HHS awards $79M for Emergency Relief Services to Southwest Key Programs Inc

Contract Overview

Contract Amount: $79,049,082 ($79.0M)

Contractor: Southwest KEY Programs Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-25

End Date: 2021-06-30

Contract Duration: 97 days

Daily Burn Rate: $814.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MIDLAND UC WRAP AROUND SERVICES

Place of Performance

Location: MIDLAND, MIDLAND County, TEXAS, 79701

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $79.0 million to SOUTHWEST KEY PROGRAMS INC for work described as: MIDLAND UC WRAP AROUND SERVICES Key points: 1. Significant contract value of $79M for emergency relief. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of 97 days suggests a short-term, urgent need. 4. Focus on emergency services indicates a response to immediate societal needs.

Value Assessment

Rating: questionable

The contract value of $79M for a 97-day period is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to similar emergency relief services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible price through market competition.

Taxpayer Impact: The lack of competition on a $79M contract could result in higher costs for taxpayers if a more competitive process would have yielded a lower price.

Public Impact

Provides critical emergency and relief services to vulnerable populations. Supports a specific region (Texas) with essential social services. Ensures continuity of care for individuals and families in need during a declared emergency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value for short duration
Potential for cost overruns due to sole-source award

Positive Signals

Addresses urgent societal needs
Provides essential relief services

Sector Analysis

The Administration for Children and Families (ACF) within HHS often contracts for social services, including emergency relief. The $79M award is significant for this type of service, especially given the short timeframe.

Small Business Impact

The awardee, Southwest Key Programs Inc., is not identified as a small business. This contract does not appear to include provisions for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value and that such awards are justified and not a pattern for non-competitive procurement.

Related Government Programs

Emergency and Other Relief Services
Department of Health and Human Services Contracting
Administration for Children and Families Programs

Risk Flags

Sole-source award
High dollar value
Short contract duration
Lack of transparency in pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $79.0 million to SOUTHWEST KEY PROGRAMS INC. MIDLAND UC WRAP AROUND SERVICES

Who is the contractor on this award?

The obligated recipient is SOUTHWEST KEY PROGRAMS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $79.0 million.

What is the period of performance?

Start: 2021-03-25. End: 2021-06-30.

What specific emergency circumstances necessitated a sole-source award for these services, and were alternatives explored?

The data does not specify the exact emergency. However, sole-source awards are typically justified when there's a compelling urgency, a unique capability, or only one responsible source. The government must document these justifications thoroughly to ensure accountability and prevent potential misuse of non-competitive contracting.

How was the $79M price determined without competitive bidding, and what mechanisms are in place to ensure cost efficiency?

Without competition, pricing is often based on historical data, cost-plus models, or negotiation with the single source. The government should have conducted a thorough cost analysis. Oversight is crucial to monitor expenditures and ensure the funds are used effectively for the intended emergency relief purposes.

What is the long-term strategy for providing these emergency services, and will future needs be met through competitive contracts?

This contract appears to be a short-term, emergency measure. Future, ongoing needs for these services should ideally be addressed through a competitive procurement process to ensure best value and encourage market innovation. A clear transition plan should be in place.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6002 JAIN LN, AUSTIN, TX, 78721

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,049,082

Exercised Options: $79,049,082

Current Obligation: $79,049,082

Actual Outlays: $31,162,730

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline