DHS awards $62.8M contract for detention services, raising questions on value and competition

Contract Overview

Contract Amount: $62,794,324 ($62.8M)

Contractor: Akima Infrastructure Protection LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-01

End Date: 2025-08-31

Contract Duration: 364 days

Daily Burn Rate: $172.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE DETENTION SERVICES AT KROME SPC.

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33194

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $62.8 million to AKIMA INFRASTRUCTURE PROTECTION LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE DETENTION SERVICES AT KROME SPC. Key points: 1. Contract value of $62.8M for one year of detention services. 2. Competition was 'Full and Open Competition after Exclusion of Sources', suggesting potential limitations. 3. The contract is a Firm Fixed Price type, which can limit cost flexibility. 4. Performance period is one year, indicating a short-term need. 5. The contractor, Akima Infrastructure Protection LLC, has a track record in protective services. 6. The service is categorized under Security Guards and Patrol Services. 7. The contract is a Delivery Order under a larger IDIQ or similar vehicle.

Value Assessment

Rating: fair

The contract value of $62.8 million for a single year of detention services at Krome SPC appears substantial. Benchmarking against similar detention service contracts is difficult without more specific service level agreements and geographic comparisons. The firm fixed-price structure means the government pays a set amount regardless of actual usage, which could represent good value if utilization is high, or poor value if underutilized. Further analysis of historical spending for this facility and comparable facilities would be needed to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources'. This specific procurement method indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the number of eligible bidders. The exact reasons for exclusion are not provided, but this could impact the level of competition and potentially the final price. Without knowing the number of bidders or the rationale for source exclusion, it's challenging to fully assess the competitive landscape.

Taxpayer Impact: The limited competition may have resulted in a higher price than if all potential sources were allowed to bid. Taxpayers could be paying a premium due to these exclusions.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention services. The services delivered include the operation and management of detention facilities. The geographic impact is localized to Krome SPC in Florida. Workforce implications include the creation of jobs for security personnel, administrative staff, and support services at the detention facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion could lead to suboptimal pricing.
Firm fixed-price contracts can lead to overpayment if service utilization is lower than anticipated.
The short one-year duration may indicate a need for ongoing re-competition or potential instability in service provision.
Lack of detailed performance metrics makes it difficult to assess the quality of detention services provided.

Positive Signals

The contract is awarded to Akima Infrastructure Protection LLC, a known entity in the protective services sector.
The firm fixed-price contract provides cost certainty for the government.
The contract is for essential government services, ensuring operational continuity for ICE.

Sector Analysis

The contract falls within the Security Guards and Patrol Services sector, a segment of the broader government contracting market focused on physical security and facility management. This sector is characterized by a mix of large and small businesses competing for government contracts. Spending in this area is often driven by national security, law enforcement, and border protection needs. Comparable spending benchmarks would involve analyzing other detention facility contracts or large-scale security service awards by federal agencies.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor is expected to handle the majority of the work, and opportunities for small businesses within this specific award may be limited unless they are direct subcontractors to Akima Infrastructure Protection LLC.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Accountability measures would be defined in the contract's Performance Work Statement (PWS), outlining expected service levels and standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Detention Services Contracts
Immigration and Customs Enforcement Contracts
Department of Homeland Security Contracts
Security Services Contracts
Facility Management Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for overpayment with firm fixed-price contract if utilization is low.
Short contract duration may impact long-term cost-effectiveness and service continuity.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $62.8 million to AKIMA INFRASTRUCTURE PROTECTION LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE DETENTION SERVICES AT KROME SPC.

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 $62.8 million.

What is the period of performance?

Start: 2024-09-01. End: 2025-08-31.

What is the track record of Akima Infrastructure Protection LLC in providing detention services?

Akima Infrastructure Protection LLC is a subsidiary of Akima LLC, which has a significant presence in government contracting, particularly in areas like logistics, facilities, and protective services. While specific details on their detention service contracts are not immediately available in this data snippet, their broader experience suggests they possess the capability to manage complex security and operational requirements. A deeper dive into their contract history with DHS, ICE, or other agencies would reveal their performance on similar contracts, including any past performance issues or commendations. Their ability to secure this significant contract indicates a level of trust and perceived capability by the awarding agency.

How does the $62.8M annual cost compare to similar detention facility contracts?

Benchmarking the $62.8 million annual cost requires comparing it to contracts for detention facilities of similar size, location, and service complexity. Without specific details on the capacity of Krome SPC, the level of services required (e.g., medical, recreational, staffing ratios), and the prevailing market rates in Florida, a direct comparison is challenging. However, for a single year, this amount suggests a significant operational cost, potentially indicating a large facility or a comprehensive service package. Researching other ICE or CBP detention contracts, particularly those in the same region, would provide a more accurate comparative context for assessing whether this price is within the expected range.

What are the primary risks associated with this firm fixed-price contract for detention services?

The primary risk with a firm fixed-price (FFP) contract for detention services is the potential for the government to overpay if the actual utilization of the facility or the intensity of services required is lower than anticipated. The contractor is guaranteed payment regardless of fluctuating needs. Conversely, the contractor bears the risk of underestimating costs, which could lead to reduced profit margins or, in extreme cases, performance issues if they cut corners to maintain profitability. For detention services, where demand can fluctuate, an FFP contract might not be the most flexible pricing structure if service levels vary significantly.

What does 'Full and Open Competition after Exclusion of Sources' imply for the effectiveness of the competition?

'Full and Open Competition after Exclusion of Sources' is a specific procurement method that allows for broad competition but explicitly excludes certain potential offerors. This exclusion must be justified by the agency, often due to reasons like national security, proprietary information, or specific program requirements. While it aims for open competition among the remaining eligible sources, the exclusion inherently limits the pool of bidders. The effectiveness of the competition, therefore, depends heavily on the justification for the exclusion and the number of qualified bidders remaining. If only a few sources remain, the competition might be less robust, potentially impacting price discovery and overall value.

What are the historical spending patterns for detention services at Krome SPC or similar facilities?

Analyzing historical spending patterns for detention services at Krome SPC or comparable facilities is crucial for understanding cost trends and identifying potential anomalies. Without access to historical data specific to this task order or facility, it's difficult to provide precise figures. However, federal spending on detention services, particularly by agencies like ICE, has historically been substantial and subject to fluctuations based on immigration policies and enforcement priorities. Examining past contract awards for Krome SPC, if any, or for similar-sized detention centers operated by ICE or CBP, would reveal whether the current $62.8 million award represents an increase, decrease, or stable level of expenditure compared to previous periods.

What are the potential implications of the one-year duration for service continuity and cost?

The one-year duration of this delivery order (with an option for renewal implied by the delivery order structure, though not explicitly stated here) suggests a short-term requirement or a strategy of frequent re-competition. For service continuity, a short duration can introduce risk if the incumbent contractor is not selected in a subsequent competition, potentially leading to a transition period with disruptions. From a cost perspective, frequent re-competitions can incur administrative costs for the government. It also means the government may not benefit from long-term efficiencies or economies of scale that could be achieved with a longer-term contract, potentially leading to higher overall costs 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70CDCR24R00000008

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR, 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: $62,959,909

Exercised Options: $62,959,909

Current Obligation: $62,794,324

Actual Outlays: $45,148,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70CDCR24D00000009

IDV Type: IDC

Timeline