DHS awarded $26.1M for ICE detainee security, raising questions on competition and value

Contract Overview

Contract Amount: $26,096,800 ($26.1M)

Contractor: Asset Protection & Security Services, L.P.

Awarding Agency: Department of Homeland Security

Start Date: 2019-12-20

End Date: 2020-08-19

Contract Duration: 243 days

Daily Burn Rate: $107.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD&TRANS SVCS FOR ICE DETAINEES AT FLO SPC IAW PBNDS

Place of Performance

Location: FLORENCE, PINAL County, ARIZONA, 85132

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.1 million to ASSET PROTECTION & SECURITY SERVICES, L.P. for work described as: GUARD&TRANS SVCS FOR ICE DETAINEES AT FLO SPC IAW PBNDS Key points: 1. Contract awarded without competition, limiting price discovery and potentially increasing costs. 2. Security services for ICE detainees represent a critical but sensitive area of federal spending. 3. The firm-fixed-price contract structure aims to control costs, but without competition, true value is hard to ascertain. 4. Performance period is relatively short, suggesting a need for ongoing or re-competed services. 5. Geographic focus on Arizona indicates specific operational requirements for ICE. 6. The contractor has a history with federal contracts, but specific performance on this award needs scrutiny.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The $26.1 million award for security services over approximately 8 months suggests a significant daily operational cost. Without comparable bids, it's difficult to definitively assess if the pricing is fair market value. The firm-fixed-price nature provides cost certainty for the government, but the absence of competition means the government may not have secured the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement, or in urgent situations. The lack of competition means that potential alternative providers were not considered, which can lead to higher prices and reduced innovation. The government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. The government missed an opportunity to leverage market forces to secure the best possible price and service quality.

Public Impact

Provides essential security and support services for individuals in ICE detention facilities in Arizona. Ensures the safety and order within detention centers, contributing to the operational effectiveness of ICE. Supports the federal government's immigration enforcement and detention policies. The contract likely involves a workforce of security personnel, contributing to local employment in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and suboptimal service.
Sole-source awards can indicate potential issues with market research or pre-existing relationships.
The short duration of the contract may suggest a stop-gap measure rather than a long-term strategic solution.
Dependence on a single provider for critical security services can create risks if performance falters.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The contract specifies security services, a critical function for ICE operations.
The award is for a defined period, allowing for future re-evaluation and potential competition.

Sector Analysis

The federal contracting landscape for security services is substantial, with agencies like DHS frequently procuring guard and patrol services. This contract falls within the broader security and protective services sector, which is characterized by numerous providers ranging from large corporations to smaller specialized firms. Benchmarking this specific award against others is difficult without knowing the exact scope and location, but the dollar amount suggests a significant operational requirement. The market for these services is generally competitive, making the sole-source nature of this award notable.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The absence of subcontracting requirements for small businesses means that the direct economic benefit to the small business sector from this specific award is likely minimal. Larger prime contractors often have established relationships with specific subcontractors, and sole-source awards can limit opportunities for new or smaller firms to enter the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. The contract's firm-fixed-price nature simplifies some aspects of financial oversight, but performance monitoring remains crucial. Transparency is limited due to the sole-source nature, as the justification for the award is not publicly detailed through a competitive process. The DHS Office of Inspector General may conduct audits or investigations if performance issues or allegations of impropriety arise.

Related Government Programs

DHS - Detention and Deportation Operations
ICE - Enforcement and Removal Operations
Federal Protective Service Contracts
Immigration Detention Facility Management

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpayment
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.1 million to ASSET PROTECTION & SECURITY SERVICES, L.P.. GUARD&TRANS SVCS FOR ICE DETAINEES AT FLO SPC IAW PBNDS

Who is the contractor on this award?

The obligated recipient is ASSET PROTECTION & SECURITY SERVICES, L.P..

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 $26.1 million.

What is the period of performance?

Start: 2019-12-20. End: 2020-08-19.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations (FAR). These can include situations where only one responsible source is available, or when there is a compelling urgency that precludes full and open competition. Without further documentation (like a Justification and Approval document), the precise reason remains unknown. However, for security services at detention facilities, potential justifications could involve specialized security clearances, unique facility requirements, or continuity of essential services during an emergency procurement process. The lack of competition means taxpayers did not benefit from a process that would typically ensure the best value through multiple bids.

How does the cost of this contract compare to similar security services for ICE detainees?

Direct comparison of this $26.1 million contract to similar services is difficult without more specific data points, such as the number of detainees served, the level of security required (e.g., minimum, medium, maximum), and the specific services included (e.g., armed guards, unarmed guards, transportation, medical screening support). The contract duration of approximately 8 months (December 2019 to August 2020) implies a substantial daily or monthly expenditure. Given the sole-source nature, it's impossible to benchmark against competitive bids to determine if this represents a fair market price. Generally, security services for detention facilities are costly due to the high-risk environment and the need for trained personnel.

What are the potential risks associated with a sole-source award for critical security services?

Sole-source awards for critical security services carry several risks. Firstly, the absence of competition can lead to inflated prices, as the contractor faces no pressure to offer the lowest possible cost. Secondly, it can result in lower quality services if the contractor becomes complacent, knowing there are no immediate competitors vying for the contract. Thirdly, it limits the government's ability to explore innovative solutions or leverage new technologies that might be offered by other potential providers. Finally, it can create a perception of favoritism or a lack of due diligence in ensuring the government is obtaining the best value for taxpayer money. For ICE detention facilities, any lapse in security services could have significant public safety and humanitarian implications.

What is the track record of ASSET PROTECTION & SECURITY SERVICES, L.P. with federal contracts, particularly with DHS or ICE?

ASSET PROTECTION & SECURITY SERVICES, L.P. has a history of federal contracting. While the provided data doesn't detail their entire contract portfolio, their involvement in providing security services to ICE suggests they have experience in this specific domain. Federal procurement databases would contain more comprehensive information on their past performance, including contract values, agencies served, and performance ratings. A thorough review would examine past performance on similar contracts, any past disputes or contract terminations, and their overall reputation within the federal contracting community. Experience is a key factor, but it does not negate the need for competitive pricing and robust oversight.

What are the implications of the firm-fixed-price contract type for this security service award?

A firm-fixed-price (FFP) contract type means the contractor agrees to a set price for the defined scope of work, regardless of the actual costs incurred. This shifts the cost risk from the government to the contractor. For the government, an FFP contract provides budget certainty and protects against cost overruns, assuming the initial price was fair. However, if the contractor significantly underestimates costs, they may cut corners on service quality to maintain profitability. Conversely, if the price was set too high due to lack of competition, the government may overpay. The FFP structure is generally preferred for services with well-defined requirements, like security patrols, but its effectiveness in ensuring value is maximized when coupled with robust competition.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5502 BURNHAM DRIVE SUITE A, CORPUS CHRISTI, TX, 78413

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,123,259

Exercised Options: $26,123,259

Current Obligation: $26,096,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000005

IDV Type: IDC

Timeline