DHS awards $6.9M contract for skip tracing services to SOS International LLC

Contract Overview

Contract Amount: $6,954,758 ($7.0M)

Contractor: SOS International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-21

End Date: 2026-01-19

Contract Duration: 90 days

Daily Burn Rate: $77.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO AWARD A LETTER CONTRACT FOR SKIP TRACING SERVICES IN ACCORDANCE WITH THE ATTACHED LETTER CONTRACT AND STATEMENT OF WORK.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.0 million to SOS INTERNATIONAL LLC for work described as: TO AWARD A LETTER CONTRACT FOR SKIP TRACING SERVICES IN ACCORDANCE WITH THE ATTACHED LETTER CONTRACT AND STATEMENT OF WORK. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration is 90 days, suggesting a short-term, focused need. 3. The award was not competed, raising questions about potential cost savings and broader market engagement. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The contract is for skip tracing services, a critical function for law enforcement and immigration agencies. 6. The primary place of performance is Washington D.C.

Value Assessment

Rating: questionable

The contract value of $6.9 million for a 90-day period appears high for skip tracing services, especially considering it was not competed. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The base contract value of $6.9 million for a 90-day period suggests a daily rate of approximately $77,275, which seems exceptionally high for skip tracing services. This warrants further investigation into the scope of work and the specific services required to justify such a cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for a sole-source award is not provided in the data. This lack of competition means that other qualified vendors were not given an opportunity to bid, potentially leading to higher costs and reduced innovation. The absence of a competitive process limits the government's ability to ensure it is receiving the best value for taxpayer dollars.

Taxpayer Impact: A sole-source award means taxpayers may not be benefiting from the cost efficiencies and potentially lower prices that a competitive bidding process could have yielded.

Public Impact

The primary beneficiaries of this contract are U.S. Immigration and Customs Enforcement (ICE) and potentially other Department of Homeland Security (DHS) components. The services delivered are critical for locating individuals, which supports immigration enforcement and national security objectives. The geographic impact is primarily within the District of Columbia, where the place of performance is located. The contract may have implications for the workforce involved in skip tracing and related administrative management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-day cost raises concerns about value for money.
Lack of competition limits price discovery and potential savings.
Short contract duration may indicate an urgent or temporary need, but the cost is still substantial.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded to a single entity, potentially allowing for focused execution.
Services are critical for agency operations.

Sector Analysis

The contract falls under the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of services, including operational support and strategic advice. The market for skip tracing services is specialized, often involving data aggregation, investigative techniques, and legal compliance. While specific market size data for government-focused skip tracing is not readily available, it is a crucial component of law enforcement and intelligence operations, with significant spending across various federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless SOS International LLC engages small businesses as subcontractors, which is not specified. The absence of a small business set-aside suggests the requirement was either not suitable or not prioritized for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal review processes and potentially the Office of Inspector General (OIG). The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a set cost. However, the lack of competition and the high per-day rate necessitate robust performance monitoring and auditing to ensure the services are delivered effectively and efficiently, and that taxpayer funds are used appropriately.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations
Department of Homeland Security (DHS) Support Services
Federal Law Enforcement Support Contracts
Administrative and Management Consulting Services

Risk Flags

High cost per day
Sole-source award
Lack of transparency in justification for sole-source

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.0 million to SOS INTERNATIONAL LLC. TO AWARD A LETTER CONTRACT FOR SKIP TRACING SERVICES IN ACCORDANCE WITH THE ATTACHED LETTER CONTRACT AND STATEMENT OF WORK.

Who is the contractor on this award?

The obligated recipient is SOS INTERNATIONAL LLC.

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 $7.0 million.

What is the period of performance?

Start: 2025-10-21. End: 2026-01-19.

What specific services are included in the 'skip tracing' for this $6.9 million contract, and how do they justify the high daily rate?

The provided data does not detail the specific services encompassed by 'skip tracing' beyond the general understanding of locating individuals. However, given the high daily rate of approximately $77,275 ($6.9M / 90 days), the scope likely extends beyond basic database searches. It could involve complex investigative work, international data retrieval, utilization of specialized proprietary databases, extensive legal research, and potentially on-the-ground field operations. The justification for such a high cost would need to be thoroughly documented by ICE, outlining the criticality, complexity, and unique requirements of the skip tracing efforts that necessitate this level of expenditure and preclude a more cost-effective solution. Without this detailed justification, the cost remains a significant concern.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without further documentation from the Department of Homeland Security (DHS), the precise justification for this sole-source award remains unknown. However, common reasons include the unique capabilities of the contractor, the need for immediate service, or the integration with existing systems. The lack of competition raises concerns about whether the government obtained the best possible price and value for taxpayers.

How does the $6.9 million contract value compare to historical spending on similar skip tracing services by DHS or ICE?

The provided data does not include historical spending figures for similar skip tracing services by DHS or ICE, making a direct comparison impossible. However, the contract value of $6.9 million for a 90-day period, resulting in a daily rate of approximately $77,275, appears exceptionally high for standard skip tracing services. Typically, skip tracing costs are significantly lower, often charged per record or on a contingency basis for successful location. This high value suggests either a very broad or highly specialized scope of work, or potentially an inflated cost due to the lack of competition. A thorough review of past contracts and market rates would be necessary to establish a relevant benchmark.

What are the potential risks associated with awarding a significant contract like this without competition?

Awarding a contract of this magnitude ($6.9 million) without competition introduces several risks. Firstly, it significantly increases the risk of overpaying, as the government does not benefit from the price reductions typically achieved through competitive bidding. Secondly, it limits the pool of potential providers, potentially excluding vendors with innovative solutions or more cost-effective approaches. Thirdly, it can foster a perception of favoritism or lack of transparency. Finally, without the pressure of competition, the awarded contractor may have less incentive to optimize performance or control costs throughout the contract period, potentially impacting overall program effectiveness and value for taxpayer money.

What is the track record of SOS INTERNATIONAL LLC in performing government contracts, particularly for DHS or ICE?

The provided data identifies SOS INTERNATIONAL LLC as the contractor but does not offer details on their track record with government contracts. To assess their suitability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for a history of their awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or disputes. A strong track record with relevant agencies and similar services would provide greater confidence in their ability to execute this contract successfully, while a history of poor performance or contract issues would be a significant red flag.

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) › MANAGEMENT SUPPORT SERVICES

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: 1881 CAMPUS COMMONS DRIVE, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,954,758

Exercised Options: $6,954,758

Current Obligation: $6,954,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline