HHS awards $65M for urgent refugee wrap-around services in Texas, citing emergency need

Contract Overview

Contract Amount: $64,960,000 ($65.0M)

Contractor: Sbcs Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-31

End Date: 2021-07-15

Contract Duration: 106 days

Daily Burn Rate: $612.8K/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 FULFILL AN URGENT NEED FOR WRAP AROUND SERVICES FOR AN OFFICE OF REFUGEE RESETTLEMENT (ORR)

Place of Performance

Location: CANUTILLO, EL PASO County, TEXAS, 79835

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $65.0 million to SBCS CORPORATION for work described as: THE PURPOSE OF THIS CONTRACT IS TO FULFILL AN URGENT NEED FOR WRAP AROUND SERVICES FOR AN OFFICE OF REFUGEE RESETTLEMENT (ORR) Key points: 1. Contract addresses an urgent need for refugee support services. 2. The award was made on a non-competitive basis due to urgency. 3. The contract duration is relatively short, indicating a focused, immediate need. 4. The firm fixed-price structure aims to control costs for the government. 5. Services are concentrated in Texas, aligning with specific regional demands. 6. The value of the contract is substantial, reflecting the scope of services required.

Value Assessment

Rating: fair

The contract value of $64.96 million for approximately 106 days of service is significant. Benchmarking this against similar emergency relief contracts is challenging due to the specific nature of 'wrap-around services' and the urgent, non-competitive award. The firm fixed-price structure provides cost certainty, but without a competitive process, it's difficult to definitively assess if the pricing represents the best value for money. The per-unit cost is not readily calculable without more granular data on the number of individuals served or specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach likely stems from the 'urgent need' cited in the contract description, suggesting that a full and open competition would not have been feasible within the required timeframe. The lack of competition means there was no opportunity for multiple vendors to bid, potentially limiting price discovery and the range of innovative solutions that might have emerged from a competitive process.

Taxpayer Impact: Sole-source awards can sometimes lead to higher prices for taxpayers as the government does not benefit from competitive bidding. However, in cases of genuine urgency, it can ensure critical services are delivered without delay, which may be a greater priority than cost savings in the short term.

Public Impact

Refugees in Texas will benefit from essential wrap-around services. Services aim to facilitate the resettlement and integration of refugees. The geographic impact is focused on Texas, addressing specific resettlement needs in the state. The contract supports the workforce involved in delivering these critical social services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited vendor options for future needs.
The short contract duration may indicate a temporary solution rather than a sustainable program, potentially leading to future contract actions.
Urgency-based sole-source awards can set precedents that may be exploited if not carefully managed.
Transparency regarding the specific 'wrap-around services' and their necessity could be enhanced.

Positive Signals

Addresses an urgent and critical need for vulnerable populations.
The firm fixed-price contract provides cost certainty for the government.
Focuses resources on a specific geographic area (Texas) where needs are identified.
The award supports the Office of Refugee Resettlement's mission.

Sector Analysis

This contract falls within the broader 'Social Services' sector, specifically addressing emergency and relief services for refugees. The market for such services often involves non-profit organizations and specialized government contractors. While specific market size data for 'refugee wrap-around services' is not readily available, the federal government consistently spends billions on social services annually. This contract represents a significant, albeit short-term, investment in addressing immediate humanitarian needs.

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-aside provisions or subcontracting goals. As a sole-source award, it is unlikely to have directly benefited small businesses through a competitive process. Further investigation would be needed to determine if the prime contractor has plans for small business subcontracting, which is often encouraged but not mandated in such awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the Administration for Children and Families (ACF) within HHS. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the specific services delivered is crucial. The Inspector General's office within HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Office of Refugee Resettlement Programs
Emergency and Other Relief Services
Social Services Block Grants
Refugee Assistance Programs

Risk Flags

Sole-source award due to urgency
Lack of competitive bidding
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $65.0 million to SBCS CORPORATION. THE PURPOSE OF THIS CONTRACT IS TO FULFILL AN URGENT NEED FOR WRAP AROUND SERVICES FOR AN OFFICE OF REFUGEE RESETTLEMENT (ORR)

Who is the contractor on this award?

The obligated recipient is SBCS CORPORATION.

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 $65.0 million.

What is the period of performance?

Start: 2021-03-31. End: 2021-07-15.

What specific 'wrap-around services' are included under this contract, and how were they determined to be urgently needed?

The contract description broadly states 'wrap around services for an Office of Refugee Resettlement (ORR).' These services typically encompass a range of support designed to aid refugees in their resettlement process. This can include, but is not limited to, case management, temporary housing assistance, cultural orientation, access to healthcare and mental health services, educational support, job training, and legal assistance. The urgent need likely stems from a sudden influx of refugees or a critical gap in existing services that required immediate attention. Without more detailed documentation or contract clauses, the precise scope and the specific triggers for the urgency remain unspecified in the provided data.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award, as indicated by 'NOT COMPETED,' is typically rooted in specific circumstances that preclude a competitive process. For this contract, the data explicitly mentions an 'urgent need.' Federal Acquisition Regulation (FAR) Part 6 allows for other than full and open competition when, among other reasons, there is an urgent and compelling requirement that will not permit a delay associated with the competitive acquisition process. This implies that the situation demanded immediate action to provide essential services to refugees, and initiating a competition would have resulted in unacceptable delays, potentially harming the beneficiaries or failing to meet critical governmental objectives.

How does the $64.96 million contract value compare to typical spending for similar refugee resettlement services?

Directly comparing the $64.96 million contract value to 'typical' spending is challenging without more specific data points. Refugee resettlement services can vary significantly in scope, duration, and the number of individuals served. This contract, valued at approximately $65 million over roughly 106 days (March 31, 2021, to July 15, 2021), suggests a substantial operational requirement. The 'wrap-around' nature implies comprehensive support. While federal spending on refugee assistance is substantial, the cost per individual or per day for such emergency services can fluctuate based on geopolitical events, funding priorities, and the specific needs of the refugee population at a given time. This award appears to be a significant, short-term allocation to address an immediate, large-scale need.

What are the potential risks associated with awarding a large contract like this on a sole-source, urgent basis?

Awarding a large contract on a sole-source, urgent basis carries several potential risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as the government does not benefit from the price reductions typically achieved through competitive bidding. Secondly, it limits the government's ability to explore a wider range of innovative solutions or service providers that might offer better value or more effective approaches. Thirdly, it can create a perception of favoritism or a lack of transparency, even if the award is justified. Finally, relying on urgent, sole-source awards for recurring needs can undermine the principles of competitive procurement and may lead to a dependence on specific contractors without rigorous performance evaluation over time.

What is the track record of SBCS CORPORATION in providing government services, particularly in the area of refugee resettlement or social services?

Information regarding the specific track record of SBCS CORPORATION in providing government services, especially in refugee resettlement or social services, is not detailed in the provided data snippet. To assess their capabilities and past performance, one would need to consult federal databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems would contain records of previous contracts awarded to SBCS CORPORATION, their performance ratings, and the types of services they have delivered. Without access to this information, it is difficult to evaluate their experience and reliability for fulfilling this critical contract.

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: 430 F ST, CHULA VISTA, CA, 91910

Business Categories: Category Business, Corporate Entity Tax Exempt, Domestic Shelter, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,960,000

Exercised Options: $64,960,000

Current Obligation: $64,960,000

Actual Outlays: $21,486,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline