HHS awards $34M for Humphrey Building facilities management, with EMCOR Government Services Inc. securing the contract

Contract Overview

Contract Amount: $33,994,782 ($34.0M)

Contractor: Emcor Government Services, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2014-04-01

End Date: 2021-02-28

Contract Duration: 2,525 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF FACILITIES MANAGEMENT AND SYSTEMS MAINTENANCE FOR THE HUMPHREY BUILDING

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.0 million to EMCOR GOVERNMENT SERVICES, INC for work described as: IGF::CT::IGF FACILITIES MANAGEMENT AND SYSTEMS MAINTENANCE FOR THE HUMPHREY BUILDING Key points: 1. The contract value of $33.99 million over its period of performance suggests a significant investment in maintaining a key federal facility. 2. EMCOR Government Services, Inc. was awarded this contract, indicating a competitive selection process for facilities support services. 3. The firm-fixed-price contract type implies that the contractor assumes the risk for cost overruns, potentially benefiting the government. 4. The contract duration of 2525 days (approximately 7 years) indicates a long-term need for these essential building operations. 5. The North American Industry Classification System (NAICS) code 561210 points to a focus on comprehensive facilities support services. 6. The award was made under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework for service delivery.

Value Assessment

Rating: good

The total award of $33.99 million for facilities management over nearly seven years appears reasonable for a building of the Humphrey Building's scale and importance. Benchmarking against similar large-scale federal building maintenance contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government, as it shifts cost overrun risks to the contractor. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost efficiency is challenging, but the competitive award process suggests a degree of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that there were 5 bidders suggests a healthy level of competition for this type of service. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces, ensuring that federal funds are used more efficiently for essential services like facilities management.

Public Impact

The primary beneficiaries are the employees and visitors of the Department of Health and Human Services (HHS) who utilize the Humphrey Building. The contract ensures the continuous operation and maintenance of critical building systems, including HVAC, electrical, plumbing, and general upkeep. The services delivered directly support the mission of HHS by providing a safe, functional, and efficient working environment. The geographic impact is localized to the Humphrey Building in Maryland, a significant federal facility. Workforce implications include the employment of skilled tradespeople and facility management professionals by EMCOR Government Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, leading to increased costs beyond the initial fixed price.
Reliance on a single contractor for critical building infrastructure could pose risks if performance falters.
Ensuring consistent quality of maintenance across a large facility requires robust oversight.
Long-term contracts can sometimes lead to complacency if performance incentives are not adequately structured.

Positive Signals

Firm-fixed-price contract structure shifts cost overrun risk to the contractor.
Full and open competition suggests a competitive market and potentially good pricing.
The award to an established government services provider indicates experience in federal contracting.
The long duration implies a stable and predictable service delivery model for HHS.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, represents a significant segment of the government contracting market. This sector encompasses a wide range of services necessary for the operation and maintenance of buildings and other physical structures. Federal spending in this area is substantial, driven by the vast inventory of government-owned real estate. Comparable contracts often involve large dollar values due to the scale and complexity of maintaining federal facilities, which require adherence to strict security, environmental, and operational standards. The market is typically competitive, with numerous firms specializing in integrated facility management.

Small Business Impact

This contract was awarded through full and open competition and does not appear to have a specific small business set-aside component. While the prime contractor, EMCOR Government Services, Inc., is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on EMCOR's internal policies and the specific requirements outlined in the contract, which are not detailed here. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration. As a firm-fixed-price contract awarded via BPA Call, performance monitoring and quality assurance are crucial. Accountability measures would likely involve regular performance reviews, adherence to service level agreements, and potentially the involvement of an Inspector General if any issues of fraud, waste, or abuse arise. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal.

Related Government Programs

Federal Building Operations and Maintenance
Government Facilities Management Services
Department of Health and Human Services Contracts
Humphrey Building Operations
BPA Call Awards

Risk Flags

Long-term contract duration requires sustained oversight.
Firm-fixed-price contracts necessitate vigilance against quality compromises.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.0 million to EMCOR GOVERNMENT SERVICES, INC. IGF::CT::IGF FACILITIES MANAGEMENT AND SYSTEMS MAINTENANCE FOR THE HUMPHREY BUILDING

Who is the contractor on this award?

The obligated recipient is EMCOR GOVERNMENT SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2014-04-01. End: 2021-02-28.

What is EMCOR Government Services, Inc.'s track record with federal contracts, particularly in facilities management?

EMCOR Government Services, Inc. has a substantial history of performing federal contracts, including extensive experience in facilities management and maintenance across various government agencies. Their portfolio often includes large-scale operations similar to the Humphrey Building contract. Reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their reliability, quality of service, and adherence to contract terms. A history of successful contract completion and positive performance ratings would indicate a lower risk associated with this award. Conversely, a pattern of performance issues or disputes could raise concerns about their capability to meet the demands of this significant contract.

How does the $33.99 million contract value compare to similar facilities management contracts for large federal buildings?

The $33.99 million award for facilities management over approximately seven years for the Humphrey Building represents an average annual cost of roughly $4.86 million. This figure needs to be contextualized by the size, age, and complexity of the Humphrey Building, as well as the specific services included (e.g., HVAC, electrical, plumbing, janitorial, security systems maintenance). Comparing this to contracts for similarly sized federal office buildings or agency headquarters would be necessary for a robust benchmark. Generally, large, complex facilities require significant investment in maintenance. Without specific comparative data on square footage, systems complexity, and service scope, it's difficult to definitively state if this value is high or low, but it falls within the expected range for comprehensive management of a major federal facility.

What are the primary risk indicators associated with this firm-fixed-price contract for facilities management?

The primary risk indicator for a firm-fixed-price (FFP) contract, while generally favorable to the government, lies in the potential for the contractor to cut corners on quality or service to maintain profitability if costs escalate unexpectedly. For facilities management, this could manifest as deferred maintenance, reduced preventative care, or lower-quality materials. Another risk is the contractor's financial stability and capacity to handle unforeseen issues over a long contract duration. Robust government oversight, clear performance metrics, and strong contract administration are essential to mitigate these risks. The number of bidders (5) suggests a competitive environment, which can reduce the risk of a contractor having excessive market power to dictate terms or compromise quality.

How effective is the 'full and open competition' approach in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for facilities management services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The presence of 5 bidders for this contract indicates that the market for these services is robust enough to support multiple providers. This competition allows the government to select the offer that provides the best combination of price and technical capability. While effective, the government must still diligently evaluate proposals to ensure the lowest price doesn't come at the expense of essential quality or long-term reliability.

What are the historical spending patterns for facilities management at the Humphrey Building or similar HHS facilities?

Historical spending data for facilities management at the Humphrey Building or comparable HHS facilities would provide crucial context for evaluating the current $33.99 million award. Analyzing past contract values, durations, and any modifications or overruns would reveal trends in costs and service needs. If spending has been consistently high or has increased significantly over time, it might indicate rising operational costs, aging infrastructure, or expanded service requirements. Conversely, stable or decreasing spending could suggest efficient management or a reduction in service scope. Without access to this historical data, it is challenging to assess whether the current contract represents a fair market price or a deviation from established spending patterns.

What is the significance of this contract being awarded as a BPA Call?

Awarding this contract as a Blanket Purchase Agreement (BPA) Call signifies that it was likely executed under a pre-existing, broader BPA. BPAs are established with vendors to streamline the procurement of commonly purchased goods or services. A BPA Call represents a specific order placed against that BPA. This method can expedite the acquisition process and potentially offer better pricing due to pre-negotiated terms and volume commitments established under the parent BPA. For facilities management, it suggests that HHS has an established relationship or framework with EMCOR Government Services, Inc. for such services, allowing for efficient task order issuance.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Roberts Immigration LAW Group, LLC

Address: 2800 CRYSTAL DR STE 600, ARLINGTON, VA, 22202

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,682,582

Exercised Options: $33,994,782

Current Obligation: $33,994,782

Parent Contract

Parent Award PIID: HHSP233201400015B

IDV Type: BPA

Timeline