DHS Awards $29.9M for Due Diligence and Design Services to KPB Services LLC for Processing Centers
Contract Overview
Contract Amount: $29,914,916 ($29.9M)
Contractor: KPB Services LLC
Awarding Agency: Department of Homeland Security
Start Date: 2025-11-29
End Date: 2026-09-04
Contract Duration: 279 days
Daily Burn Rate: $107.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DUE DILIGENCE SERVICES AND CONCEPT DESIGN FOR PROCESSING CENTERS AND MEGA CENTERS THROUGHOUT THE UNITED STATES
Place of Performance
Location: HOLTON, JACKSON County, KANSAS, 66436
State: Kansas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $29.9 million to KPB SERVICES LLC for work described as: DUE DILIGENCE SERVICES AND CONCEPT DESIGN FOR PROCESSING CENTERS AND MEGA CENTERS THROUGHOUT THE UNITED STATES Key points: 1. Contract awarded to KPB Services LLC for $29.9M. 2. Services include due diligence and concept design for processing centers. 3. The contract is a delivery order with a firm fixed price. 4. The period of performance spans from November 2025 to September 2026. 5. The North American Industry Classification System (NAICS) code is 531210.
Value Assessment
Rating: questionable
The contract value of $29.9M for due diligence and concept design services appears high given the limited scope. Benchmarking against similar contracts for architectural and engineering services is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had competed.
Taxpayer Impact: The limited competition raises concerns about the optimal use of taxpayer funds, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Impacts immigration processing infrastructure development. Services are critical for planning and executing major federal facilities. Potential for long-term implications on operational efficiency and cost.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Lack of detailed service description hinders value assessment.
- Potential for scope creep in design services.
Positive Signals
- Addresses critical infrastructure needs for DHS.
- Firm fixed price contract provides cost certainty.
- Specific focus on processing centers and mega centers.
Sector Analysis
The real estate and brokerage sector (NAICS 531210) typically involves services related to property transactions and management. This contract appears to extend into specialized design and planning for federal facilities, which may fall outside standard benchmarks for this sector.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine if opportunities were missed for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure that the due diligence and design services meet the government's requirements and that the project stays within budget. The limited competition necessitates careful monitoring of performance and costs.
Related Government Programs
- Offices of Real Estate Agents and Brokers
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Limited competition raises cost concerns.
- Lack of transparency in vendor selection.
- Potential for cost overruns without competitive pressure.
- Insufficient detail on service scope for value assessment.
Tags
offices-of-real-estate-agents-and-broker, department-of-homeland-security, ks, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $29.9 million to KPB SERVICES LLC. DUE DILIGENCE SERVICES AND CONCEPT DESIGN FOR PROCESSING CENTERS AND MEGA CENTERS THROUGHOUT THE UNITED STATES
Who is the contractor on this award?
The obligated recipient is KPB 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 $29.9 million.
What is the period of performance?
Start: 2025-11-29. End: 2026-09-04.
What specific deliverables are expected under 'due diligence services' and 'concept design' to justify the $29.9M contract value?
The contract should clearly define the scope of 'due diligence,' which might include site assessments, environmental reviews, and feasibility studies. 'Concept design' should outline the level of detail required, such as preliminary architectural drawings, space planning, and functional layouts. Understanding these specifics is crucial for assessing if the allocated funds align with the expected outputs and if the pricing is reasonable compared to industry standards for similar complex federal projects.
How will DHS ensure cost-effectiveness and prevent potential overspending given the sole-source nature of this award?
DHS should implement rigorous oversight mechanisms, including independent cost reviews and detailed performance metrics. Regular progress reports and milestone reviews will be essential to track expenditures against deliverables. Establishing clear change order procedures and actively managing scope are critical to prevent cost overruns. Benchmarking against similar, competitively awarded design contracts, even if for different agencies, can provide a reference point for cost reasonableness.
What is the long-term strategic benefit of awarding this contract on a limited basis for processing center development?
Awarding on a limited basis might be justified if KPB Services LLC possesses unique expertise or proprietary information essential for the specific processing center requirements, or if there was an urgent need that precluded a full competition. The long-term benefit hinges on the successful and efficient development of these critical facilities. However, the lack of competition raises questions about whether alternative solutions or vendors could have offered comparable or superior long-term value and cost-effectiveness.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Offices of Real Estate Agents and Brokers › Offices of Real Estate Agents and Brokers
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 19035 US HIGHWAY 75, HOLTON, KS, 66436
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,914,916
Exercised Options: $29,914,916
Current Obligation: $29,914,916
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70CMSW26D00000001
IDV Type: IDC
Timeline
Start Date: 2025-11-29
Current End Date: 2026-09-04
Potential End Date: 2026-09-04 00:00:00
Last Modified: 2026-03-03
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