Elimination of the Federal Executive Institute – Contract Implications

President Trump recently issued an Executive Order (EO) to eliminate the Federal Executive Institute (FEI) within the Office of Personnel Management (OPM), citing his priority to reform and reduce the federal bureaucracy and reallocate resources to serving U.S. taxpayers.

As GovWin continues to assess how the new administration’s actions may impact federal contractors, I thought I would take a look at recent contracting trends at the FEI.

Recent Federal Executive Institute Contract Spending Trends

To assess the impacts of the FEI elimination, it may be useful to put FEI contract spending within the larger context of OPM contract spending. From FY 2022 through FY 2024, OPM as a whole reported nearly $1.7B in contract obligation across all its operational areas, including FEI, with obligations growing from $500M in FY 2022 to nearly $640M in FY 2024. That is more than 10% in yearly growth over the three-year period.

Focusing more narrowly on FEI in particular, a review of these OPM contract obligations, based contract names and contract requirements that directly reference FEI, shows the dollars that are associated with the FEI program. (OPM does not report their contract awards below the main OPM buying organization level, so analyzing FEI-specific spending becomes a little less precise than one might prefer.)

An analysis of OPM contracts referencing FEI in the contract name and/or contract requirements reveals that between FY 2022 and FY 2024, OPM awarded contracts worth a total $15M, with strong yearly growth over the period.

A review of these FEI Contracts based on the primary requirements of the contacts being pursued by OPM for FEI shows that the vast majority of these dollars have been for Operations and Maintenance support services (>70%), followed by Professional Services contracts, which represents 22% of the $15M in obligations over the three-year period. Information Technology and Electric and Electronic Components and Parts accounted for less than 4% of FEI-related contract obligations over the period.

Looking at which companies have been awarded these prime contracts for FEI shows that the dollars are concentrated among a handful of firms, with CMI Management holding more than 70% of the obligated dollars over this period. Worksource Enterprises accounts for just under 19%.

Delving more deeply into the data shows that the $10.7M in O&M spending pictured above is associated with one contract, held by CMI Management, for buildings operations and maintenance services and related work. Further, of the $3.3M+ in Professional Services-related spending shown above, nearly $2.8M (>80%) was spent with Worksource Enterprises for FEI housekeeping and janitorial services at the FEI facilities in Charlottesville, VA. Other Professional Services spending went for electric utilities (12%) and for overflow lodging for FEI programs during the period (5%.)

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For more resources and analysis on the Trump Administration transition, check out GovWin’s First 100 Days Resource Center.