HHS awards $273.7M for emergency intake and wrap-around care services in Texas

Contract Overview

Contract Amount: $273,676,996 ($273.7M)

Contractor: Deployed Resources LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-19

End Date: 2021-07-19

Contract Duration: 122 days

Daily Burn Rate: $2.2M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY INTAKE SITE AND WRAP AROUND CARE SERVICES - DONNA

Place of Performance

Location: DONNA, HIDALGO County, TEXAS, 78537

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $273.7 million to DEPLOYED RESOURCES LLC for work described as: EMERGENCY INTAKE SITE AND WRAP AROUND CARE SERVICES - DONNA Key points: 1. Contract awarded to a single vendor, raising questions about competition and potential cost savings. 2. The fixed-price contract structure aims to control costs, but the lack of competition limits benchmarking. 3. Performance period is relatively short, suggesting a response to immediate needs rather than long-term solutions. 4. Services are geographically focused on Texas, addressing specific regional demands. 5. The award falls under emergency and relief services, indicating a response to a critical situation.

Value Assessment

Rating: questionable

The total award of $273.7 million for emergency intake and wrap-around care services is substantial. However, without a competitive bidding process, it is difficult to benchmark the value for money. The fixed-price nature of the contract suggests an attempt to cap costs, but the absence of multiple bids prevents a thorough assessment of whether the pricing is fair and reasonable compared to market rates or similar services. The contract's duration of 122 days also implies a focus on immediate needs, which can sometimes command premium pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the standard procurement process where multiple vendors would submit bids. While sole-source awards can be justified in emergency situations, they limit the government's ability to explore a range of solutions and potentially secure more favorable pricing through competition. The lack of bidders means there is no direct comparison of capabilities or pricing from alternative providers.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government missed an opportunity to leverage market forces for better value.

Public Impact

Provides essential intake and wrap-around care services for individuals in emergency situations. Directly benefits vulnerable populations requiring immediate support and assistance. Services are geographically concentrated in Texas, addressing specific needs within the state. Supports the operational capacity of the Administration for Children and Families in responding to crises.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award limits transparency in pricing.
Short performance period might indicate reactive rather than proactive planning.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award addresses critical emergency needs.
Services are targeted to a specific geographic region requiring assistance.

Sector Analysis

This contract falls within the broader 'Emergency and Other Relief Services' category, often associated with government responses to humanitarian crises, natural disasters, or public health emergencies. The market for such services can be specialized, with a limited number of providers equipped to handle large-scale, rapid deployments. Benchmarking is challenging without competitive data, but the scale of this award suggests a significant operational requirement.

Small Business Impact

The contract was awarded to DEPLOYED RESOURCES LLC and does not indicate any small business set-aside provisions or subcontracting requirements. The sole-source nature of the award further suggests that opportunities for small businesses to participate in this specific contract were likely limited. Analysis of subcontracting would require further information from the awardee.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS), specifically the Administration for Children and Families (ACF). As a sole-source award, transparency might be reduced compared to competed contracts. Accountability would be managed through contract performance monitoring and reporting requirements stipulated in the purchase order. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Emergency Shelter Services
Humanitarian Aid Services
Child Welfare Services
Disaster Relief Funding

Risk Flags

Sole-source award lacks competition
Potential for cost overruns due to lack of bidding
Limited transparency in pricing and vendor selection

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $273.7 million to DEPLOYED RESOURCES LLC. EMERGENCY INTAKE SITE AND WRAP AROUND CARE SERVICES - DONNA

Who is the contractor on this award?

The obligated recipient is DEPLOYED RESOURCES LLC.

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 $273.7 million.

What is the period of performance?

Start: 2021-03-19. End: 2021-07-19.

What specific emergency situation necessitated this sole-source award?

The provided data indicates the contract is for 'EMERGENCY INTAKE SITE AND WRAP AROUND CARE SERVICES' in Texas, awarded in March 2021. While the specific event is not detailed, this timeframe and service type strongly suggest a response to the ongoing humanitarian situation at the U.S. southern border, particularly concerning unaccompanied minors and families seeking entry into the United States. The Administration for Children and Families (ACF) within HHS is responsible for the care and placement of such individuals, making this type of emergency procurement highly probable in that context. The scale of the award and the nature of the services align with the significant influxes of migrants observed during that period.

How does the $273.7 million award compare to similar emergency intake services contracts?

Direct comparison of this $273.7 million award for emergency intake and wrap-around care services is challenging due to the sole-source nature of the contract and the specific, often urgent, circumstances surrounding such awards. Emergency procurements are typically not subject to the same competitive pressures as standard contracts, which can lead to higher unit costs or overall award values. However, given the scale of the U.S. border situation and the need for rapid deployment of facilities and services for potentially tens of thousands of individuals, an award of this magnitude is not entirely unexpected for a multi-month period. Without access to data on other sole-source emergency response contracts for similar services, a precise benchmark is difficult to establish, but it reflects a significant government investment in addressing a large-scale humanitarian challenge.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of $273.7 million is the potential for overpayment due to the lack of competitive bidding. Without multiple vendors vying for the contract, the government may not achieve the most cost-effective pricing. There's also a risk of reduced innovation or service quality, as the single contractor faces less pressure to excel compared to a competitive environment. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to public scrutiny or allegations of impropriety if not adequately justified. Ensuring robust oversight and performance management becomes critical to mitigate these risks.

What is the expected impact of these services on the target population in Texas?

The 'Emergency Intake Site and Wrap Around Care Services' are designed to provide immediate, essential support to individuals, likely migrants or those affected by a crisis, upon arrival or during a period of displacement. Wrap-around care typically includes a range of services such as shelter, food, basic medical attention, case management, and potentially counseling or legal assistance referrals. The goal is to ensure the safety, well-being, and basic needs of the population are met during a critical and often stressful time. For the target population in Texas, these services aim to stabilize their immediate situation, provide a safe environment, and facilitate necessary processing or onward movement, thereby mitigating hardship and ensuring humane treatment.

How does this contract align with the Administration for Children and Families' mission?

This contract directly aligns with the Administration for Children and Families' (ACF) mission, particularly its role in responding to humanitarian crises involving children and families. ACF is responsible for the care and placement of unaccompanied alien children (UAC) apprehended at the border, as well as providing services to other vulnerable populations. By awarding this contract for emergency intake and wrap-around care, ACF is fulfilling its mandate to ensure the safety and well-being of individuals in federal custody or requiring emergency shelter and support. The services provided are critical for managing influxes and ensuring that basic needs are met during a period of transition and uncertainty for the affected individuals.

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: SOCIAL SERVICES › SOCIAL 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: 164 MCPIKE RD, ROME, NY, 13441

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $719,197,572

Exercised Options: $273,676,996

Current Obligation: $273,676,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline