DHS awarded $51.8M for detention and transportation services, with a significant portion for security guards

Contract Overview

Contract Amount: $51,797,612 ($51.8M)

Contractor: Global Precision Systems, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-30

End Date: 2020-09-29

Contract Duration: 365 days

Daily Burn Rate: $141.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION&TRANSPORTATION SERVICES AT EPC

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $51.8 million to GLOBAL PRECISION SYSTEMS, LLC for work described as: DETENTION&TRANSPORTATION SERVICES AT EPC Key points: 1. The contract value of $51.8 million for detention and transportation services represents a substantial investment in immigration enforcement support. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a deliberate effort to ensure broad market participation. 3. The contract's duration of 365 days with a firm fixed-price structure aims to provide cost certainty for the government. 4. Performance is tied to security guard and patrol services, a critical component of detention facility operations. 5. The award to Global Precision Systems, LLC places them as a key provider in this specialized service sector for DHS. 6. The contract's geographic focus on Texas highlights a concentrated operational area for these services.

Value Assessment

Rating: fair

Benchmarking the value of this $51.8 million contract is challenging without specific service delivery metrics and comparable contract data. However, the firm fixed-price structure suggests an attempt to control costs. The award amount itself is significant, reflecting the scale and criticality of detention and transportation services within immigration enforcement. Further analysis would require comparing unit costs for services like transportation or guard hours against industry standards and other government contracts for similar operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method implies that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, or the initial exclusion of sources was later lifted to allow for broader competition. The exact number of bidders is not specified, but the phrasing suggests a more controlled competitive environment than a purely open solicitation. This could potentially impact price discovery if a significant number of capable vendors were not considered.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'after exclusion of sources' clause suggests an effort to ensure a reasonable number of bidders participated. This approach aims to balance the need for specialized services with achieving fair market prices for taxpayers.

Public Impact

Immigrants in detention facilities benefit from the provision of secure and orderly environments. U.S. Immigration and Customs Enforcement (ICE) operations are supported through the reliable delivery of detention and transportation services. The state of Texas is the primary geographic area impacted by this contract, indicating a focus on border region or state-specific enforcement activities. The contract supports jobs in security, transportation, and facility management within the private sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants further investigation to understand the rationale and impact on competition.
Lack of detailed performance metrics makes it difficult to assess the true value for money beyond the contract price.
The significant dollar amount necessitates robust oversight to ensure efficient use of taxpayer funds.

Positive Signals

The firm fixed-price contract type provides cost predictability for the government.
The award followed a competitive process, indicating an effort to secure services at a reasonable price.
The contract addresses a critical operational need for the Department of Homeland Security.

Sector Analysis

This contract falls within the government services sector, specifically supporting immigration enforcement and detention operations. The market for these services is driven by federal policy and demand for border security and immigration management. Comparable spending benchmarks would involve analyzing other contracts awarded by ICE and CBP for detention facility management, transportation, and related security services. The size of this contract suggests a significant operational requirement within a key geographic area.

Small Business Impact

The provided data does not indicate any small business set-aside provisions (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, Global Precision Systems, LLC, is likely a larger entity. There is no information on subcontracting plans, so the impact on the small business ecosystem is unclear, though it is unlikely to involve significant subcontracting to small businesses unless specified elsewhere.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to specific service levels and standards. Transparency is facilitated through contract award databases, but detailed operational oversight mechanisms and Inspector General jurisdiction would depend on specific ICE policies and the nature of the services provided.

Related Government Programs

Immigration and Customs Enforcement Operations
Detention Facility Management
Immigration Enforcement Support Services
Federal Law Enforcement Support
Security Guard Services
Transportation Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics hinders value assessment.
Significant contract value requires robust oversight to ensure efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.8 million to GLOBAL PRECISION SYSTEMS, LLC. DETENTION&TRANSPORTATION SERVICES AT EPC

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 $51.8 million.

What is the period of performance?

Start: 2019-09-30. End: 2020-09-29.

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

Analyzing historical spending trends for detention and transportation services by ICE is crucial for understanding the scale and evolution of these operations. While specific data for this contract's category is not provided, ICE's overall budget and contracting activities have historically been substantial, driven by immigration policy and enforcement priorities. Fluctuations in spending often correlate with changes in border apprehension rates, policy directives on detention lengths, and the availability of detention facilities. Examining year-over-year contract awards for similar services can reveal whether spending is increasing, decreasing, or remaining stable, providing context for the $51.8 million award. This analysis would also help identify any significant shifts in the types of services procured or the primary contractors utilized over time.

How does the firm fixed-price contract type impact the risk for both the government and the contractor in this scenario?

A firm fixed-price (FFP) contract type, like the one used here, places the majority of the risk on the contractor. The contractor agrees to perform the specified work for a predetermined price, regardless of their actual costs. For the government, this offers significant cost certainty and predictability, as the final price is known upfront, assuming the scope of work does not change. The primary risk for the government is that the contractor might cut corners on quality or service delivery to maintain profitability if their costs exceed the fixed price. Conversely, the contractor bears the risk of cost overruns due to unforeseen circumstances, inefficiencies, or changes in market conditions. If their costs are lower than anticipated, the contractor benefits from higher profit margins. This structure incentivizes the contractor to be efficient and manage costs effectively.

What are the potential implications of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' on contractor performance and pricing?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' presents a nuanced competitive landscape. While it aims for broad participation, the initial exclusion of certain sources suggests a deliberate filtering process, potentially based on specific qualifications, past performance, or strategic considerations. This could mean that the pool of bidders, while open, might be more specialized or pre-vetted than in a completely unrestricted competition. For pricing, this could lead to competitive bids from a select group of capable firms, potentially resulting in fair market prices. However, if the exclusion was overly restrictive or not well-justified, it might limit the number of truly competitive offers, potentially leading to higher prices than if a wider range of vendors had been allowed to compete. The impact on performance is also complex; a more specialized bidder pool might bring higher expertise, but the exclusion could also inadvertently filter out innovative or more cost-effective solutions.

What is the typical profit margin for companies providing security guard and patrol services to the federal government?

Determining the typical profit margin for security guard and patrol services to the federal government is complex, as it varies based on contract specifics, company size, overhead, and market conditions. However, industry analyses and government contract data suggest that profit margins for these types of services often range from 5% to 15% of the contract value. Factors influencing this include the level of security required, the number of personnel deployed, the need for specialized equipment, and the duration of the contract. For a contract of this magnitude ($51.8 million), even a modest profit margin translates into significant earnings. Government contracts often have tighter margins compared to commercial contracts due to stringent oversight and competitive bidding processes. Without specific cost breakdowns, it's difficult to ascertain the exact profit margin for Global Precision Systems, LLC on this particular award.

How does the geographic concentration in Texas affect the efficiency and cost of these detention and transportation services?

The geographic concentration of these detention and transportation services in Texas has several implications for efficiency and cost. Texas, being a large state with significant border activity, presents unique logistical challenges and opportunities. Concentrating services within a specific region can lead to economies of scale in transportation routing, personnel deployment, and facility management, potentially reducing per-unit costs. It allows for optimized resource allocation and potentially shorter transit times between facilities or transport points. However, high demand in a concentrated area can also drive up local labor costs and resource competition. Furthermore, the specific infrastructure and regulatory environment within Texas will influence operational costs. A focused geographic approach can enhance operational familiarity and responsiveness but requires careful management to avoid bottlenecks and ensure consistent service delivery across the designated operational area.

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

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: $51,797,612

Exercised Options: $51,797,612

Current Obligation: $51,797,612

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00009

IDV Type: IDC

Timeline