DHS awarded $52.4M for El Paso service center operations, including security, transport, and food

Contract Overview

Contract Amount: $52,395,710 ($52.4M)

Contractor: Global Precision Systems, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-11

End Date: 2021-09-29

Contract Duration: 383 days

Daily Burn Rate: $136.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY20 TASK ORDER FOR GUARD SERVICES, TRANSPORTATION, AND FOOD AT THE EL PASO SERVICE PROCESSING CENTER (EPC), EL PASO, TX

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $52.4 million to GLOBAL PRECISION SYSTEMS, LLC for work described as: FY20 TASK ORDER FOR GUARD SERVICES, TRANSPORTATION, AND FOOD AT THE EL PASO SERVICE PROCESSING CENTER (EPC), EL PASO, TX Key points: 1. Contract value represents a significant investment in border processing infrastructure. 2. Competition dynamics suggest a robust market for these specialized services. 3. Performance context is critical given the sensitive nature of immigration processing. 4. Sector positioning places this contract within the broader federal security and logistics landscape. 5. Risk indicators may include operational continuity and contractor performance management.

Value Assessment

Rating: good

The contract value of $52.4 million for a roughly 13-month period appears reasonable for comprehensive service delivery at a large processing center. Benchmarking against similar contracts for large-scale facility operations and security services would provide further insight. The firm-fixed-price structure suggests a degree of cost certainty for the government, though the scope of services is broad.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific circumstances led to the exclusion of certain potential bidders. The exact reasons for exclusion are not detailed but could relate to specialized capabilities or prior performance. The level of competition, even if limited, is intended to ensure fair pricing.

Taxpayer Impact: While the competition was not fully open, the process aimed to secure competitive pricing. Taxpayers benefit from a structured procurement process that seeks value, even with source exclusions.

Public Impact

Benefits migrants processed at the El Paso Service Processing Center by ensuring essential services. Delivers critical services including security, transportation, and food provision. Geographic impact is concentrated in El Paso, Texas, supporting federal operations at the border. Workforce implications include employment opportunities for the contractor's staff providing these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Ensuring consistent quality of food and transportation services for migrants.
Managing the security risks associated with a high-traffic processing center.

Positive Signals

Contract addresses essential operational needs for a critical federal facility.
Firm-fixed-price contract provides budget predictability.
Awarded to a single entity for streamlined management of diverse services.

Sector Analysis

This contract falls within the government services sector, specifically encompassing security, logistics, and facility support. The market for such services is substantial, driven by ongoing federal needs at border facilities and other government installations. Comparable spending benchmarks would involve analyzing other large-scale service contracts awarded by DHS and other agencies for similar operational support.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the contractor is Global Precision Systems, LLC, and there is no indication of a small business set-aside or significant subcontracting plan for small businesses. This suggests that larger, established firms were best positioned to meet the complex requirements of this contract.

Oversight & Accountability

Oversight is likely managed by U.S. Immigration and Customs Enforcement (ICE) program officials, who would monitor contractor performance against the terms of the delivery order. Accountability measures would be tied to performance metrics and contractual obligations. Transparency is facilitated through federal procurement databases, though specific operational oversight details are typically internal.

Related Government Programs

Border Security Operations
Immigration Services Contracts
Federal Facility Management
Government Security Services
Transportation and Logistics Support

Risk Flags

Limited competition may impact price optimization.
Contractor performance monitoring is critical for service continuity.
Scope of services is broad, requiring comprehensive oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52.4 million to GLOBAL PRECISION SYSTEMS, LLC. FY20 TASK ORDER FOR GUARD SERVICES, TRANSPORTATION, AND FOOD AT THE EL PASO SERVICE PROCESSING CENTER (EPC), EL PASO, TX

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 $52.4 million.

What is the period of performance?

Start: 2020-09-11. End: 2021-09-29.

What is the track record of Global Precision Systems, LLC in performing similar large-scale government contracts?

Assessing the track record of Global Precision Systems, LLC requires a review of their past performance on federal contracts, particularly those involving security, transportation, and facility operations. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be crucial. A history of successful contract completion, adherence to schedules, and positive performance reviews would indicate a lower risk profile. Conversely, past issues with performance, cost overruns, or disputes could raise concerns about their ability to meet the demands of this $52.4 million contract. Without specific CPARS data or publicly available performance reviews, it is difficult to definitively assess their track record for this specific task order.

How does the awarded amount compare to the estimated value or benchmark for similar services?

The awarded amount of $52.4 million for a delivery order spanning approximately 13 months (September 2020 to September 2021) needs to be benchmarked against similar contracts for comprehensive service delivery at large federal processing centers. Factors such as the specific services included (security, transportation, food), the scale of operations at the El Paso Service Processing Center, and the prevailing market rates for these services in that region are critical for comparison. If this amount is significantly higher than comparable contracts for similar scope and duration, it could indicate potential overpricing or less competitive bidding. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable value for the services rendered.

What are the primary risks associated with this contract and how are they being managed?

The primary risks associated with this contract include potential disruptions to essential services (security, food, transport) due to contractor performance issues, challenges in maintaining consistent service quality, and managing the inherent security risks of a border processing center. The firm-fixed-price (FFP) contract structure shifts some cost risk to the contractor but requires robust government oversight to ensure performance standards are met. Management strategies likely involve detailed performance work statements, regular progress reviews, key performance indicators (KPIs), and clear procedures for addressing deficiencies. The 'limited' competition aspect might also introduce a risk if the chosen contractor underperforms and alternatives are scarce.

What is the historical spending pattern for security, transportation, and food services at the El Paso Service Processing Center?

Analyzing historical spending patterns for these services at the El Paso Service Processing Center is essential for understanding the context of the $52.4 million award. This involves examining previous contracts for similar functions at the same facility or comparable facilities. Significant increases or decreases in spending over time could indicate changes in operational needs, inflation, market dynamics, or procurement strategies. Consistent high spending might suggest a stable, ongoing requirement, while fluctuations could point to program adjustments or shifts in contracting approaches. Understanding this history helps in evaluating whether the current award represents a reasonable continuation of past investment or a notable deviation.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact price discovery and overall value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method, while allowing for competition, limits the pool of potential bidders. This exclusion, if based on specific criteria, aims to ensure highly qualified contractors are considered. However, a smaller bidder pool can potentially reduce competitive pressure compared to truly open competition, which might lead to less aggressive pricing. The impact on taxpayers depends heavily on the justification for the exclusion and the competitiveness among the remaining bidders. If the excluded sources were critical competitors, taxpayers might receive less value. If the remaining bidders fiercely competed, the outcome could still be favorable. Detailed justification for the exclusion is key to assessing the value proposition.

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: $52,395,710

Exercised Options: $52,395,710

Current Obligation: $52,395,710

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