HHS Spends $23.6M on UAC Youth Care Services via Sole-Source Contract

Contract Overview

Contract Amount: $23,563,452 ($23.6M)

Contractor: Culmen International, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-22

End Date: 2021-05-31

Contract Duration: 70 days

Daily Burn Rate: $336.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY MOBILIZATION FOR UNACCOMPANIED ALIEN CHILDREN (UAC) YOUTH CARE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.6 million to CULMEN INTERNATIONAL, LLC for work described as: EMERGENCY MOBILIZATION FOR UNACCOMPANIED ALIEN CHILDREN (UAC) YOUTH CARE SERVICES Key points: 1. Significant emergency spending on unaccompanied alien children care. 2. Sole-source award to Culmen International, LLC raises competition concerns. 3. Short-term contract duration suggests urgent, unmet needs. 4. Firm-fixed-price contract type provides cost certainty.

Value Assessment

Rating: questionable

The $23.6M award for a 70-day period represents a high per-diem cost. Benchmarking is difficult due to the emergency nature and specialized services, but the rapid expenditure warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, citing emergency circumstances. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The emergency nature of the award suggests a critical need, but the lack of competition means taxpayers may not have received the best possible price.

Public Impact

Addresses critical needs for vulnerable children. Highlights potential strain on federal resources during crises. Raises questions about preparedness and long-term solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High emergency spending
Limited contract duration

Positive Signals

Addresses urgent humanitarian need
Firm-fixed-price contract

Sector Analysis

This contract falls under emergency and other relief services, often characterized by rapid, high-value awards during crises. Benchmarks are difficult to establish due to the unpredictable nature of such events.

Small Business Impact

The contract was awarded to Culmen International, LLC, a single entity. There is no indication of small business participation in this specific award.

Oversight & Accountability

The emergency nature of this award suggests it may have bypassed standard oversight processes. Further review of the justification for the sole-source award is recommended.

Related Government Programs

Emergency and Other Relief Services
Department of Health and Human Services Contracting
Administration for Children and Families Programs

Risk Flags

Lack of competition
High emergency expenditure
Short contract duration
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.6 million to CULMEN INTERNATIONAL, LLC. EMERGENCY MOBILIZATION FOR UNACCOMPANIED ALIEN CHILDREN (UAC) YOUTH CARE SERVICES

Who is the contractor on this award?

The obligated recipient is CULMEN INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2021-03-22. End: 2021-05-31.

What was the specific justification for the sole-source award, and were alternative competitive approaches considered?

The data indicates an emergency mobilization, suggesting the sole-source award was likely justified by urgent, unforeseen circumstances requiring immediate action. However, the specific details of the justification and whether any limited competition or alternative approaches were explored are not provided in this data.

How does the per-unit cost of care compare to similar emergency services contracts or established benchmarks?

Without specific per-unit cost breakdowns and comparable contract data for similar emergency UAC care services, a direct comparison is challenging. The total award of $23.6M over 70 days for an unspecified number of children suggests a significant daily expenditure that warrants further investigation against any available benchmarks.

What is the long-term strategy for UAC care, and how does this emergency contract fit into it?

This contract appears to be a short-term, emergency measure to address an immediate surge in unaccompanied alien children. It does not inherently reflect a long-term strategy. Understanding the agency's broader plan for UAC care, including preventative measures and sustainable service provision, is crucial.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services

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: 99 CANAL CTR PLZ STE 410, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,563,452

Exercised Options: $23,563,452

Current Obligation: $23,563,452

Actual Outlays: $20,977,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline