DHS's $14.5M contract for employee drug testing services awarded to SELECT INC over 5 years

Contract Overview

Contract Amount: $14,502,080 ($14.5M)

Contractor: Select Inc

Awarding Agency: Department of Homeland Security

Start Date: 2004-10-01

End Date: 2010-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $7.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EAP&ALCOHOL&DRUG TESTING SITE COORDINATOR FOR EMPLOYEES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.5 million to SELECT INC for work described as: EAP&ALCOHOL&DRUG TESTING SITE COORDINATOR FOR EMPLOYEES Key points: 1. Contract awarded on a Time and Materials basis, which can pose cost control challenges. 2. The contract was not competed, raising questions about potential price discovery and value. 3. The duration of the contract (over 5 years) suggests a long-term need for these services. 4. The services provided are critical for maintaining a drug-free workplace within CBP. 5. The contractor, SELECT INC, has been awarded this contract for an extended period. 6. The contract value represents a significant investment in employee health and safety programs.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the scope of services and the number of employees covered. However, the Time and Materials pricing structure, coupled with a non-competed award, suggests a potential for cost overruns if not closely managed. Comparing it to similar drug testing contracts across federal agencies would be necessary to establish a more robust value-for-money assessment. The consistent award to the same contractor over a long period might indicate satisfactory performance but also warrants scrutiny for potential complacency or lack of competitive pressure on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. This approach is typically used when a specific contractor is uniquely qualified or when the need is urgent and only one source can fulfill it. The lack of competition means that pricing and service levels were not tested against the market, potentially leading to higher costs for the government than if multiple bids had been solicited.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not benefit from the price reductions typically achieved through a competitive procurement process.

Public Impact

Employees of U.S. Customs and Border Protection benefit from a structured and consistent drug testing program. The services ensure compliance with federal regulations regarding drug-free workplaces. The contract supports the operational readiness and safety of CBP personnel. Geographic impact is likely nationwide, covering all CBP employees requiring testing. The contract supports a specific service delivery function within a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Time and Materials contract type can lead to cost uncertainty and potential overruns.
Long-term award to a single contractor may reduce incentives for innovation or cost efficiency.
Absence of clear performance metrics makes it difficult to assess contractor effectiveness beyond basic service delivery.

Positive Signals

Contract ensures a critical service for employee safety and regulatory compliance.
Consistent award suggests a stable and reliable service provider for a long-term need.
Focus on employee well-being through drug testing contributes to a healthier workforce.

Sector Analysis

The federal government procures a wide range of management and consulting services to support its operations. This contract falls under 'Other Management Consulting Services,' specifically focusing on employee testing and health programs. The market for such services is diverse, with many private sector companies offering specialized testing and HR support. Government spending in this area is driven by regulatory requirements, employee safety mandates, and the need for efficient human resource management across various agencies. Benchmarking against similar contracts is difficult without specific details on the scale and scope of testing required.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to SELECT INC does not appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem from this particular contract is likely minimal, unless SELECT INC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within U.S. Customs and Border Protection. The Time and Materials nature of the contract necessitates diligent monitoring of labor hours and material costs to ensure reasonableness and prevent overcharging. Transparency is limited by the sole-source award, but contract performance reviews and audits by the agency or the DHS Inspector General could provide accountability measures.

Related Government Programs

Employee Health and Wellness Programs
Drug-Free Workplace Initiatives
Federal Employee Services
Management Consulting Services
Department of Homeland Security Operations

Risk Flags

Sole-source award limits competition
Time and Materials contract type can lead to cost uncertainty
Lack of detailed performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.5 million to SELECT INC. EAP&ALCOHOL&DRUG TESTING SITE COORDINATOR FOR EMPLOYEES

Who is the contractor on this award?

The obligated recipient is SELECT INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2004-10-01. End: 2010-03-31.

What is the historical spending trend for this specific contract over its duration?

The provided data indicates a total award amount of $14,502,079.64 for this contract, which ran from October 1, 2004, to March 31, 2010, a period of approximately 5.5 years. While the total value is known, the data does not break down the spending year-over-year or quarter-over-quarter. To understand the spending trend, one would need access to the contract's payment history. This would reveal if spending was consistent, or if there were significant fluctuations, potentially linked to changes in testing volume, service scope, or pricing adjustments. Without this granular data, we can only infer that the average annual spending was roughly $2.6 million.

How does the per-unit cost of drug tests under this contract compare to industry benchmarks?

The provided data does not include specific details on the number of tests performed or the cost per test. The contract is a Time and Materials (T&M) award, meaning payment is based on direct labor hours and material costs incurred by the contractor, plus a fixed fee or profit. Therefore, a direct 'per-unit cost' for a drug test is not readily calculable from this data alone. To compare with industry benchmarks, one would need to know the average number of tests conducted, the types of tests used (e.g., urine, hair, blood), and the associated labor and material costs billed by SELECT INC. This information is typically found in detailed contract performance reports or invoices, which are not provided here.

What specific management consulting services are included beyond basic drug testing coordination?

The contract description is 'EAP&ALCOHOL&DRUG TESTING SITE COORDINATOR FOR EMPLOYEES,' and the North American Industry Classification System (NAICS) code is 541618, 'Other Management Consulting Services.' While the primary focus appears to be the coordination of drug and alcohol testing sites, the 'Other Management Consulting Services' designation suggests that the scope might extend beyond mere logistical coordination. This could potentially include aspects like policy development or review related to employee assistance programs (EAPs), compliance monitoring, data analysis of testing results (while maintaining confidentiality), or advising on best practices for maintaining a drug-free workplace. However, without the full contract statement of work, the precise extent of these consulting services remains unspecified.

What is the track record of SELECT INC in providing similar services to other federal agencies?

The provided data indicates that SELECT INC was awarded this specific contract by the Department of Homeland Security (DHS) for a significant duration (2004-2010). This suggests a degree of established performance with this agency. However, the data does not detail SELECT INC's contract history with other federal agencies. To assess their broader track record, a search of federal procurement databases (like FPDS or SAM.gov) would be necessary to identify other contracts awarded to SELECT INC, their performance ratings on those contracts, and the types of services rendered. A long history with one agency, especially a large one like DHS, is a positive signal, but a wider view is needed for a comprehensive assessment.

Were there any performance issues or disputes reported during the contract period?

The provided summary data does not contain information regarding performance issues, disputes, or contract modifications during the period of performance for this contract (October 1, 2004 - March 31, 2010). Typically, such details would be found in contract close-out reports, performance reviews, or agency Inspector General reports. The fact that the contract was awarded and seemingly completed without major red flags in this summary might suggest satisfactory performance, but it is not conclusive. A thorough review of agency records or contract administration files would be required to identify any such issues.

What is the estimated number of employees covered by this drug testing contract?

The provided data does not specify the number of employees covered by this contract. The contract is for 'EAP&ALCOHOL&DRUG TESTING SITE COORDINATOR FOR EMPLOYEES' within U.S. Customs and Border Protection (CBP), a large agency within DHS. The scale of operations at CBP suggests a substantial number of employees requiring testing. To estimate the number of employees, one would need to consult CBP's personnel data or the contract's statement of work, which would likely outline the scope of services in terms of employee population size or testing frequency requirements. Without this, any estimate would be speculative.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6849 COMPTON HEIGHTS CIR, CLIFTON, VA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $20,187,056

Exercised Options: $17,114,452

Current Obligation: $14,502,080

Timeline