HHS awards $30.8M for unaccompanied children mission support services at ORR Houston site

Contract Overview

Contract Amount: $30,865,847 ($30.9M)

Contractor: Cotton Commercial USA, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-10

End Date: 2022-03-30

Contract Duration: 354 days

Daily Burn Rate: $87.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE FACILITY INFRASTRUCTURE AND SUPPORT SERVICES AS A PART OF THE UNACCOMPANIED CHILDREN MISSION AT THE ORR HOUSTON EMERGENCY INTAKE SITE.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.9 million to COTTON COMMERCIAL USA, INC. for work described as: THE CONTRACTOR SHALL PROVIDE FACILITY INFRASTRUCTURE AND SUPPORT SERVICES AS A PART OF THE UNACCOMPANIED CHILDREN MISSION AT THE ORR HOUSTON EMERGENCY INTAKE SITE. Key points: 1. Contract awarded to Cotton Commercial USA, Inc. for facility infrastructure and support. 2. Services provided as part of the Unaccompanied Children Mission at the ORR Houston Emergency Intake Site. 3. Contract duration of 354 days, from April 10, 2021, to March 30, 2022. 4. This was a definitive contract with a firm fixed price. 5. The contract was not competed, raising questions about price discovery and potential value. 6. The award amount of $30.8M represents significant investment in emergency relief services.

Value Assessment

Rating: questionable

Benchmarking the value for this contract is challenging due to its emergency nature and lack of competition. The firm fixed price suggests a defined scope, but without competitive bids, it's difficult to ascertain if the $30.8 million represents optimal value for the services rendered. The absence of a competitive process means there's no direct comparison to market rates or other potential providers, making a precise value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific circumstances leading to a non-competitive award are not detailed in the provided data. Sole-source contracts can be justified in emergency situations, but they limit the opportunity for multiple vendors to bid, potentially impacting price negotiation and innovation.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as there was no process to solicit multiple bids and identify the most cost-effective offer.

Public Impact

The primary beneficiaries are unaccompanied children requiring shelter and support services. Services delivered include facility infrastructure and essential support functions at an emergency intake site. The geographic impact is focused on Houston, Texas, a critical hub for processing and sheltering children. The contract supports the operational workforce needed to manage the emergency intake site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Emergency nature of the contract may have necessitated a rapid award without thorough vetting.
Limited transparency into the justification for a sole-source award.

Positive Signals

Contract addresses a critical humanitarian need for unaccompanied children.
Firm fixed price provides some cost certainty for the government.
Contract was awarded to a single entity, potentially streamlining service delivery in an urgent situation.

Sector Analysis

This contract falls within the emergency and relief services sector, specifically supporting the federal government's response to humanitarian needs. The market for such services can be highly specialized, often involving rapid deployment and significant logistical capabilities. While specific benchmarks for emergency intake site support are scarce, the scale of the award suggests a substantial operational requirement.

Small Business Impact

The provided data does not indicate any small business set-aside provisions or subcontracting requirements for this contract. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically fall under the Administration for Children and Families (ACF) within HHS. Given the emergency nature and sole-source award, transparency might be limited. Accountability would be measured by the contractor's ability to deliver the required facility infrastructure and support services effectively and within the agreed-upon timeframe and budget.

Related Government Programs

Unaccompanied Children Program
Office of Refugee Resettlement (ORR) Services
Emergency Disaster Relief Services

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.9 million to COTTON COMMERCIAL USA, INC.. THE CONTRACTOR SHALL PROVIDE FACILITY INFRASTRUCTURE AND SUPPORT SERVICES AS A PART OF THE UNACCOMPANIED CHILDREN MISSION AT THE ORR HOUSTON EMERGENCY INTAKE SITE.

Who is the contractor on this award?

The obligated recipient is COTTON COMMERCIAL USA, 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 $30.9 million.

What is the period of performance?

Start: 2021-04-10. End: 2022-03-30.

What is the track record of Cotton Commercial USA, Inc. in providing similar emergency relief services?

Information regarding Cotton Commercial USA, Inc.'s specific track record in providing emergency relief services, particularly for unaccompanied children missions, is not detailed in the provided contract data. While the company name suggests a focus on commercial services, the extent of their experience with government contracts of this nature, especially sole-source emergency awards, would require further investigation. Assessing their past performance on similar contracts, including adherence to timelines, budget, and quality standards, is crucial for understanding their capability to fulfill this award's requirements.

How does the $30.8 million award compare to similar contracts for emergency intake site support?

Direct comparisons for this $30.8 million award are difficult due to the unique nature of emergency intake sites for unaccompanied children and the sole-source award mechanism. Typically, competitive bidding processes allow for benchmarking against similar services. However, the scale of the award suggests a significant operational requirement, likely encompassing facility setup, maintenance, security, and potentially basic services for a large number of individuals over the contract period. Without competitive data, it's hard to definitively state if this represents a high or low cost relative to market alternatives.

What are the primary risks associated with a sole-source award for emergency relief services?

The primary risks associated with a sole-source award for emergency relief services include a lack of competitive pricing, potentially leading to higher costs for taxpayers. There's also a reduced incentive for the contractor to innovate or optimize services, as there is no direct competition. Furthermore, without a competitive process, the government may not have explored all available options or identified the most capable provider. Transparency can also be a concern, as the justification for bypassing competition needs to be robust and clearly documented to ensure accountability.

How effective is the firm fixed price contract type in managing costs for emergency services?

A firm fixed price (FFP) contract type can be effective in managing costs for emergency services by providing cost certainty to the government. Under an FFP, the contractor assumes the risk of cost overruns, and the government pays a set price. This is beneficial when the scope of work is well-defined, even in an emergency context. However, if the scope is highly fluid or unforeseen issues arise, an FFP could potentially lead to the contractor cutting corners on quality to maintain profitability, or conversely, the government may have overpaid if the scope was overestimated. For emergency services, the clarity of the scope is paramount for FFP effectiveness.

What is the historical spending pattern for the Unaccompanied Children Mission at ORR intake sites?

Historical spending patterns for the Unaccompanied Children Mission at ORR intake sites can vary significantly based on the number of children requiring services, the duration of emergency operations, and the specific needs at different sites. This $30.8 million award for the Houston site represents a substantial investment for a single contract period. Analyzing broader historical data would involve examining aggregate spending across multiple sites and contract types over time, which is influenced by geopolitical events, policy changes, and surges in migration. This specific contract reflects a significant expenditure during a period of heightened need.

What oversight mechanisms are in place for sole-source emergency contracts awarded by HHS?

Oversight mechanisms for sole-source emergency contracts awarded by HHS typically involve internal agency review and approval processes, often requiring justification for the non-competitive nature of the award. The Administration for Children and Families (ACF), which oversees ORR, would likely have program managers responsible for monitoring contract performance. While specific details of oversight for this contract aren't provided, standard procedures would include regular progress reports from the contractor, site visits, and performance evaluations. The Inspector General's office may also conduct audits or investigations if concerns arise regarding waste, fraud, or abuse.

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: 5443 KATY HOCKLEY CUT-OFF RD, KATY, TX, 77493

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

Financial Breakdown

Contract Ceiling: $30,865,847

Exercised Options: $30,865,847

Current Obligation: $30,865,847

Actual Outlays: $17,439,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline