DHS awards $421M for medical screening, with a significant portion allocated to Texas

Contract Overview

Contract Amount: $421,385,259 ($421.4M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-30

End Date: 2023-03-29

Contract Duration: 910 days

Daily Burn Rate: $463.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL SCREENING SERVICES

Place of Performance

Location: DONNA, HIDALGO County, TEXAS, 78537

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $421.4 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MEDICAL SCREENING SERVICES Key points: 1. Contract value of over $421 million indicates substantial demand for medical screening services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. A significant portion of the contract value is associated with Texas, highlighting regional concentration. 4. The duration of the contract (910 days) suggests a long-term need for these services. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. The award to Loyal Source Government Services LLC represents a significant contract for the company.

Value Assessment

Rating: good

The total contract value of $421.4 million over approximately 2.5 years is substantial for temporary help services. Benchmarking against similar contracts for medical screening services is difficult without more specific service details. However, the average annual value is approximately $168.5 million. The contract's firm-fixed-price nature suggests an effort to control costs, but the overall value indicates a significant investment by U.S. Customs and Border Protection.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The fact that it was a delivery order under a larger contract structure suggests that the initial competition was broad, and this specific order was placed based on established terms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for the government's investment.

Public Impact

Benefits U.S. Customs and Border Protection by providing essential medical screening services for individuals encountered at the border. Supports the operational capacity of DHS in managing border security and humanitarian concerns. The significant allocation to Texas suggests a direct impact on border operations within that state. Likely involves a workforce of medical professionals and support staff to deliver screening services. Contributes to public health and safety by identifying and managing potential health risks among those screened.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial fixed prices do not accurately reflect fluctuating service demands or unforeseen medical needs.
Dependence on a single contractor for critical medical screening services could pose a risk if performance issues arise.
Geographic concentration in Texas might limit flexibility if needs shift to other regions.
Ensuring consistent quality of medical screening across all delivery orders and locations is crucial.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured fair pricing.
Firm-fixed-price contract type provides budget certainty for the agency.
The substantial value indicates a recognized and ongoing need for these critical services.
Loyal Source Government Services LLC's ability to secure such a large contract suggests established capabilities.

Sector Analysis

The healthcare services sector, particularly within government contracting, is a significant market. This contract falls under temporary help services (NAICS 561320) but is specifically for medical screening, a critical component of border management and public health. The market for government healthcare services is large and competitive, with agencies like DHS frequently seeking specialized support for border operations, detention facilities, and other public safety functions. Comparable spending benchmarks would depend on the specific nature and volume of screenings required.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the contract was likely awarded to a large business or that subcontracting opportunities for small businesses were not mandated or prominently featured in this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP). Mechanisms likely include contract performance monitoring, regular reporting requirements from the contractor, and potentially site visits or audits. The firm-fixed-price nature provides some cost control, but performance quality and adherence to service level agreements would be key oversight areas. The Government Accountability Office (GAO) and DHS's Office of Inspector General (OIG) could also provide oversight through audits or investigations if concerns arise.

Related Government Programs

DHS Medical Support Contracts
Border Health Services
Immigration and Customs Enforcement Medical Services
Federal Temporary Staffing Contracts
Public Health Services Contracts

Risk Flags

Potential for performance degradation if contractor prioritizes profit over quality.
Geographic concentration may limit responsiveness to needs in other regions.
Dependence on contractor's ability to recruit and retain qualified medical personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $421.4 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. MEDICAL SCREENING SERVICES

Who is the contractor on this award?

The obligated recipient is LOYAL SOURCE GOVERNMENT SERVICES 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 $421.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2023-03-29.

What is the specific nature of the medical screening services provided under this contract?

The provided data classifies the contract under NAICS code 561320 (Temporary Help Services), but the specific nature of the medical screening is not detailed. It is likely to encompass initial health assessments, identification of communicable diseases, and basic medical evaluations for individuals encountered by U.S. Customs and Border Protection. This could include services at ports of entry, border patrol stations, or temporary holding facilities. The scope would determine the types of medical professionals required (e.g., nurses, paramedics, physicians) and the specific screening protocols followed, impacting the overall cost and complexity.

How does the $421.4 million contract value compare to historical spending on similar medical screening services by DHS?

Without access to historical spending data specifically for medical screening services by DHS or CBP, a direct comparison is challenging. However, the $421.4 million award over approximately 2.5 years represents a significant annual expenditure averaging around $168.5 million. This suggests a substantial and ongoing requirement for these services, potentially driven by increased border activity or a shift towards more comprehensive screening protocols. Agencies often consolidate requirements into larger contracts to achieve economies of scale and streamline procurement, which could explain the large award amount.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

While specific KPIs are not detailed in the provided data, typical performance indicators for medical screening services contracts would likely include: timeliness of screenings (e.g., time from encounter to screening completion), accuracy of diagnoses or identification of conditions, adherence to medical protocols and standards, availability of qualified medical personnel, patient satisfaction (where applicable), and reporting accuracy. The firm-fixed-price nature of the contract implies that meeting these performance standards is crucial for the contractor to achieve profitability, and failure to do so could result in penalties or contract termination.

What is the geographic distribution of the medical screening services, beyond the mention of Texas?

The data explicitly mentions Texas ('st': 'TX', 'sn': 'TEXAS') as a significant location associated with this contract, implying a substantial portion of the services are delivered there. However, the full geographic scope is not detailed. Given that U.S. Customs and Border Protection operates along all U.S. borders, it is plausible that medical screening services are required at various ports of entry and border patrol sectors nationwide. The contract may allow for task orders to be issued for services in other states or regions as needed, even if Texas represents a primary operational hub for this specific award.

What is the track record of Loyal Source Government Services LLC in providing similar medical or temporary staffing services to the federal government?

Loyal Source Government Services LLC has a history of securing federal contracts, including those related to staffing and support services. While the specific details of their past performance on large-scale medical screening contracts are not provided here, their ability to win a contract valued at over $421 million suggests they possess the necessary experience, financial stability, and operational capacity to meet the government's requirements. Federal procurement databases would likely contain more detailed information on their past performance ratings and the types of services they have previously delivered.

Are there any specific risks associated with the firm-fixed-price contract type for these medical screening services?

The primary risk associated with a firm-fixed-price (FFP) contract for medical screening services is the potential for the contractor to cut corners on quality or staffing levels to maintain profitability if actual costs exceed the fixed price. Conversely, if the government's needs are significantly underestimated in the initial pricing, the contractor might be highly profitable. For the government, the risk lies in ensuring that the fixed price adequately covers all necessary services and that robust performance monitoring is in place to guarantee quality and compliance, especially given the critical nature of medical screening.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B03C20Q00000276

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3680 AVALON PARK EAST BLVD., SUITE 310, ORLANDO, FL, 32828

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

Financial Breakdown

Contract Ceiling: $421,385,259

Exercised Options: $421,385,259

Current Obligation: $421,385,259

Actual Outlays: $212,215,138

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: V797D30203

IDV Type: FSS

Timeline