HHS awards $270M contract for refugee resettlement services, with The Providencia Group LLC as prime

Contract Overview

Contract Amount: $270,411,982 ($270.4M)

Contractor: THE Providencia Group LLC

Awarding Agency: Department of the Interior

Start Date: 2022-09-19

End Date: 2026-09-18

Contract Duration: 1,460 days

Daily Burn Rate: $185.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OFFICE OF REFUGEE RESETTLEMENT (ORR), ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF), U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) SPONSOR SERVICES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $270.4 million to THE PROVIDENCIA GROUP LLC for work described as: OFFICE OF REFUGEE RESETTLEMENT (ORR), ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF), U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) SPONSOR SERVICES Key points: 1. Contract value of $270.4 million over four years indicates significant investment in refugee support. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract's duration of 1460 days allows for sustained service delivery and program stability. 4. Focus on Administrative Management and General Management Consulting Services points to operational and strategic support needs. 5. The award to The Providencia Group LLC highlights a key player in the federal contracting landscape for social services. 6. The 'VA' (Virginia) state designation for the awardee may imply a concentration of operations or administrative functions in that region.

Value Assessment

Rating: good

The contract's total value of $270.4 million over four years averages to approximately $67.6 million annually. Benchmarking this against similar large-scale refugee resettlement service contracts is challenging without more specific service details. However, the scale suggests a significant operational footprint. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure cost-effectiveness and prevent overruns. The award amount appears substantial, reflecting the complexity and scope of services required for refugee resettlement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method is generally preferred for maximizing competition and achieving the best value for the government. The number of bidders is not specified, but the 'full and open' designation implies a competitive environment that should drive price discovery and innovation among potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive prices, thereby optimizing the use of public funds for essential programs like refugee resettlement.

Public Impact

Refugees and asylum seekers will benefit from essential support services aimed at facilitating their integration into new communities. Services delivered likely include case management, orientation, housing assistance, and access to social services. The geographic impact is potentially nationwide, depending on the distribution of refugee populations and the contractor's operational reach. Workforce implications include job creation for case managers, administrative staff, and support personnel employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed efficiently.
Ensuring consistent quality of services across diverse geographic locations.
Monitoring contractor performance to guarantee adherence to program goals and ethical standards.

Positive Signals

Significant investment in a critical social service area demonstrates government commitment.
Long-term contract duration provides stability for service delivery and planning.
Full and open competition suggests a focus on achieving value for money.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting, applied to the critical area of social services and humanitarian aid. The federal government frequently procures such services to manage complex programs. The market for refugee and immigrant services is often characterized by a mix of non-profit organizations and specialized for-profit contractors. The scale of this award ($270.4 million) positions it as a major contract within this niche, likely requiring significant organizational capacity and expertise from the awardee.

Small Business Impact

The contract was awarded as a definitive contract with no indication of a small business set-aside (ss: false) or specific subcontracting goals for small businesses (sb: false). This suggests that the primary award was made to a large business or that subcontracting opportunities were not specifically mandated at the prime contract level. Further analysis would be needed to determine if the prime contractor has established subcontracting plans or if small businesses are participating in the supply chain for this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of Refugee Resettlement (ORR) within the Administration for Children and Families (ACF) at HHS. Mechanisms for oversight would typically include regular performance reviews, financial audits, and adherence to reporting requirements outlined in the contract. Transparency is usually maintained through contract award databases and public reporting on program outcomes. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Office of Refugee Resettlement Programs
Refugee and Entrant Assistance
Social Services Block Grant
Unaccompanied Children's Services
Federal Assistance Award Management

Risk Flags

Potential for scope creep
Dependency on contractor performance
Vulnerability to policy changes

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $270.4 million to THE PROVIDENCIA GROUP LLC. OFFICE OF REFUGEE RESETTLEMENT (ORR), ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF), U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) SPONSOR SERVICES

Who is the contractor on this award?

The obligated recipient is THE PROVIDENCIA GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $270.4 million.

What is the period of performance?

Start: 2022-09-19. End: 2026-09-18.

What is the track record of The Providencia Group LLC in managing large-scale federal contracts, particularly in social services or refugee support?

Information regarding The Providencia Group LLC's specific track record in managing large-scale federal contracts, especially within the social services or refugee support domain, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar government contracts, including client satisfaction, adherence to timelines and budgets, and the successful delivery of services. Federal procurement databases and past performance reviews would be essential resources for evaluating their experience and capability in handling a contract of this magnitude and sensitivity.

How does the awarded amount of $270.4 million compare to historical federal spending on refugee resettlement services?

The awarded amount of $270.4 million represents a significant federal investment in refugee resettlement services over a four-year period. To contextualize this, historical spending data from agencies like the Office of Refugee Resettlement (ORR) would need to be analyzed. Comparing this figure to annual or multi-year appropriations for similar programs in previous fiscal years would reveal whether this contract represents an increase, decrease, or stable level of funding. Factors such as the number of refugees projected to resettle, evolving geopolitical events, and changes in program scope could influence year-over-year spending trends.

What are the primary risks associated with a large, multi-year contract for refugee resettlement services?

Key risks for a large, multi-year contract in refugee resettlement include potential cost overruns due to unforeseen needs or inefficiencies in service delivery, challenges in maintaining consistent service quality across diverse locations, and the risk of contractor performance not meeting program objectives. There's also a risk associated with changes in federal policy or funding priorities that could impact the program's scope or duration. Ensuring effective case management and integration support for vulnerable populations requires robust oversight and adaptable program management to mitigate these risks.

What specific performance metrics or key performance indicators (KPIs) are likely being used to evaluate the success of this contract?

While specific KPIs are not detailed, successful performance for this contract would likely be measured by metrics related to refugee integration, such as timely placement in housing, enrollment in education or job training programs, access to healthcare, and overall self-sufficiency rates. Other KPIs could include client satisfaction, adherence to program timelines, efficient resource utilization, and compliance with all federal regulations and reporting requirements. The Office of Refugee Resettlement (ORR) would establish these metrics to ensure the program effectively serves its intended beneficiaries.

What is the typical duration and value range for federal contracts providing administrative and management consulting services for social programs?

The duration and value of federal contracts for administrative and management consulting services in social programs can vary widely based on the scope and complexity of the program. Contracts can range from short-term, project-specific engagements lasting a few months to multi-year, comprehensive support agreements. Values can range from tens of thousands to hundreds of millions of dollars. This $270.4 million, four-year contract for refugee resettlement services falls on the higher end of the value spectrum, indicating a substantial and long-term need for specialized management and administrative support within the federal government's social services portfolio.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140D0422R0006

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 19775 BELMONT EXECUTIVE PLZ STE 450, ASHBURN, VA, 20147

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $484,700,019

Exercised Options: $374,884,129

Current Obligation: $270,411,982

Actual Outlays: $216,380,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline