DHS awards $26.1M contract for detention transportation services in Los Angeles AOR

Contract Overview

Contract Amount: $26,134,700 ($26.1M)

Contractor: Spectrum Security Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-31

End Date: 2026-04-30

Contract Duration: 546 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: DETENTION TRANSPORTATION SERVICES FOR LOS ANGELESE AOR

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.1 million to SPECTRUM SECURITY SERVICES, INC. for work described as: DETENTION TRANSPORTATION SERVICES FOR LOS ANGELESE AOR Key points: 1. Contract awarded to Spectrum Security Services, Inc. for detention transportation. 2. Services cover the Los Angeles Area of Responsibility (AOR). 3. The contract duration is 546 days. 4. This award is a delivery order under a larger contract. 5. The primary service code is for Security Guards and Patrol Services. 6. The contract type is Full and Open Competition. 7. The base contract value is $4.78M, with this order valued at $26.13M. 8. The contract is labor hour based.

Value Assessment

Rating: fair

The total value of this delivery order is $26.13 million over 546 days, averaging approximately $47,866 per day. Without specific benchmarks for detention transportation services in the Los Angeles AOR, it is difficult to definitively assess value for money. The base contract value of $4.78 million suggests this delivery order represents a significant portion of the overall contract ceiling. Further analysis would require comparison to similar contracts awarded by ICE or other agencies for comparable services and geographic areas.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders that participated in the competition. A full and open competition generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential detention transportation services.

Public Impact

This contract directly supports U.S. Immigration and Customs Enforcement (ICE) operations. It ensures the secure and timely transportation of detainees within the Los Angeles AOR. The services provided are critical for maintaining the integrity of the immigration enforcement system. The contract impacts the workforce by creating demand for security and transportation personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed effectively.
Dependence on a single contractor for critical transportation services.
Geographic concentration of services in the Los Angeles AOR may limit flexibility.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Clear service delivery period with defined start and end dates.
Contract is for essential government functions related to immigration enforcement.

Sector Analysis

The detention transportation services sector is a niche but critical component of the broader security and logistics industry supporting government operations. This contract falls under the Security Guards and Patrol Services category. The market for such services is influenced by government policy, immigration trends, and the need for secure, reliable transportation of individuals in federal custody. Benchmarking would involve comparing pricing and service levels to other government contracts for similar services, potentially within the broader federal law enforcement or corrections sectors.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the prime contractor, Spectrum Security Services, Inc. There is no explicit information regarding subcontracting plans for small businesses within this delivery order. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small business subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would likely reside with the DHS Office of Inspector General, which can conduct audits and investigations into contract performance and potential fraud, waste, or abuse.

Related Government Programs

Detention Services
Immigration Enforcement Support
Secure Transportation Services
Federal Law Enforcement Support Contracts
Custodial Services Contracts

Risk Flags

Potential for high daily costs requires careful monitoring.
Dependence on a single contractor for critical services.
Geographic concentration may limit flexibility.
Labor hour contract type requires diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.1 million to SPECTRUM SECURITY SERVICES, INC.. DETENTION TRANSPORTATION SERVICES FOR LOS ANGELESE AOR

Who is the contractor on this award?

The obligated recipient is SPECTRUM SECURITY SERVICES, 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 $26.1 million.

What is the period of performance?

Start: 2024-10-31. End: 2026-04-30.

What is the track record of Spectrum Security Services, Inc. in performing similar government contracts?

A review of Spectrum Security Services, Inc.'s contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the types and scale of services they have previously provided to federal agencies. Understanding their experience with detention transportation, particularly within the scope and geographic area of this award, is crucial for evaluating their capability to meet the current contract's requirements. Without specific performance data, it is difficult to ascertain their reliability and effectiveness in similar roles.

How does the daily cost of this contract compare to similar detention transportation services?

The daily cost for this contract averages approximately $47,866 ($26.13M / 546 days). To benchmark this value, one would need to compare it against similar contracts awarded by ICE or other federal agencies for detention transportation services in comparable geographic regions. Factors such as the number of individuals transported, security requirements, vehicle types, and labor costs can significantly influence per-day pricing. A comprehensive analysis would involve identifying comparable contracts and adjusting for these variables to determine if the current rate is competitive and represents good value for the taxpayer.

What are the primary risks associated with this detention transportation contract?

Key risks include operational disruptions due to unforeseen events (e.g., vehicle breakdowns, staffing shortages), potential security breaches during transport, and challenges in maintaining compliance with evolving detention standards and regulations. There is also a risk of cost escalation if labor hours are not efficiently managed or if contract scope changes. Furthermore, reliance on a single contractor for a critical service introduces vendor-specific risks, such as financial instability or performance degradation. Effective risk mitigation strategies, including robust oversight and contingency planning, are essential.

How effective is the 'Full and Open Competition' approach in ensuring competitive pricing for detention transportation?

Full and Open Competition is generally considered the most effective method for ensuring competitive pricing as it allows all eligible businesses to bid, fostering a robust marketplace. However, the actual level of competition achieved depends on factors like the number of capable bidders in the specific market, the complexity of the service, and the clarity of the solicitation. If only a few companies can realistically bid on detention transportation services due to specialized requirements or geographic limitations, the competition may be less intense than theoretically possible. Therefore, while the approach is sound, the outcome is contingent on market dynamics.

What is the historical spending trend for detention transportation services by ICE in the Los Angeles AOR?

Analyzing historical spending data for ICE detention transportation services in the Los Angeles AOR would provide context for the current $26.13 million award. This would involve examining contract awards over previous fiscal years to identify trends in contract values, durations, and the number of contractors utilized. Understanding whether this award represents an increase, decrease, or stable level of spending compared to historical patterns can help assess the current procurement's scale and potential implications for future budgeting and resource allocation. It can also reveal shifts in contracting strategies or service needs.

Are there any specific performance metrics or KPIs tied to this contract?

While the provided data does not detail specific Key Performance Indicators (KPIs) or performance metrics, government contracts of this nature typically include stringent requirements. These often encompass on-time performance, adherence to security protocols, vehicle maintenance standards, driver qualifications, and accurate record-keeping. Performance is usually monitored through regular reporting and may be subject to incentive or penalty clauses. A thorough review of the contract document itself would be necessary to identify the precise KPIs and their associated evaluation criteria.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CDCR24Q00000012

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 13967 HWY 94 STE 101, JAMUL, CA, 91935

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

Financial Breakdown

Contract Ceiling: $37,396,062

Exercised Options: $37,396,062

Current Obligation: $26,134,700

Actual Outlays: $12,132,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSWA23D003U

IDV Type: FSS

Timeline