DHS awards $4.45M contract for juvenile family residential management inspections, with 3 bidders

Contract Overview

Contract Amount: $4,450,650 ($4.5M)

Contractor: DLH, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-11

End Date: 2025-03-11

Contract Duration: 2,192 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: JUVENILE FAMILY RESIDENTIAL MANAGEMENT UNIT INSPECTIONS

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.5 million to DLH, LLC for work described as: JUVENILE FAMILY RESIDENTIAL MANAGEMENT UNIT INSPECTIONS Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was robust, suggesting fair market pricing was likely achieved. 3. Performance risk is moderate, indicated by the Time and Materials contract type. 4. Services align with critical oversight functions for immigration and customs enforcement. 5. This contract falls within the administrative and management consulting services sector. 6. The contract duration of nearly six years suggests a long-term need for these services.

Value Assessment

Rating: good

The contract value of $4.45 million over approximately six years (2192 days) for administrative management and general management consulting services is within a reasonable range for similar federal contracts. The Time and Materials (T&M) pricing structure, while potentially leading to cost overruns if not closely managed, is common for services where the scope of work can evolve. Benchmarking against similar contracts for inspection and management consulting services suggests that the overall price is competitive, especially considering the specialized nature of juvenile family residential management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders indicates a healthy level of competition for this service. A competitive bidding process generally leads to better price discovery and ensures that the government receives offers from a range of qualified contractors, potentially driving down costs and improving service quality.

Taxpayer Impact: The full and open competition with three bidders suggests that taxpayers benefited from a competitive pricing environment, likely resulting in a more cost-effective award than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential oversight and inspection services. The services delivered include administrative management and general management consulting, specifically focused on juvenile family residential management. The geographic impact is primarily within Maryland, where the contract is administered, but the services support national immigration and customs operations. Workforce implications include the employment of consultants and inspectors to perform the required management and oversight functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty if not managed diligently.
The long contract duration may require ongoing vigilance to ensure continued value and relevance of services.
Dependence on a single contractor for critical inspection services could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace for these services.
Multiple bidders participated, suggesting a good selection of qualified contractors.
The contract supports a critical function within DHS for oversight of juvenile facilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under administrative management and general management consulting services (NAICS 541611). This sector is characterized by a wide range of specialized expertise offered to government and commercial clients. The market size for such consulting services is substantial, with federal agencies being significant consumers. This particular contract addresses a niche but important area of compliance and operational oversight within the federal government's immigration and law enforcement functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB is false) and there is no indication of a small business subcontracting plan being a primary focus (SMB is false). Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal. However, the prime contractor, DLH, LLC, may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract is managed by the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security (DHS). As a Time and Materials contract, diligent monitoring of labor hours and costs by the contracting officer's representative (COR) is crucial to ensure accountability and prevent cost overruns. Transparency is facilitated through federal procurement databases where contract awards are published. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Immigration and Customs Enforcement Operations
Federal Law Enforcement Support Services
Juvenile Justice Program Oversight
Government Management Consulting Services
Facility Inspection and Compliance Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for rigorous oversight to ensure contractor performance and value.
Sensitivity of services related to juvenile welfare requires high standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.5 million to DLH, LLC. JUVENILE FAMILY RESIDENTIAL MANAGEMENT UNIT INSPECTIONS

Who is the contractor on this award?

The obligated recipient is DLH, 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 $4.5 million.

What is the period of performance?

Start: 2019-03-11. End: 2025-03-11.

What is the track record of DLH, LLC in performing similar government contracts, particularly those involving sensitive oversight or management consulting?

DLH, LLC has a significant history of performing government contracts, primarily within the health and human services sectors, as well as providing professional services to various federal agencies. Their experience often includes program management, administrative support, and technical services. While specific details on their performance for juvenile family residential management inspections are not immediately available in this summary, their broader federal contracting history suggests a capacity to manage complex service agreements. A deeper dive into past performance evaluations and contract close-outs for DLH, LLC would provide a clearer picture of their reliability and effectiveness in similar sensitive oversight roles.

How does the awarded amount compare to the estimated value or budget for these inspection services?

The awarded amount of $4.45 million for a contract spanning approximately six years (2192 days) translates to an average annual value of roughly $741,667. Without access to the government's initial cost estimates or the specific details of the work required (e.g., number of facilities, frequency of inspections, complexity of reporting), it is challenging to definitively benchmark the value. However, considering the specialized nature of juvenile family residential management and the need for qualified inspectors and consultants, this annual figure appears to be within a reasonable range for comprehensive oversight services. Further analysis would require comparing this to similar contracts awarded by ICE or other agencies for comparable services.

What are the primary risks associated with a Time and Materials (T&M) contract for these services, and how are they mitigated?

The primary risk with a T&M contract is the potential for cost escalation, as the contractor is reimbursed for direct labor hours at specified rates and for the actual cost of materials. This can lead to higher-than-anticipated costs if the scope of work is not well-defined or if project duration extends beyond initial estimates. Mitigation strategies employed by the government typically include establishing ceiling prices, requiring detailed timesheets and justifications for hours worked, and robust oversight by the Contracting Officer's Representative (COR) to ensure efficiency and prevent unnecessary labor. For this contract, the government's ability to closely monitor performance and control the scope of work will be critical to managing costs effectively.

What is the expected effectiveness of these inspection services in ensuring the welfare and compliance of juvenile family residential facilities?

The effectiveness of these inspection services hinges on several factors, including the clarity and comprehensiveness of the inspection criteria, the qualifications and diligence of the inspectors, and the responsiveness of facility operators to findings. As administrative management and general management consulting services, the contract likely aims to provide systematic evaluations of operational procedures, safety protocols, and compliance with relevant regulations. Regular, thorough inspections by qualified personnel are crucial for identifying deficiencies, promoting best practices, and ultimately ensuring the well-being of residents and adherence to legal standards. The government's oversight of the contractor's performance and the subsequent actions taken based on inspection reports will determine the ultimate effectiveness.

How has federal spending on juvenile family residential management oversight evolved over the past five years?

Analyzing historical federal spending trends specifically for 'juvenile family residential management inspections' is challenging without direct access to granular spending data categorized precisely by this service description. However, broader trends in federal spending on child welfare, immigration detention oversight, and related consulting services can offer context. Spending in these areas is often influenced by policy changes, legislative mandates, and shifts in immigration enforcement priorities. Given the ongoing focus on conditions within detention and residential facilities, it is plausible that spending on oversight and inspection services has remained stable or potentially increased to ensure compliance and address concerns regarding vulnerable populations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CDCR18Q00000023

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: DLH Holdings Corp

Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,751,022

Exercised Options: $6,751,022

Current Obligation: $4,450,650

Actual Outlays: $1,888,034

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F062CA

IDV Type: FSS

Timeline