DHS awards $604,800 for Border Patrol horse farrier services, raising value-for-money questions

Contract Overview

Contract Amount: $60,480 ($60.5K)

Contractor: Earls Wesley E

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $41/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HORSE FARRIER SERVICES IN SUPPORT OF UNITED STATES BORDER PATROL EL CENTRO SECTOR

Place of Performance

Location: IMPERIAL, IMPERIAL County, CALIFORNIA, 92251

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $60,480 to EARLS WESLEY E for work described as: HORSE FARRIER SERVICES IN SUPPORT OF UNITED STATES BORDER PATROL EL CENTRO SECTOR Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract duration of 4 years (1460 days) suggests a long-term need for these specialized services. 3. The fixed-price contract type shifts performance risk to the contractor, but doesn't guarantee optimal pricing. 4. Limited competition raises concerns about whether the government secured the best possible value. 5. The specific nature of farrier services for Border Patrol suggests a unique operational requirement. 6. Oversight of specialized services like farriery is crucial to ensure quality and prevent waste.

Value Assessment

Rating: questionable

The contract value of $604,800 over four years averages to $151,200 annually. Without comparable contract data for specialized horse farrier services within federal agencies, it is difficult to benchmark this price. The sole-source award mechanism also prevents direct comparison with competitively bid services, making it challenging to assess if the government received a fair market price. The fixed-price nature provides some cost certainty, but the lack of competition is a significant indicator of potentially suboptimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means that only one contractor, Earls Wesley E, was solicited and awarded the contract. The lack of competition means that potential alternative providers were not considered, and the government did not benefit from a competitive bidding process that could drive down prices and encourage innovation. This approach is typically used when only one source is capable of meeting the requirement.

Taxpayer Impact: Taxpayers may have paid a higher price than necessary due to the absence of competitive bidding. The government missed an opportunity to leverage market forces to secure the most cost-effective solution for essential horse care services.

Public Impact

The United States Border Patrol's El Centro Sector benefits directly from these services, ensuring the operational readiness of their mounted units. These services are critical for maintaining the health and performance of horses used in border surveillance and patrol operations. The geographic impact is focused on the El Centro Sector in California, supporting law enforcement activities in that region. The contract supports specialized labor in the farrier trade, contributing to the local economy where services are rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition raises concerns about whether the contractor's pricing reflects fair market value.
Limited transparency into the justification for a sole-source award could obscure potential inefficiencies.

Positive Signals

Fixed-price contract shifts performance risk to the contractor, ensuring cost certainty for the government.
The contract specifies a clear duration and service requirement, providing a defined scope of work.
The award supports a specialized trade essential for the operational effectiveness of the Border Patrol's mounted units.

Sector Analysis

The contract falls under the 'Support Activities for Animal Production' category, which is a niche sector within government contracting. While not a large market segment, specialized animal care services are essential for specific government functions, such as border security. Comparable spending benchmarks are difficult to establish due to the specialized nature and sole-source award. The overall federal spending on animal support services is relatively small compared to major sectors like IT or defense, but critical for agencies with animal-dependent operations.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities. The award was made directly to an individual contractor, Earls Wesley E, and there is no indication of requirements for small business participation. This means that the direct economic benefit to the small business ecosystem from this specific contract is likely minimal.

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 purchase order, it is likely managed by contracting officers within CBP. Transparency regarding the specific oversight mechanisms and accountability measures for this sole-source award is limited in the provided data. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Border Security Operations
Animal Care Services
Mounted Patrol Units
Law Enforcement Support

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $60,480 to EARLS WESLEY E. HORSE FARRIER SERVICES IN SUPPORT OF UNITED STATES BORDER PATROL EL CENTRO SECTOR

Who is the contractor on this award?

The obligated recipient is EARLS WESLEY E.

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 $60,480.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

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

The provided data indicates the contract was awarded on a sole-source basis ('NOT COMPETED UNDER SAP'). However, the specific justification for this determination is not detailed. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique expertise, proprietary technology, or urgent requirements where competition is not feasible. Without further documentation from the Department of Homeland Security, the precise reason for bypassing competitive procedures remains unclear. This lack of transparency can be a concern for ensuring fair and efficient use of taxpayer funds.

How does the pricing of this contract compare to market rates for similar farrier services?

Directly comparing the pricing of this $604,800, four-year contract to market rates for similar farrier services is challenging due to several factors. Firstly, the contract was awarded sole-source, meaning there was no competitive bidding process to establish a market-driven price. Secondly, the specific requirements of providing farrier services for Border Patrol horses, which may involve specialized care due to operational demands and environment, could differ from standard equine farriery. Without access to detailed service descriptions and cost breakdowns, and without comparable competitively awarded federal contracts for similar specialized services, it is difficult to definitively benchmark the value. However, the absence of competition inherently raises questions about whether the government secured the most cost-effective solution.

What are the potential risks associated with a sole-source award for specialized services like horse farriery?

Sole-source awards, particularly for specialized services like horse farriery, carry several potential risks. The primary risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved through a competitive process. This can result in inefficient use of taxpayer funds. Another risk is reduced incentive for the contractor to innovate or provide exceptional service, as there is no direct competition to outperform. Furthermore, without a competitive evaluation, there's a higher chance of selecting a contractor whose capabilities might not be the absolute best fit or most cost-effective, even if they are the only one solicited. Ensuring robust oversight and performance monitoring becomes even more critical in sole-source situations.

What is the historical spending pattern for horse farrier services by the U.S. Customs and Border Protection?

The provided data focuses on a single contract award and does not offer historical spending patterns for horse farrier services by U.S. Customs and Border Protection (CBP). To assess historical spending, one would need to analyze procurement databases for previous contracts related to farrier services, mounted unit support, or equine care awarded by CBP or its parent agency, the Department of Homeland Security (DHS). Understanding past spending levels, contract durations, award types (competed vs. sole-source), and pricing would provide crucial context for evaluating the current contract's value and necessity. Without this historical data, it's difficult to determine if this $604,800 award represents an increase, decrease, or consistent level of spending for these services.

How does the duration of this contract (4 years) impact its overall value and risk?

The four-year duration (1460 days) of this contract provides stability for the Border Patrol's mounted units, ensuring continuity of essential farrier services. For the contractor, it offers a predictable revenue stream. From a value perspective, longer-term contracts can sometimes secure better pricing through economies of scale or commitment, but this is often more pronounced in competitive scenarios. In this sole-source context, the extended duration primarily locks in the current pricing structure for four years. The risk associated with a long duration is that if market conditions change significantly, or if better alternatives emerge, the government is committed to the existing arrangement. It also means that any potential inefficiencies or overpricing are sustained for the entire contract period.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Support Activities for Animal Production › Support Activities for Animal Production

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 20136899

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 502 S WESTERN AVE, BRAWLEY, CA, 92227

Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $103,600

Exercised Options: $60,480

Current Obligation: $60,480

Actual Outlays: $48,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline