Interior Department awards $346.5M for ORR Influx Care Facility support, with Family Endeavors Inc. as prime

Contract Overview

Contract Amount: $346,530,745 ($346.5M)

Contractor: Family Endeavors, Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-11-16

End Date: 2025-02-21

Contract Duration: 463 days

Daily Burn Rate: $748.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ORR INFLUX CARE FACILITY

Place of Performance

Location: PECOS, REEVES County, TEXAS, 79772

State: Texas Government Spending

Plain-Language Summary

Department of the Interior obligated $346.5 million to FAMILY ENDEAVORS, INC. for work described as: ORR INFLUX CARE FACILITY Key points: 1. Contract value represents significant investment in facility support services. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement process. 3. Performance period extends over a year, indicating ongoing operational needs. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The award is a Delivery Order, implying it's part of a larger contract vehicle. 6. The contractor, Family Endeavors, Inc., is a key player in this service area.

Value Assessment

Rating: fair

The total award of $346.5 million over approximately 1.5 years for facility support services appears substantial. Benchmarking this against similar large-scale facility operations for government agencies is challenging without more specific service details. However, the Time and Materials (T&M) contract type, while flexible, often carries a higher risk of cost overruns compared to fixed-price contracts if not managed diligently. The provided benchmark of $7,484,470 for a similar contract suggests this award is significantly larger, potentially due to scale, duration, or specific service requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation indicates that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. The exact reasons for exclusion are not detailed but could relate to specific qualifications, past performance, or other pre-determined criteria. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The 'limited' competition, even if initially 'full and open' with exclusions, may have resulted in less aggressive pricing than a truly unrestricted full and open competition. Taxpayers may have paid a premium if the exclusion of potential bidders narrowed the field significantly.

Public Impact

The primary beneficiaries are likely the Office of Refugee Resettlement (ORR) and the individuals requiring care at the influx facility. Services delivered include comprehensive facility support, crucial for maintaining operational capacity and living conditions. The geographic impact is focused on Texas, where the facility is located. Workforce implications include job creation for facility management, maintenance, and support staff in the local Texas economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost escalation without strict oversight.
Exclusion of sources in the competition process could limit competitive pressure on pricing.
The large dollar value necessitates robust performance monitoring to ensure value for money.
Lack of specific service details makes independent value assessment difficult.

Positive Signals

Awarded under a 'Full and Open Competition' framework, indicating an attempt to solicit from a wide range of potential offerors.
The contract duration suggests a stable, long-term need being met.
The prime contractor, Family Endeavors, Inc., likely possesses relevant experience for this type of service.
The award is a Delivery Order, suggesting it leverages an existing, potentially pre-vetted, contract vehicle.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of operational and maintenance services for physical infrastructure. The market for these services is substantial, driven by government and commercial entities requiring reliable facility management. Comparable spending benchmarks are difficult to pinpoint without knowing the exact scope of services, but large government contracts for facility operations can run into hundreds of millions of dollars annually, especially for critical infrastructure or large-scale operations like refugee care facilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this prime contract. Therefore, there are no direct small business set-aside obligations for the prime awardee. However, Family Endeavors, Inc. may engage small businesses as subcontractors to fulfill portions of the contract, which would be detailed in their subcontracting plan, if applicable. The absence of a small business set-aside on such a large prime contract means opportunities for small businesses are likely indirect, through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting and program management officials. Given the nature of the services (care facility support), there would likely be additional oversight from the Office of Refugee Resettlement (ORR) program managers. Accountability measures would be tied to performance metrics outlined in the contract's Statement of Work. Transparency is generally facilitated through contract award databases, but detailed operational oversight reports are often internal or subject to specific disclosure rules.

Related Government Programs

ORR Influx Care Facility Operations
Federal Facilities Management Contracts
Department of the Interior Support Services
Refugee and Migrant Services Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may impact price competitiveness.
Scope of services not fully detailed in award data.
Requires robust oversight due to large dollar value and sensitive service area.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $346.5 million to FAMILY ENDEAVORS, INC.. ORR INFLUX CARE FACILITY

Who is the contractor on this award?

The obligated recipient is FAMILY ENDEAVORS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $346.5 million.

What is the period of performance?

Start: 2023-11-16. End: 2025-02-21.

What is the specific scope of 'Facilities Support Services' covered under this contract?

The provided data classifies the contract under NAICS code 561210 (Facilities Support Services), but does not detail the specific services. Typically, this category can encompass a wide range of activities including, but not limited to, building operations and maintenance, custodial services, groundskeeping, security, pest control, and potentially specialized services related to the occupancy and function of the facility. For an ORR Influx Care Facility, these services would be critical for ensuring the safe, sanitary, and operational readiness of the site to house and support individuals. A detailed Statement of Work (SOW) within the contract documents would provide the precise list and requirements for these services.

How does the Time and Materials (T&M) contract type compare to other contract types for similar services, and what are the associated risks?

Time and Materials (T&M) contracts are characterized by the government paying the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials and services. This contrasts with fixed-price contracts, where the price is set regardless of the contractor's actual costs, or cost-plus contracts, where the contractor is reimbursed for allowable costs plus a fee. T&M contracts offer flexibility, especially when the scope of work is not well-defined at the outset, which can be the case for evolving needs like influx care facilities. However, the primary risk for the government is the potential for cost escalation, as the contractor is reimbursed for all hours worked and materials used. Effective oversight, detailed labor rate structures, and strict controls on material purchases are crucial to mitigate this risk and ensure fair pricing for the government.

What does 'Full and Open Competition After Exclusion of Sources' imply about the procurement process and potential cost savings?

This procurement method suggests a two-stage process. Initially, the solicitation was intended for 'full and open competition,' meaning all responsible sources were encouraged to participate. However, 'after exclusion of sources' indicates that certain potential bidders were disqualified or excluded from the competition prior to or during the solicitation phase. The reasons for exclusion are not specified but could be based on pre-qualification criteria, past performance issues, or specific technical requirements. While it aims for broad competition, the exclusion of sources inherently limits the number of potential offerors. This could potentially reduce competitive pressure compared to a competition where all interested parties could bid, possibly leading to less favorable pricing for the government than if the field had been entirely unrestricted.

What is the track record of Family Endeavors, Inc. in providing similar large-scale support services, particularly for government contracts?

Family Endeavors, Inc. has a significant history of providing services to vulnerable populations, including support for unaccompanied alien children and disaster relief efforts. They have been a prominent contractor for federal agencies like HHS and FEMA. Their experience often involves managing large facilities, providing logistical support, and ensuring the well-being of residents. While specific details on their performance for this exact ORR Influx Care Facility contract are not yet available due to its recent award, their established presence in related fields suggests they possess the operational capacity and experience to manage such a contract. Performance reviews and past contract data would offer a more granular assessment of their track record.

How does the $346.5 million award compare to historical spending on similar ORR facilities or services?

Comparing this $346.5 million award requires context regarding the duration and specific services provided. ORR facilities, especially those dealing with influxes of individuals, can require substantial resources for operations, staffing, and support over extended periods. Historically, large-scale federal contracts for humanitarian services, shelter operations, and facility management have reached similar or even higher figures, particularly during periods of increased need or national emergencies. Without specific historical data points for comparable ORR facilities of similar scale and duration, it's difficult to definitively state if this award is higher or lower than average. However, the magnitude suggests a significant, long-term operational requirement.

What are the key performance indicators (KPIs) likely being used to monitor the success of this contract?

Key performance indicators for a contract like this would focus on ensuring the facility operates safely, efficiently, and meets the needs of its residents. Likely KPIs would include metrics related to facility maintenance (e.g., response times for repairs, cleanliness standards), safety and security (e.g., incident rates, security personnel availability), resident services (e.g., satisfaction surveys, availability of amenities), and operational efficiency (e.g., adherence to schedules, resource utilization). For a T&M contract, tracking labor hours against approved roles and ensuring materials are necessary and cost-effective would also be critical KPIs. Performance would be assessed against the contract's Statement of Work and any specific Service Level Agreements (SLAs).

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: 140D0423Q0491

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6363 DE ZAVALA RD, SAN ANTONIO, TX, 78249

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,329,900,357

Exercised Options: $1,261,388,345

Current Obligation: $346,530,745

Actual Outlays: $346,530,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0423D0063

IDV Type: IDC

Timeline