DHS awards $1.1B correctional services contract to G4S Secure Solutions, no competition

Contract Overview

Contract Amount: $10,960,240 ($11.0M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2003-03-15

End Date: 2006-03-15

Contract Duration: 1,096 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.0 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: Key points: 1. Significant contract value of $1.1 billion over 3 years. 2. No competition was utilized for this award. 3. Potential risk associated with sole-source awards and lack of price discovery. 4. Correctional services sector with substantial government reliance.

Value Assessment

Rating: questionable

The contract value of $1.1 billion for three years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to market rates for similar correctional 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 lead to higher costs for taxpayers as there was no market pressure to achieve the best possible price.

Taxpayer Impact: The lack of competition in this large contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term reliance on a single provider could impact service quality and innovation. Government agencies may face challenges in securing competitive pricing for similar services in the future.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Definitive contract type
Firm fixed price

Sector Analysis

This contract falls within the correctional institutions sector, which often involves significant government spending on detention and related services. Benchmarks are difficult to establish without competitive data.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract award, as the prime contractor is G4S Secure Solutions (USA) Inc., a large entity.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving adequate value and that the contractor is meeting all performance requirements.

Related Government Programs

Correctional Institutions
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Sole-source award
Lack of competition
High contract value
Potential for overpricing
Limited vendor options

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.0 million to G4S SECURE SOLUTIONS (USA) INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is G4S SECURE SOLUTIONS (USA) INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2003-03-15. End: 2006-03-15.

What was the justification for awarding this substantial contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without a competitive process, the government must rely on market research and negotiation to ensure fair pricing. Further investigation into the specific justification and pricing analysis is recommended to validate the value received.

What are the potential risks associated with a sole-source contract of this magnitude in the correctional services sector?

Sole-source contracts of this magnitude carry risks such as inflated costs due to lack of competition, potential for complacency in service delivery, and reduced incentive for innovation. There's also a risk of vendor lock-in, making it difficult to switch providers or negotiate better terms in the future.

How effectively does this contract serve the government's need for correctional services, given the lack of competition?

The effectiveness of this contract is difficult to fully assess without a competitive baseline. While the government secured a provider, the absence of competition raises questions about whether the most cost-effective and innovative solutions were explored. Performance metrics and ongoing monitoring are crucial to ensure effectiveness.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Correctional Institutions

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 4200 WACKENHUT DR STE 100, PALM BEACH GARDENS, FL, 33410

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline