DHS awards $34.7M for Port Isabel guard, food, and transport services to Akima Infrastructure Protection LLC

Contract Overview

Contract Amount: $34,758,309 ($34.8M)

Contractor: Akima Infrastructure Protection LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-04-01

End Date: 2023-11-30

Contract Duration: 608 days

Daily Burn Rate: $57.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PORT ISABEL SERVICE PROCESSING CENTER GUARD, FOOD AND LOCAL TRANSPORTATION AWARD - FY22 TASK ORDER

Place of Performance

Location: LOS FRESNOS, CAMERON County, TEXAS, 78566

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.8 million to AKIMA INFRASTRUCTURE PROTECTION LLC for work described as: PORT ISABEL SERVICE PROCESSING CENTER GUARD, FOOD AND LOCAL TRANSPORTATION AWARD - FY22 TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 608 days indicates a medium-term service requirement. 3. The fixed-price contract type shifts cost risk to the contractor. 4. Services include security, food, and local transportation, indicating a comprehensive support role. 5. The award is a delivery order under a larger contract vehicle. 6. The geographic focus is Texas, specifically Port Isabel.

Value Assessment

Rating: good

The total award amount of $34.7 million over approximately 20 months represents a significant investment in facility support. Benchmarking this against similar contracts for security, food, and transportation services at federal facilities of comparable size and complexity would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally promotes cost control by the contractor. The specific services provided are essential for the operational continuity of the Port Isabel Service Processing Center.

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.' While the 'full and open' aspect indicates a broad solicitation, the 'exclusion of sources' clause suggests specific conditions or requirements may have limited the pool of eligible bidders. Further details on the reasons for excluding certain sources would clarify the extent of competition. The number of bidders is not specified, but the designation implies a structured competitive process.

Taxpayer Impact: A full and open competition, even with exclusions, generally aims to achieve competitive pricing for taxpayers. The specific nature of the exclusions will determine if the full benefit of broad market competition was realized.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) operations at the Port Isabel Service Processing Center. Services delivered include essential security, food provision, and local transportation for personnel and potentially detainees. The geographic impact is concentrated in Port Isabel, Texas, supporting federal operations in that region. The contract supports a workforce through Akima Infrastructure Protection LLC, likely including security personnel, food service staff, and drivers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' significantly narrowed the bidder pool.
Dependence on a single contractor for critical support services (security, food, transport) creates operational risk.
The firm-fixed-price nature requires careful monitoring to ensure quality is not sacrificed for cost savings.

Positive Signals

Awarded through a competitive process, indicating an effort to secure fair pricing.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Comprehensive service package (guard, food, transport) can streamline facility management for the agency.

Sector Analysis

This contract falls within the broader government services sector, specifically focusing on facility support and security. The North American Industry Classification System (NAICS) code 561612 (Security Guards and Patrol Services) indicates a market segment dedicated to private security operations. Government spending in this area is substantial, driven by the need to secure federal facilities, manage detention centers, and provide logistical support. Comparable contracts often involve multi-year durations and significant dollar values, reflecting the critical nature of these services.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the contract was not formally designated for small businesses. Therefore, the direct impact on the small business ecosystem through set-asides is likely minimal. However, the prime contractor, Akima Infrastructure Protection LLC, may engage small businesses as subcontractors, which would be a secondary avenue for small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security (DHS). Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and quality control provisions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Homeland Security Facility Support Contracts
Immigration and Customs Enforcement Detention Services
Federal Security Guard Services
Government Food Service Contracts
Transportation Services for Federal Agencies

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of service quality degradation under firm-fixed-price if not properly monitored.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.8 million to AKIMA INFRASTRUCTURE PROTECTION LLC. PORT ISABEL SERVICE PROCESSING CENTER GUARD, FOOD AND LOCAL TRANSPORTATION AWARD - FY22 TASK ORDER

Who is the contractor on this award?

The obligated recipient is AKIMA INFRASTRUCTURE PROTECTION 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 $34.8 million.

What is the period of performance?

Start: 2022-04-01. End: 2023-11-30.

What is the track record of Akima Infrastructure Protection LLC in performing similar government contracts?

Akima Infrastructure Protection LLC, a subsidiary of Akima LLC, has a history of performing various government contracts, including security, logistics, and facility support services. Their portfolio often includes work with agencies like DHS, the Department of Defense, and others. Analyzing their past performance ratings, any past performance issues or awards, and the scale of previously managed contracts would provide insight into their capability to execute this specific Port Isabel requirement. A review of their contract history would reveal if they have successfully managed similar integrated service contracts involving security, food, and transportation at federal installations.

How does the pricing of this contract compare to similar services at other federal processing centers?

A direct comparison of the total contract value ($34.7M) to similar services at other federal processing centers requires detailed benchmarking. Key factors include the size and capacity of the Port Isabel facility, the specific service level requirements (e.g., 24/7 security, type of food service, scope of transportation), and the geographic location's cost of living and labor. Without access to comparable contract data for facilities of similar operational scope and location, it is difficult to definitively assess if the pricing is competitive. However, the firm-fixed-price nature suggests the contractor is expected to manage costs within the awarded amount.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential service disruptions (e.g., security breaches, food supply issues, transportation failures), contractor performance deficiencies, and cost overruns if the fixed-price contract is poorly estimated. Mitigation strategies typically involve robust performance monitoring by ICE, clearly defined service level agreements (SLAs) with penalties for non-compliance, and regular contractor performance reviews. The firm-fixed-price structure itself mitigates government cost overrun risk, placing that burden on the contractor. Ensuring the contractor has adequate resources and contingency plans is also crucial.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The effectiveness hinges on the justification for excluding sources. If exclusions are based on legitimate, objective criteria (e.g., specialized capabilities, security clearances, past performance requirements essential for the mission), then it can still yield competitive outcomes while ensuring the best-suited contractor is selected. However, if exclusions are arbitrary or overly restrictive, it can limit competition, potentially leading to higher prices and reduced value for taxpayers. A thorough review of the justification for exclusion is necessary to assess its impact on value.

What is the historical spending trend for security, food, and transportation services at the Port Isabel Service Processing Center?

Analyzing historical spending data for the Port Isabel Service Processing Center for these specific service categories would reveal trends in cost and contract duration. This includes examining previous contracts awarded for similar functions, their values, and the contractors involved. Understanding if spending has increased, decreased, or remained stable over time, and whether contract scope has changed, provides context for the current $34.7 million award. Significant year-over-year increases might warrant closer scrutiny of service scope or pricing.

What are the implications of the firm-fixed-price contract type on service quality and cost certainty?

A firm-fixed-price (FFP) contract provides the highest degree of cost certainty for the government, as the price is set and generally not subject to adjustment unless the contract scope changes. For the contractor, it means they assume the risk of cost overruns. This can incentivize efficiency and cost control by the contractor. However, it can also lead to a risk of reduced service quality if the contractor seeks to cut costs by compromising on performance standards to protect their profit margin. Robust government oversight and clearly defined performance metrics are essential to ensure quality is maintained under an FFP contract.

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: 70CDCR21R00000007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR STE 700, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $34,758,309

Exercised Options: $34,758,309

Current Obligation: $34,758,309

Actual Outlays: $34,758,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR22D00000002

IDV Type: IDC

Timeline