DHS awards $641M contract for medical staffing, with ICE as primary beneficiary

Contract Overview

Contract Amount: $641,096,353 ($641.1M)

Contractor: STG International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-02-20

End Date: 2025-03-31

Contract Duration: 2,596 days

Daily Burn Rate: $247.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: IGF::OT::IGF IHSC MEDICAL STAFFING SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $641.1 million to STG INTERNATIONAL, INC. for work described as: IGF::OT::IGF IHSC MEDICAL STAFFING SERVICES Key points: 1. Contract value represents significant investment in essential healthcare services for federal agencies. 2. Competition dynamics suggest a robust market for specialized medical staffing solutions. 3. Performance period extends over several years, indicating a need for sustained service delivery. 4. The contract's focus on ambulatory health care services highlights a critical operational requirement. 5. Geographic scope likely covers multiple ICE facilities, impacting a broad range of personnel.

Value Assessment

Rating: good

The total contract value of $641 million over its period of performance is substantial. Benchmarking against similar large-scale medical staffing contracts requires detailed analysis of service scope and duration. However, the number of bids received (18) suggests competitive pricing was likely a factor. The contract type (definitive) and labor hours pricing model are common for such services, but can sometimes lead to cost overruns if not managed closely.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The high number of bidders (18) suggests a healthy and competitive market for medical staffing services. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award process like this is beneficial for taxpayers as it drives down costs through market forces, ensuring the government receives value for its investment in essential services.

Public Impact

Immigration and Customs Enforcement (ICE) personnel will benefit from access to essential medical staffing. Services delivered include a range of ambulatory health care, supporting operational readiness. Geographic impact is likely nationwide, covering various ICE detention and operational sites. Workforce implications include the employment of numerous medical professionals contracted through STG INTERNATIONAL, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hours pricing model if not rigorously monitored.
Ensuring consistent quality of care across diverse geographic locations can be challenging.
Dependence on a single contractor for critical medical services poses a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a strong market response.
Long-term contract duration suggests a stable and reliable service provision.
High number of bidders points to a competitive environment that can drive efficiency.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on medical staffing for government agencies. The market for government healthcare contracting is substantial, driven by the needs of agencies like DHS, VA, and DoD. Comparable spending benchmarks would involve analyzing other large-scale staffing contracts for federal entities, considering factors like the types of medical professionals required and the geographic distribution of services.

Small Business Impact

While this contract was awarded to STG INTERNATIONAL, INC., a large business, the analysis does not indicate specific small business set-aside provisions or subcontracting requirements. Further investigation would be needed to determine if small businesses are participating in the subcontracting chain and to what extent. The impact on the small business ecosystem would depend on these subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, but detailed operational oversight information may be limited to agency personnel.

Related Government Programs

Federal Prison System Medical Services
Department of Veterans Affairs Medical Staffing
Military Health System Medical Support
Indian Health Service Medical Staffing

Risk Flags

Long contract duration may increase risk of cost escalation.
Labor hours pricing model requires diligent oversight to control costs.
Ensuring consistent quality across diverse locations can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $641.1 million to STG INTERNATIONAL, INC.. IGF::OT::IGF IHSC MEDICAL STAFFING SERVICES

Who is the contractor on this award?

The obligated recipient is STG INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $641.1 million.

What is the period of performance?

Start: 2018-02-20. End: 2025-03-31.

What is the historical spending pattern for medical staffing services by U.S. Immigration and Customs Enforcement (ICE)?

Analyzing historical spending patterns for ICE's medical staffing services is crucial for understanding the context of this $641 million award. While specific historical data for ICE's medical staffing is not provided in the abbreviated data, general trends in federal healthcare spending indicate a consistent and often increasing demand for these services. Agencies like ICE, responsible for detention facilities and personnel health, require continuous medical support. Past contracts would likely show fluctuations based on operational needs, policy changes, and budget allocations. A deeper dive into ICE's procurement history would reveal the average annual spend on similar services, the number and types of previous contracts, and the contractors involved. This historical perspective helps in evaluating whether the current contract's value is commensurate with past expenditures and if there are any significant deviations that warrant further investigation into cost efficiency or scope changes.

How does the per-unit cost of medical services under this contract compare to market rates or similar federal contracts?

Determining the per-unit cost comparison requires detailed breakdown of services and pricing structures within the contract, which is not fully available in the provided data. The contract is priced using 'LABOR HOURS,' meaning costs are tied to the time spent by medical personnel. To benchmark effectively, one would need to identify the specific labor categories (e.g., nurses, physicians, medical technicians), their hourly rates, and the expected volume of hours. Comparing these rates against General Services Administration (GSA) schedules, other agency contracts for similar medical staffing, or even private sector benchmarks for comparable roles in similar geographic areas would be necessary. Factors like overhead, profit margins, and specific skill sets required by ICE would influence these rates. Without this granular data, a precise per-unit cost comparison is not feasible, but the competitive nature of the award (18 bidders) suggests that pricing was likely scrutinized and aimed to be competitive within the federal market.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this medical staffing contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical components of any large federal contract, especially for essential services like medical staffing. For this DHS/ICE contract, KPIs would likely focus on aspects such as response times for medical emergencies, patient satisfaction rates, adherence to clinical protocols, availability of qualified medical personnel, and timely reporting. SLAs would define the specific standards the contractor must meet, such as minimum staffing levels, required qualifications for personnel, and uptime for critical medical equipment if provided. Failure to meet these KPIs and SLAs would typically result in contractual remedies, potentially including financial penalties or termination. While the specific KPIs and SLAs are not detailed in the abbreviated data, they are fundamental to ensuring the quality, reliability, and effectiveness of the medical services provided to ICE personnel and detainees.

What is the track record of STG INTERNATIONAL, INC. in performing similar large-scale federal medical staffing contracts?

STG INTERNATIONAL, INC. has a history of performing federal contracts, including those in the healthcare and staffing sectors. Evaluating their track record for similar large-scale medical staffing contracts is essential for assessing performance risk. This would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scope and scale of previous contracts they have successfully managed. A positive track record would indicate experience in managing complex logistical requirements, recruiting and retaining qualified medical professionals, and meeting stringent government standards. Conversely, any history of performance issues, such as delays, quality deficiencies, or financial instability, would raise concerns. A thorough review of their performance history provides insight into their capability to successfully execute this significant DHS/ICE contract.

What are the potential risks associated with the long duration (2018-2025) and substantial value of this contract?

The long duration and substantial value ($641 million) of this contract present several potential risks. Firstly, the extended period increases the risk of cost escalation due to inflation, changes in labor market conditions, or unforeseen operational requirements that may necessitate contract modifications. Secondly, maintaining consistent service quality over several years can be challenging, potentially leading to performance degradation if oversight is not rigorous. Thirdly, a significant portion of essential medical services being tied to a single contract creates dependency; any contractor failure could severely disrupt operations. Finally, the large financial commitment requires robust financial oversight to ensure funds are used efficiently and effectively, guarding against waste or fraud over the contract's lifecycle. Proactive risk management, including regular performance reviews and budget monitoring, is crucial.

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 › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCEDM-16-R-00002

Offers Received: 18

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 99 CANAL CTR PLZ STE 500, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $641,096,353

Exercised Options: $641,096,353

Current Obligation: $641,096,353

Actual Outlays: $262,993,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline