HHS awarded $73.8M for emergency influx site services in Texas, with limited competition

Contract Overview

Contract Amount: $73,804,660 ($73.8M)

Contractor: Deployed Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-21

End Date: 2021-07-17

Contract Duration: 118 days

Daily Burn Rate: $625.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EMERGENCY INFLUX SITE AND WRAP AROUND SERVICES - DIMMIT SITE 2

Place of Performance

Location: CARRIZO SPRINGS, DIMMIT County, TEXAS, 78834

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $73.8 million to DEPLOYED SERVICES, LLC for work described as: EMERGENCY INFLUX SITE AND WRAP AROUND SERVICES - DIMMIT SITE 2 Key points: 1. The contract value represents a significant investment in emergency response services. 2. Limited competition suggests potential for higher costs or reduced innovation. 3. The short performance period indicates an urgent, short-term need. 4. The firm-fixed-price structure shifts some cost risk to the contractor. 5. Services are geographically concentrated in Texas, addressing a specific regional need. 6. The award was made via a purchase order, a less formal procurement method.

Value Assessment

Rating: fair

The total award of $73.8 million for approximately four months of service is substantial. Benchmarking this against similar emergency influx site contracts is challenging due to the unique and urgent nature of such deployments. However, the absence of robust competition and the use of a purchase order suggest that a thorough price reasonableness analysis may have been limited. The per-unit cost for services rendered would require a detailed breakdown of staffing, facilities, and support provided to establish a fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a limited or sole-source procurement. The data specifies 'NOT COMPETED,' suggesting that the agency likely relied on specific circumstances or pre-existing relationships to award the contract without a broad solicitation. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs, potentially impacting the value for money achieved.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without a competitive process, it's difficult to ascertain if the pricing reflects the best possible market rates for these critical services.

Public Impact

The primary beneficiaries are children and youth requiring emergency shelter and support services. Services delivered include shelter, care, and wrap-around support for vulnerable populations. The geographic impact is concentrated in Dimmit, Texas, addressing a specific regional crisis. Workforce implications include the need for personnel to operate and staff the emergency site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Urgent nature of award could bypass standard due diligence.
Short performance period might not allow for long-term service stabilization.
Geographic concentration limits broader applicability of lessons learned.

Positive Signals

Addresses an immediate and critical need for emergency services.
Firm-fixed-price contract provides cost certainty for the government.
Services are targeted to a specific vulnerable population.

Sector Analysis

The contract falls within the broader Health and Human Services sector, specifically focusing on child and youth services. The market for emergency shelter and support services can be highly specialized, often involving non-profit organizations or government contractors with specific expertise in crisis response. The size of this particular award is significant, reflecting a substantial, albeit temporary, surge in demand or capacity need.

Small Business Impact

The contract was not competed and the data indicates no small business set-aside (ss=false) or subcontracting (sb=false) requirements were explicitly noted. This suggests that the primary contractor, DEPLOYED SERVICES, LLC, likely performed the services directly or through its own means, without a specific focus on engaging small businesses as subcontractors for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS), specifically the Administration for Children and Families (ACF). As a purchase order for emergency services, the level of detailed public oversight might be less than for a large, competed contract. Accountability would be managed through contract performance monitoring and financial audits, with potential Inspector General involvement if specific concerns arise regarding fund mismanagement or fraud.

Related Government Programs

Emergency Shelter Services
Child Welfare Programs
Youth Services
Government Purchase Orders
Crisis Response Contracts

Risk Flags

Limited competition
Lack of transparency in procurement
Potential for cost overruns due to urgency
Short-term solution may not address root causes

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $73.8 million to DEPLOYED SERVICES, LLC. EMERGENCY INFLUX SITE AND WRAP AROUND SERVICES - DIMMIT SITE 2

Who is the contractor on this award?

The obligated recipient is DEPLOYED SERVICES, 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 $73.8 million.

What is the period of performance?

Start: 2021-03-21. End: 2021-07-17.

What specific services were included under the 'wrap-around services' for the Dimmit site?

The term 'wrap-around services' in the context of an emergency influx site typically encompasses a comprehensive suite of support designed to address the holistic needs of the individuals being served. For children and youth, this often includes case management, educational support, mental and physical health services, recreational activities, and potentially legal or social work assistance. Given the emergency nature, the focus would be on stabilization and immediate care, ensuring basic needs like food, shelter, and safety are met, while also providing access to essential services that support well-being and facilitate transition to more permanent solutions.

Why was this contract awarded on a 'not competed' basis?

Contracts are awarded on a 'not competed' basis when specific circumstances justify bypassing the standard competitive bidding process. For emergency services, this often occurs when there is an urgent and compelling need that cannot be met through a lengthy solicitation process. Reasons could include a sudden surge in arrivals, a natural disaster, or a public health crisis requiring immediate deployment of resources. The government must justify that only one source is capable of meeting the requirement or that the urgency precludes competition, adhering to Federal Acquisition Regulation (FAR) exceptions.

What is the typical duration and scale of 'emergency influx sites' managed by HHS?

Emergency influx sites are typically temporary facilities established to manage sudden and significant increases in the number of individuals needing shelter and care, often related to humanitarian crises, border surges, or public health emergencies. Their duration is usually short-term, ranging from a few weeks to several months, designed to provide immediate relief until more permanent solutions can be implemented. The scale can vary dramatically, from housing dozens to thousands of individuals, depending on the nature and magnitude of the event. This contract's duration of approximately four months and its substantial funding suggest a significant, albeit time-limited, operational requirement.

How does a 'firm fixed price' contract structure benefit the government in an emergency situation?

A Firm Fixed Price (FFP) contract structure benefits the government by providing cost certainty. Under an FFP agreement, the contractor agrees to a set price for the specified goods or services, regardless of the contractor's actual costs. This shifts the risk of cost overruns from the government to the contractor. In an emergency situation, where costs can be unpredictable due to rapidly changing conditions, the FFP structure helps the agency manage its budget more effectively and avoid unexpected financial liabilities. It simplifies financial oversight and makes budgeting more predictable.

What are the potential risks associated with awarding a large contract via a 'purchase order'?

Purchase orders (POs) are generally used for simpler acquisitions of goods or services below certain dollar thresholds or for specific types of agreements. Awarding a large contract, such as this $73.8 million award, via a PO, especially when 'not competed,' can introduce risks. These risks include potentially less rigorous price negotiation and justification compared to formal contracts, reduced transparency, and potentially weaker contractual protections or oversight mechanisms. While POs can offer speed, they might bypass the detailed review and competition that typically ensures best value and manages risk for substantial government expenditures.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Child and Youth 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: 6820 W LINEBAUGH AVE STE 105, TAMPA, FL, 33625

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

Financial Breakdown

Contract Ceiling: $221,490,728

Exercised Options: $73,804,660

Current Obligation: $73,804,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline