DHS awards $35.4M contract for detention services and transportation, with Akima Global Services securing the deal

Contract Overview

Contract Amount: $35,424,263 ($35.4M)

Contractor: Akima Global Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-30

End Date: 2024-09-29

Contract Duration: 365 days

Daily Burn Rate: $97.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES AND TRANSPORTATION SERVICES AT FLORENCE SERVICE PROCESSING CENTER (SPC)

Place of Performance

Location: FLORENCE, PINAL County, ARIZONA, 85132

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.4 million to AKIMA GLOBAL SERVICES, LLC for work described as: DETENTION SERVICES AND TRANSPORTATION SERVICES AT FLORENCE SERVICE PROCESSING CENTER (SPC) Key points: 1. Contract value of $35.4M over one year indicates significant operational needs for detention services. 2. Full and open competition suggests a robust market for these specialized services. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. Service area in Arizona highlights a key region for immigration processing and detention. 5. The award to Akima Global Services, LLC, places a major provider in charge of critical functions.

Value Assessment

Rating: good

The contract value of $35.4 million for a one-year period for detention and transportation services appears reasonable given the scope of operations for U.S. Immigration and Customs Enforcement (ICE) in Arizona. Benchmarking against similar large-scale detention support contracts, this award falls within expected ranges for comprehensive service provision. The firm fixed-price structure helps mitigate cost overruns, suggesting a degree of value for money if services are delivered as specified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that ICE sought the best value and pricing from the market. This approach generally leads to more competitive pricing and a wider selection of capable service providers.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces, ensuring that federal funds are used more efficiently for essential services.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential support for detention and transportation operations. Services delivered include the secure detention of individuals and their transportation, critical for managing immigration processes. The geographic impact is focused on Arizona (AZ), a key state for immigration enforcement and processing. Workforce implications include job creation for security personnel, drivers, and support staff employed by Akima Global Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical, sensitive services.
Ensuring consistent quality and humane treatment across all detention and transportation operations.
Managing the logistical complexities of transporting individuals securely and efficiently.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially good pricing.
Firm fixed-price contract type helps control costs and provides budget certainty.
Akima Global Services, LLC, is an established government contractor with experience in similar service areas.

Sector Analysis

The detention services and transportation sector within government contracting is a significant market, driven by the needs of agencies like DHS and ICE. This contract fits within the broader security and logistics services industry, which is characterized by specialized providers capable of handling sensitive operations. Comparable spending benchmarks for similar ICE contracts can vary widely based on location, duration, and specific service requirements, but a $35.4 million annual award suggests a substantial operational footprint.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, Akima Global Services, LLC, as a large prime contractor, may engage small businesses for subcontracting opportunities to fulfill specific aspects of the service delivery, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring Akima Global Services to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed operational performance metrics may not always be publicly disclosed. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

ICE Detention Management Contracts
DHS Transportation Services
Immigration Enforcement Support Services
Federal Law Enforcement Support

Risk Flags

Contractor performance risk
Service quality assurance
Detainee welfare and safety
Transportation security
Regulatory compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.4 million to AKIMA GLOBAL SERVICES, LLC. DETENTION SERVICES AND TRANSPORTATION SERVICES AT FLORENCE SERVICE PROCESSING CENTER (SPC)

Who is the contractor on this award?

The obligated recipient is AKIMA GLOBAL SERVICES, 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 $35.4 million.

What is the period of performance?

Start: 2023-09-30. End: 2024-09-29.

What is Akima Global Services, LLC's track record with similar DHS/ICE contracts?

Akima Global Services, LLC, has a substantial history of performing contracts for various U.S. government agencies, including significant work with the Department of Homeland Security (DHS) and its components like U.S. Immigration and Customs Enforcement (ICE). Their portfolio often includes base operations, logistics, security, and facility management services, which are directly relevant to detention and transportation operations. While specific performance details for past contracts are not always publicly detailed, their continued success in winning competitive bids suggests a generally positive track record and capability to meet government requirements. Reviewing past performance evaluations and contract awards can provide further insight into their reliability and effectiveness in delivering complex services under demanding conditions.

How does the $35.4M value compare to other ICE detention and transportation contracts?

The $35.4 million value for a one-year contract for detention services and transportation at the Florence Service Processing Center (SPC) is substantial, reflecting the scale and complexity of ICE operations in Arizona. ICE awards numerous contracts for detention and transportation services across the country, with values varying significantly based on the number of individuals served, geographic scope, and duration. Larger contracts can range from tens of millions to hundreds of millions of dollars annually. This specific award appears to be in the mid-to-high range for a single-site, one-year contract, suggesting a significant operational requirement for ICE in that region. Benchmarking against similar contracts in comparable high-traffic immigration areas would provide a more precise comparison of value for money.

What are the primary risks associated with this type of contract?

The primary risks associated with this contract involve the sensitive nature of detention services and the potential for operational failures. These include risks related to the safety and well-being of detainees, ensuring secure and timely transportation, and maintaining compliance with all relevant laws and regulations. Contractor performance failures, such as inadequate staffing, security breaches, or transportation delays, could lead to significant legal, ethical, and reputational consequences for DHS. Furthermore, managing the logistical complexities and ensuring consistent service quality across a 365-day operation presents ongoing challenges. The firm fixed-price nature also means that cost overruns due to unforeseen circumstances could impact the contractor's profitability, potentially affecting service delivery if not managed carefully.

How effective are firm fixed-price contracts in managing costs for detention services?

Firm fixed-price (FFP) contracts are generally considered effective for managing costs in service areas where the scope of work is well-defined and risks can be reasonably anticipated, such as detention services and transportation. This contract type shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently to maintain profitability. For ICE, an FFP contract provides budget certainty, as the total cost is established upfront. However, the effectiveness can be diminished if unforeseen circumstances arise that significantly alter the scope or cost of performance, potentially leading to contract modifications or disputes. Robust performance monitoring by the government is crucial to ensure the contractor is meeting requirements without compromising quality to control costs.

What is the historical spending trend for detention and transportation services in Arizona?

Historical spending trends for detention and transportation services in Arizona, particularly by ICE, have generally shown a consistent and significant investment due to the state's role as a major border state. While specific year-over-year data for the Florence SPC contract is not provided, overall federal spending on immigration detention and related services has fluctuated based on policy changes, border dynamics, and administration priorities. Arizona consistently ranks among the top states for immigration enforcement activities, necessitating substantial resources for detention capacity and movement of individuals. Analyzing broader ICE spending patterns in the region would reveal trends in contract values, service providers, and the overall demand for these critical services over time.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,424,263

Exercised Options: $35,424,263

Current Obligation: $35,424,263

Actual Outlays: $35,424,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70CDCR20D00000004

IDV Type: IDC

Timeline