DHS Awards $113M for ICE Facility Renovation and Operations in Maryland

Contract Overview

Contract Amount: $113,052,116 ($113.1M)

Contractor: KVG LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-06

End Date: 2026-05-04

Contract Duration: 59 days

Daily Burn Rate: $1.9M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS TASK ORDER IS TO PROCURE THE RENOVATION OF EXISTING, ICE-OWNED PERMANENT STRUCTURE IN HAGERSTOWN, MD TO SERVE AS A PROCESSING AND DETENTION FACILITY AND PROVIDE ALL NECESSARY WRAPAROUND SERVICES FOR OPERATION OF THE FACILITY.

Place of Performance

Location: HAGERSTOWN, WASHINGTON County, MARYLAND, 21740

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $113.1 million to KVG LLC for work described as: THIS TASK ORDER IS TO PROCURE THE RENOVATION OF EXISTING, ICE-OWNED PERMANENT STRUCTURE IN HAGERSTOWN, MD TO SERVE AS A PROCESSING AND DETENTION FACILITY AND PROVIDE ALL NECESSARY WRAPAROUND SERVICES FOR OPERATION OF THE FACILITY. Key points: 1. Significant investment in critical infrastructure for immigration processing and detention. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. The contract is for renovation and operational services, indicating a comprehensive approach.

Value Assessment

Rating: good

The contract value of $113M for a 59-day period is substantial. Benchmarking against similar large-scale facility renovations and operational contracts would be necessary for a precise assessment, but the fixed-price nature provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of qualified contractors to bid. This method is expected to yield a fair market price.

Taxpayer Impact: Taxpayer funds are being used for essential government infrastructure and services, with the competitive award process aiming for efficient allocation of resources.

Public Impact

Impacts immigration processing and detention capabilities in the region. Potential for job creation related to facility renovation and operation. Ensures compliance with federal mandates for detention and processing. Affects local community through construction and operational activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short duration for a large renovation and operational contract.
Potential for scope creep given the 'wraparound services' clause.
Reliance on a single award for critical facility needs.

Positive Signals

Full and open competition.
Firm fixed-price contract.
Clear objective for facility renovation and operation.

Sector Analysis

This contract falls within the professional services sector, specifically related to facility management and logistics consulting. The value is high for a task order, suggesting a significant project scope.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this full and open competition award. Further analysis would be needed to determine if small businesses had an opportunity to participate.

Oversight & Accountability

The contract is an award under a larger agreement, implying prior oversight. The fixed-price nature and defined scope should aid in accountability, but monitoring the 'wraparound services' will be key.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

High cost per day.
Broad 'wraparound services' definition.
Short contract duration for significant scope.
Potential for unstated operational complexities.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $113.1 million to KVG LLC. THIS TASK ORDER IS TO PROCURE THE RENOVATION OF EXISTING, ICE-OWNED PERMANENT STRUCTURE IN HAGERSTOWN, MD TO SERVE AS A PROCESSING AND DETENTION FACILITY AND PROVIDE ALL NECESSARY WRAPAROUND SERVICES FOR OPERATION OF THE FACILITY.

Who is the contractor on this award?

The obligated recipient is KVG 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 $113.1 million.

What is the period of performance?

Start: 2026-03-06. End: 2026-05-04.

What specific 'wraparound services' are included, and how are they priced and managed to ensure value?

The 'wraparound services' are critical to understanding the full scope and cost. These could encompass security, maintenance, catering, transportation, and medical support. Detailed contract line items and performance metrics are essential for effective management and to prevent cost overruns or ensure service quality aligns with the fixed price.

How does the $113M cost compare to industry benchmarks for similar facility renovations and operational contracts of this scale and duration?

Benchmarking is crucial. Without specific data on renovation complexity, security requirements, and operational scale, a direct comparison is difficult. However, the cost per day is approximately $1.9M ($113M / 59 days). This high daily rate warrants scrutiny against comparable government or private sector projects to ensure cost-effectiveness.

What are the key performance indicators (KPIs) for the operational phase, and how will their achievement be measured and enforced under the fixed-price contract?

Effective KPIs are vital for ensuring the facility operates as intended and meets federal standards. These might include processing times, detention conditions, security incident rates, and maintenance response times. Clear, measurable KPIs tied to contract deliverables and payment schedules are necessary for oversight and contractor accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 REDDING LN, GETTYSBURG, PA, 17325

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $641,795,972

Exercised Options: $113,052,116

Current Obligation: $113,052,116

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002325D0048

IDV Type: IDC

Timeline