DHS awarded $29M for Enhanced Supervision Reporting, with G4S Justice Services as contractor

Contract Overview

Contract Amount: $29,058,421 ($29.1M)

Contractor: G4S Justice Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-09-10

End Date: 2010-01-06

Contract Duration: 483 days

Daily Burn Rate: $60.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ENHANCED SUPERVISION REPORTING (ESR) PROGRAM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.1 million to G4S JUSTICE SERVICES, LLC for work described as: ENHANCED SUPERVISION REPORTING (ESR) PROGRAM Key points: 1. Contract value of $29M over approximately 1.5 years suggests a significant investment in the ESR program. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The use of Time and Materials (T&M) pricing can introduce cost uncertainty if not closely managed. 4. The specific North American Industry Classification System (NAICS) code 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' seems unusual for a reporting program, warranting further investigation. 5. The contract duration of 483 days (approx. 1.3 years) is relatively short, suggesting a focused scope or phased approach. 6. The award was made by U.S. Immigration and Customs Enforcement (ICE), highlighting its relevance to immigration enforcement and supervision.

Value Assessment

Rating: questionable

Benchmarking the value of this $29M contract is challenging without more specific details on the services provided by the ESR program. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not meticulously monitored. Comparing it to similar contracts for offender or subject supervision technology and services would be necessary to assess if the pricing is competitive. The unusual NAICS code also raises questions about the appropriateness of the cost allocation and the services procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. The fact that only one bid was received (as indicated by 'no': 1) is a significant concern. This low level of competition could indicate a lack of market interest, specialized requirements that limited bidders, or potential issues with the solicitation process itself. It raises questions about whether the government received the best possible pricing and value.

Taxpayer Impact: A single bid in a full and open competition means taxpayers may not have benefited from the price reductions typically driven by robust market competition. This could translate to higher overall costs for the government.

Public Impact

The primary beneficiaries are likely U.S. Immigration and Customs Enforcement (ICE) personnel who utilize the ESR program for supervision. The services delivered are related to enhanced supervision reporting, likely involving data collection, analysis, and case management for individuals under ICE supervision. The geographic impact is primarily within the United States, supporting ICE's operational needs. Workforce implications could include the need for personnel to manage and operate the ESR system, as well as potential impacts on the contractors' workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' NAICS code is highly incongruous with a reporting program, suggesting a potential misclassification or a very indirect link to the services procured.
Only one bid was received despite a 'full and open competition' award, indicating a potential lack of market interest or a flawed solicitation process.
The use of Time and Materials (T&M) contract type can lead to cost escalation if not managed with stringent oversight.
The contract duration is relatively short (483 days), which might indicate a pilot program or a contract with limited scope, making long-term value assessment difficult.

Positive Signals

The contract was awarded through 'full and open competition,' which theoretically allows for the widest possible participation.
The award was made by the Department of Homeland Security (DHS), a major federal agency, suggesting the program addresses a critical operational need.
The contract value, while substantial, is within a range that could be expected for a specialized federal program.

Sector Analysis

The procurement falls under the broad category of government IT and professional services, specifically related to case management and reporting systems for law enforcement. While the NAICS code suggests manufacturing, the actual service is likely software, data management, or operational support. Comparable spending benchmarks would typically be found in contracts for case management systems, offender tracking software, or data analytics platforms used by federal agencies like the DOJ or DHS. The market for such services is competitive, but specialized requirements can lead to fewer bidders.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The contract was awarded to G4S Justice Services, LLC, a large entity. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight of this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE). Specific oversight mechanisms would depend on the contract's terms, including performance metrics, reporting requirements, and payment schedules. Transparency could be enhanced by making detailed performance reports publicly available. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

ICE Case Management Systems
Federal Offender Supervision Technology
Law Enforcement Data Analytics
Homeland Security Information Technology

Risk Flags

Unusual NAICS code classification
Low number of bids received under full and open competition
Potential for cost overruns due to Time and Materials pricing
Short contract duration may limit long-term value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.1 million to G4S JUSTICE SERVICES, LLC. ENHANCED SUPERVISION REPORTING (ESR) PROGRAM

Who is the contractor on this award?

The obligated recipient is G4S JUSTICE SERVICES, LLC.

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 $29.1 million.

What is the period of performance?

Start: 2008-09-10. End: 2010-01-06.

What specific services does the Enhanced Supervision Reporting (ESR) program provide, and how does the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' NAICS code relate to t

The provided data lists the NAICS code as 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' (335999), which is highly unusual for a program described as 'Enhanced Supervision Reporting (ESR)'. Typically, ESR programs involve software, data management, case tracking, and reporting functionalities for individuals under supervision. The electrical equipment manufacturing code suggests a procurement for physical goods, possibly related to monitoring devices or infrastructure. It is possible that the ESR program utilizes specialized hardware components that fall under this manufacturing category, or there may have been a misclassification during the procurement process. Further clarification from the contracting agency (ICE) would be necessary to understand the precise nature of the services and the rationale behind the NAICS code selection. This discrepancy raises a flag regarding the clarity and accuracy of the contract's description and classification.

Given the 'full and open competition' award, why were there only one bid received?

Receiving only one bid under a 'full and open competition' solicitation is a significant indicator of potential issues. Several factors could contribute to this outcome. Firstly, the market for the specific services or products required might be very limited, with only one qualified vendor capable of meeting the stringent requirements. Secondly, the solicitation itself might have contained overly restrictive specifications, unclear requirements, or unfavorable terms that deterred other potential bidders. Thirdly, the timing of the solicitation or the perceived complexity of the contract could have discouraged participation. Lastly, there's a possibility of inadequate outreach or awareness campaigns by the agency to attract a wider range of bidders. This lack of competition raises concerns about whether the government secured the best possible price and value, as competition typically drives down costs and improves service offerings.

What are the potential risks associated with the Time and Materials (T&M) contract type for this program?

The Time and Materials (T&M) contract type, used for this $29 million ESR program, presents inherent risks related to cost control. In a T&M contract, the government pays the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or percentage for profit. The primary risk is cost escalation, as there is less incentive for the contractor to control labor hours or material costs compared to fixed-price contracts. If the scope of work is not well-defined or if oversight is insufficient, the contractor may incur higher costs, leading to a significantly higher final contract price than initially anticipated. Effective management requires rigorous monitoring of labor hours, detailed justification for materials, and clear definition of work requirements to mitigate these risks and ensure value for taxpayer money.

How does the contract duration of 483 days impact the assessment of value and performance?

The contract duration of 483 days (approximately 1.3 years) is relatively short for a program valued at $29 million. This short timeframe suggests that the contract might have been for a specific phase, a pilot implementation, or a service with a limited operational lifespan. Assessing long-term value and performance becomes challenging with such a limited duration. It may not provide sufficient time to fully realize the benefits of the ESR program or to establish long-term performance trends. Furthermore, a short duration might necessitate frequent re-procurement cycles, potentially increasing administrative costs and disrupting service continuity. It also limits the opportunity for the contractor to achieve economies of scale or to invest in long-term improvements that could benefit the government.

What is the track record of G4S Justice Services, LLC in delivering similar government contracts?

G4S Justice Services, LLC is a large, global security company that provides a wide range of services, including justice and detention management, security, and facilities management. Their track record in delivering government contracts, particularly within the justice and immigration sectors, is extensive. However, the specific performance and value derived from past contracts can vary. Without access to detailed performance reviews, past performance questionnaires, or contract termination data for G4S Justice Services, it is difficult to definitively assess their track record for this specific ESR program. A thorough review would involve examining past contract awards, client feedback, and any documented issues or successes in similar federal procurements.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 30201 AVENTURA, RANCHO SANTA MARGARITA, CA, 40

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $29,058,421

Exercised Options: $29,058,421

Current Obligation: $29,058,421

Parent Contract

Parent Award PIID: HSCEOP07D00006

IDV Type: IDC

Timeline