FEMA awards $21M facilities support contract to HME, Inc. for operations in Alabama

Contract Overview

Contract Amount: $21,028,052 ($21.0M)

Contractor: HME, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-11-01

End Date: 2025-04-26

Contract Duration: 3,829 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FACILITY OPERATIONS AND SUPPORT SERVICES

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.0 million to HME, INC. for work described as: IGF::OT::IGF FACILITY OPERATIONS AND SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of facilities support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 4. Services are being delivered in Alabama, impacting a specific geographic region. 5. The contractor, HME, Inc., has been awarded this contract for a significant period. 6. The contract is for facilities support services, a critical operational function.

Value Assessment

Rating: good

The contract value of $21 million over approximately 10 years for facilities support services in Alabama appears to be within a reasonable range for such long-term, comprehensive support. Benchmarking against similar large-scale facilities management contracts for federal agencies would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that the government has locked in costs, which is generally favorable.

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 while the competition was broad, specific sources may have been excluded based on prior performance or other criteria. The presence of 8 bidders suggests a healthy level of competition, which typically drives better pricing and service offerings for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in more competitive pricing and a wider array of service options being considered.

Public Impact

The primary beneficiaries are the Federal Emergency Management Agency (FEMA) facilities in Alabama, which will receive essential operational support. Services include facility operations and support, ensuring the smooth functioning of critical infrastructure. The geographic impact is concentrated in Alabama, supporting federal operations within the state. The contract supports the workforce involved in facility maintenance, operations, and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the long duration.
Dependence on a single contractor for critical facility operations could pose a risk if performance degrades.
Ensuring consistent service quality across the entire contract period requires diligent oversight.

Positive Signals

Firm fixed-price contract provides cost predictability for FEMA.
Full and open competition suggests a competitive environment that should yield good value.
The contract duration allows for long-term planning and stable service delivery.
The contractor has been awarded this significant contract, implying a level of trust and capability.

Sector Analysis

Facilities Support Services represent a significant segment within the broader facilities management industry. This contract falls under the North American Industry Classification System (NAICS) code 561210. The market for government facilities management is substantial, with agencies like FEMA requiring continuous operational support for their physical assets. Benchmarking this contract against other federal facilities support contracts would reveal its relative size and scope within the government's spending landscape.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, HME, Inc., is not identified as a small business in this context.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within FEMA. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Operations and Maintenance
Government Facilities Management Services
Emergency Management Support Services
Department of Homeland Security Contracts
FEMA Facility Support

Risk Flags

Long contract duration may increase risk of performance degradation or market misalignment.
Potential for contractor dependency requires robust oversight.
Need for clear performance metrics to ensure value for money over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.0 million to HME, INC.. IGF::OT::IGF FACILITY OPERATIONS AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is HME, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2014-11-01. End: 2025-04-26.

What is the historical spending pattern for facilities support services by FEMA in Alabama?

Analyzing historical spending patterns for FEMA's facilities support services in Alabama requires access to detailed historical contract data. Without specific historical data for this region and service type, it's difficult to provide a precise trend. However, federal agencies generally maintain consistent spending on essential operational services like facilities management, with fluctuations often tied to specific projects, facility expansions, or changes in operational needs. The current award of $21 million over approximately 10 years suggests a significant and ongoing requirement for these services, implying that past spending was likely substantial and consistent to justify such a long-term commitment. Further analysis would involve examining prior contracts awarded by FEMA for similar services in Alabama to identify any trends in contract values, durations, and contractor performance.

How does the per-unit cost of this contract compare to similar facilities support contracts?

Determining the per-unit cost comparison for this contract is challenging without specific unit metrics defined within the contract (e.g., cost per square foot, cost per service call). The total contract value of $21 million is for comprehensive facilities operations and support services over nearly a decade. To benchmark effectively, one would need to identify comparable contracts that specify similar services, geographic scope, and contract duration. If comparable contracts exist, a comparison could be made based on the total value relative to the size and complexity of the facilities managed. Given the firm fixed-price nature, the government has agreed upon a total cost, and the value is assessed by the comprehensiveness and quality of services delivered for that price, rather than a direct per-unit cost comparison unless specific units are delineated.

What is HME, Inc.'s track record with federal facilities support contracts?

HME, Inc.'s track record with federal facilities support contracts can be assessed by reviewing their past performance on similar awards. As the recipient of this $21 million definitive contract from FEMA, it indicates a level of established capability and past performance that met the agency's requirements. A deeper dive into their contract history, including performance evaluations, past performance questionnaires, and any documented issues or commendations on previous federal contracts, would provide a more comprehensive understanding of their reliability, quality of service, and ability to manage large-scale operations. Their success in winning a full and open competition award suggests they have a competitive history in this service area.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

Key Performance Indicators (KPIs) for a facilities support services contract like this are crucial for ensuring service quality and accountability. While specific KPIs are not detailed in the provided data, typical metrics for such contracts include response times for maintenance requests, preventative maintenance completion rates, facility uptime, energy efficiency targets, safety compliance, and customer satisfaction scores. Performance is usually measured through regular reporting by the contractor, site inspections, and formal performance evaluations conducted by the government's contracting officer's representative (COR). Failure to meet these KPIs can result in contractual remedies, including financial penalties or termination.

What is the risk associated with the long duration of this contract?

The long duration of this contract (approximately 10 years) presents several potential risks. Firstly, there's the risk of contractor performance degradation over time; initial high performance may wane, requiring vigilant oversight. Secondly, technological advancements or changes in federal operational requirements could render the contracted services less optimal or efficient, leading to potential inefficiencies or the need for costly modifications. Thirdly, market conditions for facilities support services could change significantly, potentially making the fixed price less advantageous for the government in later years if market rates decrease. Finally, there's the risk of contractor instability (financial or operational) over such an extended period, which could disrupt essential services.

How does this contract align with FEMA's overall mission and operational needs?

This contract directly aligns with FEMA's core mission of supporting communities before, during, and after disasters. Maintaining functional and operational facilities is critical for FEMA's ability to coordinate response efforts, manage resources, and provide assistance. Facilities support services ensure that FEMA's physical infrastructure, whether administrative offices, staging areas, or other operational sites, remains secure, functional, and ready for use. The long-term nature of the contract suggests a stable, ongoing need for these services to support FEMA's continuous operational readiness and its role in national preparedness and response.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 B JEFFERSON AVE, OAK RIDGE, TN, 37830

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,698,779

Exercised Options: $21,698,779

Current Obligation: $21,028,052

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline