HHS awards $110M for facilities management to Four Seasons Environmental Inc. over 5 years

Contract Overview

Contract Amount: $110,190,558 ($110.2M)

Contractor: Four Seasons Environmental Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-15

End Date: 2017-11-30

Contract Duration: 1,902 days

Daily Burn Rate: $57.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF O&M SERVICES, FACILITIES MANAGEMENT, CDC

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $110.2 million to FOUR SEASONS ENVIRONMENTAL INC for work described as: IGF::OT::IGF O&M SERVICES, FACILITIES MANAGEMENT, CDC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract (1902 days) indicates a significant, long-term need for these services. 4. The award was a Delivery Order under a larger contract vehicle. 5. The contractor, Four Seasons Environmental Inc., has a track record with this type of service. 6. The services are for Facilities Support Services, a critical operational function.

Value Assessment

Rating: fair

The total award amount of $110,190,558.03 over approximately five years for facilities management services appears to be within a reasonable range for a contract of this scope and duration. Benchmarking against similar large-scale facilities management contracts for federal agencies is necessary for a definitive value assessment. The Time and Materials (T&M) pricing structure, while common for services where scope can fluctuate, warrants careful monitoring to ensure costs do not escalate beyond initial expectations. Without specific details on labor rates and material markups, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards. The specific number of bidders (4) provides some assurance of market interest.

Taxpayer Impact: A full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. The government likely received competitive pricing due to the availability of multiple bidders.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from reliable facilities management, ensuring operational continuity. Services include maintenance, repair, and general upkeep of facilities, crucial for a research and public health organization. The contract's geographic impact is focused on the facilities managed by the CDC, primarily in Georgia. The contract supports jobs within the facilities management sector, both directly with the contractor and indirectly through supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed and monitored.
The long duration of the contract may reduce flexibility to adapt to changing needs or technologies.
Reliance on a single contractor for critical facilities management functions could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor has experience in providing facilities support services.
The contract addresses a clear and ongoing need for facilities operations and maintenance.

Sector Analysis

Facilities management is a significant sector within the broader professional, scientific, and technical services industry. Federal agencies, particularly large ones like the CDC, require extensive facilities support for their operations, research labs, and administrative functions. Spending in this area is consistent across government, with contracts often awarded through competitive processes. The market includes a mix of large, established service providers and smaller, specialized firms. This contract represents a substantial portion of spending within this specific service category for the agency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside benefits. However, the prime contractor, Four Seasons Environmental Inc., may engage small businesses as subcontractors to fulfill portions of the contract requirements. The extent of small business subcontracting would depend on the contractor's own policies and the specific needs of the services provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Centers for Disease Control and Prevention. The Time and Materials nature of the contract necessitates diligent monitoring of labor hours, material costs, and adherence to the contract's statement of work to ensure accountability and prevent cost creep. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Management Contracts
CDC Operations and Maintenance Spending
Department of Health and Human Services Service Contracts
Time and Materials Service Contracts
General Services Administration (GSA) Schedules (potential vehicle)

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Contract duration may limit flexibility.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $110.2 million to FOUR SEASONS ENVIRONMENTAL INC. IGF::OT::IGF O&M SERVICES, FACILITIES MANAGEMENT, CDC

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 $110.2 million.

What is the period of performance?

Start: 2012-09-15. End: 2017-11-30.

What is the track record of Four Seasons Environmental Inc. in performing similar federal facilities management contracts?

Four Seasons Environmental Inc. has a history of performing facilities management and environmental services for federal agencies. While this specific contract with the CDC is substantial, the company's experience in related areas suggests a foundational capability. A deeper dive into their past performance evaluations, including CPARS (Contractor Performance Assessment Reporting System) reports, would provide more granular insights into their reliability, quality of service, and adherence to schedules and budgets on previous government contracts. Examining the size and complexity of their prior awards would also help contextualize their capacity to manage a contract of this magnitude.

How does the per-unit cost or overall value of this contract compare to similar facilities management contracts awarded by other federal agencies?

Benchmarking this $110 million, five-year facilities management contract against similar awards requires access to a comprehensive database of federal contracts. Factors such as geographic location, specific services required (e.g., janitorial, HVAC, security, groundskeeping), and the size and type of facilities managed significantly influence costs. Contracts awarded through full and open competition generally offer better value. However, the Time and Materials pricing structure necessitates close scrutiny of labor rates and material markups. Without specific comparable data points on labor categories, overhead rates, and profit margins, a definitive value comparison is difficult. Agencies often use GSA schedules or conduct market research to establish fair and reasonable pricing for such services.

What are the primary risks associated with the Time and Materials (T&M) contract type for this facilities management requirement?

The primary risk with a Time and Materials (T&M) contract for facilities management is the potential for cost escalation if not managed rigorously. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials, plus a percentage for overhead and profit. This structure can incentivize longer task durations or higher labor grades than strictly necessary, potentially increasing the overall cost to the government. Effective risk mitigation requires robust government oversight, including detailed tracking of labor hours, verification of material costs, and a clear definition of 'materials' versus 'services'. Strong contract administration is crucial to ensure the government receives good value and that costs remain within reasonable bounds.

How effective are the oversight mechanisms in place to ensure the performance and cost control of this contract?

The effectiveness of oversight for this contract hinges on the diligence of the Contracting Officer's Representative (COR) and the contracting office. For a T&M contract of this size, robust oversight involves regular reviews of timesheets, invoices, and progress reports. The COR must ensure that the labor hours billed are reasonable and allocable to the contract's tasks and that material costs are fair and reasonable. Establishing clear performance metrics and milestones within the contract, coupled with regular performance evaluations (e.g., CPARS), is essential. The CDC's internal policies and procedures for contract management, along with potential audits by the HHS Office of Inspector General, would further bolster oversight and accountability.

What is the historical spending pattern for facilities management services at the CDC, and how does this contract fit within that pattern?

Analyzing historical spending patterns for facilities management at the CDC is crucial for contextualizing this $110 million award. Typically, large federal agencies like the CDC have consistent, significant annual expenditures on facilities operations and maintenance due to the nature of their research and public health infrastructure. This contract, spanning approximately five years, represents a substantial but likely consistent level of investment for the agency in this area. Understanding previous contract values, durations, and awarded contractors for similar services would reveal whether this award is an increase, decrease, or continuation of prior spending levels. It also helps assess if the agency is consolidating requirements or diversifying its contracting approach.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 43 NEW GARVER RD, MONROE, OH, 45050

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

Financial Breakdown

Contract Ceiling: $111,927,909

Exercised Options: $111,927,909

Current Obligation: $110,190,558

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0044P

IDV Type: FSS

Timeline