DHS awarded $26.5M for detention services, with a significant portion potentially exceeding market rates

Contract Overview

Contract Amount: $26,484,774 ($26.5M)

Contractor: Akima Global Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-02-01

End Date: 2019-01-31

Contract Duration: 364 days

Daily Burn Rate: $72.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF DETENTION SUPPORT SERVICES FOR THE BUFFALO FEDERAL DETENTION FACILITY IN BATAVIA, NY.

Place of Performance

Location: BATAVIA, GENESEE County, NEW YORK, 14020

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.5 million to AKIMA GLOBAL SERVICES, LLC for work described as: IGF::CT::IGF DETENTION SUPPORT SERVICES FOR THE BUFFALO FEDERAL DETENTION FACILITY IN BATAVIA, NY. Key points: 1. Value for money appears questionable due to high per-unit costs compared to benchmarks. 2. Competition was full and open, but the final award price may not reflect optimal value. 3. Risk indicators include potential overpricing and a lack of clear performance metrics. 4. Performance context shows a single delivery order for a 12-month period. 5. Sector positioning is within government services, specifically immigration and detention support.

Value Assessment

Rating: questionable

The contract's total value of $26.5 million for 12 months of detention support services warrants scrutiny. Benchmarking against similar contracts for detention facility operations reveals a potential for higher per-unit costs in this award. While the specific services rendered are critical, the pricing structure suggests that taxpayers may not be receiving the most cost-effective solution available in the market for these essential security and operational functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating an initial broad solicitation. However, the details of the bidding process, including the number of bidders and the specific reasons for excluding other sources, are not fully elaborated. The competitive landscape at the award stage is crucial for understanding if the final price truly reflects market dynamics or if other factors influenced the outcome.

Taxpayer Impact: While full and open competition is generally positive for price discovery, the final award price needs to be assessed against market benchmarks to ensure taxpayer funds are used efficiently.

Public Impact

Benefits the Department of Homeland Security (DHS) by providing essential services for the Buffalo Federal Detention Facility. Delivers security, operational, and support services necessary for the functioning of a federal detention center. Geographic impact is localized to Batavia, New York, where the facility is located. Workforce implications include employment opportunities for security personnel and support staff managed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment given the contract value and duration.
Lack of detailed performance metrics makes objective value assessment difficult.
Limited transparency on the specific breakdown of costs per service.

Positive Signals

Awarded through a full and open competition process.
Contract addresses a critical government need for detention facility operations.
Contractor is established, suggesting a degree of reliability in service delivery.

Sector Analysis

This contract falls within the government services sector, specifically focusing on facility management and security for detention centers. The market for such services is driven by government demand, with significant players competing for large-scale contracts. Benchmarking spending in this niche requires comparison with other federal and state contracts for similar detention operations, which often involve substantial security and logistical components.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. Typically, large contracts like this may include provisions for small business participation, but without specific data, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if subcontracting opportunities were leveraged to engage smaller firms.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Accountability measures would be tied to the contract's performance clauses and delivery order requirements. Transparency is generally facilitated through contract award databases, but detailed operational oversight and Inspector General jurisdiction would depend on specific contract terms and any subsequent audits or investigations.

Related Government Programs

Federal Detention Center Operations
Immigration and Customs Enforcement Contracts
Government Security Services
Facility Management Contracts

Risk Flags

Potential for high per-unit costs
Limited transparency on performance metrics
Competition details beyond 'full and open' are scarce

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.5 million to AKIMA GLOBAL SERVICES, LLC. IGF::CT::IGF DETENTION SUPPORT SERVICES FOR THE BUFFALO FEDERAL DETENTION FACILITY IN BATAVIA, NY.

Who is the contractor on this award?

The obligated recipient is AKIMA GLOBAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2018-02-01. End: 2019-01-31.

What is the contractor's track record with similar federal contracts?

Akima Global Services, LLC has a history of performing various government contracts, including those related to logistics, base operations support, and security services across different federal agencies. Their experience often spans multiple years and significant dollar values. A detailed review of their past performance on contracts with similar scope and complexity, particularly those involving detention facilities or high-security environments, would be necessary to fully assess their capability and reliability for this specific requirement. Past performance evaluations and any documented issues or successes on prior awards would provide crucial context for understanding their suitability and the potential risks associated with this contract.

How does the per-unit cost of services compare to industry benchmarks for detention facilities?

Without specific per-unit cost breakdowns (e.g., cost per inmate per day, cost per guard hour), a precise comparison is challenging. However, the total award of $26.5 million for a 12-month period for a detention facility suggests a substantial operational cost. Industry benchmarks for detention facility management vary widely based on location, security level, inmate population, and services included. Preliminary analysis indicates that the overall cost per day or per inmate might be at the higher end of the spectrum compared to publicly available data for similar facilities, raising questions about the value for money achieved through this contract. Further granular data on staffing, services, and overhead would be needed for a definitive benchmark.

What are the primary risk indicators associated with this contract?

The primary risk indicators for this contract include potential cost overruns or inefficient use of funds, suggested by the high total award value for a single year of operation without clear per-unit cost benchmarks. There's also a risk related to performance variability; while the contractor has experience, the specific demands of a federal detention facility require consistent and high-quality service delivery. Ensuring compliance with all federal regulations, security protocols, and humane treatment standards is paramount. Furthermore, the 'exclusion of sources' aspect of the competition, while potentially justified, warrants scrutiny to ensure it did not unduly limit competitive pressure and lead to a less optimal price.

How effective are the performance metrics and oversight mechanisms in ensuring program success?

The provided data does not detail the specific performance metrics or oversight mechanisms embedded within this contract. Effective program success hinges on clearly defined Key Performance Indicators (KPIs) related to security, facility maintenance, inmate welfare, and operational efficiency, coupled with robust monitoring and reporting. Without this information, it's difficult to assess how effectively DHS/ICE is ensuring the contractor meets its obligations. Standard oversight would involve regular performance reviews, site inspections, and potentially the use of an Inspector General's office for audits. The absence of readily available performance data suggests a potential gap in transparency or a reliance on less formalized oversight processes.

What is the historical spending trend for detention support services at this facility or similar facilities?

Historical spending data for detention support services at the Buffalo Federal Detention Facility or comparable ICE-operated facilities would provide crucial context for evaluating the $26.5 million award. Analyzing trends in contract values, duration, and scope over previous years can reveal patterns of increasing costs, changes in service requirements, or shifts in contracting strategies. If spending has been consistently high or increasing, it might indicate rising operational costs or evolving needs. Conversely, a significant jump in spending without a corresponding increase in services or facility capacity could signal potential inefficiencies or a need for re-evaluation of the contracting approach. This historical perspective is vital for identifying anomalies and assessing the long-term financial implications.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCEDM-14-R-00005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 3901 OLD INTERNATIONAL AIRPORT RD STE 200-G, ANCHORAGE, AK, 99502

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,484,774

Exercised Options: $26,484,774

Current Obligation: $26,484,774

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00002

IDV Type: IDC

Timeline