Homeland Security awards $1.99M contract for Taiwan support services, raising questions about competition and value

Contract Overview

Contract Amount: $1,989,125 ($2.0M)

Contractor: American Institute in Taiwan

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-15

End Date: 2025-09-29

Contract Duration: 1,110 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AMERICAN INSTITUTE IN TIAWAN SUPPORT/ SERVICES/SUPPLIES FOR HSI TAIWAN

Plain-Language Summary

Department of Homeland Security obligated $2.0 million to AMERICAN INSTITUTE IN TAIWAN for work described as: AMERICAN INSTITUTE IN TIAWAN SUPPORT/ SERVICES/SUPPLIES FOR HSI TAIWAN Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of over three years suggests a need for sustained support. 3. Fixed-price contract type aims to control costs, but the lack of competition is a concern. 4. Services are for the American Institute in Taiwan, indicating a focus on international affairs and diplomacy. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 6. The contract's value is relatively modest in the context of federal spending, but its specific nature warrants scrutiny.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specific nature and sole-source award. Without competitive bids, it's difficult to ascertain if the $1.99 million price represents a fair market value for the support services provided to the American Institute in Taiwan. The fixed-price structure offers some cost control, but the absence of competition means there's less pressure on the contractor to offer the most economical solution. Further analysis would require understanding the specific deliverables and comparing them to similar international support contracts, which are often unique.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means that potential savings that could arise from a bidding process are unlikely to be realized. It also limits the government's ability to explore a wider range of solutions or innovative approaches that might be offered by other qualified contractors.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. The government did not benefit from the price discovery mechanism inherent in a competitive bidding process.

Public Impact

The American Institute in Taiwan benefits directly from the provision of essential support services. Services likely include administrative, logistical, or operational support crucial for the Institute's functions. The geographic impact is focused on Taiwan, supporting U.S. diplomatic and operational presence. Workforce implications are likely internal to the contractor, with potential for specialized personnel deployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for a sole-source award.
Potential for vendor lock-in given the multi-year duration and specific nature of services.
Absence of small business participation opportunities.

Positive Signals

Fixed-price contract type provides some cost certainty.
Contract supports critical functions of the American Institute in Taiwan.
Longer contract duration allows for stable service provision.

Sector Analysis

This contract falls within the broader category of professional, scientific, and technical services, specifically tailored for international affairs support. The market for such specialized services is often niche, with a limited number of providers possessing the necessary expertise and security clearances for operating in sensitive international environments like Taiwan. Comparable spending benchmarks are difficult to establish without more detail on the specific services, but federal spending on international support and diplomatic functions is substantial across various agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The sole-source nature of the award further limits the likelihood of small business involvement. This means that opportunities for small businesses to contribute to this specific service provision are minimal, potentially impacting the small business ecosystem's ability to gain experience and revenue in this specialized area.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures would be tied to the contract's performance work statement and deliverables. Transparency is limited due to the sole-source nature of the award; the justification for this procurement method would typically be available through federal procurement databases, but the details of the service provision itself may not be publicly disclosed extensively.

Related Government Programs

Department of State - Diplomatic Support Services
USAID - International Development Assistance
Department of Defense - Foreign Military Sales Support
Other Homeland Security International Operations

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency regarding the justification for sole-source procurement.
Potential for reduced value for taxpayer money due to limited competition.
No indication of small business participation or subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.0 million to AMERICAN INSTITUTE IN TAIWAN. AMERICAN INSTITUTE IN TIAWAN SUPPORT/ SERVICES/SUPPLIES FOR HSI TAIWAN

Who is the contractor on this award?

The obligated recipient is AMERICAN INSTITUTE IN TAIWAN.

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 $2.0 million.

What is the period of performance?

Start: 2022-09-15. End: 2025-09-29.

What specific services are included under this $1.99 million contract for the American Institute in Taiwan?

The provided data indicates the contract is for 'AMERICAN INSTITUTE IN TAIWAN SUPPORT/ SERVICES/SUPPLIES FOR HSI TAIWAN'. While the exact breakdown of services is not detailed in the summary data, typical support services for such an entity could encompass a wide range of activities. These might include administrative and clerical support, logistical assistance for personnel and equipment, facility maintenance and operations, translation services, event support, and potentially specialized technical assistance related to Homeland Security Investigations (HSI) operations in Taiwan. The contract's duration of over three years suggests a need for ongoing, sustained support rather than a one-time project. A deeper dive into the contract's statement of work would be necessary to fully delineate the scope of services.

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

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available, or in cases of urgent and compelling need. Without further documentation, the precise justification for this sole-source award to the American Institute in Taiwan is unknown. It's possible that the unique nature of the support required, the specific relationship with the contractor, or national security considerations in Taiwan necessitated this approach. However, sole-source awards generally reduce competition, potentially leading to higher prices and limiting opportunities for other qualified vendors.

How does the $1.99 million contract value compare to similar support services for international entities?

Directly comparing the $1.99 million contract value is difficult without knowing the precise scope and duration of services provided. Support services for international entities can vary significantly in cost based on location, complexity, security requirements, and the specific functions being supported. For instance, providing logistical support in a high-cost-of-living area like Taiwan, coupled with specialized HSI-related services, could justify this figure. However, in the absence of competitive bidding, it's hard to definitively state if this represents a fair market price. Benchmarking would require identifying contracts with similar service scopes, geographic locations, and contract types, which are often not publicly detailed enough for precise comparisons, especially for sole-source awards.

What are the potential risks associated with a sole-source contract of this duration?

A sole-source contract, especially one spanning over three years (from September 2022 to September 2025), carries several potential risks. Firstly, the lack of competition can lead to reduced price efficiency, meaning the government might pay more than it would in a competitive environment. Secondly, there's a risk of vendor complacency or reduced incentive to innovate, as the contractor has guaranteed business without needing to outperform competitors. Thirdly, if the contractor's performance or financial stability deteriorates, the government has limited options for switching providers without significant disruption, potentially leading to extended transition periods or continued reliance on a suboptimal vendor. Finally, the absence of a competitive process can raise concerns about transparency and fairness in government contracting.

What is the historical spending pattern for similar support services by the Department of Homeland Security in Taiwan?

Analyzing historical spending patterns for similar support services by the Department of Homeland Security (DHS) in Taiwan requires access to detailed federal procurement data beyond the summary provided. This specific contract is with the American Institute in Taiwan (AIT) and awarded by U.S. Immigration and Customs Enforcement (ICE), suggesting a focus on HSI-related functions. DHS, through its various components like ICE, Customs and Border Protection (CBP), and others, does engage in international cooperation and support activities. However, contracts specifically for AIT support, especially sole-source ones, may not be frequent or publicly detailed. A comprehensive review of past contracts awarded by DHS components to entities operating in Taiwan would be necessary to identify trends, typical contract values, and the prevalence of competitive versus sole-source awards in this specific geographic and functional area.

Industry Classification

NAICS: Public Administration › National Security and International Affairs › International Affairs

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: 1300 17TH ST N STE 750, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,989,125

Exercised Options: $1,989,125

Current Obligation: $1,989,125

Actual Outlays: $1,653,711

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline