DHS awards $55.2M contract for non-citizen vaccination services in Texas, raising questions on competition and value

Contract Overview

Contract Amount: $55,237,016 ($55.2M)

Contractor: AMI Expeditionary Healthcare (USA) LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-10-28

End Date: 2025-05-05

Contract Duration: 920 days

Daily Burn Rate: $60.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COVID-19 AND SEASONAL FLU VACCINATION SERVICES FOR NON-CITIZENS DEEMED IN-ADMISSABLE UNDER TITLE 8 AND HELD IN CUSTODY BY CBP.

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79901

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $55.2 million to AMI EXPEDITIONARY HEALTHCARE (USA) LLC for work described as: COVID-19 AND SEASONAL FLU VACCINATION SERVICES FOR NON-CITIZENS DEEMED IN-ADMISSABLE UNDER TITLE 8 AND HELD IN CUSTODY BY CBP. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs but potentially limiting flexibility. 2. The sole-source nature of this award warrants scrutiny regarding the justification for limited competition. 3. Performance period extends over 900 days, suggesting a long-term need for these specialized health services. 4. The contract's focus on a specific demographic highlights a niche but critical public health requirement. 5. Geographic concentration in Texas may indicate specific operational needs or border-related challenges. 6. The absence of small business set-asides suggests larger firms are expected to fulfill this requirement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The firm-fixed-price structure provides cost certainty for the government. However, without competitive bids, it's difficult to ascertain if the $55.2 million represents the best possible price for the services rendered. The per-unit cost for vaccinations and associated health services would be a key metric to assess value, but this data is not readily available. Comparison to similar contracts for migrant health services, if publicly accessible, could offer further insights into pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not detailed in the provided data. Sole-source awards can sometimes be necessary for specialized services or in urgent situations, but they typically result in less price competition and potentially higher costs for the government compared to fully competed contracts. The lack of multiple bidders means there was no opportunity for market forces to drive down prices or encourage innovative solutions.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the most cost-effective solution. Without bids from other qualified providers, the government cannot be assured it secured the best possible value for the $55.2 million expenditure.

Public Impact

Provides essential health services, specifically vaccinations, to non-citizens in U.S. custody. Aims to manage public health risks associated with vulnerable populations. Services are geographically concentrated in Texas, impacting individuals processed and held within the state. Supports the operational capacity of U.S. Customs and Border Protection (CBP) in managing health needs. Potentially impacts the workforce involved in healthcare provision at border facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Limited transparency on the justification for a sole-source award.
The specific health needs of non-citizens in custody may present unique logistical and medical challenges.
Long contract duration could lead to complacency or reduced incentive for cost efficiency over time.

Positive Signals

Addresses a critical public health need for a specific, often vulnerable, population.
Firm-fixed-price contract provides budget certainty for the government.
Specialized nature of the service may necessitate a single, qualified provider.
Contract ensures continuity of care for individuals in federal custody.

Sector Analysis

The healthcare services sector, particularly within government contracting, is diverse. This contract falls under 'All Other Miscellaneous Ambulatory Health Care Services' (NAICS 621999), indicating a specialized niche. Government spending in this area often relates to public health initiatives, correctional facilities, or, as in this case, border management. The market for providing health services to non-citizens in custody is likely limited to a few specialized firms capable of meeting stringent regulatory and operational requirements. Benchmarking against broader ambulatory care services is difficult due to the unique patient population and service delivery context.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB=false) and was not awarded under a small business set-aside program. This suggests that the requirement was likely deemed too specialized or large in scope for small business participation, or that the contracting agency did not prioritize small business set-asides for this particular procurement. Consequently, there are likely no direct subcontracting opportunities mandated for small businesses through this specific award, potentially limiting the direct economic benefit to the small business ecosystem in this instance.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically U.S. Customs and Border Protection (CBP). As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency regarding performance metrics and service delivery would be crucial for effective oversight, though details on specific reporting requirements are not provided.

Related Government Programs

Department of Homeland Security Contracts
U.S. Customs and Border Protection Health Services
Ambulatory Health Care Services Contracts
Public Health Services for Non-Citizens
Federal Contracts in Texas

Risk Flags

Sole-source award lacks competitive transparency.
Potential for unbenchmarked pricing due to lack of competition.
Public health implications for a vulnerable population.
Geographic concentration in a high-traffic border region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55.2 million to AMI EXPEDITIONARY HEALTHCARE (USA) LLC. COVID-19 AND SEASONAL FLU VACCINATION SERVICES FOR NON-CITIZENS DEEMED IN-ADMISSABLE UNDER TITLE 8 AND HELD IN CUSTODY BY CBP.

Who is the contractor on this award?

The obligated recipient is AMI EXPEDITIONARY HEALTHCARE (USA) 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 $55.2 million.

What is the period of performance?

Start: 2022-10-28. End: 2025-05-05.

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

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Agencies must justify sole-source awards, typically citing reasons such as only one responsible source being available, or that a substantial lack of competition is expected. For this contract, potential justifications could include highly specialized medical expertise required for the specific population, urgent public health needs at border facilities, or unique logistical capabilities possessed by AMI Expeditionary Healthcare (USA) LLC that cannot be replicated by other firms in the required timeframe. Without the official justification document (e.g., a Justification and Approval - J&A), the precise reason remains speculative, but it implies a determination that competitive bidding was not feasible or advantageous.

How does the per-unit cost of these vaccination services compare to market rates or similar government contracts?

The provided data does not include specific per-unit costs for the vaccination services or associated health care. The total award amount of $55.2 million is for a period of approximately 920 days (from October 28, 2022, to May 5, 2025). To assess per-unit cost, one would need to know the estimated number of individuals to be served and the specific services provided (e.g., cost per vaccine, cost per medical consultation). Without this granular data, a direct comparison to market rates or other government contracts is not possible. Generally, sole-source contracts may not achieve the same per-unit efficiencies as competitively awarded ones due to the lack of price pressure. Further analysis would require access to detailed service delivery and pricing schedules.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) associated with this contract. However, for a contract involving health services for individuals in custody, critical KPIs would likely include vaccination rates achieved, timeliness of service delivery, patient health outcomes, adherence to medical protocols, and patient satisfaction (where applicable and feasible). SLAs would define response times for medical needs, availability of medical personnel, and quality standards for care. Effective oversight by U.S. Customs and Border Protection (CBP) would rely on robust monitoring of these KPIs and SLAs to ensure the contractor, AMI Expeditionary Healthcare (USA) LLC, is meeting the required standards of care and operational objectives throughout the contract period.

What is the historical spending pattern for similar vaccination or health services provided to non-citizens by CBP or DHS?

Historical spending data for similar services is not provided in the summary. However, the need for vaccination and health services for non-citizens in CBP custody is a recurring requirement, often fluctuating with migration patterns and policy changes. Prior contracts, whether sole-source or competed, would offer context. Analyzing past expenditures could reveal trends in service costs, provider choices, and the evolution of service requirements. Without access to historical contract databases or specific reports from DHS/CBP, it is difficult to establish a precise spending pattern. The current $55.2 million award suggests a significant and ongoing requirement for these specialized health services.

What is the track record of AMI Expeditionary Healthcare (USA) LLC in providing similar services to government agencies?

AMI Expeditionary Healthcare (USA) LLC has a documented history of providing healthcare services in challenging environments, including to government agencies. They have been involved in providing medical support at various federal sites and during national emergencies. Their experience often includes deploying medical personnel and establishing health infrastructure in remote or demanding locations. While specific performance details for this particular CBP contract are not available in the summary, the company's broader portfolio suggests they possess the capability to manage complex healthcare operations. A thorough assessment would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and any publicly available information on their prior government contracts.

Are there any specific risks associated with providing healthcare to non-citizens in federal custody, and how does this contract address them?

Providing healthcare to non-citizens in federal custody involves several risks, including managing communicable diseases, addressing pre-existing health conditions, ensuring culturally competent care, and navigating complex legal and ethical considerations. This contract aims to mitigate these risks by engaging a specialized provider, AMI Expeditionary Healthcare (USA) LLC, presumably equipped with the necessary expertise and protocols. The firm-fixed-price nature helps control costs associated with unpredictable health needs. However, the effectiveness of risk mitigation depends heavily on the contractor's adherence to medical standards, infection control measures, and coordination with CBP officials. The long duration of the contract also implies a need for sustained vigilance in managing these ongoing health challenges.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12030 SUNRISE VALLEY DR STE 250, RESTON, VA, 20191

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $55,237,016

Exercised Options: $55,237,016

Current Obligation: $55,237,016

Actual Outlays: $55,237,016

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline