DHS awards $11M+ for Florence SPC operations and maintenance to Satellite Services Inc
Contract Overview
Contract Amount: $11,038,807 ($11.0M)
Contractor: Satellite Services Inc
Awarding Agency: Department of Homeland Security
Start Date: 2019-07-15
End Date: 2026-08-15
Contract Duration: 2,588 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPERATIONS AND MAINTENANCE 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 $11.0 million to SATELLITE SERVICES INC for work described as: OPERATIONS AND MAINTENANCE SERVICES AT FLORENCE SERVICE PROCESSING CENTER (SPC) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 2500 days indicates a long-term need for these services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The award to Satellite Services Inc. represents a significant investment in facility support. 5. The contract is for operations and maintenance, crucial for facility functionality. 6. The geographic location in Arizona may have implications for local workforce and economy.
Value Assessment
Rating: good
The contract value of over $11 million for operations and maintenance services at a federal facility appears reasonable given the long duration (over 7 years). Benchmarking against similar facilities support contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure offers predictability, but the total value could fluctuate based on actual service delivery and potential modifications. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of competition for these services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among bidders.
Public Impact
The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential facility support. Services delivered include operations and maintenance for the Florence Service Processing Center (SPC). The geographic impact is concentrated in Arizona, specifically Florence. The contract supports jobs related to facility management, maintenance, and potentially security services in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed carefully.
- Reliance on a single contractor for critical operations and maintenance poses a risk if the contractor underperforms.
- Potential for scope creep if the definition of 'operations and maintenance' is not clearly delineated.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm-fixed-price contract type provides cost certainty for the government.
- Long-term contract suggests a stable and ongoing requirement, allowing for specialized service development.
Sector Analysis
This contract falls within the Facilities Support Services sector, which is a significant component of the broader government contracting market. This sector encompasses a wide range of services essential for the operation and upkeep of federal buildings and installations. Spending in this area is often driven by the need to maintain secure and functional environments for government operations. Comparable spending benchmarks would typically be found within government-wide contracts for facility maintenance and management.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded through full and open competition, there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Satellite Services Inc. voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within DHS. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Federal Buildings and Facilities Maintenance
- Immigration and Customs Enforcement Operations Support
- Department of Homeland Security Facility Management
- Correctional Facility Operations and Maintenance
- Government Service Contracts
Risk Flags
- Long-term contract duration
- Critical facility operations and maintenance
- Potential for contractor performance issues
Tags
operations-and-maintenance, facilities-support-services, department-of-homeland-security, u-s-immigration-and-customs-enforcement, firm-fixed-price, full-and-open-competition, arizona, service-processing-center, satellite-services-inc, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.0 million to SATELLITE SERVICES INC. OPERATIONS AND MAINTENANCE SERVICES AT FLORENCE SERVICE PROCESSING CENTER (SPC)
Who is the contractor on this award?
The obligated recipient is SATELLITE 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 $11.0 million.
What is the period of performance?
Start: 2019-07-15. End: 2026-08-15.
What is the historical spending pattern for operations and maintenance services at the Florence Service Processing Center?
The provided data shows a single award of $11,038,806.73 to Satellite Services Inc. with a start date of July 15, 2019, and an end date of August 15, 2026. This suggests that this contract represents the primary, if not sole, federal spending for these specific operations and maintenance services at the Florence SPC during this period. Without access to historical contract databases prior to 2019 or information on potential predecessor contracts, it is difficult to establish a long-term spending trend. However, the duration and value indicate a consistent and significant federal investment in maintaining this facility.
How does the per-unit cost of these services compare to similar contracts for detention or processing centers?
A direct per-unit cost comparison is challenging without specific metrics like cost per square foot, cost per detainee supported, or cost per maintenance task. The contract is a firm-fixed-price award for comprehensive operations and maintenance, making it an all-encompassing service. To benchmark effectively, one would need to identify contracts with similar scope and scale, ideally for facilities of comparable size and function within DHS or other agencies. The total value of over $11 million spread over approximately 7 years (2588 days) suggests an average annual cost of roughly $1.57 million. This figure needs to be contextualized by the facility's size, complexity, and operational demands.
What is the track record of Satellite Services Inc. in performing similar government contracts?
Satellite Services Inc. has been awarded this contract valued at over $11 million for operations and maintenance at the Florence SPC. To assess their track record, a review of their past performance on similar federal contracts would be necessary. This would involve examining contract histories for timeliness of delivery, quality of services, adherence to budget, and any past performance issues or awards. Information on their experience with facilities of similar size and security requirements, particularly within the immigration or detention sectors, would be crucial for a comprehensive evaluation.
What are the key performance indicators (KPIs) used to measure the success of this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for operations and maintenance services at a facility like the Florence SPC, typical KPIs would likely include response times for maintenance requests, uptime of critical systems (e.g., HVAC, plumbing, electrical), preventative maintenance completion rates, adherence to safety standards, and overall facility condition assessments. The firm-fixed-price nature suggests that meeting defined service levels and maintaining the facility in good working order are paramount.
Are there any identified risks associated with this contractor or the services being provided?
Potential risks associated with this contract could include contractor performance issues, such as delays in maintenance, subpar quality of work, or failure to meet operational requirements. Given the critical nature of facility operations, any lapse could impact the functionality and security of the Florence SPC. Another risk is the long duration of the contract, which could lead to complacency or difficulty in adapting to changing needs if not managed proactively. Furthermore, reliance on a single provider for comprehensive O&M could pose a challenge if the contractor faces financial instability or operational disruptions.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support 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: 70CMSW19Q00000012
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 309 S FRONT ST, MARQUETTE, MI, 49855
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,397,619
Exercised Options: $11,038,807
Current Obligation: $11,038,807
Actual Outlays: $5,018,387
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS21F015CA
IDV Type: FSS
Timeline
Start Date: 2019-07-15
Current End Date: 2026-08-15
Potential End Date: 2029-08-15 00:00:00
Last Modified: 2026-03-03
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