NIH's $23.4M Facilities Management Contract Awarded to Innovative Consulting & Management Services, LLC

Contract Overview

Contract Amount: $23,364,398 ($23.4M)

Contractor: Innovative Consulting & Management Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2016-09-28

End Date: 2020-08-31

Contract Duration: 1,433 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FACILITY MANAGEMENT

Place of Performance

Location: DERWOOD, MONTGOMERY County, MARYLAND, 20855

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.4 million to INNOVATIVE CONSULTING & MANAGEMENT SERVICES, LLC for work described as: IGF::OT::IGF FACILITY MANAGEMENT Key points: 1. Contract value represents a significant investment in maintaining critical NIH facilities. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed-price structure aims to control costs and provide predictable spending. 4. The contract duration of over three years indicates a need for sustained facility support. 5. The award to a single contractor suggests a focus on specialized expertise in facilities management. 6. Performance will be key to ensuring efficient and effective facility operations for NIH.

Value Assessment

Rating: good

The contract value of $23.4 million over approximately three years for facilities management services appears reasonable given the scope of supporting the National Institutes of Health. Benchmarking against similar large-scale facilities management contracts for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps in cost predictability, but the ultimate value depends on the quality and efficiency of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition. While not a large number of bidders, it still allowed for price discovery and selection of the most advantageous offer.

Taxpayer Impact: The competitive nature of this award, despite a limited number of bidders, likely resulted in a fair market price for taxpayers, preventing excessive costs that might arise from a sole-source or less competitive procurement.

Public Impact

The primary beneficiaries are the researchers and staff at the National Institutes of Health, who rely on well-maintained facilities to conduct critical medical research. The services delivered include essential facility support, ensuring operational continuity and a safe working environment. The geographic impact is concentrated at the NIH facilities in Maryland. The contract supports a workforce involved in facility maintenance, operations, and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Reliance on a single contractor for critical facility operations poses a risk.
Ensuring consistent quality of services across the contract duration.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Firm fixed-price contract type helps manage cost overruns.
Contract duration suggests a stable and predictable service provision.

Sector Analysis

Facilities management is a crucial support sector for government operations, encompassing a wide range of services from maintenance and repair to groundskeeping and security. Federal spending in this area is substantial, supporting the infrastructure of numerous agencies. This contract fits within the broader category of professional services and real property maintenance, where agencies often seek specialized contractors to ensure efficient and compliant operations of their physical assets.

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 for small businesses stemming from a small business set-aside. The primary contractor, Innovative Consulting & Management Services, LLC, is responsible for its own subcontracting strategy, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program/project officers within the National Institutes of Health. The firm fixed-price nature provides some inherent accountability for performance. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Health and Human Services would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Federal Facilities Management Contracts
NIH Operations and Maintenance Spending
Professional Services Contracts
Government Building Maintenance

Risk Flags

Moderate competition level
Potential for performance issues
Contract duration requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.4 million to INNOVATIVE CONSULTING & MANAGEMENT SERVICES, LLC. IGF::OT::IGF FACILITY MANAGEMENT

Who is the contractor on this award?

The obligated recipient is INNOVATIVE CONSULTING & MANAGEMENT SERVICES, LLC.

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 $23.4 million.

What is the period of performance?

Start: 2016-09-28. End: 2020-08-31.

What is the track record of Innovative Consulting & Management Services, LLC with federal contracts, particularly in facilities management?

Innovative Consulting & Management Services, LLC has a history of performing federal contracts. While specific details on their track record in facilities management require deeper analysis of their contract performance history, their ability to win a significant contract like this from NIH suggests they have demonstrated capabilities and met the requirements of the procurement process. Further investigation into past performance reviews, any past issues or commendations, and the types of services they have provided on previous federal awards would offer a more comprehensive understanding of their reliability and expertise in this domain.

How does the awarded amount of $23.4 million compare to similar facilities management contracts at other federal agencies?

The $23.4 million contract value for facilities management over approximately three years at NIH is substantial. To benchmark this effectively, one would need to compare it against contracts of similar scope, duration, and complexity at other large federal agencies like the General Services Administration (GSA), Department of Defense installations, or other health-focused agencies like the Centers for Disease Control and Prevention (CDC). Factors such as the size and type of facilities managed, the specific services included (e.g., HVAC, janitorial, security, groundskeeping), and the geographic location can significantly influence contract values. Without direct comparable data, it's challenging to definitively state if this represents excellent or fair value, but it falls within the expected range for major federal facility support.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential underperformance by the contractor leading to disruptions in facility operations, cost overruns (though mitigated by the firm fixed-price structure), and contractor default. Mitigation strategies likely involve robust performance monitoring by NIH officials, clear performance standards and metrics outlined in the contract, and the potential for contract termination or penalties for non-compliance. The competitive award process itself serves as a risk mitigation tool by selecting a contractor deemed capable. However, ongoing vigilance and proactive contract management are crucial.

How effective is the firm fixed-price contract type in ensuring program effectiveness and value for money in this context?

The firm fixed-price (FFP) contract type is generally effective in controlling costs for services where the scope of work is well-defined, as is typical for facilities management. It shifts the risk of cost overruns to the contractor, incentivizing them to operate efficiently. For NIH, this means predictable spending on facility support. Program effectiveness is then primarily driven by the contractor's ability to meet the performance standards outlined in the contract. While FFP is good for cost certainty, NIH must ensure that the performance requirements are stringent enough to guarantee the desired level of service quality and operational effectiveness.

What are the historical spending patterns for facilities management at NIH, and how does this contract fit within them?

Analyzing historical spending patterns for facilities management at NIH would involve examining previous contracts for similar services, their values, durations, and the contractors involved. This $23.4 million contract represents a significant, multi-year investment. If NIH has consistently awarded large contracts in this domain, it suggests a sustained need for comprehensive facilities support. Understanding if this award is higher, lower, or consistent with previous spending levels would provide context on whether NIH's investment in facilities management is increasing, decreasing, or stable. It indicates a continued reliance on external contractors for these essential functions.

What is the significance of the contract being awarded under 'Full and Open Competition After Exclusion of Sources' with two bidders?

This award type signifies that the solicitation was widely advertised, allowing any qualified vendor to bid, but specific sources were excluded for defined reasons (though not detailed here). The fact that only two bidders submitted offers suggests a moderately competitive environment. While more bidders generally lead to better price discovery and potentially lower prices for the government, two bidders still provide a basis for comparison. It indicates that the market for this specific type of facilities management service may be concentrated, or that the barriers to entry for bidding were significant. This level of competition is generally considered acceptable but less robust than a scenario with numerous bidders.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7361 CALHOUN PLACE, ROCKVILLE, MD, 20855

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,460,602

Exercised Options: $23,364,398

Current Obligation: $23,364,398

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline