENT, LLC, has the discretion to subcontract work, but there is no mandated participation goal for small businesses. This could limit the direct economic benefit to the small business ecosystem from this particular award, although the prime contractor may still engage small businesses as part of their operational strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration, which awarded the contract. As a Firm Fixed Price contract issued via a BPA Call, oversight would focus on ensuring that the services delivered meet the agreed-upon scope and quality standards. The contract's duration and value suggest regular performance reviews and financial monitoring. The specific Inspector General jurisdiction would be that of HHS.

Related Government Programs

Federal Building Maintenance Contracts
Government Facilities Management Services
Department of Health and Human Services Contracts
Office of the Assistant Secretary for Administration Procurements
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for service quality degradation under FFP if costs rise unexpectedly.
Risk of scope creep not being adequately managed within the FFP structure.
Limited visibility into specific performance metrics without access to the full contract details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.3 million to CMI MANAGEMENT, LLC. COMMERCIAL FACILITIES MAINTENANCE (CFM) SERVICES HUBERT H. HUMPHREY BUILDING BASE TASK ORDER #1

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 Administration).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-08-22.

What is the track record of CMI MANAGEMENT, LLC in performing similar federal facilities maintenance contracts?

Assessing the track record of CMI MANAGEMENT, LLC requires accessing federal procurement databases like SAM.gov or FPDS. A review would involve examining past performance evaluations, contract history, and any reported disputes or terminations. Without specific data on CMI MANAGEMENT, LLC's prior federal contracts, it's difficult to provide a detailed assessment. However, the fact that they were awarded this contract, especially under full and open competition, suggests they met the minimum qualifications and were deemed capable by the contracting agency. Further investigation into their past performance ratings and any awards or penalties would offer a clearer picture of their reliability and expertise in delivering facilities maintenance services to the government.

How does the daily cost of this contract compare to similar federal facilities maintenance contracts in the Maryland region?

The daily cost for this contract is approximately $17,500 ($7.3M / 417 days). To benchmark this, one would need to compare it against other federal facilities maintenance contracts awarded in Maryland or the broader Washington D.C. metropolitan area for facilities of similar size and complexity. Factors such as the specific services included (e.g., HVAC, janitorial, landscaping, security), the age and condition of the building, and the labor rates in the region would influence comparability. A preliminary assessment suggests this daily rate is within a plausible range for comprehensive services at a large federal building, but a detailed comparative analysis using historical contract data would be necessary for a definitive conclusion on value for money.

What are the primary risks associated with this Firm Fixed Price (FFP) contract for facilities maintenance?

The primary risk with a Firm Fixed Price (FFP) contract, especially for services like facilities maintenance which can encounter unforeseen issues, is that the contractor may seek to cut corners to protect their profit margin if costs exceed expectations. This could lead to a decline in service quality or deferred maintenance. Another risk is scope creep; if the government requires services beyond the contract's defined scope, managing those changes and associated costs under an FFP structure can be complex. To mitigate these risks, robust contract administration, clear performance standards, and regular communication between the government and the contractor are essential to ensure all requirements are met without compromising quality or incurring unexpected costs.

What is the expected effectiveness of these facilities maintenance services in ensuring the operational readiness of the Hubert H. Humphrey Building?

The effectiveness of the facilities maintenance services hinges on the detailed scope of work within the contract and the contractor's adherence to it. Assuming the contract covers essential areas such as HVAC, plumbing, electrical systems, janitorial services, and structural upkeep, the services are crucial for maintaining a safe, functional, and productive environment for building occupants. The Firm Fixed Price nature implies a defined set of services for a set price, which, if well-defined and monitored, should lead to predictable operational readiness. The 417-day duration suggests a focus on ongoing maintenance rather than major capital improvements, aiming to sustain the building's current operational status effectively.

How has federal spending on Facilities Support Services (NAICS 561210) trended over the past five years, and where does this contract fit?

Federal spending on Facilities Support Services (NAICS 561210) has generally seen a steady increase over the past five years, reflecting the government's ongoing need to maintain its extensive infrastructure. This contract, valued at $7.3 million, represents a relatively small portion of the total federal expenditure in this category. It is a typical award for the maintenance of a single, large federal building. Trends in this sector are influenced by factors such as aging federal real estate, security requirements, and energy efficiency mandates. This specific contract aligns with the consistent demand for routine and preventative maintenance services across federal agencies.

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: $30,702,304

Exercised Options: $7,304,763

Current Obligation: $7,304,763

Actual Outlays: $3,599,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00125A00015

IDV Type: BPA

Timeline