DHS awards $12.6M contract for CBP training center operations, raising questions about competition and value

Contract Overview

Contract Amount: $12,594,978 ($12.6M)

Contractor: Unalakleet-Integriward JV, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-20

End Date: 2026-08-19

Contract Duration: 729 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS AND MAINTENANCE SERVICES FOR THE CBP ADVANCED TRAINING CENTER AT HARPERS FERRY, WV

Place of Performance

Location: HARPERS FERRY, JEFFERSON County, WEST VIRGINIA, 25425

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.6 million to UNALAKLEET-INTEGRIWARD JV, LLC for work described as: OPERATIONS AND MAINTENANCE SERVICES FOR THE CBP ADVANCED TRAINING CENTER AT HARPERS FERRY, WV Key points: 1. Contract awarded to UNALAKLEET-INTEGRIWARD JV, LLC for facilities support services. 2. The contract duration is 729 days, ending August 19, 2026. 3. The award type is a definitive contract with a firm fixed price. 4. The contract was not competed, raising concerns about price discovery. 5. The base contract value is $12,594,977.55. 6. The contract is located in West Virginia. 7. The North American Industry Classification System (NAICS) code is 561210 (Facilities Support Services).

Value Assessment

Rating: questionable

The contract value of $12.6 million for facilities support services at a training center appears substantial. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm fixed-price structure suggests cost certainty for the government, but the lack of competition may have led to a higher-than-market price. Benchmarking against similar facilities support contracts for government training centers would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This significantly limits the opportunity for multiple vendors to bid, which typically drives down prices and fosters innovation. The justification for a sole-source award is not provided, but it often stems from unique capabilities, urgent needs, or a lack of market research indicating other capable providers. The absence of competition means the government did not benefit from a competitive bidding process.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these services. Without competitive pressure, the awarded price could be higher than if multiple vendors had vied for the contract.

Public Impact

The U.S. Customs and Border Protection (CBP) will benefit from the continued operation and maintenance of its Advanced Training Center. Services include facilities support, ensuring the training center remains operational and conducive to training CBP personnel. The geographic impact is concentrated in Harpers Ferry, West Virginia, supporting local infrastructure and services. The contract supports the workforce by ensuring a functional training environment for CBP agents and officers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs for taxpayers.
Sole-source award raises concerns about the thoroughness of market research and potential missed opportunities for better value.
Limited transparency into the justification for the sole-source award.
Absence of performance metrics or specific outcomes in the provided data makes it difficult to assess service quality.
Contract duration of two years without clear options for extension could lead to future procurement disruptions.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a joint venture (UNALAKLEET-INTEGRIWARD JV, LLC) may indicate efforts to leverage diverse capabilities.
Contract ensures continuity of essential support services for a critical CBP training facility.
Specific location in West Virginia may support local economic activity through contract execution.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector is crucial for government operations, ensuring that facilities like training centers are functional and secure. The market for facilities support services is competitive, with many providers ranging from large corporations to smaller specialized firms. The value of this specific contract, approximately $12.6 million over two years, is moderate within the context of large-scale government facilities management contracts, but significant for a single training center.

Small Business Impact

The provided data indicates that the award was made to UNALAKLEET-INTEGRIWARD JV, LLC. Information regarding whether this joint venture includes small business participation or if there are specific subcontracting requirements for small businesses is not available. As the contract was sole-source, it is less likely to have been specifically set aside for small businesses. Further investigation into the joint venture's composition and any subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the performance metrics would enhance accountability. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Law Enforcement Training Centers
Department of Homeland Security Facilities Management
Government Training and Education Services
Facilities Operations and Maintenance Contracts

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency on performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.6 million to UNALAKLEET-INTEGRIWARD JV, LLC. OPERATIONS AND MAINTENANCE SERVICES FOR THE CBP ADVANCED TRAINING CENTER AT HARPERS FERRY, WV

Who is the contractor on this award?

The obligated recipient is UNALAKLEET-INTEGRIWARD JV, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2024-08-20. End: 2026-08-19.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to meet the government's needs. This can be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or a lack of market research identifying other capable vendors. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reason. This lack of transparency is a concern, as it prevents a full understanding of why competitive procedures were bypassed and whether the government truly obtained the best value under the circumstances.

How does the awarded price of $12.6 million compare to similar facilities support contracts for government training centers?

Direct comparison of the $12.6 million award for facilities support services at the CBP Advanced Training Center is challenging without access to a database of similar, recently awarded contracts. Factors such as the size and complexity of the facility, the specific services required (e.g., maintenance, security, janitorial, groundskeeping), the geographic location's cost of living, and the contract duration all influence pricing. However, for a two-year contract supporting a specialized training facility, $12.6 million suggests a significant operational budget. A comprehensive benchmark analysis would require identifying contracts with similar scope, scale, and location, ideally awarded through competitive processes to establish a fair market price baseline.

What are the potential risks associated with a sole-source award for essential training center operations?

The primary risk associated with a sole-source award for essential training center operations is the potential for paying a higher price than would be achieved through competition. Without competing bids, the government loses the leverage to negotiate the best possible terms and pricing. Another risk is complacency from the awarded contractor, as there is no immediate competitive threat to incentivize high performance or cost efficiency. Furthermore, a sole-source award can indicate a potential gap in market research or an over-reliance on a single vendor, which could create vulnerabilities if that vendor experiences performance issues or decides to exit the market. This lack of competition also reduces transparency and makes it harder to justify the expenditure to taxpayers.

What performance metrics or service level agreements (SLAs) are in place to ensure the quality of facilities support services?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) associated with this contract. For a facilities support services contract, key performance indicators (KPIs) would typically include response times for maintenance requests, uptime for critical building systems (HVAC, electrical), cleanliness standards, grounds maintenance quality, and security protocols. The absence of this information in the summary data makes it difficult to assess how the government will measure and ensure the quality and effectiveness of the services provided by UNALAKLEET-INTEGRIWARD JV, LLC. Robust SLAs and performance monitoring are crucial, especially in sole-source awards, to hold the contractor accountable.

What is the track record of UNALAKLEET-INTEGRIWARD JV, LLC in performing similar government contracts?

Information regarding the specific track record of UNALAKLEET-INTEGRIWARD JV, LLC in performing similar government contracts is not detailed in the provided data. As a joint venture, its performance history may be a composite of its individual members' experiences or a newly established record. To assess their capability, one would need to examine past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented successes or failures in managing facilities support services for government entities, particularly training centers or similar complex facilities. Without this information, evaluating the contractor's reliability and expertise is speculative.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 E QUEEN ST, CHAMBERSBURG, PA, 17201

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,152,775

Exercised Options: $12,594,978

Current Obligation: $12,594,978

Actual Outlays: $6,496,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline