DHS awards $497.7M contract for removal support services, with a significant portion allocated to air transportation

Contract Overview

Contract Amount: $497,707,307 ($497.7M)

Contractor: Salus Worldwide Solutions Corp.

Awarding Agency: Department of Homeland Security

Start Date: 2025-05-22

End Date: 2026-05-21

Contract Duration: 364 days

Daily Burn Rate: $1.4M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECTION 4(A). THE PURPOSE OF THIS REQUIREMENT IS TO OBTAIN COMPREHENSIVE SUPPORT TO REMOVAL OPERATIONS (CSRO) SUPPORT SERVICES FOR THE OFFICE FOR STRATEGY, POLICY, AND PLANS (PLCY).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $497.7 million to SALUS WORLDWIDE SOLUTIONS CORP. for work described as: SECTION 4(A). THE PURPOSE OF THIS REQUIREMENT IS TO OBTAIN COMPREHENSIVE SUPPORT TO REMOVAL OPERATIONS (CSRO) SUPPORT SERVICES FOR THE OFFICE FOR STRATEGY, POLICY, AND PLANS (PLCY). Key points: 1. Contract focuses on comprehensive support to removal operations, including specialized air transportation. 2. The majority of the contract value is tied to nonscheduled chartered passenger air transportation services. 3. Awarded to Salus Worldwide Solutions Corp. under full and open competition. 4. Contract duration is one year, with a potential for extension. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The fixed-price contract type aims to control costs for the government. 7. The agency's specific need is for support to the Office for Strategy, Policy, and Plans (PLCY).

Value Assessment

Rating: fair

The total award of $497.7 million for a one-year contract is substantial, particularly given the specialized nature of nonscheduled chartered passenger air transportation. Benchmarking this specific service is challenging without more granular data on flight hours, routes, and passenger capacity. However, the significant allocation to air transport suggests a high operational tempo or extensive logistical requirements. The firm-fixed-price structure provides cost certainty, but the overall value proposition depends heavily on the efficiency and necessity of the air services procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and evaluated. The specific mechanism of 'exclusion of sources' suggests that while competition was sought, certain entities might have been excluded based on predefined criteria. The level of competition is generally positive for price discovery, but the effectiveness depends on the number of responsive bids received and the specific requirements of the specialized air transportation services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wide range of potential providers, maximizing the opportunity to secure the best value.

Public Impact

The primary beneficiaries are the Department of Homeland Security's Office for Strategy, Policy, and Plans (PLCY), enabling their operational support. Services include comprehensive support for removal operations, a critical function for immigration enforcement and national security. The contract facilitates the movement of individuals through nonscheduled chartered passenger air transportation. Geographic impact is likely nationwide and potentially international, depending on the scope of removal operations. Workforce implications include support staff for logistics, flight coordination, and operational planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High reliance on specialized air charter services could lead to significant cost fluctuations if not managed tightly.
The 'exclusion of sources' clause warrants further investigation to understand the rationale and potential impact on competition.
The large dollar amount for a one-year contract requires robust performance monitoring to ensure value for money.
Dependence on a single delivery order under a potentially broader IDIQ could concentrate risk if the prime contractor faces issues.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost predictability for the government.
The contract supports critical national security and immigration enforcement functions.
The vendor, Salus Worldwide Solutions Corp., is likely experienced in providing such specialized services.

Sector Analysis

The contract falls within the broader aerospace and defense services sector, specifically focusing on specialized logistics and transportation. The market for nonscheduled chartered passenger air transportation is niche, often serving government and high-value private sector needs where standard commercial flights are insufficient. The size of this award suggests a significant demand for these services, potentially indicating a high volume of removal operations or complex logistical challenges. Comparable spending benchmarks are difficult to establish without detailed operational metrics, but the scale points to a major requirement.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) is not a primary focus for this specific award, as it is not set aside for small businesses. This suggests that the primary contractor, Salus Worldwide Solutions Corp., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this delivery order. The impact on the small business ecosystem would depend on whether Salus intends to subcontract portions of this work to smaller entities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS), specifically the contracting officer and program managers within the Office of Procurement Operations and the Office for Strategy, Policy, and Plans (PLCY). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award databases, though detailed operational specifics might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations Support
Department of Defense Air Charter Services
Federal Aviation Administration (FAA) Support Contracts
Department of State Diplomatic Security Services

Risk Flags

Potential for cost overruns in specialized air charter services.
Contractor performance risk in meeting stringent operational and security requirements.
Dependence on specific flight routes and international agreements.
Transparency concerns regarding 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $497.7 million to SALUS WORLDWIDE SOLUTIONS CORP.. SECTION 4(A). THE PURPOSE OF THIS REQUIREMENT IS TO OBTAIN COMPREHENSIVE SUPPORT TO REMOVAL OPERATIONS (CSRO) SUPPORT SERVICES FOR THE OFFICE FOR STRATEGY, POLICY, AND PLANS (PLCY).

Who is the contractor on this award?

The obligated recipient is SALUS WORLDWIDE SOLUTIONS CORP..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $497.7 million.

What is the period of performance?

Start: 2025-05-22. End: 2026-05-21.

What is the historical spending pattern for Comprehensive Support to Removal Operations (CSRO) services within DHS?

Analyzing historical spending for CSRO services within DHS requires access to detailed budget and contract databases. Typically, such services, especially those involving air transportation for removal operations, are funded through appropriations allocated to agencies like Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP), both under DHS. Spending can fluctuate based on policy changes, geopolitical events, and enforcement priorities. For instance, periods of increased border activity or shifts in international agreements might necessitate higher spending on removal support and transportation. Without specific historical data for CSRO, it's difficult to provide precise figures, but it's reasonable to assume a consistent, multi-million dollar annual expenditure for these critical, albeit sensitive, operational functions.

How does the per-unit cost of nonscheduled chartered passenger air transportation under this contract compare to market rates?

Determining the per-unit cost benchmark for nonscheduled chartered passenger air transportation is complex due to the highly variable nature of such services. Factors influencing cost include aircraft type, flight duration, route, passenger load, crew, fuel surcharges, and demand. For this $497.7 million contract, a significant portion is allocated to this service. To benchmark, one would need to compare specific flight legs, aircraft utilization rates, and operational overhead against industry standards from charter brokers or other government contracts for similar services. Given the specialized nature and potential for rapid deployment, government rates might be higher than standard commercial charter due to stringent security, scheduling, and logistical requirements. A detailed analysis would require access to the contract's detailed pricing structure and operational metrics.

What is Salus Worldwide Solutions Corp.'s track record in providing government air charter and removal support services?

Salus Worldwide Solutions Corp. has a documented history of providing services to government agencies, including air charter and logistics support. Their contract portfolio often includes support for federal agencies involved in national security, law enforcement, and humanitarian operations. Information available through federal contract databases (like SAM.gov or FPDS) typically shows past performance awards, contract values, and agencies served. For this specific type of service, their experience would likely encompass managing complex flight schedules, ensuring regulatory compliance (e.g., FAA), and handling sensitive passenger logistics. A thorough assessment would involve reviewing past performance evaluations and any reported issues or successes on similar contracts to gauge their reliability and capability in executing large-scale air transportation requirements.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential cost overruns due to volatile fuel prices or unforeseen operational demands in air charter services, contractor performance issues in meeting stringent timelines and security protocols, and geopolitical factors affecting international flight routes or removal agreements. Mitigation strategies likely involve the firm-fixed-price contract type, which shifts some cost risk to the contractor. Robust oversight by DHS contracting officers, performance metrics tied to delivery schedules and service quality, and contingency planning for alternative flight arrangements are also crucial. Furthermore, the 'exclusion of sources' clause, while potentially streamlining the initial selection, could pose a risk if it inadvertently limits the pool of highly capable providers or leads to challenges regarding fair competition.

How does this contract align with the broader mission objectives of DHS and its component agencies like ICE?

This contract directly supports the Department of Homeland Security's core mission of securing the nation and enforcing immigration laws. Comprehensive Support to Removal Operations (CSRO) is a critical component of immigration enforcement, enabling the orderly and safe return of individuals subject to removal orders. The Office for Strategy, Policy, and Plans (PLCY) likely utilizes these services to facilitate policy implementation and operational planning related to removals. By ensuring the availability of specialized air transportation, DHS can execute removal orders efficiently and effectively, contributing to border security and immigration system integrity. The scale of the contract suggests a significant operational tempo or strategic focus on removal operations.

What are the implications of awarding a large contract for air transportation under 'full and open competition after exclusion of sources'?

The 'full and open competition after exclusion of sources' designation indicates that while the competition was intended to be broad, specific sources were excluded from consideration. This could be due to various reasons, such as past performance issues, inability to meet specific technical requirements, or national security concerns. For taxpayers, this approach aims to balance the benefits of broad competition (potential for better pricing) with the need to ensure only qualified and suitable contractors participate. However, it raises questions about the transparency of the exclusion criteria and whether the exclusion might have limited the competitive landscape more than necessary, potentially impacting the final price or service innovation. A thorough review of the justification for excluding sources is essential for a complete understanding.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1616 FORT MYER DR STE 1600, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $506,582,347

Exercised Options: $497,707,307

Current Obligation: $497,707,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RDA225D00000005

IDV Type: IDC

Timeline