HHS awarded $11.25M non-competitive delivery order for facilities support services to Sobran, Inc

Contract Overview

Contract Amount: $11,252,301 ($11.3M)

Contractor: Sobran, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-27

End Date: 2010-09-30

Contract Duration: 1,099 days

Daily Burn Rate: $10.2K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AMEND 263-FD-701463 TO ADD WALL-TO-WALL INVENTORY OF PROPERTY WAREHOUSE - URGENT & COMPELLING REQUIREMENT.

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45432, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.3 million to SOBRAN, INC. for work described as: AMEND 263-FD-701463 TO ADD WALL-TO-WALL INVENTORY OF PROPERTY WAREHOUSE - URGENT & COMPELLING REQUIREMENT. Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a defined scope and cost. 2. The requirement was deemed urgent and compelling, potentially justifying the non-competitive award. 3. The contract duration of 1099 days suggests a significant, ongoing need for these services. 4. The award was made to Sobran, Inc., with no prior contract history provided for this specific task. 5. Facilities Support Services (NAICS 561210) is a broad category encompassing various operational needs. 6. The contract was awarded as a Delivery Order (DO) under a larger contract vehicle. 7. The contract was awarded to a single vendor, raising questions about price discovery and competition.

Value Assessment

Rating: questionable

Benchmarking the value of this $11.25 million contract is challenging without comparable data for similar urgent, non-competitive facilities support services. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition means there was no direct price comparison to ensure optimal value. The urgency of the requirement may have necessitated a higher price than might be achieved through a competitive process. Further analysis would require understanding the specific scope of 'wall-to-wall inventory of property warehouse' and its market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, indicating that a sole-source justification was likely used. The data explicitly states 'NON-COMPETITIVE DELIVERY ORDER,' suggesting that the agency determined that only one source was capable of meeting the urgent and compelling requirement. Consequently, there were no multiple bidders, and the price was not discovered through a competitive bidding process.

Taxpayer Impact: The lack of competition means taxpayers may not have received the lowest possible price for these services. Without a bidding process, there is less pressure on the contractor to offer competitive rates.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and its National Institutes of Health (NIH) component, which will receive the facilities support services. The services delivered include a 'wall-to-wall inventory of property warehouse,' crucial for asset management and operational efficiency. The geographic impact is centered in Ohio (ST: OH, SN: OHIO), where the services are being performed. Workforce implications are not detailed but would involve personnel from Sobran, Inc. performing the inventory and related tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially increases costs for taxpayers.
Urgent and compelling justification requires scrutiny to ensure it was truly necessary.
Lack of detailed performance metrics makes it difficult to assess service quality and efficiency.
The broad nature of 'Facilities Support Services' can sometimes mask inefficiencies if not tightly managed.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarding to a single vendor (Sobran, Inc.) may indicate specialized capabilities or a pre-existing relationship.
The contract addresses a specific, stated need for inventory management, which is important for asset tracking.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services from maintenance and repair to logistics and inventory management. The total government spending in this sector can be in the billions annually. This particular contract, valued at over $11 million, represents a substantial investment in ensuring the proper management and inventory of government property within a warehouse. Comparable spending benchmarks would typically involve looking at other large-scale inventory or facilities management contracts within federal agencies, though direct comparisons are difficult due to the unique 'urgent and compelling' nature of this award.

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 impacts on the small business ecosystem stemming from this particular award. The prime contractor, Sobran, Inc., is likely a larger entity if it was awarded a contract of this magnitude without small business considerations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and its National Institutes of Health (NIH) contracting and program offices. As a delivery order under a larger contract vehicle, there may be an underlying contract with its own oversight mechanisms. Transparency is limited due to the non-competitive nature of the award; details regarding the justification for the sole-source award and the negotiation process are not publicly available in this summary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance and Repair Services
Logistics and Supply Chain Management
Property Management Systems
Government Asset Tracking
Warehouse Operations Support

Risk Flags

Non-competitive award
Urgent and compelling justification
Lack of performance data
Limited transparency on pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.3 million to SOBRAN, INC.. AMEND 263-FD-701463 TO ADD WALL-TO-WALL INVENTORY OF PROPERTY WAREHOUSE - URGENT & COMPELLING REQUIREMENT.

Who is the contractor on this award?

The obligated recipient is SOBRAN, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2007-09-27. End: 2010-09-30.

What specific services are included in the 'wall-to-wall inventory of property warehouse' and what is the justification for the urgent and compelling nature of this requirement?

The term 'wall-to-wall inventory of property warehouse' typically refers to a comprehensive, detailed count and cataloging of all assets stored within a specific warehouse facility. This includes identifying, locating, and recording the condition, quantity, and type of all property. The justification for an 'urgent and compelling' requirement often stems from critical operational needs, such as impending audits, significant changes in facility management, immediate security concerns, or the need to establish a baseline for a new program. Without further documentation from HHS/NIH, the precise reasons for this urgency remain unspecified, but it was deemed sufficient to bypass a competitive bidding process.

How does the $11.25 million cost compare to similar facilities support services contracts, especially those awarded non-competitively?

Directly comparing the $11.25 million cost to similar contracts is difficult due to the non-competitive nature and the specific 'urgent and compelling' justification. Typically, competitive awards allow for price benchmarking against multiple offers. Non-competitive awards, especially those justified by urgency, may inherently carry a premium. To assess value, one would need to compare the per-unit cost of inventorying items, the labor hours estimated, and the overhead rates against industry standards for similar warehouse inventory projects. The firm-fixed-price nature suggests the government agreed this was a reasonable cost for the defined scope, but the lack of competition means there's no market validation.

What is the track record of Sobran, Inc. in providing facilities support services, particularly for the federal government?

Information regarding Sobran, Inc.'s specific track record for providing facilities support services, especially to the federal government, is not detailed in the provided data. The award is listed as a 'NON-COMPETITIVE DELIVERY ORDER,' which might imply a pre-existing relationship or a unique capability. A thorough assessment would require reviewing past performance evaluations (e.g., CPARS reports), other federal contracts awarded to Sobran, Inc. in similar service areas, and their overall experience in managing large-scale inventory projects. Without this context, it's challenging to evaluate their past performance reliability and expertise.

What are the potential risks associated with awarding a contract of this size non-competitively?

The primary risk associated with awarding a contract of this magnitude ($11.25 million) non-competitively is the potential for paying a higher price than could be achieved through competition. This lack of competition can also reduce the incentive for the contractor to innovate or provide the highest level of service, as there are no immediate alternatives for the government. Furthermore, it raises concerns about whether the 'urgent and compelling' justification was truly warranted or if it was used to circumvent a more transparent procurement process. There's also a risk that the contractor may not possess the most efficient or cost-effective methods if alternatives were not explored.

How does this contract fit into the broader spending patterns for Facilities Support Services within HHS or NIH?

This $11.25 million contract represents a significant, albeit specific, expenditure within the Facilities Support Services category for HHS/NIH. While annual spending on facilities support can be substantial, often running into hundreds of millions or billions across the entire agency, the context of this particular award is its non-competitive nature and urgent requirement. It's not necessarily indicative of a trend in overall spending but rather a response to a specific, time-sensitive need. To understand its place in broader patterns, one would need to analyze historical spending on NAICS 561210 by HHS/NIH, looking at the proportion awarded competitively versus non-competitively, and the typical size and duration of such contracts.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4401 DAYTON XENIA RD, DAYTON, OH, 45432

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

Financial Breakdown

Contract Ceiling: $11,252,301

Exercised Options: $11,252,301

Current Obligation: $11,252,301

Parent Contract

Parent Award PIID: GS10F0441R

IDV Type: FSS

Timeline