DHS Awards $412M Medical Services Contract to Loyal Source Government Services LLC
Contract Overview
Contract Amount: $412,314,286 ($412.3M)
Contractor: Loyal Source Government Services LLC
Awarding Agency: Department of Homeland Security
Start Date: 2023-11-30
End Date: 2025-09-27
Contract Duration: 667 days
Daily Burn Rate: $618.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: MEDICAL SERVICES
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Homeland Security obligated $412.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MEDICAL SERVICES Key points: 1. Significant contract value of $412.3M for medical services. 2. Loyal Source Government Services LLC is the sole awardee. 3. Contract duration extends to September 2025. 4. Services fall under Temporary Help Services (NAICS 561320).
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The award amount is substantial, and without further data on the specific services and rates, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, it is a single delivery order, and the specific competition details for this order are not provided, impacting price discovery assessment.
Taxpayer Impact: The full and open competition aims for taxpayer value, but the Time and Materials pricing structure requires diligent oversight to ensure costs remain reasonable.
Public Impact
Ensures critical medical services for U.S. Customs and Border Protection operations. Supports border security and law enforcement by providing necessary medical personnel. Potential impact on the availability of temporary medical staffing in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs without strict controls.
- Lack of detailed competition data for this specific delivery order.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Addresses essential medical service needs for a critical agency.
Sector Analysis
The healthcare sector, particularly government contracting for medical services, is a significant market. This contract falls within the broader temporary staffing services industry, which is competitive but requires specialized knowledge for government requirements.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). This suggests that larger businesses were either more competitive or that the specific requirements did not lend themselves to small business set-asides.
Oversight & Accountability
The contract's Time and Materials nature necessitates robust oversight from the Department of Homeland Security to monitor labor hours, rates, and material costs, ensuring adherence to the contract's ceiling and preventing unnecessary expenditures.
Related Government Programs
- Temporary Help Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific details on the medical services provided.
- No indication of small business participation.
- Limited insight into the competitive landscape for this specific delivery order.
Tags
temporary-help-services, department-of-homeland-security, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $412.3 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. MEDICAL 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 $412.3 million.
What is the period of performance?
Start: 2023-11-30. End: 2025-09-27.
What specific medical services are being provided under this contract, and how do the proposed rates compare to market benchmarks for similar temporary medical staffing?
The provided data does not specify the exact medical services. However, given the NAICS code 561320 (Temporary Help Services), it likely includes providing nurses, medical technicians, or other healthcare professionals on a temporary basis. A comparison of rates would require access to the bid proposals and market data for similar government contracts or commercial staffing agencies specializing in healthcare.
What is the risk associated with the Time and Materials pricing structure, and what controls are in place to mitigate potential cost overruns?
The primary risk of Time and Materials (T&M) contracts is that costs are not fixed, allowing them to increase as labor hours and material costs rise. Mitigation strategies typically include a contract ceiling, detailed reporting requirements for hours and expenses, and vigilant government oversight to ensure all charges are reasonable, allocable, and necessary for contract performance.
How effective is the full and open competition process in ensuring the best value for taxpayers when awarding a large Time and Materials contract?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer competitive pricing. However, the effectiveness for T&M contracts hinges on the clarity of the statement of work and the government's ability to negotiate fair rates and diligently manage the contract to prevent cost creep. Without strong oversight, even a competitively awarded T&M contract can become less cost-effective over time.
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: 70B03C24Q00000019
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 12612 CHALLENGER PKWY STE 365, ORLANDO, FL, 32826
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $416,590,131
Exercised Options: $412,314,286
Current Obligation: $412,314,286
Actual Outlays: $352,724,148
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36F79722D0185
IDV Type: FSS
Timeline
Start Date: 2023-11-30
Current End Date: 2025-09-27
Potential End Date: 2025-09-27 13:38:48
Last Modified: 2025-09-29
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