DHS Awards $214M Contract for Laredo Soft-Sided Facility to Deployed Resources LLC

Contract Overview

Contract Amount: $214,046,892 ($214.0M)

Contractor: Deployed Resources LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-07-14

End Date: 2025-03-14

Contract Duration: 609 days

Daily Burn Rate: $351.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ERECT/FURNISH CPC SOFT SIDED FACILITY AT LAREDO, TX

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78046

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $214.0 million to DEPLOYED RESOURCES LLC for work described as: ERECT/FURNISH CPC SOFT SIDED FACILITY AT LAREDO, TX Key points: 1. Significant investment in border infrastructure, focusing on logistical support. 2. Contract awarded to a single entity, raising questions about competition breadth. 3. Potential risks include cost overruns and schedule delays for a critical facility. 4. Spending aligns with broader government efforts to enhance border security operations.

Value Assessment

Rating: fair

The contract value of $214M for a soft-sided facility appears high, especially considering the duration. Benchmarking against similar construction or facility furnishing contracts is difficult without more specific details on scope and materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad solicitation. However, the award to a single entity, Deployed Resources LLC, warrants scrutiny to ensure the pricing reflects competitive pressures effectively.

Taxpayer Impact: Taxpayers are funding a substantial project for border operations. The effectiveness of the competition in securing the best value will directly impact the overall taxpayer burden.

Public Impact

Enhances operational capacity for U.S. Customs and Border Protection in a key border region. Supports logistical needs for personnel and resources at the Laredo, Texas border. Potential for job creation in construction and facility management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific cost breakdown for facility components.
Potential for scope creep in a large-scale construction project.
Dependency on a single contractor for critical infrastructure.

Positive Signals

Awarded under full and open competition.
Addresses a clear operational need for border security.
Fixed-price contract aims to control costs.

Sector Analysis

This contract falls within the construction and facilities management sector, specifically related to government infrastructure projects. Spending benchmarks for similar border facilities are not readily available but $214M represents a significant investment.

Small Business Impact

While the contract was awarded under full and open competition, there is no indication of specific set-asides or subcontracting requirements for small businesses in the provided data. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the facility is constructed and furnished according to specifications and within budget. The Department of Homeland Security's contracting office and potentially the Government Accountability Office (GAO) would be involved in monitoring this large award.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

High contract value for a facility project.
Potential for cost overruns despite fixed-price structure.
Limited visibility into specific cost breakdowns.
Dependency on a single awardee for a critical infrastructure project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $214.0 million to DEPLOYED RESOURCES LLC. ERECT/FURNISH CPC SOFT SIDED FACILITY AT LAREDO, TX

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 $214.0 million.

What is the period of performance?

Start: 2023-07-14. End: 2025-03-14.

What specific components and services are included in the $214M contract for the soft-sided facility, and how do these align with industry standards for similar projects?

The provided data lacks granular detail on the specific components and services encompassed by the $214M contract. A comprehensive breakdown is necessary to assess alignment with industry standards for soft-sided facilities, including materials, labor, utilities, and duration of services. Without this, a true value assessment against comparable projects remains challenging.

What mechanisms are in place to mitigate risks associated with a large, fixed-price contract for a facility that may face unforeseen construction challenges or changing operational requirements?

Mitigation strategies for large fixed-price contracts typically involve robust contract clauses addressing change orders, dispute resolution, and performance standards. For this DHS contract, oversight by U.S. Customs and Border Protection is key. Contingency planning for potential delays or scope adjustments, along with clear communication channels with Deployed Resources LLC, are vital to manage risks effectively.

How will the effectiveness of this new facility in Laredo, TX, be measured in terms of improving border security operations and logistical efficiency for CBP personnel?

The effectiveness of the Laredo facility will likely be measured through key performance indicators (KPIs) established by CBP. These could include metrics related to processing times, personnel deployment efficiency, resource availability, and overall operational tempo. Post-occupancy reviews and feedback from field personnel will also be critical in assessing the facility's contribution to border security objectives.

Industry Classification

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

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B01C23Q00000069

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: $214,046,892

Exercised Options: $214,046,892

Current Obligation: $214,046,892

Actual Outlays: $214,046,892

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RDAD21A00000012

IDV Type: BPA

Timeline