GSA awards $122.5M unaccompanied children transportation contract to MVM, Inc. without competition

Contract Overview

Contract Amount: $122,484,897 ($122.5M)

Contractor: MVM, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-03-19

End Date: 2024-03-18

Contract Duration: 365 days

Daily Burn Rate: $335.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNACCOMPANIED CHILDREN TRANSPORTATION AND LOGISTICS (UCTL) BRIDGE CONTRACT

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $122.5 million to MVM, INC. for work described as: UNACCOMPANIED CHILDREN TRANSPORTATION AND LOGISTICS (UCTL) BRIDGE CONTRACT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract's value is substantial, necessitating close scrutiny of pricing and service delivery. 3. Performance risk is moderate, given the nature of emergency relief services. 4. This contract falls within the emergency and relief services sector, often characterized by urgent needs. 5. The firm-fixed-price structure aims to control costs, but the lack of competition limits price discovery. 6. Oversight will be critical to ensure value for money and adherence to service standards.

Value Assessment

Rating: questionable

The contract's value of $122.5 million for transportation and logistics services for unaccompanied children is significant. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The firm-fixed-price (FFP) award type suggests an attempt to cap costs, but the absence of competition means the government may not have secured the most economical price. Further analysis of the contractor's proposed costs and historical performance on similar emergency services would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is not provided in the available data, but sole-source awards are typically used in situations where only one responsible source can provide the required services, or in cases of urgent and compelling need. The lack of competition means that potential cost savings that could arise from a bidding process were not realized, and the government did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less certainty that the price reflects the best possible value.

Public Impact

Unaccompanied children requiring transportation and logistical support are the primary beneficiaries of this contract. The services delivered include critical transportation and related logistics to facilitate the care and relocation of vulnerable children. The geographic impact is likely nationwide, given the nature of federal emergency relief efforts. This contract supports a critical humanitarian service, ensuring the safe movement of children.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about the thoroughness of market research and justification.
Potential for scope creep or cost overruns if not closely managed due to lack of competitive baseline.

Positive Signals

Firm-fixed-price contract type helps to establish a ceiling on costs.
Contract awarded to a single entity, potentially streamlining management and execution.
The contract addresses a critical need for emergency relief services.

Sector Analysis

This contract falls under the 'Emergency and Other Relief Services' (NAICS 624230) sector, which is often characterized by rapid response requirements and the need for specialized logistical capabilities. The market for such services can be dynamic, with a mix of established emergency response firms and specialized logistics providers. Federal spending in this area can fluctuate significantly based on national emergencies or humanitarian crises. Benchmarking this contract's value is challenging without competitive data, but it represents a significant investment in addressing urgent humanitarian needs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting goals (sb: false). This suggests that the primary contractor, MVM, Inc., is likely a larger entity, and the contract's execution may not directly involve significant subcontracting opportunities for small businesses unless initiated by the prime contractor. The absence of a small business set-aside means that the full scope of this large contract was available to all responsible sources, including large businesses.

Oversight & Accountability

Oversight for this contract will primarily fall under the purview of the General Services Administration (GSA), specifically its Federal Acquisition Service. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the justification for the sole-source award and detailed performance metrics will be crucial. While specific Inspector General (IG) jurisdiction is not detailed, the GSA IG typically oversees contracts managed by the agency to ensure accountability and prevent waste, fraud, and abuse.

Related Government Programs

Unaccompanied Alien Children Program
Department of Health and Human Services (HHS) Child and Family Services
Emergency Management Assistance Compact (EMAC)
Federal Emergency Management Agency (FEMA) Services

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency on specific service requirements and oversight metrics.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $122.5 million to MVM, INC.. UNACCOMPANIED CHILDREN TRANSPORTATION AND LOGISTICS (UCTL) BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is MVM, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $122.5 million.

What is the period of performance?

Start: 2023-03-19. End: 2024-03-18.

What is the specific justification provided by GSA for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when a compelling urgency exists, only one responsible source can provide the required services, or when a specific national security interest is involved. For contracts like the UCTL Bridge Contract, the justification would likely stem from an urgent and immediate need to provide essential transportation and logistics services for unaccompanied children, where the time required for a competitive solicitation process would be detrimental to the mission. Agencies are required to document and justify these decisions thoroughly, often through a Justification and Approval (J&A) document, which would detail the circumstances necessitating the sole-source award and why alternatives were not feasible.

How does the $122.5 million contract value compare to historical spending on similar services for unaccompanied children?

Direct historical spending comparisons for this specific 'UNACCOMPANIED CHILDREN TRANSPORTATION AND LOGISTICS (UCTL) BRIDGE CONTRACT' are not available in the provided data. However, federal spending on services for unaccompanied children, particularly transportation and care, has been a significant and often fluctuating area of expenditure, especially in recent years due to increased border arrivals. Contracts in this domain can range from tens of millions to hundreds of millions of dollars annually, depending on the scale of need and the specific services procured. Without access to detailed historical contract databases or agency budget reports specifically for UCTL services, a precise comparison is difficult. The $122.5 million figure suggests a substantial, ongoing requirement for these critical services over the contract's one-year duration.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract involving the transportation and logistics of unaccompanied children, critical KPIs would likely include timeliness of transportation, safety and well-being of children during transit, adherence to established protocols for handling vulnerable populations, communication and reporting frequency, and logistical efficiency (e.g., minimizing delays, optimizing routes). SLAs would define the expected standards for these KPIs, such as maximum allowable transit times between specific points, required response times for logistical support, and protocols for reporting incidents or deviations. Effective oversight would require clearly defined and measurable KPIs and SLAs to ensure the contractor meets the essential requirements of the service.

What is MVM, Inc.'s track record in providing emergency relief services and transportation for vulnerable populations?

MVM, Inc. has a documented history of providing security, logistics, and transportation services, often in challenging environments. While specific details on their track record solely for 'unaccompanied children transportation and logistics' are not in the provided data, the company has been involved in government contracts related to emergency response and support services. Their experience often includes logistical support for government agencies, including transportation and personnel movement. Assessing their specific performance on similar humanitarian contracts would require reviewing past performance evaluations, contract awards, and any public records of their work in sensitive areas involving vulnerable populations. Their ability to secure a sole-source contract of this magnitude suggests they possess the necessary qualifications and capacity, but a deeper dive into their specific past performance on comparable contracts is warranted.

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

The primary risk associated with a sole-source award for emergency relief services is the potential for inflated costs due to the lack of competitive bidding. Without multiple bidders vying for the contract, the government may not achieve the most favorable pricing. Another risk is reduced innovation, as a sole-source provider may have less incentive to develop novel or more efficient solutions compared to a competitive environment. Furthermore, there's a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility. Ensuring robust oversight, clear performance standards, and fair pricing mechanisms becomes even more critical when competition is absent to mitigate these risks and ensure the government receives good value.

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: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QMCH23R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44620 GUILFORD DR, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $272,087,232

Exercised Options: $272,087,232

Current Obligation: $122,484,897

Actual Outlays: $122,484,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline