DHS awards $365M contract for soft-sided facility operations in Texas to DEPLOYED RESOURCES LLC

Contract Overview

Contract Amount: $365,335,078 ($365.3M)

Contractor: Deployed Resources LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-02

End Date: 2024-08-26

Contract Duration: 755 days

Daily Burn Rate: $483.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS OF THE SOFT-SIDED FACILITIES IN DONNA, TEXAS.

Place of Performance

Location: DONNA, HIDALGO County, TEXAS, 78537

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $365.3 million to DEPLOYED RESOURCES LLC for work described as: OPERATIONS OF THE SOFT-SIDED FACILITIES IN DONNA, TEXAS. Key points: 1. Contract value represents significant investment in border operations support. 2. Competition dynamics for this large contract warrant close examination. 3. Performance risk is moderate given the operational nature of the services. 4. Contract duration extends over two years, indicating ongoing need. 5. Sector positioning is within logistics and consulting services for government operations.

Value Assessment

Rating: fair

The contract value of $365 million for facility operations is substantial. Benchmarking against similar contracts for large-scale operational support at border facilities is difficult due to the unique nature of these services. However, the firm-fixed-price structure suggests an attempt to control costs, but the overall value for money will depend heavily on the efficiency and effectiveness of the contractor's operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach is generally favorable for price discovery and ensuring a competitive market. The specific number of bidders and the evaluation process would provide further insight into the level of competition achieved.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and improving service quality through competitive pressure.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving operational support for border facilities. Services delivered include the management and operation of soft-sided facilities, crucial for processing and managing individuals at the border. The geographic impact is concentrated in Texas, specifically Donna, Texas, a key area for border operations. Workforce implications may include the creation of jobs related to facility management, security, and support services in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational demands exceed initial projections.
Ensuring consistent service quality across the contract duration is a key concern.
Dependence on a single contractor for critical facility operations poses a risk.

Positive Signals

Firm-fixed-price contract structure aims to provide cost certainty.
Full and open competition suggests a robust bidding process.
Contract duration indicates a recognized and ongoing need for these services.

Sector Analysis

This contract falls within the government services sector, specifically focusing on logistics and operational support for federal agencies. The market for such services is competitive, with many firms capable of providing large-scale operational solutions. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of border facility operations, but large federal contracts for support services often run into hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. This suggests that larger, established firms were likely the primary participants in the bidding process. The impact on the small business ecosystem would be minimal unless specific subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be less publicly accessible.

Related Government Programs

Border Security Operations
Immigration Services Support
Federal Facility Management
Logistics and Transportation Consulting

Risk Flags

Potential for environmental challenges impacting facility operations.
Ensuring adequate security and safety within temporary facilities.
Contractor's capacity to manage large-scale, long-term operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $365.3 million to DEPLOYED RESOURCES LLC. OPERATIONS OF THE SOFT-SIDED FACILITIES IN DONNA, TEXAS.

Who is the contractor on this award?

The obligated recipient is DEPLOYED RESOURCES LLC.

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 $365.3 million.

What is the period of performance?

Start: 2022-08-02. End: 2024-08-26.

What is the track record of DEPLOYED RESOURCES LLC in managing large-scale federal contracts, particularly those involving operational support for sensitive government functions?

A thorough review of DEPLOYED RESOURCES LLC's contract history with the federal government is necessary to assess their capability in managing contracts of this magnitude and complexity. Information from sources like the Federal Procurement Data System (FPDS) or the Government Accountability Office (GAO) bid protest decisions would be crucial. Specifically, examining past performance on contracts with the Department of Homeland Security or similar agencies would provide insight into their ability to meet performance requirements, manage budgets, and adhere to timelines. Any history of contract disputes, performance failures, or positive performance reviews would be highly relevant to understanding the risk associated with this award.

How does the awarded amount of $365 million compare to the estimated cost or market rates for similar soft-sided facility operations?

Direct comparison of the $365 million award to specific market rates for 'soft-sided facility operations' is challenging due to the unique and often dynamic nature of such requirements, particularly in border security contexts. These operations can encompass a wide range of services including temporary shelter, logistics, security, and personnel management, making a standardized 'per-unit' cost difficult to establish. However, the scale of the award suggests significant operational scope. Benchmarking would ideally involve analyzing historical spending by DHS or CBP on similar, albeit potentially less extensive, facility support contracts, or examining solicitations for comparable services to understand the range of bids received. The firm-fixed-price nature of this contract suggests an attempt to cap costs, but the value proposition hinges on the contractor's efficiency in delivering the required services within that price.

What are the primary performance metrics and Key Performance Indicators (KPIs) for this contract, and how will they be monitored?

While specific performance metrics are not detailed in the provided data, contracts of this nature typically include KPIs related to facility readiness, operational efficiency, safety and security compliance, personnel management, and responsiveness to agency needs. For instance, metrics might include average processing times, occupancy rates, incident response times, and staff-to-individual ratios. Monitoring would likely involve regular reporting from DEPLOYED RESOURCES LLC, site visits and inspections by DHS/CBP contracting officers' representatives (CORs), and potentially independent audits. Failure to meet these KPIs could result in contractual remedies, including financial penalties or termination.

What is the historical spending pattern for operations and maintenance of border facilities by DHS and CBP, and how does this contract fit within that trend?

Historical spending on border facility operations by DHS and CBP has fluctuated significantly, often influenced by migration patterns, policy changes, and emergency supplemental appropriations. Large contracts for temporary facilities and support services have become more common in recent years to address surges. This $365 million contract represents a substantial, multi-year investment, indicating a sustained operational requirement rather than a short-term surge response. It fits within a broader trend of increased federal spending on border management infrastructure and services, reflecting ongoing challenges in managing border security and humanitarian concerns. Analyzing past years' budgets and contract awards for similar services would provide context on whether this award is an increase, decrease, or consistent with prior spending levels.

Are there any known risks or challenges associated with operating soft-sided facilities in the specific geographic and environmental conditions of Donna, Texas?

Operating soft-sided facilities in Donna, Texas, presents several potential risks and challenges. The region experiences extreme heat during summer months, which can impact the habitability and operational efficiency of temporary structures, potentially requiring significant climate control investments. Heavy rainfall and potential flooding during hurricane season also pose risks to the structural integrity and operational continuity of such facilities. Furthermore, security considerations are paramount, requiring robust measures to manage the population within these facilities and prevent unauthorized access or egress. Environmental factors like dust and insects are also common. The contractor must have robust contingency plans to address these issues, and the contract should specify requirements for maintaining safe and secure conditions despite these challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B01C22Q00000178

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 164 MCPIKE RD, ROME, NY, 13441

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $375,703,771

Exercised Options: $365,335,078

Current Obligation: $365,335,078

Actual Outlays: $348,142,259

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70B01C21A00000002

IDV Type: BPA

Timeline