HHS awards $13.2M facilities maintenance contract to Four Seasons Environmental Inc. over 8 years

Contract Overview

Contract Amount: $13,224,220 ($13.2M)

Contractor: Four Seasons Environmental Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2004-07-01

End Date: 2010-05-31

Contract Duration: 2,160 days

Daily Burn Rate: $6.1K/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: FACILITIES MAINTENANCE SERVICE

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45226, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.2 million to FOUR SEASONS ENVIRONMENTAL INC for work described as: FACILITIES MAINTENANCE SERVICE Key points: 1. Contract value represents a significant investment in facilities support services for the CDC. 2. The contract was competed, suggesting potential for competitive pricing and value. 3. Long duration of the contract (8 years) may indicate a need for stable, long-term service provision. 4. The cost-plus-fixed-fee pricing structure requires careful monitoring to ensure cost control. 5. Performance context is critical given the essential nature of facilities maintenance for agency operations. 6. Sector positioning is within the facilities support services market, a common government need.

Value Assessment

Rating: fair

The total award of $13.2 million over approximately 8 years averages to about $1.65 million annually. Benchmarking this against similar facilities maintenance contracts is challenging without more specific service details. However, the duration suggests a potentially stable, albeit not necessarily the lowest, price point was negotiated. The cost-plus-fixed-fee structure means the government pays for allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Further analysis would require comparing the fixed fee percentage and the actual cost performance against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing than true full and open competition. With only one awardee, it's difficult to assess the breadth of competition without knowing how many bids were received or why other potential bidders were excluded.

Taxpayer Impact: The exclusion of sources, even if justified, may have limited the competitive pressure on pricing, potentially resulting in higher costs for taxpayers compared to a scenario with broader participation.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from consistent facilities maintenance. Essential services such as building operations, maintenance, and repair are delivered. The geographic impact is primarily at the CDC facilities located in Ohio. Workforce implications include potential employment opportunities for maintenance and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type.
Limited competition ('after exclusion of sources') may have reduced price discovery.
Long contract duration (8 years) could lead to complacency or reduced incentive for innovation if not managed well.
Lack of specific performance metrics makes it difficult to assess value for money objectively.

Positive Signals

Awarded through a competitive process, indicating some level of market vetting.
Long-term contract provides stability for essential facilities services.
Contractor has secured a significant award, suggesting a level of capability and trust.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing building operations, maintenance, and related services. The government is a major consumer of these services, with significant spending across various agencies. The market includes numerous providers, ranging from large facility management corporations to smaller, specialized firms. The annual spending on facilities maintenance by the federal government is in the billions, making this contract a relatively small portion of the overall market but significant for the specific CDC facilities it serves.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary awardee is likely a larger entity, and opportunities for small businesses would depend on their ability to subcontract with the prime contractor, which is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the CDC. The Cost Plus Fixed Fee structure necessitates robust financial oversight to scrutinize allowable costs and ensure the fixed fee is justified. Transparency is dependent on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
CDC Support Services
General Services Administration (GSA) Schedules for Facilities Management
Department of Health and Human Services Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to source exclusion.
Long contract duration may reduce contractor incentive for efficiency.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.2 million to FOUR SEASONS ENVIRONMENTAL INC. FACILITIES MAINTENANCE SERVICE

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 $13.2 million.

What is the period of performance?

Start: 2004-07-01. End: 2010-05-31.

What is the track record of Four Seasons Environmental Inc. with federal contracts, particularly in facilities maintenance?

Information regarding the specific track record of Four Seasons Environmental Inc. with federal contracts, especially in facilities maintenance, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes or terminations, and the types and values of previous federal awards. Without this data, it's difficult to gauge their experience level and reliability for this specific $13.2 million, 8-year contract with the CDC.

How does the $13.2 million total award compare to similar facilities maintenance contracts awarded by the CDC or HHS?

Comparing the $13.2 million total award for facilities maintenance to similar contracts requires access to a broader dataset of federal procurement. The average annual value of this contract is approximately $1.65 million ($13.2M / 8 years). To benchmark effectively, one would need to analyze contracts with comparable scope, duration, and service requirements (e.g., building operations, HVAC, janitorial services) awarded by the CDC or other agencies within HHS. Factors like geographic location, facility size, and specific service level agreements significantly influence pricing, making direct comparisons challenging without detailed context. However, this award appears to be a substantial commitment for a single contractor over an extended period.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for facilities maintenance?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for facilities maintenance is the potential for cost overruns. While the contractor's profit (the fixed fee) is capped, the government bears the risk of all allowable costs incurred. If the contractor is inefficient or if unforeseen circumstances drive up costs (e.g., unexpected repairs, material price increases), the total expenditure for the government can exceed initial estimates. Effective oversight is crucial to scrutinize costs, ensure efficiency, and prevent scope creep that inflates the cost base. The fixed fee itself needs to be reasonable and reflective of the effort required, avoiding excessive profit margins.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the effectiveness of the competition?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a hybrid approach to competition. While the intent was to allow all responsible sources to submit offers, specific sources were intentionally excluded. The effectiveness of this competition hinges on the justification for these exclusions and the number of remaining bidders. If the exclusions were narrow and well-justified (e.g., based on specific technical capabilities or past performance issues), the competition might still yield good results. However, if significant potential competitors were excluded without clear rationale, it could limit price discovery and potentially lead to higher costs for the government compared to unrestricted full and open competition.

How has federal spending on facilities maintenance services evolved over the past decade, and where does this contract fit?

Federal spending on facilities maintenance services has generally remained substantial over the past decade, reflecting the government's vast real estate portfolio. While specific figures fluctuate based on agency priorities, budget allocations, and economic conditions, the need for ongoing maintenance is constant. This $13.2 million contract, awarded in 2004 for an 8-year period, represents a segment of that spending. Its value is significant for the specific CDC facilities it supports but is a fraction of the total federal outlay for such services, which likely runs into billions annually across all agencies. Analyzing historical spending trends would involve looking at aggregate data from sources like the Federal Procurement Data System (FPDS) for NAICS code 561210.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2003N00995

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: $117,800,454

Exercised Options: $117,800,454

Current Obligation: $13,224,220

Timeline