DHS awards $4.1M facilities support contract to KTH Services JV, LLC in Arizona

Contract Overview

Contract Amount: $4,110,195 ($4.1M)

Contractor: KTH Services JV, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-26

End Date: 2026-09-25

Contract Duration: 364 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS TASK ORDER #1 FOR IDIQ 70B01C25D00000030.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85711

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.1 million to KTH SERVICES JV, LLC for work described as: THIS IS TASK ORDER #1 FOR IDIQ 70B01C25D00000030. Key points: 1. Contract value represents a significant investment in essential facilities maintenance. 2. Competition dynamics suggest a potentially competitive bidding process for this task order. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. Performance is situated within the critical U.S. Customs and Border Protection operations. 5. The contract duration of one year allows for focused service delivery and evaluation. 6. This award falls within the broader Facilities Support Services sector.

Value Assessment

Rating: good

The contract value of approximately $4.1 million for a one-year period for facilities support services appears reasonable given the scope. Benchmarking against similar contracts for facilities maintenance at federal installations of comparable size and complexity would provide a more precise value assessment. The firm-fixed-price structure suggests an expectation of predictable costs, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates a competitive process but with specific exclusions. While not a fully open competition, it suggests multiple bidders were likely considered. The specific reasons for excluding certain sources would need further investigation to fully understand the impact on price discovery and overall competition.

Taxpayer Impact: The limited competition, while potentially justified, may have resulted in a higher price than a truly open competition with all potential bidders. Taxpayers benefit from a competitive process that aims to secure the best value, but the exclusions warrant scrutiny.

Public Impact

This contract directly supports the operational readiness of U.S. Customs and Border Protection facilities. It ensures the continued functionality and maintenance of critical infrastructure. The services provided will likely impact the daily work environment for federal employees at the site. Geographic impact is concentrated in Arizona, supporting border security operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type needs clarification to ensure maximum taxpayer value.
Potential for vendor lock-in if the excluded sources were highly specialized or cost-effective.

Positive Signals

Firm-fixed-price contract type helps manage cost overruns.
Award to a JV suggests potential for small business participation or specialized expertise.
Clear performance period allows for focused service delivery and evaluation.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This contract fits within the government's significant spending on maintaining its vast real estate portfolio. Comparable spending benchmarks would involve analyzing other federal contracts for similar facility management services across different agencies and geographic locations.

Small Business Impact

The contract is not explicitly a small business set-aside (ss=false, sb=false). However, the award to a Joint Venture (JV) could imply subcontracting opportunities for small businesses or a strategy to leverage specialized capabilities, potentially including small business partners. Further analysis of the JV's structure and any subcontracting plans would clarify the impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the U.S. Customs and Border Protection contracting officer and relevant program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance expectations. Transparency is facilitated by contract award databases, though detailed performance metrics and specific oversight activities are typically internal.

Related Government Programs

Facilities Maintenance Contracts
Base Operations Support
Government Property Management
Customs and Border Protection Infrastructure

Risk Flags

Competition Type: 'Full and Open Competition After Exclusion of Sources' warrants further review of justification.
Contractor Past Performance: Requires verification of KTH Services JV, LLC's relevant experience and performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.1 million to KTH SERVICES JV, LLC. THIS IS TASK ORDER #1 FOR IDIQ 70B01C25D00000030.

Who is the contractor on this award?

The obligated recipient is KTH SERVICES 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 $4.1 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-25.

What is the specific nature of the facilities support services being provided under this contract?

This contract, identified as Task Order #1 under IDIQ 70B01C25D00000030, falls under the Facilities Support Services category (NAICS 561210). While the specific details of the services are not fully elaborated in the provided data, typical services within this category include building operations, maintenance, repair, janitorial services, groundskeeping, pest control, and potentially security system maintenance. Given the agency (U.S. Customs and Border Protection) and location (Arizona), these services are likely critical for maintaining the operational infrastructure supporting border security functions, such as ports of entry, administrative buildings, or related facilities.

How does the contract value of $4.1 million compare to similar facilities support contracts awarded by DHS or CBP?

A precise comparison requires access to a broader dataset of similar contracts. However, $4.1 million for a one-year facilities support contract is a moderate-sized award. For context, larger federal agencies often award multi-year, multi-million dollar contracts for comprehensive facilities management at major installations. Smaller, specialized support contracts can range from tens of thousands to a few million dollars. The value here suggests a significant but not massive scope of services, likely for a specific set of facilities or a defined geographic area within CBP's Arizona operations. Benchmarking against contracts with similar NAICS codes and agency components would be necessary for a definitive assessment.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' award?

This award type presents a nuanced risk profile. While it indicates competition occurred, the exclusion of certain sources means the government may not have considered all potentially capable and cost-effective vendors. The risk is that the excluded sources might have offered better pricing or superior technical solutions. The justification for these exclusions is critical; if based on specific security requirements or unique capabilities, the risk might be mitigated. However, if the exclusions were arbitrary or overly restrictive, it could lead to reduced competition, potentially higher costs for taxpayers, and a suboptimal selection of the contractor. Transparency regarding the reasons for exclusion is key to assessing this risk.

What is the track record of KTH Services JV, LLC in performing federal facilities support contracts?

Information on KTH Services JV, LLC's specific track record for federal facilities support contracts is not detailed in the provided data. As a Joint Venture, its performance history may be a composite of its individual member companies or its own operational history. To assess their track record, one would need to examine past performance evaluations (e.g., CPARS reports), previous contract awards, and any history of contract disputes or terminations. A positive track record with similar government contracts, particularly within DHS or CBP, would indicate a lower risk for this new task order. Conversely, a history of performance issues would raise concerns.

How does the firm-fixed-price (FFP) contract type influence cost control and risk for this facilities support service?

The Firm-Fixed-Price (FFP) contract type is generally favored by the government for services where the scope of work is well-defined and unlikely to change significantly. For facilities support services, FFP places the primary risk of cost overruns on the contractor, KTH Services JV, LLC. This incentivizes the contractor to manage their costs efficiently and accurately estimate their expenses. For the government, FFP provides budget certainty, as the price is fixed regardless of the contractor's actual costs. The main risk for the government under FFP is that if the contractor significantly underestimates costs, they might cut corners on quality or service delivery to maintain profitability, or potentially seek change orders if unforeseen issues arise.

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 BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1150 ACADEMY PARK LOOP STE 230, COLORADO SPRINGS, CO, 80910

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

Financial Breakdown

Contract Ceiling: $36,075,830

Exercised Options: $4,110,195

Current Obligation: $4,110,195

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B01C25D00000030

IDV Type: IDC

Timeline