HHS Awards $370M for Unaccompanied Alien Child Travel and Escort Services to MVM, Inc

Contract Overview

Contract Amount: $369,516,065 ($369.5M)

Contractor: MVM, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-25

End Date: 2025-11-30

Contract Duration: 1,711 days

Daily Burn Rate: $216.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR WILL PROVIDE STAFFING AND RESOURCES NECESSARY TO ARRANGE TRAVEL AND ESCORT FOR UC IN ORR CUSTODY. SERVICES WILL BE NEEDED TO SUPPORT UC HOUSED AT TWO SITES IN DALLAS, TX FOR UP TO 2,600 UC AND MIDLAND, TX FOR UP TO 700 UC; AS WELL AS

Place of Performance

Location: ADDISON, DALLAS County, TEXAS, 75001

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $369.5 million to MVM, INC. for work described as: CONTRACTOR WILL PROVIDE STAFFING AND RESOURCES NECESSARY TO ARRANGE TRAVEL AND ESCORT FOR UC IN ORR CUSTODY. SERVICES WILL BE NEEDED TO SUPPORT UC HOUSED AT TWO SITES IN DALLAS, TX FOR UP TO 2,600 UC AND MIDLAND, TX FOR UP TO 700 UC; AS WELL AS Key points: 1. Significant contract value for essential humanitarian support services. 2. Sole-source award raises questions about competition and potential cost savings. 3. High risk associated with managing vulnerable populations and complex logistics. 4. Services fall under Emergency and Other Relief, a critical but often unpredictable sector.

Value Assessment

Rating: questionable

The contract value of $369.5 million over approximately 3 years is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar escort and travel services.

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 result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a large contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Direct impact on the well-being and safe transit of unaccompanied alien children. Supports federal efforts to manage the humanitarian aspects of border security. Involves significant logistical coordination across multiple locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Potential for cost overruns
Complex service delivery

Positive Signals

Addresses critical humanitarian need
Provides essential support services

Sector Analysis

This contract falls under Emergency and Other Relief Services, a sector often characterized by urgent needs and rapid deployment. Spending in this area can fluctuate significantly based on geopolitical and humanitarian events.

Small Business Impact

The contract was not awarded to a small business, as indicated by 'sb': false. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight will be crucial to ensure MVM, Inc. provides adequate staffing, resources, and safe escort services for the unaccompanied children, as well as to monitor expenditures against the contract value.

Related Government Programs

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

Risk Flags

Sole-source award limits competition and price discovery.
High contract value necessitates rigorous oversight.
Potential for service delivery challenges with large numbers of children.
Contract duration extends into late 2025, requiring long-term monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $369.5 million to MVM, INC.. CONTRACTOR WILL PROVIDE STAFFING AND RESOURCES NECESSARY TO ARRANGE TRAVEL AND ESCORT FOR UC IN ORR CUSTODY. SERVICES WILL BE NEEDED TO SUPPORT UC HOUSED AT TWO SITES IN DALLAS, TX FOR UP TO 2,600 UC AND MIDLAND, TX FOR UP TO 700 UC; AS WELL AS

Who is the contractor on this award?

The obligated recipient is MVM, 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 $369.5 million.

What is the period of performance?

Start: 2021-03-25. End: 2025-11-30.

What is the justification for the sole-source award, and what steps were taken to ensure the best value was obtained?

The justification for a sole-source award typically involves a critical need or lack of qualified sources. Without further details, it's impossible to assess the specific rationale. However, for such a significant contract, a thorough review of market research and justification documentation is essential to confirm that taxpayer funds are being used efficiently and effectively.

What are the specific performance metrics and oversight mechanisms in place to ensure the safety and well-being of the children being escorted?

Detailed performance metrics and robust oversight are critical given the sensitive nature of escorting vulnerable children. This should include clear standards for staff training, background checks, transportation safety, communication protocols, and incident reporting. Regular site visits and performance reviews by the contracting agency are necessary to ensure compliance and address any issues promptly.

How does the pricing structure compare to industry benchmarks for similar services, especially considering the lack of competitive bidding?

Assessing the pricing without competitive bidding is challenging. A firm fixed-price contract provides cost certainty for the government, but the initial price may not reflect the best value. Benchmarking against similar contracts, if available, or conducting independent cost analyses would be necessary to determine if the $370 million award is reasonable for the services provided.

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: 44620 GUILFORD DR STE 150, ASHBURN, VA, 20147

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

Financial Breakdown

Contract Ceiling: $384,374,065

Exercised Options: $369,516,065

Current Obligation: $369,516,065

Actual Outlays: $196,445,047

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline