HHS awarded $47.7M for emergency refugee services, highlighting urgent need for unaccompanied children's care

Contract Overview

Contract Amount: $47,721,194 ($47.7M)

Contractor: Asset Protection & Security Services, L.P.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-02

End Date: 2021-06-30

Contract Duration: 89 days

Daily Burn Rate: $536.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE ADMINISTRATION FOR CHILDREN AND FAMILIES, OFFICE OF REFUGEE RESETTLEMENT (ORR) IS RESPONSIBLE FOR THE CARE AND PLACEMENT OF UNACCOMPANIED CHILDREN (UC) TRANSFERRED FROM THE DEPARTMENT OF HOMELAND SECURITY. ORR HAS IDENTIFIED AN URGENT NEED FOR A

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $47.7 million to ASSET PROTECTION & SECURITY SERVICES, L.P. for work described as: THE ADMINISTRATION FOR CHILDREN AND FAMILIES, OFFICE OF REFUGEE RESETTLEMENT (ORR) IS RESPONSIBLE FOR THE CARE AND PLACEMENT OF UNACCOMPANIED CHILDREN (UC) TRANSFERRED FROM THE DEPARTMENT OF HOMELAND SECURITY. ORR HAS IDENTIFIED AN URGENT NEED FOR A Key points: 1. Contract awarded during a period of high need for unaccompanied children's services. 2. Sole-source award indicates limited market availability or urgent circumstances. 3. Contract duration was short, suggesting a stop-gap measure or immediate response. 4. The award represents a significant investment in critical humanitarian services. 5. Focus on emergency relief and care for vulnerable populations. 6. Geographic focus on Texas for service delivery.

Value Assessment

Rating: fair

The contract value of $47.7 million for an 89-day period is substantial, reflecting the urgent nature of the services required. Benchmarking value is difficult without comparable emergency sole-source contracts for unaccompanied children's services. The fixed-price nature of the contract provides some cost certainty, but the lack of competition limits the ability to assess if the price represents the best value achievable in a competitive market. The award amount per day is approximately $536,193, which is high but may be justified by the specialized and immediate needs of the population served.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor was solicited. This approach is typically used when there is a compelling justification, such as an urgent need or a lack of available sources. The absence of competition means that price discovery through market forces was not utilized, potentially leading to a higher cost than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. While the urgency of the situation likely necessitated a swift award, the absence of competition limits assurance that the most cost-effective solution was secured.

Public Impact

Unaccompanied children transferred from DHS benefit from essential care and placement services. Services provided include shelter, food, medical care, and case management. The geographic impact is concentrated in Texas, where services were delivered. The contract supports a critical humanitarian mission addressing a surge in child arrivals. Workforce implications include the need for specialized personnel to care for children.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Short contract duration raises questions about long-term planning and sustainability.
High daily cost warrants scrutiny to ensure efficient resource utilization.

Positive Signals

Addresses an urgent and critical humanitarian need.
Provides essential services to a vulnerable population.
Awarded to a firm with experience in protection and security services.

Sector Analysis

This contract falls within the 'Emergency and Other Relief Services' category, a sector often characterized by rapid response and specialized needs. The market for such services can be limited, especially during crises, which can lead to sole-source awards. The federal government frequently contracts for humanitarian aid and emergency services, particularly for vulnerable populations like unaccompanied children. Benchmarking is challenging due to the unique and often urgent nature of these requirements.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award and the specialized services required likely meant that larger, established providers were the primary focus. This contract does not appear to have a direct positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would fall under the Department of Health and Human Services, specifically the Administration for Children and Families. Given the sole-source nature and the critical services provided, robust oversight would be expected to ensure proper care, accountability, and adherence to program requirements. Transparency may be limited due to the emergency and sole-source circumstances.

Related Government Programs

Office of Refugee Resettlement Programs
Unaccompanied Alien Children Program
Emergency Shelter Services
Humanitarian Aid Contracts

Risk Flags

Sole-source award
High daily cost
Emergency procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $47.7 million to ASSET PROTECTION & SECURITY SERVICES, L.P.. THE ADMINISTRATION FOR CHILDREN AND FAMILIES, OFFICE OF REFUGEE RESETTLEMENT (ORR) IS RESPONSIBLE FOR THE CARE AND PLACEMENT OF UNACCOMPANIED CHILDREN (UC) TRANSFERRED FROM THE DEPARTMENT OF HOMELAND SECURITY. ORR HAS IDENTIFIED AN URGENT NEED FOR A

Who is the contractor on this award?

The obligated recipient is ASSET PROTECTION & SECURITY SERVICES, L.P..

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 $47.7 million.

What is the period of performance?

Start: 2021-04-02. End: 2021-06-30.

What specific circumstances led to the sole-source award for these emergency services?

The data indicates an 'urgent need' for the care and placement of unaccompanied children (UC) transferred from the Department of Homeland Security. The Administration for Children and Families (ACF), through its Office of Refugee Resettlement (ORR), identified this critical gap. Sole-source awards are typically justified under federal acquisition regulations when there is a public exigency, emergency, or when only one responsible source is capable of providing the required services. In this context, the surge in UC arrivals likely created a situation where immediate capacity was needed, and ORR may have determined that Asset Protection & Security Services, L.P. was the most readily available or capable provider to meet this urgent demand without the delay of a full competitive process.

How does the daily cost of this contract compare to typical emergency shelter or care services for unaccompanied children?

The contract's total value was $47,721,194.38 over 89 days, resulting in a daily cost of approximately $536,193. This daily rate is exceptionally high and significantly exceeds typical per-child costs for standard shelter operations. However, it's crucial to consider the context: this was an emergency award to address a surge in unaccompanied children, likely involving immediate setup, intensive staffing, specialized care, and potentially higher operational overhead due to the crisis nature. Standard contracts for ongoing shelter services would likely have lower daily rates. Without specific benchmarks for emergency surge response contracts for this population, a direct comparison is difficult, but the rate warrants scrutiny to ensure efficiency within the emergency context.

What is the track record of Asset Protection & Security Services, L.P. in providing services to unaccompanied children or similar vulnerable populations?

The provided data identifies Asset Protection & Security Services, L.P. (APS) and its NAICS code (624230 - Emergency and Other Relief Services). While the data confirms APS was awarded this contract, it does not detail their specific track record with unaccompanied children or similar vulnerable populations. A deeper investigation would be required to ascertain their experience, past performance on government contracts (especially with HHS/ACF/ORR), and their capacity to manage the complex needs of this demographic. Their core business may lean towards security, necessitating a review of their transition or expansion into humanitarian care services.

What are the potential risks associated with a sole-source award in an emergency situation like this?

Sole-source awards, while sometimes necessary for emergencies, carry inherent risks. The primary risk is the potential for inflated costs, as the absence of competition removes the downward pressure that multiple bids would exert on pricing. There's also a risk of reduced quality or innovation, as the contractor may face less pressure to excel when they are the only option. Furthermore, it can limit transparency and public accountability. For taxpayers, the risk is paying more than necessary and potentially not receiving the most effective or efficient service available. Ensuring robust oversight and justification for the sole-source determination is critical to mitigate these risks.

How does this contract fit into the broader historical spending patterns for unaccompanied children's services?

This $47.7 million award for an 89-day emergency period represents a significant, albeit short-term, expenditure. Historical spending for UC services has fluctuated based on migration patterns and administration policies. Periods of increased border arrivals often necessitate rapid scaling of services, leading to emergency procurements that can appear as large, short-term awards. Compared to routine, competitively procured contracts for long-term shelter or foster care, this emergency award's daily rate is likely higher. Understanding its place requires comparing it to other emergency surge response contracts rather than standard operational spending, reflecting a reactive approach to immediate humanitarian needs.

What oversight mechanisms were in place to ensure the proper care and financial accountability for this sole-source contract?

Oversight for this contract would primarily reside with the Administration for Children and Families (ACF) within HHS. Given the sensitive nature of serving unaccompanied children, ACF would be expected to have program specialists and contracting officers monitoring performance, ensuring compliance with care standards, and verifying expenditures. The specific mechanisms could include site visits, regular reporting requirements from the contractor, financial audits, and performance reviews. The existence of an Inspector General within HHS also provides an independent layer of oversight for detecting fraud, waste, and abuse, although the effectiveness depends on the IG's jurisdiction and resources allocated to this specific contract.

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: 5502 BURNHAM DRIVE SUITE A, CORPUS CHRISTI, TX, 78413

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,721,194

Exercised Options: $47,721,194

Current Obligation: $47,721,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline