DHS awards $81.7M for field office support, raising questions on value and competition

Contract Overview

Contract Amount: $81,706,089 ($81.7M)

Contractor: Sciolex Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2023-03-01

End Date: 2026-03-22

Contract Duration: 1,117 days

Daily Burn Rate: $73.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FIELD OFFICE SUPPORT SERVICES - VARIETY OF RECORDS/FILE MANAGEMENT TASKS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $81.7 million to SCIOLEX CORPORATION for work described as: FIELD OFFICE SUPPORT SERVICES - VARIETY OF RECORDS/FILE MANAGEMENT TASKS Key points: 1. Contract value appears high relative to the scope of administrative services. 2. Limited public data makes direct value-for-money assessment challenging. 3. Full and open competition was utilized, but the number of bidders is not specified. 4. Performance period extends over three years, indicating a need for sustained support. 5. The contract is positioned within the administrative and office support sector. 6. Risk indicators are moderate, primarily related to potential cost overruns and performance management.

Value Assessment

Rating: fair

The contract's total value of $81.7 million for office administrative services seems substantial. Benchmarking against similar contracts for field office support is difficult without more detailed service descriptions and performance metrics. The time and materials pricing structure introduces a risk of cost escalation if not closely managed. Further analysis of the specific tasks and deliverables is needed to ascertain if the pricing reflects fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating an initial intent for broad competition, though the specific number of bidders is not detailed. This procurement method generally aims to ensure fair pricing and access to a wide range of potential contractors. However, without knowing the number of proposals received and evaluated, it's difficult to definitively assess the strength of the competition and its impact on price discovery.

Taxpayer Impact: While full and open competition is taxpayer-favorable, the lack of specific bidder numbers prevents a precise assessment of how effectively competition drove down costs for this particular award.

Public Impact

USCIS field offices will receive essential administrative support, ensuring smoother operations. Services include records and file management, crucial for case processing and agency efficiency. The contract's impact is primarily within the District of Columbia, supporting federal agency functions. Workforce implications include potential employment opportunities for administrative support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Scope creep could increase costs without commensurate benefit.
Performance monitoring challenges for administrative tasks.
Dependence on a single contractor for critical support functions.

Positive Signals

Utilizes full and open competition, promoting market access.
Long-term contract provides stability for service delivery.
Focus on essential administrative functions supports core agency missions.

Sector Analysis

This contract falls within the Office Administrative Services sector (NAICS 561110), which encompasses a broad range of support functions for businesses and government agencies. The market for these services is competitive, with numerous providers ranging from small businesses to large corporations. The total value of this contract is significant within this sector, suggesting a substantial scope of work for USCIS field offices. Comparable spending benchmarks for large-scale administrative support contracts can vary widely based on geographic scope and specific service requirements.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was awarded based on best value without specific small business targets. While this allows for broader competition, it may limit opportunities for small businesses to directly participate in this significant contract. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if the prime contractor opts to engage them for specific tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial audits. Transparency is facilitated by the contract award notice, but detailed performance reports and cost breakdowns are generally not publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Administrative Support Services
Office Management Contracts
Records Management Services
USCIS Operational Support

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of specific bidder numbers limits competition assessment.
Scope definition may be too broad for effective cost control.
Performance metrics not detailed in award notice.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $81.7 million to SCIOLEX CORPORATION. FIELD OFFICE SUPPORT SERVICES - VARIETY OF RECORDS/FILE MANAGEMENT TASKS

Who is the contractor on this award?

The obligated recipient is SCIOLEX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $81.7 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-03-22.

What is the specific breakdown of services provided under this contract and how do they align with USCIS's mission objectives?

The contract is broadly defined as 'FIELD OFFICE SUPPORT SERVICES - VARIETY OF RECORDS/FILE MANAGEMENT TASKS.' This suggests the services are primarily administrative, focusing on the organization, maintenance, and retrieval of documents and records within USCIS field offices. These tasks are critical for efficient case processing, evidence management, and compliance with record-keeping regulations. The alignment with USCIS's mission is direct, as effective administrative support underpins the agency's ability to adjudicate immigration and citizenship applications. However, the lack of granular detail in the award notice makes it difficult to quantify the exact contribution of these services to overall mission success or to assess if the scope justifies the contract's substantial value.

How does the $81.7 million contract value compare to historical spending on similar administrative support services by USCIS or other agencies?

Benchmarking the $81.7 million contract value requires comparing it to similar 'Office Administrative Services' (NAICS 561110) contracts, particularly those involving extensive records and file management for large federal agencies. Without specific details on the number of field offices supported, the volume of records managed, or the exact service level agreements, a precise comparison is challenging. However, for a three-year contract focused on administrative tasks, $81.7 million represents a significant investment. Historical data for large-scale federal administrative support contracts can range widely, but this figure suggests a substantial operational scope. Further analysis would involve examining the average cost per field office or per record managed, if such data were available, to provide a more accurate context.

What are the primary risks associated with the 'Time and Materials' (T&M) contract type for this scope of services?

The primary risk associated with a Time and Materials (T&M) contract type for field office support services is the potential for cost overruns. T&M contracts obligate the government to pay for the direct labor hours at specified hourly rates and the actual cost of materials used. If the scope of work is not precisely defined, or if project management is insufficient, the contractor may incur more labor hours or material costs than anticipated, leading to a higher final price than initially projected. For administrative tasks, estimating the exact time required can be difficult, increasing the risk of inefficiency being billed to the government. Robust oversight, clear task definitions, and diligent monitoring of labor hours and material expenditures are crucial to mitigate these risks.

Given the 'Full and Open Competition After Exclusion of Sources' award type, what does this imply about the competitive landscape for these services?

The 'Full and Open Competition After Exclusion of Sources' award type suggests that while the government intended to compete the contract broadly, certain sources may have been excluded for specific reasons, possibly related to prior performance, security, or unique capabilities. The 'Full and Open' aspect implies that all responsible sources were initially considered. However, the 'Exclusion of Sources' modifier indicates that not all potential bidders were ultimately included in the final solicitation or evaluation. This could mean that the competition was narrower than a pure 'Full and Open' competition. Without knowing the number of bidders that responded or the rationale for excluding other sources, it's difficult to definitively assess the level of competition and its impact on achieving the best possible price and value for the government.

What are the potential performance challenges or indicators of success for a contract focused on records and file management?

Performance challenges for a records and file management contract can include maintaining data integrity, ensuring timely retrieval of documents, complying with retention policies, and safeguarding sensitive information. Success indicators would likely involve metrics such as the accuracy rate of file indexing, the average time to retrieve requested documents, the number of data breaches or security incidents (ideally zero), adherence to established retention schedules, and positive feedback from USCIS personnel regarding the efficiency and reliability of the support services. Client satisfaction surveys and audits of file management processes would also serve as key indicators of performance.

How does the duration of the contract (ending March 2026) align with the typical lifecycle of administrative support needs for federal field offices?

The contract duration, extending from March 2023 to March 2026 (approximately three years), aligns reasonably well with the typical need for sustained administrative support in federal field offices. Such support is often ongoing rather than project-based, requiring consistent staffing and processes to manage daily operations, case files, and correspondence. A multi-year contract provides stability for both the agency and the contractor, allowing for the development of specialized knowledge and efficient workflows. This duration also allows USCIS to plan its budget and resources effectively for these essential support functions over a medium-term horizon.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR22R00000027

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4511 SINGER CT STE 100, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $81,706,089

Exercised Options: $81,706,089

Current Obligation: $81,706,089

Actual Outlays: $61,377,973

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC16DP2022

IDV Type: IDC

Timeline