DHS awards $32.6M sole-source contract for non-citizen communication services to Talton Communications Inc

Contract Overview

Contract Amount: $32,624,740 ($32.6M)

Contractor: Talton Communications Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-04-13

End Date: 2023-07-31

Contract Duration: 474 days

Daily Burn Rate: $68.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NON-CITIZENS COMMUNICATION SERVICES (NCS) FOR ERO/CMD

Place of Performance

Location: SELMA, DALLAS County, ALABAMA, 36701

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.6 million to TALTON COMMUNICATIONS INC for work described as: NON-CITIZENS COMMUNICATION SERVICES (NCS) FOR ERO/CMD Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities and potentially impacting price discovery. 2. The contract's value of $32.6 million represents a significant investment in communication services for non-citizens. 3. Performance period spans over a year, indicating a substantial operational requirement. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. Awarded to a single vendor, raising questions about market availability and alternative solutions. 6. The service category, Telecommunications Resellers, suggests reliance on third-party providers for communication infrastructure.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific service requirements. Without competitive bids, it's difficult to assess if the $32.6 million represents a fair market price. The contract's duration and scope suggest a significant need, but the lack of competition prevents a direct comparison to similar, competitively awarded contracts. Further analysis would require understanding the specific services provided and the market rates for such specialized telecommunications resale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The absence of competition means there were no other bidders, and the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are non-citizens interacting with U.S. Immigration and Customs Enforcement (ICE). The contract delivers essential communication services, likely facilitating case management, notifications, and access to information. The geographic impact is national, covering operations managed by ICE's Executive Office for Immigration Review (EOIR) and the Executive Office for Enforcement and Removal Operations (ERO). Workforce implications are indirect, supporting the operational capacity of ICE personnel by ensuring effective communication channels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Reliance on a single vendor for critical communication services could pose a risk if the vendor fails to perform.
The specific nature of 'non-citizens communication services' may require specialized infrastructure or agreements that limit vendor options.

Positive Signals

Contract awarded to Talton Communications Inc., a known entity in telecommunications.
The contract is for a defined period, allowing for reassessment of needs and competition in the future.
Fixed-price contract type provides budget predictability.
The contract supports essential government functions related to immigration enforcement and processing.

Sector Analysis

The telecommunications resale market is a segment of the broader IT and communications sector. This contract falls under the 'Telecommunications Resellers' category (NAICS 517911), which involves companies that provide telecommunications services by reselling capacity from other providers. The federal government is a significant consumer of telecommunications services, with spending spread across various agencies for voice, data, and internet connectivity. Benchmarking this specific contract is difficult without more detail on the services, but overall federal spending on telecommunications is in the billions annually.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless they are specifically engaged by the prime contractor. This could represent a missed opportunity to foster small business participation in government contracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically U.S. Immigration and Customs Enforcement (ICE). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the performance metrics would be key areas for oversight. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security (DHS) Contracts
U.S. Immigration and Customs Enforcement (ICE) Operations
Federal Telecommunications Services
Non-Citizen Services Contracts
Executive Office for Immigration Review (EOIR) Support
Executive Office for Enforcement and Removal Operations (ERO) Support

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.6 million to TALTON COMMUNICATIONS INC. NON-CITIZENS COMMUNICATION SERVICES (NCS) FOR ERO/CMD

Who is the contractor on this award?

The obligated recipient is TALTON COMMUNICATIONS INC.

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 $32.6 million.

What is the period of performance?

Start: 2022-04-13. End: 2023-07-31.

What specific communication services are being provided under this contract, and how do they differ from standard telecommunications offerings?

The contract data specifies 'NON-CITIZENS COMMUNICATION SERVICES (NCS) FOR ERO/CMD' and categorizes the vendor under 'Telecommunications Resellers' (NAICS 517911). While the exact nature of 'NCS' is not detailed, it implies specialized communication solutions tailored for the needs of non-citizens within the immigration enforcement and removal process. This could include secure communication channels, multilingual support, specific notification systems, or dedicated lines for case management and legal access. Standard telecommunications might refer to general voice and data services, whereas NCS likely involves a more integrated and purpose-built suite of communication tools designed to meet the unique requirements of immigration agencies like ICE's Executive Office for Enforcement and Removal Operations (ERO) and Executive Office for Detention and Deportation (EODD, potentially implied by CMD). The value of $32.6 million over its duration suggests a comprehensive service package beyond basic connectivity.

What is the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. Federal procurement regulations (like FAR Part 6) allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements. Without further documentation from the agency (e.g., a Justification and Approval document), the precise reason for this sole-source award remains unknown. Agencies must typically demonstrate that competition is not feasible or not in the government's best interest. It is presumed that ICE would have explored if other vendors could provide these specialized non-citizen communication services or if the requirement was so unique or time-sensitive that only Talton Communications Inc. could fulfill it. The lack of competition means taxpayers did not benefit from potential cost savings that a competitive bidding process might have yielded.

How does the $32.6 million contract value compare to historical spending on similar communication services for non-citizens by ICE or DHS?

Direct historical spending comparisons for 'Non-Citizens Communication Services (NCS)' are difficult to establish with the provided data alone, as this may be a specific or newly defined service category. However, the $32.6 million figure represents a substantial investment. Federal agencies, including DHS and its components like ICE, spend billions annually on telecommunications and IT services. To benchmark this specific contract, one would need to analyze ICE's budget allocations for communication infrastructure, case management technology, and prisoner communication systems over previous fiscal years. Examining contracts awarded for similar services, even if under different descriptions, to other immigration or detention facilities could provide comparative insights. The sole-source nature of this award also complicates direct value-for-money comparisons against potentially competitively procured services.

What are the potential risks associated with a sole-source contract of this magnitude, particularly concerning vendor performance and long-term cost-effectiveness?

Sole-source contracts carry inherent risks. Firstly, the absence of competition can lead to inflated prices, as the vendor faces no pressure to offer the most cost-effective solution. Secondly, the government may become overly reliant on a single vendor, creating a potential lock-in situation that makes switching providers difficult or costly in the future. Vendor performance is also a concern; without competitive alternatives readily available, the agency might have less leverage to enforce strict performance standards. If Talton Communications Inc. underperforms, ICE may face significant disruption to its operations. Long-term cost-effectiveness is questionable, as the initial $32.6 million award might not represent the best value achievable through a competitive process. Continuous monitoring and clear performance metrics are crucial to mitigate these risks.

What is the track record of Talton Communications Inc. in providing telecommunications services, particularly to government agencies?

Information on Talton Communications Inc.'s specific track record, especially concerning government contracts, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with federal, state, or local government clients. As a 'Telecommunications Reseller,' their capabilities likely involve managing and integrating services from larger carriers. Understanding their experience with similar-sized projects, their financial stability, and their ability to meet the specialized requirements of immigration-related communication services would be critical. Without this background information, it's difficult to fully evaluate their suitability and reliability as the sole-source provider for this significant contract.

Industry Classification

NAICS: Information › Other Telecommunications › Telecommunications Resellers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 910 RAVENWOOD DR, SELMA, AL, 36701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,374,740

Exercised Options: $34,374,740

Current Obligation: $32,624,740

Actual Outlays: $24,114,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline