DHS awarded $60.6M for El Paso facility services, including security, transport, and food

Contract Overview

Contract Amount: $60,621,480 ($60.6M)

Contractor: Global Precision Systems, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-16

End Date: 2022-09-29

Contract Duration: 378 days

Daily Burn Rate: $160.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY21 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, 79936

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $60.6 million to GLOBAL PRECISION SYSTEMS, LLC for work described as: FY21 TASK ORDER FOR GUARD SERVICES, TRANSPORTATION, AND FOOD AT THE EL PASO SERVICE PROCESSING CENTER (EPC), EL PASO, TX Key points: 1. The contract covers essential services for the El Paso Processing Center, indicating a significant operational requirement. 2. Global Precision Systems, LLC, secured this substantial award, suggesting a capacity to manage complex, multi-faceted service delivery. 3. The award was made under full and open competition, implying a competitive bidding process that should have yielded fair market pricing. 4. The duration of the task order is over a year, reflecting the ongoing need for these services. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The specific North American Industry Classification System (NAICS) code 561612 points to security and patrol services as a primary component.

Value Assessment

Rating: good

The contract value of $60.6 million for a period of 378 days represents a significant investment in facility support. Benchmarking this against similar large-scale service contracts for federal detention or processing centers would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure suggests that the government has locked in costs, which is generally favorable. The absence of extensive modifications or change orders, if applicable, would further indicate good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a specific type of competitive procurement. While it indicates competition, the 'exclusion of sources' clause warrants further investigation to understand if specific capabilities or past performance requirements limited the pool of bidders. Typically, full and open competition aims to maximize the number of bidders to ensure the best possible pricing and innovation.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely drove down costs compared to a sole-source or limited competition scenario. However, the exclusion of certain sources could mean that the full spectrum of market competition was not realized, potentially impacting the ultimate cost savings.

Public Impact

Immigrants and asylum seekers processed at the El Paso Service Processing Center benefit from the provision of essential services like security, transportation, and food. The contract ensures the operational continuity of a critical Department of Homeland Security facility. The geographic impact is localized to El Paso, Texas, supporting federal operations in that region. The contract supports jobs within the security, transportation, and food service industries, likely benefiting the local workforce in El Paso.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical, multi-faceted services.
The 'exclusion of sources' in the competition type needs clarification to ensure maximum competitive advantage for taxpayers.
Scope creep could increase costs if not managed tightly under the firm-fixed-price contract.
Ensuring consistent quality across diverse services (security, food, transport) can be challenging for one prime contractor.

Positive Signals

Award to a single contractor simplifies management and oversight for the agency.
Firm-fixed-price contract provides cost certainty for the government.
The contract addresses a clear and ongoing need for facility support services.
Full and open competition, even with exclusions, suggests an effort to achieve market-based pricing.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, with a specific focus on security and facility support. The market for government contracting in these areas is substantial, driven by the need for operational support at federal installations, detention centers, and processing facilities. Comparable spending benchmarks would involve analyzing other large service contracts awarded by DHS or similar agencies for managing detention centers or large processing hubs, considering factors like per-diem costs for services.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Global Precision Systems, LLC, is likely a larger entity. There is no direct information on subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business ecosystem. Future analysis could explore subcontracting reports to determine if small businesses were involved.

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 agency's contracting officers and program managers are responsible for monitoring performance, ensuring compliance with contract terms, and managing any modifications. Transparency is facilitated through contract databases like FPDS. Inspector General oversight from DHS's Office of Inspector General would be applicable for investigating fraud, waste, or abuse related to this award.

Related Government Programs

DHS Detention Facility Services
Federal Law Enforcement Support Contracts
Immigration Processing Center Operations
Government Security Guard Services
Transportation Services for Federal Agencies
Food Services for Government Facilities

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of quality degradation if contractor prioritizes cost-cutting over service excellence.
Complexity of managing multiple, diverse service requirements under one contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $60.6 million to GLOBAL PRECISION SYSTEMS, LLC. FY21 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 $60.6 million.

What is the period of performance?

Start: 2021-09-16. End: 2022-09-29.

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

Global Precision Systems, LLC has a history of securing federal contracts, primarily within the Department of Defense and Department of Homeland Security. Their awards often encompass a range of services including base operations support, facility maintenance, security, and logistics. Analyzing their past performance on contracts of similar size and scope, particularly those involving multi-faceted service delivery like this El Paso task order, is crucial. Key indicators include their ability to meet performance standards, manage budgets effectively, and avoid significant contract disputes or terminations. A review of their contract history would reveal if they have successfully managed complex operations at large federal facilities, providing a basis for assessing their capability to fulfill the requirements of this DHS award.

How does the per-day cost of services under this contract compare to similar federal detention or processing center contracts?

To benchmark the value, we would calculate the approximate daily cost by dividing the total award amount ($60,621,479.66) by the contract duration in days (378). This yields roughly $160,374 per day. Comparing this figure to the daily operational costs of similar facilities managed under federal contracts is essential. Factors influencing this comparison include the specific services provided (security, food, transport, medical, etc.), the number of individuals served, the geographic location (which affects labor and supply costs), and the overall security level required. If similar contracts for comparable facilities operate at a significantly lower daily cost, it could indicate that this award may not represent optimal value for money, assuming equivalent service quality and scope.

What specific factors led to the 'exclusion of sources' in this 'Full and Open Competition' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the procurement was competed, certain potential sources were intentionally excluded. This exclusion typically occurs when specific capabilities, past performance requirements, or unique technical needs are identified that only a limited number of contractors can meet. For instance, if the facility requires highly specialized security protocols or integration with existing unique government systems, only contractors possessing those specific qualifications might be considered eligible. Understanding the justification for excluding other sources is critical. If the exclusions were not adequately justified or were overly restrictive, it could limit competition, potentially leading to higher prices and reduced innovation, thereby diminishing the value for taxpayers.

What are the primary risks associated with consolidating security, transportation, and food services under a single contractor?

Consolidating diverse services like security, transportation, and food under one prime contractor presents several risks. Firstly, it concentrates significant operational reliance on a single entity, making the agency vulnerable if the contractor underperforms or fails in one critical area. Managing quality control across such varied services can be challenging; a contractor strong in security might be weak in food service, potentially leading to service deficiencies. Furthermore, the complexity of managing multiple service streams increases the potential for scope creep and disputes over task allocation and responsibility. Finally, if the contractor subcontracts portions of the work, oversight of those subcontractors adds another layer of complexity and potential risk.

How has DHS spending on facility support services like those in this contract trended over the past five fiscal years?

Analyzing DHS spending trends on facility support services over the past five fiscal years would provide crucial context for this $60.6 million award. This involves examining aggregate spending data for categories such as security services, base operations support, and facility maintenance across various DHS components, including ICE. A rising trend in spending might indicate increasing operational needs, inflation, or a shift towards outsourcing these functions. Conversely, a declining trend could suggest efficiency improvements or reduced operational scope. Understanding this historical spending pattern helps determine if this specific contract represents a typical investment, an anomaly, or part of a larger strategic shift in how DHS manages its facilities.

What are the implications of the 'Firm Fixed Price' contract type for cost control and contractor performance?

The 'Firm Fixed Price' (FFP) contract type is generally favored by the government for services where the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes most of the financial risk. They are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage their expenses efficiently and perform the work effectively to maximize their profit margin. For the government, it provides cost certainty, as the total price is fixed. However, it can also lead to less flexibility if changes are needed, potentially requiring contract modifications. The success of an FFP contract hinges on a clearly defined SOW and robust contractor performance monitoring to ensure quality is not sacrificed for cost savings.

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: $60,621,480

Exercised Options: $60,621,480

Current Obligation: $60,621,480

Actual Outlays: $4,800,082

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