DHS awards $25.4M for facilities support services to OMNI CORPORATION, spanning over 5 years

Contract Overview

Contract Amount: $25,402,088 ($25.4M)

Contractor: Omni Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2008-10-01

End Date: 2014-06-25

Contract Duration: 2,093 days

Daily Burn Rate: $12.1K/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: NETC FACILITY MAINTENANCE AND STUDENT SUPPORT

Place of Performance

Location: EMMITSBURG, FREDERICK County, MARYLAND, 21727

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.4 million to OMNI CORPORATION for work described as: NETC FACILITY MAINTENANCE AND STUDENT SUPPORT Key points: 1. Value for money appears fair given the long-term nature of the contract and the broad scope of services. 2. Competition dynamics indicate a robust bidding process, potentially leading to competitive pricing. 3. Risk indicators are moderate, with a long contract duration and fixed-price structure. 4. Performance context suggests a need for consistent facilities management over an extended period. 5. Sector positioning places this contract within the essential facilities support services for government operations.

Value Assessment

Rating: fair

The contract's total value of $25.4 million over approximately 5.7 years averages to about $4.4 million annually. Benchmarking this against similar large-scale facilities support contracts for federal agencies is challenging without more granular data on the specific services provided. However, the fixed-price nature suggests that the government aimed to lock in costs, which can be a value-driver if the scope is well-defined and managed effectively. The number of bidders (8) also suggests a competitive environment that should have influenced pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial intent might have involved specific exclusions, the final award was made through a broad competitive process. Eight bidders participated, suggesting a healthy level of interest and competition for this type of service. This level of competition is generally positive for price discovery and ensures a wider pool of potential providers is considered.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal Emergency Management Agency (FEMA) personnel benefit from well-maintained facilities, ensuring operational continuity. Essential facilities support services, including maintenance and potentially other operational support, are delivered. The geographic impact is centered in Maryland (ST: MD, SN: MARYLAND), where the facilities are located. Workforce implications include the potential for direct and indirect employment opportunities related to facilities management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) increases the risk of cost escalation or service degradation if not managed proactively.
Fixed-price contract may lead to contractor cutting corners on quality if scope is not meticulously managed.
Reliance on a single contractor for critical facilities support could pose a disruption risk if the contractor faces financial or operational issues.

Positive Signals

Award to OMNI CORPORATION, a known entity in the contracting space, suggests a degree of confidence in their capabilities.
Full and open competition indicates a thorough vetting process and potential for best value.
The contract's long duration can foster stability and predictability in facility operations.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant segment within the broader professional, scientific, and technical services sector. This contract represents a substantial award within this niche, focusing on the operational upkeep and support of government facilities. The market for government facilities management is competitive, with numerous providers vying for long-term contracts that offer stable revenue streams. Comparable spending benchmarks would typically be assessed against the size and complexity of the facilities managed.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (SS: false, SB: false). As a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to OMNI CORPORATION. However, the primary award does not directly benefit the small business ecosystem through set-aside provisions.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures would be defined in the contract's Performance Work Statement (PWS) and monitored through regular performance reviews and reporting. Transparency is generally maintained through contract award databases like FPDS, though detailed performance metrics may not always be publicly accessible.

Related Government Programs

Federal Buildings Fund
General Services Administration (GSA) Facilities Management Contracts
Department of Defense Facilities Maintenance
Public Building Service Contracts

Risk Flags

Long contract duration
Fixed-price contract risks
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.4 million to OMNI CORPORATION. NETC FACILITY MAINTENANCE AND STUDENT SUPPORT

Who is the contractor on this award?

The obligated recipient is OMNI CORPORATION.

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 $25.4 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-06-25.

What is the track record of OMNI CORPORATION in performing similar facilities support services for the federal government?

OMNI CORPORATION has a history of performing various service contracts with the federal government. While specific details on their performance for facilities support services under this particular contract (awarded in 2008) would require deeper analysis of past performance reviews and contract modifications, their continued presence as a government contractor suggests a baseline level of capability. Examining their award history, past performance ratings on similar contracts, and any documented issues or commendations would provide a clearer picture of their reliability and quality of service in this domain. It's important to note that performance can vary significantly across different contracts and agencies.

How does the awarded price compare to market rates for similar facilities support services in Maryland?

Directly comparing the awarded price of $25.4 million over approximately 5.7 years to specific market rates is complex without a detailed breakdown of the services rendered (e.g., janitorial, HVAC maintenance, groundskeeping, security). However, the average annual value of roughly $4.4 million for a comprehensive facilities support contract of this scale in the Maryland region is within a plausible range for government contracts. Market rates are influenced by labor costs, prevailing wages, the specific scope of work, and the level of service required. Independent market research reports or benchmarking studies for similar government facilities in the National Capital Region could offer more precise comparisons, but such data is often proprietary or requires specialized access.

What are the primary risks associated with a long-term, fixed-price contract for facilities support?

The primary risks associated with a long-term, fixed-price contract for facilities support include potential scope creep, unforeseen cost increases (e.g., material prices, regulatory changes), and contractor incentives to reduce quality to maintain profitability. For the government, the risk is that the fixed price may become uncompetitive over time if market conditions change significantly, or that the contractor may underperform if oversight is lax. Conversely, the contractor bears the risk of cost overruns if their initial estimates are inaccurate or if unexpected issues arise. Effective risk mitigation relies on a well-defined scope of work, robust contract management, clear performance metrics, and mechanisms for addressing changes or issues.

How effective has FEMA been in managing facilities support contracts of this magnitude historically?

FEMA's effectiveness in managing facilities support contracts of this magnitude can be assessed through various indicators, including contract performance ratings, audit findings from the Inspector General, and the overall operational continuity of the facilities they manage. Historically, large federal agencies like FEMA face challenges in managing extensive service contracts due to the complexity, scale, and dynamic nature of their missions. Success often depends on the strength of their contracting officer representatives (CORs), the clarity of performance work statements, and the rigor of their oversight processes. While specific historical data on FEMA's management of this particular contract isn't detailed here, their overall performance in managing large service contracts is a subject of ongoing review by oversight bodies.

What has been the trend in federal spending on facilities support services over the past decade?

Federal spending on facilities support services has generally remained substantial over the past decade, reflecting the government's extensive real estate portfolio and operational needs. While specific figures fluctuate based on agency priorities, budget allocations, and infrastructure investments, the overall demand for maintenance, repair, and operational support services remains consistent. Trends may show shifts towards more energy-efficient solutions, smart building technologies, and integrated facility management systems. Analyzing aggregate spending data from sources like the Federal Procurement Data System (FPDS) or Congressional Budget Office (CBO) reports can illustrate these broader trends, often showing billions of dollars obligated annually across various agencies for these essential services.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFEEM-08-R-0026

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26865 IH-45 SOUTH FEEDER, BUFFALO, TX, 17

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,402,088

Exercised Options: $25,402,088

Current Obligation: $25,402,088

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline