DHS Awards $4M for Texas Detention Center Roof Repairs to Yerkes South Inc

Contract Overview

Contract Amount: $4,054,135 ($4.1M)

Contractor: Yerkes South Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-23

End Date: 2026-09-22

Contract Duration: 364 days

Daily Burn Rate: $11.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS AWARD PROVIDES ROOF REPLACEMENT/REPAIRS AT THE PORT ISABEL DETENTION CENTER (PIDC) IN LOS FRESNOS, TX TO SUPPORT ICE- OFFICE OF ADMINISTRATION FACILITIES AND MANAGEMENT.

Place of Performance

Location: LOS FRESNOS, CAMERON County, TEXAS, 78566

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.1 million to YERKES SOUTH INC. for work described as: THIS AWARD PROVIDES ROOF REPLACEMENT/REPAIRS AT THE PORT ISABEL DETENTION CENTER (PIDC) IN LOS FRESNOS, TX TO SUPPORT ICE- OFFICE OF ADMINISTRATION FACILITIES AND MANAGEMENT. Key points: 1. Award focuses on critical infrastructure maintenance for ICE. 2. Limited competition raises questions about price discovery. 3. Potential for cost overruns due to fixed-price contract in a specialized sector. 4. Sector: Facilities Maintenance & Construction.

Value Assessment

Rating: fair

The $4.05M award for roof replacement/repairs is a significant sum for a single facility. Without comparable contract data, it's difficult to definitively assess if this price is competitive. The fixed-price nature suggests an attempt to control costs, but the lack of competition could lead to a less favorable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may be used for specialized services or urgent needs, but it can restrict price discovery and potentially lead to higher costs for taxpayers compared to a fully open competition.

Taxpayer Impact: The lack of robust competition for this $4M contract may result in taxpayers paying more than necessary for the roofing services.

Public Impact

Ensures operational continuity at a key immigration facility. Supports local economy through construction services. Addresses potential safety hazards from a deteriorating roof.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed cost breakdown
Potential for scope creep in repairs

Positive Signals

Supports critical government infrastructure
Fixed-price contract aims for cost certainty

Sector Analysis

This contract falls within the facilities maintenance and construction sector, specifically focusing on building envelope repairs. Spending in this area is often driven by the age and condition of government facilities, with costs varying significantly based on location, material, and scope of work.

Small Business Impact

The awardee, Yerkes South Inc., is not identified as a small business. There is no indication that small businesses were solicited or subcontracted for this project, representing a missed opportunity for small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the contractor adheres to the fixed-price terms and completes the work to the required standards. The Department of Homeland Security's Facilities and Management division is responsible for monitoring contract performance and ensuring taxpayer funds are used effectively.

Related Government Programs

Roofing Contractors
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of small business participation.
Potential for unforeseen issues increasing costs despite fixed price.
Transparency regarding the justification for limited competition could be improved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.1 million to YERKES SOUTH INC.. THIS AWARD PROVIDES ROOF REPLACEMENT/REPAIRS AT THE PORT ISABEL DETENTION CENTER (PIDC) IN LOS FRESNOS, TX TO SUPPORT ICE- OFFICE OF ADMINISTRATION FACILITIES AND MANAGEMENT.

Who is the contractor on this award?

The obligated recipient is YERKES SOUTH 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 $4.1 million.

What is the period of performance?

Start: 2025-09-23. End: 2026-09-22.

What was the justification for not competing this contract more broadly, given the significant dollar amount?

The justification for limited competition is not detailed in the provided data. Typically, agencies may opt for limited competition due to urgent needs, specialized contractor qualifications, or the existence of a specific existing contract vehicle. A thorough review of the contract file would be necessary to understand the precise rationale and ensure it aligns with federal procurement regulations.

How does the $4.05M cost compare to similar roofing projects at other detention facilities or government buildings of comparable size?

Benchmarking this $4.05M award against similar roofing projects is challenging without access to a broader dataset of government contracts. Factors like regional labor costs, material prices, specific site conditions at PIDC, and the exact scope of 'replacement/repairs' heavily influence pricing. A detailed cost-benefit analysis comparing this award to industry standards and historical data for similar federal projects would be needed for a comprehensive assessment.

What mechanisms are in place to ensure the quality and longevity of the roof repairs under a fixed-price contract?

Under a fixed-price contract, quality assurance typically relies on detailed contract specifications, performance standards, and rigorous inspection protocols by the contracting officer's representative (COR). The government will likely conduct regular site visits and inspections to verify that the work meets all technical requirements and material standards. Acceptance of the final work is contingent upon meeting these predefined quality benchmarks.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4799 HINOTE RD, CRESTVIEW, FL, 32539

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,400,000

Exercised Options: $4,054,135

Current Obligation: $4,054,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline