DHS awards $142M contract for unaccompanied children and family unit transportation services

Contract Overview

Contract Amount: $142,022,108 ($142.0M)

Contractor: MVM, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-01

End Date: 2025-03-31

Contract Duration: 364 days

Daily Burn Rate: $390.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: UNACCOMPANIED CHILDREN AND FAMILY UNIT TRANSPORTATION TO

Place of Performance

Location: MCALLEN, HIDALGO County, TEXAS, 78501

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $142.0 million to MVM, INC. for work described as: UNACCOMPANIED CHILDREN AND FAMILY UNIT TRANSPORTATION TO Key points: 1. Contract value represents a significant investment in logistical support for vulnerable populations. 2. Competition dynamics suggest a potentially competitive bidding environment for essential services. 3. Performance risks may include ensuring timely and safe transportation, and managing contractor performance. 4. This contract addresses a critical need within the immigration and customs enforcement framework. 5. The service category aligns with broader government efforts to manage border and immigration flows. 6. The duration of the contract indicates a need for sustained logistical capabilities.

Value Assessment

Rating: fair

The contract value of $142 million over one year for transportation services appears substantial. Benchmarking against similar contracts for logistical support and transportation of individuals is difficult without more specific service details and geographic scope. However, the 'time and materials' pricing structure can sometimes lead to cost overruns if not closely managed, warranting careful oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach generally promotes price discovery and allows the government to select the most advantageous offer. The number of bidders and the specific evaluation criteria would provide further insight into the competitiveness of the process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to lower overall costs for the government.

Public Impact

Unaccompanied children and families in federal custody benefit from transportation services. Services facilitate the movement of individuals to designated locations, aiding in processing and resettlement. The primary geographic impact is within Texas, where the contract is managed. The contract supports a critical logistical function for federal agencies managing immigration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Ensuring consistent quality of service and contractor responsiveness across all deliveries.
Managing the complexities of transporting vulnerable populations, including children.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract addresses a clearly defined and essential government service need.
Clear performance period with defined start and end dates.

Sector Analysis

This contract falls within the broader transportation and logistics sector, specifically focusing on specialized services for government agencies. The market for such services can be competitive, with various providers capable of managing complex logistical operations. Government contracts in this area often require adherence to strict regulations and performance standards.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided in the data. Analysis of small business participation would require further details on the contract's structure and the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight of this contract would likely be managed by the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures would be tied to performance metrics outlined in the contract, with potential for review by the DHS Office of Inspector General if performance issues or financial irregularities arise.

Related Government Programs

Department of Homeland Security Contracts
Immigration and Customs Enforcement Services
Transportation and Logistics Services
Unaccompanied Children Services
Family Reunification Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Ensuring adequate oversight for vulnerable population transportation.
Contractor performance variability in complex logistical operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $142.0 million to MVM, INC.. UNACCOMPANIED CHILDREN AND FAMILY UNIT TRANSPORTATION TO

Who is the contractor on this award?

The obligated recipient is MVM, 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 $142.0 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-03-31.

What is the historical spending pattern for unaccompanied children and family unit transportation services by DHS?

Historical spending data for unaccompanied children and family unit transportation services by the Department of Homeland Security (DHS) is crucial for understanding trends and assessing the current contract's value. Without specific historical figures, it's challenging to determine if the $142 million award represents an increase or decrease in spending for these services. Analyzing past contract awards for similar transportation and logistical support, particularly those related to immigration processing and vulnerable populations, would provide context. This analysis should consider fluctuations in migration patterns, policy changes, and the overall demand for such services over several fiscal years to identify any significant spending shifts or emerging needs.

How does the per-unit cost of transporting individuals under this contract compare to industry benchmarks?

Determining the per-unit cost of transporting individuals under this contract requires breaking down the total award amount by the estimated number of individuals or trips. The contract is for 'unaccompanied children and family unit transportation,' suggesting a variable number of passengers and trip complexities. Benchmarking this against industry rates for similar transportation services (e.g., charter buses, specialized transport) would be necessary. Factors like distance, security requirements, and the need for specialized care for children would influence per-unit costs. A 'time and materials' contract makes direct per-unit cost comparison difficult without detailed cost breakdowns and volume data, but the overall value suggests a significant operational scale.

What are the specific performance metrics and service level agreements (SLAs) for MVM, Inc. under this contract?

The specific performance metrics and Service Level Agreements (SLAs) for MVM, Inc. under this $142 million contract are critical for evaluating service quality and contractor accountability. While not detailed in the provided data, typical SLAs for transportation services of this nature would likely include on-time performance, safety records, passenger satisfaction, vehicle maintenance standards, and response times for service requests. Adherence to these metrics would be monitored by ICE. Failure to meet SLAs could result in penalties, corrective action plans, or even contract termination, ensuring that the government receives the required level of service for the funds expended.

What is the track record of MVM, Inc. in providing similar transportation and logistical services to government agencies?

MVM, Inc. has a history of providing security, transportation, and logistical services to various government agencies, including those within the Department of Homeland Security and the Department of Defense. Their experience often involves supporting federal law enforcement and immigration operations. Evaluating their past performance on similar contracts, including any reported successes, challenges, or contract disputes, is essential for assessing their capability to fulfill this $142 million award. A review of past performance evaluations and any publicly available information on their operational history would provide insight into their reliability and effectiveness in managing complex logistical requirements.

What are the potential risks associated with the 'time and materials' pricing structure for this contract?

The 'time and materials' (T&M) pricing structure for this $142 million transportation contract presents several potential risks. Primarily, T&M contracts can lead to higher costs for the government if not managed diligently, as the contractor is reimbursed for direct labor hours and material costs, plus a fee or profit. This can incentivize longer project durations or increased material usage. For the government, effective oversight is paramount to ensure that labor hours are reasonable, materials are necessary and priced fairly, and that the contractor is not inflating costs. Without strong controls and detailed tracking, the total cost could exceed initial estimates, impacting the overall value for money.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 44620 GUILFORD DR STE 150, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $142,022,108

Exercised Options: $142,022,108

Current Obligation: $142,022,108

Actual Outlays: $142,022,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR24D00000002

IDV Type: IDC

Timeline