DHS awards $36.4M for migrant medical services to Loy S. Government Services, with a 211-day duration

Contract Overview

Contract Amount: $36,396,639 ($36.4M)

Contractor: Loyal Source Government Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-28

End Date: 2026-04-27

Contract Duration: 211 days

Daily Burn Rate: $172.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MEDICAL SERVICES FOR MIGRANTS

Place of Performance

Location: DEL RIO, VAL VERDE County, TEXAS, 78840

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.4 million to LOYAL SOURCE GOVERNMENT SERVICES LLC for work described as: MEDICAL SERVICES FOR MIGRANTS Key points: 1. Contract value represents a significant investment in essential services for a vulnerable population. 2. Competition dynamics suggest a potentially competitive bidding process for this service requirement. 3. Performance risk may be elevated due to the sensitive nature of migrant care and potential for fluctuating demand. 4. The contract's focus on temporary help services indicates a need for agile staffing solutions. 5. This award falls within the broader category of government support services, crucial for operational continuity. 6. The time and materials pricing structure allows for flexibility but requires diligent oversight to manage costs.

Value Assessment

Rating: fair

The contract value of $36.4 million for approximately seven months of service appears substantial, necessitating a close examination of the scope and deliverables. Benchmarking against similar contracts for migrant services or temporary medical staffing is crucial to assess value for money. The time and materials (T&M) pricing model, while offering flexibility, can lead to cost overruns if not managed effectively. Without detailed performance metrics and cost breakdowns, it is difficult to definitively assess the value proposition, but the scale suggests a significant operational need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to use full and open competition suggests confidence in the market's ability to meet the requirement effectively and efficiently.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible pricing and service quality for essential migrant support.

Public Impact

Migrant populations in Texas will receive critical medical services, addressing immediate health needs. The contract supports the operational capacity of U.S. Customs and Border Protection in managing migrant flows. Geographic impact is concentrated in Texas, where migrant arrivals and processing are significant. The contract will likely create or sustain employment opportunities for medical professionals and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep with T&M contracts, requiring robust monitoring.
Ensuring consistent quality of care across diverse medical needs.
Managing fluctuating demand for services based on migrant influx.
Adequate vetting and training of personnel providing sensitive care.

Positive Signals

Awarded through full and open competition, suggesting market responsiveness.
Clear contract duration provides a defined period for service delivery.
Focus on essential medical services addresses a critical humanitarian need.

Sector Analysis

This contract falls within the government services sector, specifically focusing on temporary staffing and medical support. The market for government contracting in this area is substantial, driven by recurring needs for operational support across various agencies. Comparable spending benchmarks would involve analyzing other contracts for migrant services, emergency medical support, or large-scale temporary staffing solutions. The $36.4 million award is a significant sum, reflecting the scale and urgency of the services required.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Loy S. Government Services LLC is a large business, there is no information provided on subcontracting plans. The absence of small business considerations in the award details suggests that opportunities for small businesses may be limited unless they are direct subcontractors to the prime vendor.

Oversight & Accountability

Oversight will likely be managed by the U.S. Customs and Border Protection contracting officers and program managers. Accountability measures will be tied to performance metrics outlined in the contract, service level agreements, and adherence to the time and materials pricing. Transparency is generally maintained through contract award databases, but detailed operational oversight specifics are typically internal.

Related Government Programs

Migrant Health Services
Temporary Staffing Contracts
Department of Homeland Security Operations Support
Border Security Support Services

Risk Flags

Potential for cost overruns due to T&M pricing
Ensuring consistent quality of care for a vulnerable population
Managing fluctuating service demand
Adequacy of contractor's experience in migrant medical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.4 million to LOYAL SOURCE GOVERNMENT SERVICES LLC. MEDICAL SERVICES FOR MIGRANTS

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 $36.4 million.

What is the period of performance?

Start: 2025-09-28. End: 2026-04-27.

What is the historical spending pattern for medical services for migrants by U.S. Customs and Border Protection?

Historical spending data for medical services specifically for migrants by U.S. Customs and Border Protection (CBP) is not readily available in a consolidated public format. However, CBP's overall budget includes significant allocations for border operations, which encompass humanitarian and medical support. In recent fiscal years, there has been a notable increase in the number of encounters at the border, likely correlating with increased demand and expenditure on services like medical care. Analyzing CBP's annual reports and budget justifications, as well as broader Department of Homeland Security (DHS) spending on migration, would provide context. It's important to note that medical services might be bundled within larger operational contracts or provided through various mechanisms, making a direct comparison challenging without granular data. The current $36.4 million award suggests a substantial and ongoing need for these services.

How does the per-unit cost of services compare to similar contracts or market rates?

Determining the precise per-unit cost for this contract is challenging because it is awarded on a Time and Materials (T&M) basis. T&M contracts do not have a fixed price per unit of service; instead, they reimburse the contractor for direct labor hours at specified rates and for the cost of materials used. To benchmark, one would need to analyze the labor rates (e.g., hourly rates for nurses, doctors, support staff) and material markups against similar government contracts for medical staffing or services in similar geographic regions, as well as against commercial market rates. Without access to the specific labor categories, rates, and overhead/profit margins within this contract, a direct per-unit cost comparison is not feasible. However, the overall contract value of $36.4 million for approximately seven months suggests a significant operational scale.

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

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided award data. However, for a contract of this nature, typical KPIs and SLAs would likely focus on the timeliness and quality of medical care provided to migrants. This could include response times for medical emergencies, availability of medical personnel (e.g., 24/7 coverage), patient satisfaction metrics (if applicable and feasible), adherence to medical protocols, and accurate record-keeping. The contract would also stipulate requirements for reporting and data submission to ensure transparency and allow CBP to monitor performance effectively. The effectiveness of these KPIs and SLAs would be crucial for ensuring value for money and meeting the humanitarian needs of the migrant population.

What is the track record of Loy S. Government Services LLC in providing similar medical or support services to government agencies?

Loy S. Government Services LLC has a history of securing government contracts, primarily within the Department of Defense and other federal agencies, often related to logistics, base support, and personnel services. Information regarding their specific track record in providing large-scale medical services, particularly to migrant populations, is not immediately detailed in public award databases. While they possess experience in government contracting, the scale and nature of this particular award for migrant medical services would require a deeper dive into their past performance evaluations and any specific healthcare-related contracts they may have executed. Assessing their past performance in similar sensitive service delivery environments would be key to understanding their capability and reliability for this contract.

What are the potential risks associated with the time and materials (T&M) pricing structure for this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure, as used in this contract, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts reimburse the contractor for actual labor hours and material costs incurred, plus a negotiated fixed fee or indirect rates. This can lead to higher-than-anticipated costs if project timelines extend, labor hours increase unexpectedly, or material costs escalate. For the government, effective oversight is critical to ensure that labor hours are reasonable and allocable, materials are necessary and priced appropriately, and that the contractor is not incentivized to prolong the work. Robust monitoring, detailed reporting requirements, and clear definitions of work are essential to mitigate these risks and ensure value for taxpayer money.

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: 70B03C25Q00000120

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: $54,572,073

Exercised Options: $36,396,639

Current Obligation: $36,396,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79722D0185

IDV Type: FSS

Timeline