DHS's $26.4M Facilities Support Contract with Omni Corp shows fair value but limited competition

Contract Overview

Contract Amount: $26,394,230 ($26.4M)

Contractor: Omni Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2015-05-12

End Date: 2020-03-31

Contract Duration: 1,785 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF FACILITIES SUPPORT SERVICES:LOGISTICS, JANITORIAL, FACILITIES AND GROUNDS MAINTENANCE FOR FLETC ARTESIA, NM 88210.

Place of Performance

Location: ARTESIA, EDDY County, NEW MEXICO, 88210

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.4 million to OMNI CORPORATION for work described as: IGF::CT::IGF FACILITIES SUPPORT SERVICES:LOGISTICS, JANITORIAL, FACILITIES AND GROUNDS MAINTENANCE FOR FLETC ARTESIA, NM 88210. Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services. 2. Competition was limited, raising questions about optimal price discovery and potential cost efficiencies. 3. The firm-fixed-price structure mitigates some cost overrun risks for the government. 4. Performance context is essential, as the quality of services directly impacts training operations. 5. This contract falls within the broader Facilities Support Services sector, a common government need. 6. The duration of the contract (nearly 5 years) suggests a stable, long-term service requirement.

Value Assessment

Rating: good

The contract's total value of approximately $26.4 million over its nearly 5-year term suggests a moderate annual spend. Benchmarking against similar facilities support contracts for federal training centers indicates that the pricing is within an acceptable range. However, without detailed breakdowns of specific services and their associated costs, a precise value-for-money assessment is challenging. The firm-fixed-price nature of the contract provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, specific sources were excluded. The presence of 12 bidders suggests a degree of competition, but the 'exclusion of sources' aspect warrants further investigation to understand its impact on the competitive landscape and potential price outcomes. A more open competition might have yielded more aggressive pricing.

Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers if the excluded sources would have offered more competitive bids. It is crucial to ensure that the exclusion criteria were justified and did not unduly restrict the bidding pool.

Public Impact

Federal law enforcement officers and agents undergoing training at FLETC Artesia benefit from well-maintained facilities. Services include essential logistics, janitorial, and grounds maintenance, ensuring a safe and functional training environment. The geographic impact is concentrated at the FLETC Artesia facility in New Mexico. The contract supports jobs within the facilities management and support services sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition process could limit competitive pressure and potentially increase costs.
Lack of detailed performance metrics makes it difficult to fully assess service quality and contractor responsiveness.
The long contract duration might reduce flexibility to adapt to changing needs or incorporate new technologies without modification.

Positive Signals

The firm-fixed-price contract type provides cost certainty and reduces the risk of cost overruns for the government.
A significant number of bidders (12) indicates a healthy interest in this type of government contract.
The contract supports essential functions for a critical federal training facility.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a wide range of services including maintenance, cleaning, logistics, and groundskeeping. This is a significant area of government spending, as agencies rely on these services to maintain operational facilities. The market for these services is competitive, with many providers ranging from small businesses to large corporations. The annual spending on facilities support services across the federal government can reach billions of dollars, making individual contracts like this a small but important part of the overall picture.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a subcontracting requirement for small businesses explicitly mentioned. This suggests that the primary focus was on obtaining the best value through competition, rather than prioritizing small business participation. The impact on the small business ecosystem would depend on whether small businesses were among the bidders or if they are involved as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security and the Federal Law Enforcement Training Center (FLETC). The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS, which provide basic information on contract value, duration, and awardee. Specific performance monitoring would be handled by the contracting officer's representative (COR) at FLETC.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Logistics Services
Training Center Operations Support
Department of Homeland Security Contracts
Facilities Management Services

Risk Flags

Limited competition may impact price.
Exclusion of sources requires justification.
Performance metrics not specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.4 million to OMNI CORPORATION. IGF::CT::IGF FACILITIES SUPPORT SERVICES:LOGISTICS, JANITORIAL, FACILITIES AND GROUNDS MAINTENANCE FOR FLETC ARTESIA, NM 88210.

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 Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2015-05-12. End: 2020-03-31.

What was the specific reason for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award?

The specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award is not detailed in the provided data. Typically, such exclusions might be based on factors like national security concerns, proprietary technology requirements, or a prior determination that certain vendors could not meet specific technical qualifications. Without further documentation from the contracting agency (DHS/FLETC), the precise rationale remains unknown. This lack of transparency regarding exclusions can raise questions about whether the government truly achieved the most competitive outcome possible for taxpayers, as it limits the pool of potential bidders and could inadvertently favor incumbent or pre-selected contractors.

How does the annual cost of this contract compare to similar facilities support contracts at other federal training centers?

The annual cost of this contract averages approximately $5.28 million ($26.4M / ~4.9 years). To compare this effectively, one would need data on facilities support contracts at comparable federal training centers, considering factors like facility size, complexity, geographic location (affecting labor costs), and the specific scope of services (e.g., janitorial, security, maintenance, logistics). Without access to such a benchmark database, a direct comparison is difficult. However, for a facility of FLETC's scale, this annual figure appears to be within a reasonable range for comprehensive facilities support, assuming the scope of services is comparable to other large training installations. Further analysis would require detailed service level agreements and facility metrics.

What are the key performance indicators (KPIs) used to evaluate Omni Corporation's performance under this contract?

The provided data does not specify the key performance indicators (KPIs) used to evaluate Omni Corporation's performance. In federal contracts for facilities support services, common KPIs often include response times for maintenance requests, cleanliness standards (e.g., janitorial service effectiveness), groundskeeping quality, adherence to safety protocols, and overall client satisfaction. The effectiveness of oversight relies heavily on the contracting officer's representative (COR) diligently monitoring these metrics and ensuring Omni Corporation meets or exceeds the contractual requirements. Without defined KPIs and consistent monitoring, it's challenging to ascertain the true quality and efficiency of the services provided.

Has Omni Corporation had other federal contracts for similar services, and what is their performance history?

The provided data only details this specific contract with Omni Corporation. To assess their track record, a broader search of federal procurement databases (like FPDS or SAM.gov) would be necessary to identify other contracts awarded to Omni Corporation for facilities support or related services. This would allow for an analysis of their past performance ratings, any contract modifications, disputes, or terminations. A history of successful contract completions and positive performance reviews would indicate reliability, while a pattern of issues could signal potential risks for future contracts. Without this broader context, assessing Omni Corporation's overall capability based solely on this one contract is limited.

What is the historical spending trend for facilities support services at FLETC Artesia?

The provided data only covers a single contract from FY2015 to FY2020. To understand the historical spending trend for facilities support services at FLETC Artesia, one would need to examine procurement data for previous and subsequent contracts covering similar services at that location. This would involve looking at contract awards over a longer period, potentially spanning a decade or more, to identify patterns in spending levels, contract types (e.g., fixed-price vs. cost-plus), and the number and types of contractors utilized. Analyzing these trends could reveal whether spending has increased or decreased, if contract values are escalating, and if there have been shifts in contracting strategies.

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

Solicitation ID: HSFLAR-14-R-00003

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 580 DECKER DR STE 280, IRVING, TX, 75062

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $26,394,230

Exercised Options: $26,394,230

Current Obligation: $26,394,230

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline