Nakamoto Group contract for detention facility inspections awarded $10.9M by DHS

Contract Overview

Contract Amount: $10,945,031 ($10.9M)

Contractor: THE Nakamoto Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-26

End Date: 2025-02-28

Contract Duration: 1,647 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ERO ANNUAL DETENTION FACILITIES INSPECTIONS

Place of Performance

Location: JEFFERSON, FREDERICK County, MARYLAND, 21755

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.9 million to THE NAKAMOTO GROUP, INC. for work described as: ERO ANNUAL DETENTION FACILITIES INSPECTIONS Key points: 1. Contract value represents a significant investment in oversight of detention facilities. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of over 1600 days indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The North American Industry Classification System (NAICS) code points to management consulting services. 6. This contract supports the agency's mission of ensuring safe and humane detention conditions.

Value Assessment

Rating: good

The contract's total value of $10.9 million over approximately 4.5 years suggests a moderate annual spend. Benchmarking against similar contracts for detention facility inspections is difficult without more specific service details. However, the firm fixed-price structure is generally favorable for cost control. The number of bids received (3) provides some indication of market interest, but a more robust competition might yield better pricing.

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 offers. Three bids were received, suggesting a reasonable level of competition for this specific service. While three bidders is not exceptionally high, it demonstrates that multiple firms were interested and capable of performing the required work, which is a positive sign for price discovery.

Taxpayer Impact: A full and open competition, even with a moderate number of bidders, generally leads to more competitive pricing for taxpayers compared to sole-source or limited competitions.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential inspection services. The services delivered include administrative management and general management consulting related to detention facility inspections. The geographic impact is likely nationwide, covering various detention facilities managed or overseen by ICE. Workforce implications may include employment for inspectors and administrative support staff within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if inspection criteria are not clearly defined.
Reliance on contractor's internal quality control for inspection accuracy.
Risk of inconsistent inspection findings across different facilities or over time.

Positive Signals

Firm fixed-price contract helps manage cost overruns.
Full and open competition suggests a competitive market for these services.
Long contract duration allows for consistent application of inspection standards.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for government contracting in this area is substantial, with agencies frequently seeking expertise in oversight, compliance, and operational efficiency. Comparable spending benchmarks would depend on the specific scope of 'inspections,' but contracts for regulatory compliance and facility management consulting are common across federal agencies.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the broader impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight is primarily conducted by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through federal contract databases, though detailed inspection reports may be internal. Inspector General jurisdiction would typically fall under the DHS OIG for broader systemic issues.

Related Government Programs

Department of Homeland Security - Detention Management
Immigration and Customs Enforcement - Facility Operations
Federal Government Contracts - Management and Consulting Services
Government Oversight and Compliance Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.9 million to THE NAKAMOTO GROUP, INC.. ERO ANNUAL DETENTION FACILITIES INSPECTIONS

Who is the contractor on this award?

The obligated recipient is THE NAKAMOTO GROUP, 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 $10.9 million.

What is the period of performance?

Start: 2020-08-26. End: 2025-02-28.

What is the specific methodology and scope of the 'detention facilities inspections' conducted under this contract?

The provided data does not detail the specific methodology or scope of the detention facility inspections. The NAICS code '541611' (Administrative Management and General Management Consulting Services) suggests the contractor provides expertise in managing and advising on operational aspects, which would include developing or executing inspection protocols. However, the exact criteria, frequency, and focus areas (e.g., safety, security, humane conditions, compliance with regulations) of these inspections are not specified in the summary data. Further review of the contract's Statement of Work (SOW) would be necessary to understand the precise nature of the services.

How does the $10.9 million contract value compare to historical spending on similar detention facility inspection services by ICE?

Comparing the $10.9 million contract value to historical spending requires access to historical contract data for similar services. The provided data indicates this is a delivery order with an estimated value of $10.9 million, awarded on August 26, 2020, with an end date of February 28, 2025, spanning approximately 1647 days. This suggests an average annual spend of roughly $2.4 million ($10.9M / 4.5 years). Without historical context on the number, scope, and value of previous inspection contracts, it's challenging to determine if this represents an increase, decrease, or stable level of investment. A trend analysis of ICE's spending on detention facility oversight would be needed for a comprehensive comparison.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of The Nakamoto Group's inspection services?

The provided contract summary does not explicitly list the Key Performance Indicators (KPIs) for evaluating The Nakamoto Group's inspection services. Typically, for such contracts, KPIs would relate to the timeliness of inspections, the thoroughness and accuracy of inspection reports, adherence to established protocols, and the identification of actionable findings that lead to facility improvements. The effectiveness would also be indirectly measured by ICE's satisfaction with the reports and the subsequent actions taken based on the findings. A review of the contract's Performance Work Statement (PWS) or SOW would be required to identify the specific KPIs and evaluation criteria.

What is the track record of The Nakamoto Group, Inc. in performing similar government contracts, particularly for DHS or ICE?

The provided data identifies The Nakamoto Group, Inc. as the contractor but does not offer details on their specific track record. To assess their performance history, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Given this is a delivery order under a larger contract vehicle (implied by 'AW': DELIVERY ORDER), their past performance on the parent contract and other federal awards would be crucial indicators of their capability to fulfill the requirements for detention facility inspections.

Are there any identified risks associated with this contract, such as performance issues, cost overruns, or security concerns?

The provided summary data does not explicitly list identified risks for this contract. However, general risks inherent in such contracts could include potential performance deficiencies if the contractor's inspectors lack sufficient expertise or rigor, delays in reporting findings, or if the scope of work is not adequately defined, leading to disputes. Given the nature of detention facilities, security concerns related to information access and personnel vetting would also be a consideration. The firm fixed-price nature mitigates direct cost overrun risk to the government, but the contractor might face financial strain if costs exceed estimates. The 'rf' field is intended for explicit risk flags, which are absent here.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CDCR20Q00000003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3347 ECLIPSE DR, JEFFERSON, MD, 21755

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $17,204,974

Exercised Options: $15,158,994

Current Obligation: $10,945,031

Actual Outlays: $4,321,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F051CA

IDV Type: FSS

Timeline