DHS awards $135.9M facilities support contract to County of Imperial, a non-competed purchase order

Contract Overview

Contract Amount: $135,879 ($135.9K)

Contractor: County of Imperial

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-12

End Date: 2027-03-31

Contract Duration: 1,449 days

Daily Burn Rate: $94/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROBATION & CORRECTIONS

Place of Performance

Location: EL CENTRO, IMPERIAL County, CALIFORNIA, 92243

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $135,879 to COUNTY OF IMPERIAL for work described as: PROBATION & CORRECTIONS Key points: 1. Contract awarded without competition raises questions about potential value for money. 2. Limited competition may lead to higher costs for taxpayers. 3. The contract duration of nearly four years suggests a need for stable, long-term support. 4. Facilities support services are critical for operational readiness of agencies like CBP. 5. The fixed-price nature of the award provides some cost certainty. 6. Geographic concentration in California could indicate specific regional needs.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money for this $135.9 million contract. The absence of competing offers means there's no direct comparison to assess if the pricing is fair or if alternative, potentially more cost-effective solutions were overlooked. The fixed-price structure offers some predictability, but the lack of competition prevents a robust assessment of whether the government is receiving optimal value.

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. The data indicates it was a 'NOT COMPETED' award, likely under specific circumstances or justifications not detailed here. The lack of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially limiting the government's ability to secure the best possible pricing.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competition among multiple vendors.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection (CBP), which will receive essential facilities support services. Services include facility maintenance, operations, and potentially other support functions necessary for CBP's mission. The contract's geographic impact is focused on California, where the County of Imperial is located and likely where the facilities are situated. The contract supports government operations, indirectly impacting the workforce by ensuring functional workspaces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings.
Sole-source award raises concerns about whether the most efficient solution was secured.
Contract duration without competition may lock in potentially suboptimal pricing for an extended period.

Positive Signals

Fixed-price contract provides cost certainty for the awarded amount.
Award to a county government might indicate a strategic partnership or specific local capability.
The contract supports a critical agency (CBP) ensuring operational continuity.

Sector Analysis

This contract falls within the Facilities Support Services sector (NAICS 561210), a broad category encompassing a wide range of services for maintaining and operating buildings and other facilities. The federal government is a significant consumer of these services across various agencies. Benchmarking this specific award is challenging without knowing the exact scope of services, but large-scale facilities support contracts can range from tens to hundreds of millions of dollars annually, depending on the size and complexity of the facilities managed.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component based on the provided data (ss: false, sb: false). There is no information on subcontracting plans for small businesses. Therefore, this award does not directly contribute to the small business contracting goals and may not offer direct subcontracting opportunities for small businesses within the ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. As a purchase order, it is subject to standard procurement regulations and internal agency oversight. Transparency regarding the justification for the sole-source award and performance monitoring would be key accountability measures. Specific Inspector General jurisdiction would typically cover DHS programs.

Related Government Programs

Department of Homeland Security Facilities Management
Customs and Border Protection Operational Support
Federal Government Facilities Maintenance Contracts
County Government Service Contracts

Risk Flags

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 $135,879 to COUNTY OF IMPERIAL. PROBATION & CORRECTIONS

Who is the contractor on this award?

The obligated recipient is COUNTY OF IMPERIAL.

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 $135,879.

What is the period of performance?

Start: 2023-04-12. End: 2027-03-31.

What specific services are included under 'Facilities Support Services' for this contract?

The provided data classifies the contract under NAICS code 561210, which covers Facilities Support Services. This typically includes a broad range of activities such as operating and maintaining buildings and other physical structures, such as office buildings, and providing a combination of services like cleaning, operating, maintaining, and repairing the buildings. Specific services could encompass janitorial, security, landscaping, pest control, waste management, and minor repairs. However, without the full contract details, the precise scope of services for this $135.9 million award remains unspecified, making a detailed assessment of its value challenging.

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

The data explicitly states the contract was 'NOT COMPETED' and awarded as a 'PURCHASE ORDER,' indicating a sole-source or limited competition award. Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one responsible source exists, or in cases of urgent and compelling need. Without further information or the contract's justification document, the specific reason for bypassing a competitive bidding process for this $135.9 million award is unknown. This lack of transparency is a key concern regarding value for money and taxpayer accountability.

How does the $135.9 million contract value compare to similar facilities support contracts awarded by DHS or CBP?

Direct comparison of the $135.9 million contract value is difficult without knowing the precise scope of services and geographic coverage. However, large-scale facilities support contracts for federal agencies can indeed reach these figures, especially for extensive portfolios of buildings or critical infrastructure. For instance, other federal agencies manage multi-million dollar contracts for facilities operations and maintenance. The key concern here is not the absolute dollar amount, but the lack of competition, which prevents an assessment of whether this amount represents a fair market price compared to what could have been achieved through bidding.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk of a sole-source award of this magnitude ($135.9 million) is the potential for overpayment due to the absence of competitive pressure. Without competing bids, the contractor may not be incentivized to offer the lowest possible price. Other risks include a lack of innovation, as there's no external pressure to introduce efficiencies or new technologies. Furthermore, it raises questions about the government's due diligence in exploring all available options and ensuring it secured the best value. The extended duration (nearly four years) exacerbates these risks by locking in terms without market validation.

What is the track record of the County of Imperial as a government contractor, particularly for DHS or CBP?

The provided data indicates the contractor is the 'COUNTY OF IMPERIAL.' While counties often provide essential services to their residents and may hold numerous smaller contracts, their track record as a large-scale federal facilities support contractor, especially for agencies like DHS or CBP, is not detailed here. Information regarding their past performance on similar federal contracts, their capacity to manage such a large scope of services, and their history of meeting federal performance standards would be crucial for a comprehensive risk assessment. This specific award appears to be a significant federal contract for the county.

What are the implications of this contract's fixed-price type for cost control and risk?

A 'FIRM FIXED PRICE' (FFP) contract type, like the one awarded here, generally shifts most of the cost risk from the government to the contractor. The contractor agrees to a set price for the defined scope of work, and is responsible for managing costs to remain profitable. This provides the government with cost certainty, as the total expenditure is known upfront, assuming the scope doesn't change. However, for a sole-source award, the 'firm' price might be higher than it would be in a competitive environment. The benefit of cost certainty is thus balanced against the risk of paying a potentially inflated price due to the lack of competition.

Industry Classification

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

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

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: 324 APPLESTILL RD, EL CENTRO, CA, 92243

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $249,000

Exercised Options: $135,879

Current Obligation: $135,879

Actual Outlays: $92,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline