HHS Awards $3.5B for Migrant Child Services to Rapid Deployment Inc

Contract Overview

Contract Amount: $3,516,373,312 ($3.5B)

Contractor: Rapid Deployment Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-24

End Date: 2025-09-30

Contract Duration: 1,651 days

Daily Burn Rate: $2.1M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE FULL COMPLEMENT OF SERVICES NECESSARY TO CARE FOR UC IN ORR CUSTODY INCLUDING FACILITIES SET-UP, MAINTENANCE, AND SUPPORT INTERNAL AND PERIMETER (IF APPLICABLE) SECURITY, DIRECT CARE AND SUPERVISION INC

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79906

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.52 billion to RAPID DEPLOYMENT INC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE FULL COMPLEMENT OF SERVICES NECESSARY TO CARE FOR UC IN ORR CUSTODY INCLUDING FACILITIES SET-UP, MAINTENANCE, AND SUPPORT INTERNAL AND PERIMETER (IF APPLICABLE) SECURITY, DIRECT CARE AND SUPERVISION INC Key points: 1. Significant contract value highlights the scale of federal support for migrant child welfare. 2. Lack of competition raises questions about price discovery and potential cost efficiencies. 3. The firm fixed-price structure aims to control costs, but oversight is crucial for this large award. 4. Services are concentrated in Texas, reflecting a key region for migrant arrivals.

Value Assessment

Rating: questionable

The contract's substantial value of over $3.5 billion for emergency relief services is difficult to benchmark without detailed service breakdowns and comparable contracts. The lack of competition makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible pricing through competitive bidding.

Taxpayer Impact: The lack of competition on such a large contract raises concerns about whether taxpayers are receiving the best value for their money.

Public Impact

Provides essential care and facilities for unaccompanied children in federal custody. Addresses critical needs related to migrant child welfare and humanitarian support. Contract duration extends through September 2025, indicating ongoing federal commitment. Services are geographically focused in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Large contract value
Sole-source award

Positive Signals

Addresses critical humanitarian need
Definitive contract structure

Sector Analysis

This contract falls under Emergency and Other Relief Services, a sector often characterized by urgent needs and rapid response. The spending benchmark for such services can vary widely based on the scale and duration of the emergency.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this sole-source contract.

Oversight & Accountability

The significant value and sole-source nature of this contract necessitate robust oversight from the Administration for Children and Families to ensure services are delivered effectively and funds are used appropriately.

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
Sole-source award
High contract value
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.52 billion to RAPID DEPLOYMENT INC. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE FULL COMPLEMENT OF SERVICES NECESSARY TO CARE FOR UC IN ORR CUSTODY INCLUDING FACILITIES SET-UP, MAINTENANCE, AND SUPPORT INTERNAL AND PERIMETER (IF APPLICABLE) SECURITY, DIRECT CARE AND SUPERVISION INC

Who is the contractor on this award?

The obligated recipient is RAPID DEPLOYMENT INC.

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 $3.52 billion.

What is the period of performance?

Start: 2021-03-24. End: 2025-09-30.

What specific services are included in the 'full complement of services' and how were these costs determined without competition?

The contract specifies services necessary for caring for unaccompanied children in ORR custody, including facilities setup, maintenance, and support, as well as internal and perimeter security and direct care. Without a competitive process, the cost determination relies heavily on the contractor's proposed pricing and the agency's negotiation, making transparency on the cost breakdown crucial for assessing value.

What are the risks associated with a sole-source award of this magnitude for emergency services?

The primary risk is the potential for inflated costs due to the absence of competitive pressure, leading to suboptimal value for taxpayers. Additionally, a sole-source award might limit innovation and the adoption of best practices that could emerge from a competitive bidding process. Ensuring stringent performance monitoring and cost controls becomes paramount.

How will the effectiveness of Rapid Deployment Inc.'s services be measured and ensured, given the lack of a competitive baseline?

Effectiveness will be measured through performance metrics defined in the contract and rigorous oversight by the Administration for Children and Families. This includes regular reporting, site visits, and potentially independent evaluations to ensure the quality of care, facility standards, and security meet federal requirements and the needs of the children served.

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: 1521 AZALEA RD, MOBILE, AL, 36693

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

Financial Breakdown

Contract Ceiling: $4,820,548,165

Exercised Options: $3,516,373,312

Current Obligation: $3,516,373,312

Actual Outlays: $2,948,772,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline