HHS awards $9.2M contract for 30 secure care beds for unaccompanied children, ensuring timely admission

Contract Overview

Contract Amount: $9,219,028 ($9.2M)

Contractor: Abraxas Alliance Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-08-18

End Date: 2026-08-17

Contract Duration: 364 days

Daily Burn Rate: $25.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 30 LICENSED SECURE CARE BEDS FOR UNACCOMPANIED ALIEN CHILDREN (UAC) TO ENSURE AVAILABLE AND TIMELY ADMISSION OF UAC WHO MEET THE PLACEMENT CRITERIA FOR SECURE CARE SERVICES IN A HUMANE AND SECURE ENVIRONMENT IN ACCORDANCE WITH 45 CFR PART 410, CARE A

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15222

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.2 million to ABRAXAS ALLIANCE INC for work described as: 30 LICENSED SECURE CARE BEDS FOR UNACCOMPANIED ALIEN CHILDREN (UAC) TO ENSURE AVAILABLE AND TIMELY ADMISSION OF UAC WHO MEET THE PLACEMENT CRITERIA FOR SECURE CARE SERVICES IN A HUMANE AND SECURE ENVIRONMENT IN ACCORDANCE WITH 45 CFR PART 410, CARE A Key points: 1. Contract aims to provide humane and secure care for unaccompanied alien children meeting specific placement criteria. 2. The fixed-price contract structure offers cost predictability for the government. 3. A single award indicates potential limitations in market competition or specific service requirements. 4. The duration of one year suggests a need for ongoing, but potentially short-term, capacity. 5. The service category aligns with residential care facilities, a critical component of child welfare services.

Value Assessment

Rating: fair

The contract value of $9.2 million for 30 beds over one year equates to approximately $307,000 per bed annually, or about $843 per bed per day. Benchmarking this against similar contracts for secure care beds for unaccompanied children is challenging due to the specialized nature of the service and varying state regulations. However, daily rates for such specialized care can range significantly, often from several hundred to over a thousand dollars per day, depending on the level of security, medical, and therapeutic services required. Without more specific details on the service level, a precise value-for-money assessment is difficult, but the daily rate appears to be within a plausible range for high-need populations.

Cost Per Unit: Approximately $843 per bed per day.

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. Sole-source awards are typically justified when only one vendor can provide the required goods or services, often due to unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or offered a wider range of solutions. This approach requires strong justification to ensure fair pricing and prevent potential overspending.

Taxpayer Impact: The absence of competition means taxpayers may not have received the most cost-effective solution available in the market. It also limits transparency in pricing and service delivery, as there was no benchmark established through a competitive bidding process.

Public Impact

Unaccompanied alien children who meet placement criteria will benefit from access to secure care services. The contract ensures the availability of 30 licensed secure care beds, addressing potential capacity shortages. Services are delivered in Pennsylvania, impacting the local availability of specialized child welfare resources. The contract supports the federal government's responsibility in caring for vulnerable children.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
Sole-source awards can reduce transparency and accountability in government spending.
The specific needs and vulnerabilities of the children served require robust quality assurance and oversight.

Positive Signals

The contract directly addresses a critical need for secure care for unaccompanied children.
The firm-fixed-price structure provides cost certainty for the government.
The service is intended to ensure humane and secure conditions, aligning with ethical care standards.

Sector Analysis

This contract falls within the broader 'Other Residential Care Facilities' sector, specifically addressing the specialized needs of unaccompanied alien children. This niche within the social services and child welfare industry requires providers to meet stringent licensing, security, and care standards. The market for such services is often characterized by a limited number of qualified providers capable of handling the complex requirements, which can influence competition dynamics. Comparable spending benchmarks are difficult to establish due to the unique nature of secure care for this population and varying state regulations.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Abraxas Alliance Inc. suggests a focus on larger or specialized providers capable of meeting the stringent requirements for secure care facilities. This could limit opportunities for small businesses to participate in providing these critical services, unless they are part of a larger subcontracting network not detailed here.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration. Given the sensitive nature of the services provided to vulnerable children, robust oversight mechanisms are crucial. This would include monitoring the contractor's compliance with licensing requirements, care standards, and contractual obligations. Transparency would be enhanced through regular reporting and potential site visits. The specific Inspector General jurisdiction would be that of HHS.

Related Government Programs

Unaccompanied Alien Children Program
Child Welfare Services
Residential Child Care

Risk Flags

Sole-source award lacks competitive pricing.
Potential for reduced innovation due to lack of competition.
Requires robust oversight due to vulnerable population served.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.2 million to ABRAXAS ALLIANCE INC. 30 LICENSED SECURE CARE BEDS FOR UNACCOMPANIED ALIEN CHILDREN (UAC) TO ENSURE AVAILABLE AND TIMELY ADMISSION OF UAC WHO MEET THE PLACEMENT CRITERIA FOR SECURE CARE SERVICES IN A HUMANE AND SECURE ENVIRONMENT IN ACCORDANCE WITH 45 CFR PART 410, CARE A

Who is the contractor on this award?

The obligated recipient is ABRAXAS ALLIANCE INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-08-17.

What is the track record of Abraxas Alliance Inc. in providing similar secure care services for unaccompanied children?

Information regarding Abraxas Alliance Inc.'s specific track record in providing licensed secure care beds for unaccompanied alien children is not detailed in the provided data. As this is a sole-source award, a thorough review of the contractor's past performance, experience with similar populations, and compliance history would be essential for the awarding agency to justify the selection. Agencies typically conduct pre-award assessments of contractor capabilities and past performance, especially for sole-source contracts, to ensure the chosen entity can successfully meet the contract requirements and deliver services effectively and ethically. Further investigation into public records, past performance evaluations, and agency procurement files would be necessary to ascertain their specific experience and success in this specialized area.

How does the daily per-bed cost of $843 compare to market rates for similar secure care facilities?

The daily per-bed cost of approximately $843 for licensed secure care beds for unaccompanied alien children is within a plausible range for specialized services of this nature. Daily rates for secure care facilities can vary significantly based on factors such as the level of security, medical and mental health services provided, staffing ratios, geographic location, and regulatory requirements. While specific, directly comparable market data for this exact service niche is difficult to obtain publicly, rates for high-level residential care for vulnerable youth can range from several hundred dollars to well over $1,000 per day. This rate suggests that the government has likely benchmarked against available options or determined this price to be fair given the specialized and intensive nature of the care required for unaccompanied children in secure settings.

What are the primary risks associated with a sole-source award for these critical services?

The primary risks associated with a sole-source award for critical services like secure care for unaccompanied children include potential lack of price competition, which could lead to higher costs for taxpayers. There's also a risk of reduced innovation and service quality, as the absence of competitive pressure may lessen the incentive for the contractor to improve. Furthermore, sole-source awards can raise concerns about transparency and accountability, making it harder to independently verify that the chosen contractor is the best value or that the pricing is truly fair. Without a competitive process, there's also a reduced opportunity to explore alternative solutions or providers that might offer better value or specialized expertise.

What specific performance metrics or service standards will be used to evaluate the contractor's success?

The provided data does not specify the exact performance metrics or service standards for this contract. However, for a contract involving licensed secure care beds for unaccompanied alien children, performance evaluation would typically focus on adherence to federal regulations (like 45 CFR Part 410), state licensing requirements, and contractual obligations related to child welfare, safety, and humane treatment. Key metrics would likely include timely admission rates, incident reporting and resolution, staff-to-child ratios, provision of necessary medical and mental health services, educational support, and overall child well-being outcomes. The agency would also monitor compliance with security protocols and the overall humane and secure environment as stipulated in the contract.

How does this contract align with historical federal spending patterns for services related to unaccompanied alien children?

This contract aligns with historical federal spending patterns that have seen significant investment in services for unaccompanied alien children (UAC), particularly in response to fluctuating border arrivals and humanitarian concerns. Federal agencies, primarily HHS, are mandated to care for UAC referred to them. Spending in this area has historically been reactive to surges in child migration, necessitating rapid procurement of shelter, care, and related services. Contracts like this one, for secure care beds, represent a component of the broader federal effort to manage the influx and ensure the well-being of these vulnerable children, reflecting a consistent, albeit sometimes variable, commitment to providing essential services.

Industry Classification

NAICS: Health Care and Social Assistance › Other Residential Care Facilities › Other Residential Care Facilities

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D 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: 2840 LIBERTY AVE, PITTSBURGH, PA, 15222

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

Financial Breakdown

Contract Ceiling: $14,059,017

Exercised Options: $9,219,028

Current Obligation: $9,219,028

Actual Outlays: $3,841,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline