DHS awards $45M for detention and transportation services, with Global Precision Systems, LLC as prime contractor

Contract Overview

Contract Amount: $45,158,945 ($45.2M)

Contractor: Global Precision Systems, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-08-29

End Date: 2022-09-29

Contract Duration: 1,492 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF - DETENTION&TRANSPORTATION SERVICES

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79925

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45.2 million to GLOBAL PRECISION SYSTEMS, LLC for work described as: IGF::OT::IGF - DETENTION&TRANSPORTATION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1492 days indicates a long-term need for these services. 3. The firm-fixed-price contract type aims to control costs for the government. 4. Services are concentrated in Texas, indicating a specific geographic focus for operations. 5. The North American Industry Classification System (NAICS) code 561612 points to security guard and patrol services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar service contracts. The firm-fixed-price structure is a positive indicator for cost control. However, the absence of specific performance metrics or detailed pricing analysis in the provided data makes a definitive value assessment difficult. Further investigation into the unit costs and comparison with industry benchmarks for security and transportation services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be open, there might have been specific reasons for excluding certain sources initially, which warrants further investigation. The exact number of bidders is not provided, but the 'full and open' designation implies multiple entities had the opportunity to bid, which generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: A competitive bidding process, even with initial exclusions, is generally favorable for taxpayers as it encourages multiple vendors to offer their best prices and services, potentially leading to cost savings.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential detention and transportation services. The services delivered are critical for managing individuals in federal custody, ensuring their secure movement and holding. The geographic impact is concentrated in Texas (ST: TX, SN: TEXAS), suggesting a significant operational footprint in that state. Workforce implications include employment opportunities for security personnel, drivers, and support staff within the contractor's organization in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of services provided.
The 'exclusion of sources' clause in the competition type requires further clarification to understand potential limitations on competition.
Limited public information on the specific breakdown of costs makes it hard to verify if the $45M represents optimal value for money.
The long contract duration could lead to complacency or reduced incentive for innovation if not managed with robust oversight.

Positive Signals

The use of a firm-fixed-price contract type helps to mitigate cost overrun risks for the government.
Awarding through a full and open competition process, even with exclusions, generally indicates an effort to leverage market competition.
The contract is awarded to a single entity, potentially streamlining management and accountability for service delivery.
The concentration of services in Texas may indicate efficient resource allocation for a specific operational need.

Sector Analysis

This contract falls within the Security Guards and Patrol Services sector (NAICS 561612), a segment of the broader professional, scientific, and technical services industry. This sector is characterized by a mix of large and small providers offering a range of security solutions. Federal spending in this area is often driven by the needs of agencies like DHS for physical security, transportation, and detention support. Comparable spending benchmarks would typically involve analyzing other large-scale contracts for similar services awarded by federal agencies, considering factors like geographic scope, duration, and service complexity.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the primary competition was likely among larger firms or that small businesses were not specifically targeted for this particular award. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral to potentially negative if opportunities were not passed down through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security (DHS). Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS-NG, where basic award information is published. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

DHS Detention Services Contracts
ICE Transportation Contracts
Federal Security Services Contracts
Immigration Enforcement Support Services

Risk Flags

Potential for service disruption due to contractor performance issues.
Risk of security incidents during transportation or detention.
Concerns regarding compliance with humane treatment standards.
Lack of detailed performance metrics in public data.
Ambiguity in 'exclusion of sources' competition type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45.2 million to GLOBAL PRECISION SYSTEMS, LLC. IGF::OT::IGF - DETENTION&TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is GLOBAL PRECISION SYSTEMS, 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 $45.2 million.

What is the period of performance?

Start: 2018-08-29. End: 2022-09-29.

What is the historical spending pattern for detention and transportation services by ICE?

Historical spending by ICE on detention and transportation services has been substantial and has seen fluctuations over the years, often influenced by immigration policy changes and operational demands. For instance, spending in these categories can increase significantly during periods of heightened border activity or shifts in enforcement priorities. Analyzing past contract awards for similar services, including the number of contracts, their values, and the duration, provides context for the $45 million awarded to Global Precision Systems, LLC. Understanding these trends helps in assessing whether current spending levels are consistent with historical patterns or represent a significant deviation, potentially indicating a change in operational scale or strategy.

How does the pricing of this contract compare to similar contracts awarded by DHS or other agencies?

A direct comparison of pricing for this $45 million contract with similar contracts is difficult without access to detailed pricing structures and service level agreements for comparable awards. However, the firm-fixed-price (FFP) contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. To benchmark effectively, one would need to compare unit costs (e.g., cost per detainee per day, cost per mile for transportation) against industry averages and other government contracts for detention and transportation services, considering variations in geographic location, service complexity, and security requirements. The 'full and open competition after exclusion of sources' aspect also implies that the pricing should reflect competitive pressures, though the specifics of the exclusion could impact the final price.

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

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, contracts for detention and transportation services would include detailed metrics related to safety, security, timeliness, and humane treatment of individuals. Examples might include response times for transportation requests, incident rates during transport or detention, compliance with facility standards, and staff-to-detainee ratios. The effectiveness of the contract is largely dependent on how well these KPIs and SLAs are defined, monitored, and enforced by ICE. Without this information, a thorough assessment of the contractor's performance and the overall value derived from the contract is limited.

What is the track record of Global Precision Systems, LLC in performing similar federal contracts?

Assessing the track record of Global Precision Systems, LLC requires reviewing their past performance on federal contracts, particularly those involving detention, transportation, and security services. Information on past performance, including contract history, any past performance evaluations, and instances of contract disputes or terminations, would be crucial. Agencies often maintain internal past performance databases, and public contract databases may offer some insights. A positive track record with successful delivery of similar services on time and within budget would indicate a lower risk for this $45 million award. Conversely, a history of performance issues could raise concerns about the government's ability to receive the contracted services effectively.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include service disruptions, security breaches during transportation or detention, failure to meet performance standards, and cost overruns if the FFP structure is not adequately managed. Given the sensitive nature of detention and transportation services, risks related to the humane treatment of individuals and compliance with legal standards are paramount. Mitigation strategies typically involve robust oversight by ICE, clear performance standards and penalties outlined in the contract, regular audits, and contingency planning by the contractor. The 'exclusion of sources' in the competition type might also represent a risk if it unduly limited the pool of qualified bidders, potentially impacting service quality or price.

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-15-R-00003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 FRONT STREET, SUITE 300, NOME, AK, 99762

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: $45,469,761

Exercised Options: $45,469,761

Current Obligation: $45,158,945

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00009

IDV Type: IDC

Timeline