HHS awarded $32.9M contract to Four Seasons Environmental for O&M services in Georgia

Contract Overview

Contract Amount: $32,921,505 ($32.9M)

Contractor: Four Seasons Environmental Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2001-07-20

End Date: 2007-07-31

Contract Duration: 2,202 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FSE/0048/O&M--CLIFTON

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.9 million to FOUR SEASONS ENVIRONMENTAL INC for work described as: FSE/0048/O&M--CLIFTON Key points: 1. The contract value represents a significant investment in operational and maintenance services for the CDC. 2. The full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The cost-plus-fixed-fee contract type may introduce cost escalation risks if not managed carefully. 4. The contract duration of over 6 years indicates a long-term need for these services. 5. The award to a single contractor, Four Seasons Environmental Inc., highlights their established position in this service area. 6. The contract was awarded under the DCA (Defense Contract Audit Agency) which implies a level of financial scrutiny.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, a $32.9 million award over approximately six years for operational and maintenance services suggests a substantial commitment. The cost-plus-fixed-fee structure, while allowing for flexibility, can sometimes lead to higher overall costs compared to fixed-price contracts if not tightly controlled. Further analysis would require understanding the scope of work and comparing unit costs for specific maintenance tasks against industry standards.

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 opportunity was broadly advertised, and multiple responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is intended to drive better pricing and service quality. The exclusion of sources clause suggests that certain pre-qualifications or specific circumstances led to a narrowed pool of eligible bidders, even within the full and open framework.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can lead to lower prices and better value for the government's money.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from reliable operational and maintenance services, ensuring the functionality of its facilities. Essential services such as facility upkeep, repairs, and general maintenance are delivered, contributing to a safe and efficient working environment. The geographic impact is primarily focused on facilities within Georgia, where the contractor, Four Seasons Environmental Inc., is based and likely operates. The contract supports jobs within the environmental services and facilities management sectors, contributing to the local and regional economy in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if the scope of work is not clearly defined or if unforeseen issues arise.
Lack of specific bidder numbers makes it difficult to assess the true level of competition and potential for price optimization.
The 'Exclusion of Sources' clause, while part of a full and open competition, warrants scrutiny to ensure it did not unduly limit potential bidders.
Long contract durations can sometimes reduce flexibility to adopt newer, more cost-effective technologies or service providers.

Positive Signals

Awarding under 'Full and Open Competition' suggests a commitment to leveraging market forces for best value.
The contractor, Four Seasons Environmental Inc., has secured a significant, long-term contract, indicating a level of trust and capability.
The contract's focus on operational and maintenance services is critical for ensuring the continuity and effectiveness of CDC operations.
The contract duration of over 6 years provides stability and predictability for both the agency and the contractor.

Sector Analysis

This contract falls within the Facilities Support and Operations & Maintenance (O&M) sector, a critical component of government infrastructure management. The market for O&M services is substantial, encompassing a wide range of activities from routine cleaning and landscaping to complex building systems maintenance and repair. Government agencies, particularly those with extensive physical footprints like the CDC, rely heavily on such contracts to ensure their facilities are functional, safe, and compliant with regulations. Benchmarks for O&M spending vary widely based on facility size, type, and location, but consistent, long-term contracts are common for essential support services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a small business set-aside. The primary focus would be on the prime contractor's own operations and potential use of subcontractors, which are not detailed here.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (HHS) through the Centers for Disease Control and Prevention (CDC). Oversight would typically involve contract officers, program managers within the CDC, and potentially the Defense Contract Audit Agency (DCAA) given the contract type and award mechanism. Transparency is generally facilitated through contract databases like FPDS. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Operations and Maintenance Services
CDC Facility Support Contracts
Health and Human Services Agency Contracts
Cost-Plus-Fixed-Fee Service Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract type may lead to cost overruns.
Long contract duration may reduce flexibility.
Limited information on the number of bidders.
Potential for reduced competition due to 'Exclusion of Sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.9 million to FOUR SEASONS ENVIRONMENTAL INC. FSE/0048/O&M--CLIFTON

Who is the contractor on this award?

The obligated recipient is FOUR SEASONS ENVIRONMENTAL INC.

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 $32.9 million.

What is the period of performance?

Start: 2001-07-20. End: 2007-07-31.

What is the specific scope of work covered under this $32.9 million contract for operational and maintenance services?

The provided data does not detail the specific scope of work. However, 'Operational and Maintenance' (O&M) services typically encompass a broad range of activities necessary to keep facilities and equipment in good working order. This can include routine maintenance (e.g., HVAC, plumbing, electrical systems), preventative maintenance, repairs, janitorial services, groundskeeping, waste management, and potentially specialized support for laboratory or research equipment. For the CDC, O&M services are critical for ensuring the functionality, safety, and compliance of its research facilities, office spaces, and public health infrastructure. A detailed scope of work would outline specific tasks, performance standards, reporting requirements, and service level agreements.

How does the cost-plus-fixed-fee (CPFF) contract type compare to other contract types in terms of value for money for O&M services?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset or involves a high degree of uncertainty, which can be common in complex O&M scenarios. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While this allows for flexibility and ensures the contractor is compensated for unforeseen complexities, it carries a higher risk of cost escalation for the government compared to fixed-price contracts. For O&M services, fixed-price contracts might offer better value if the scope is well-defined and predictable. However, if the O&M involves significant unknowns or requires adaptive responses, CPFF can ensure necessary services are performed without the contractor bearing undue risk, potentially leading to better service quality, albeit at a potentially higher total cost.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply about the competition level and potential pricing?

This procurement method signifies that the contract was initially intended for full and open competition, meaning all responsible sources were encouraged to submit offers. However, the 'after exclusion of sources' clause indicates that certain potential sources were excluded from the competition, possibly due to specific requirements, pre-qualification criteria, or other justifications. While it's still a form of open competition, the exclusion might suggest a slightly narrowed field compared to a completely unrestricted competition. The level of competition and its impact on pricing would depend on the number of bidders that ultimately submitted proposals. If multiple capable bidders participated despite the exclusions, competitive pricing is more likely. If few bidders remained, the government might have less leverage in price negotiations.

What is the track record of Four Seasons Environmental Inc. in securing and performing similar government contracts?

The data indicates that Four Seasons Environmental Inc. was awarded this $32.9 million contract by the Department of Health and Human Services (HHS) for O&M services. Securing a contract of this magnitude and duration suggests a demonstrated capability and a positive track record with the agency or within the federal contracting space. Without access to detailed performance reviews, past performance questionnaires, or a broader contract history, it's difficult to provide a comprehensive assessment. However, the award itself implies that the contractor met the agency's requirements for technical expertise, financial stability, and past performance relevant to the scope of work.

How does the $32.9 million contract value compare to historical spending patterns for O&M services at the CDC or similar agencies?

The $32.9 million contract value, spread over approximately 6 years (2202 days), averages around $5.5 million per year. To assess this against historical spending, one would need to analyze the CDC's or HHS's historical expenditures on similar O&M services. Factors such as the size and number of facilities managed, the complexity of the operations, and inflation over time would influence these comparisons. If the CDC manages numerous research laboratories and administrative buildings, this annual average might be in line with or even conservative compared to the total O&M budget. Conversely, if it represents a significant increase over previous contract values for similar services, it could warrant further investigation into the reasons for the higher cost.

What are the potential risks associated with the contract duration of over 6 years for O&M services?

A contract duration of over 6 years (2202 days) for O&M services offers stability and continuity, which can be beneficial for ensuring consistent facility upkeep. However, it also presents potential risks. Firstly, long-term contracts may reduce the agency's flexibility to adapt to changing needs, incorporate new technologies, or switch to more cost-effective service providers if market conditions or requirements evolve. Secondly, the fixed nature of the fee in a CPFF contract might not adequately account for significant inflation or unforeseen market shifts over such an extended period, potentially leading to cost inefficiencies for the government if costs rise substantially. Lastly, prolonged relationships can sometimes lead to complacency or reduced competitive pressure if not actively managed and overseen.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1998N00254

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 60A AMERICAN WAY, MONROE, OH, 45050

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,072,401,785

Exercised Options: $558,385,502

Current Obligation: $32,921,505

Timeline