HHS awards $117M contract for unaccompanied children travel coordination to MVM, Inc

Contract Overview

Contract Amount: $116,972,465 ($117.0M)

Contractor: MVM, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-11-23

End Date: 2022-03-18

Contract Duration: 115 days

Daily Burn Rate: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR IS REQUIRED TO COORDINATE AND MAKE TRAVEL ARRANGEMENTS FOR UNACCOMPANIED CHILDREN (UC) WHILE IN THE CUSTODY OF HHS.

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $117.0 million to MVM, INC. for work described as: THE CONTRACTOR IS REQUIRED TO COORDINATE AND MAKE TRAVEL ARRANGEMENTS FOR UNACCOMPANIED CHILDREN (UC) WHILE IN THE CUSTODY OF HHS. Key points: 1. Contract focuses on essential logistical support for vulnerable children. 2. Awarded via full and open competition, indicating a competitive process. 3. Performance period is relatively short, suggesting a need for immediate services. 4. The contract type is Firm Fixed Price, providing cost certainty. 5. Geographic scope is limited to Virginia, potentially impacting national reach. 6. The North American Industry Classification System (NAICS) code 624230 points to emergency and other relief services.

Value Assessment

Rating: fair

The contract value of $117 million for a 115-day period appears high for travel coordination services alone. Benchmarking against similar contracts for logistical support in emergency situations is difficult without more specific service details. However, the per-diem cost implied by the total award and duration suggests a need for careful scrutiny of the services rendered and the efficiency of the operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources may have been excluded prior to the final award. The number of bidders is not specified, but the 'full and open' designation suggests a robust competitive environment was intended. This approach aims to ensure the government receives the best value by considering a wide range of potential offerors.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs and encouraging innovation among contractors vying for the business.

Public Impact

Unaccompanied children in HHS custody benefit from coordinated travel arrangements. Services ensure safe and efficient transportation for vulnerable minors. The geographic impact is primarily within Virginia, where MVM, Inc. is located. The contract supports a critical humanitarian mission within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration raises questions about cost-effectiveness.
Limited transparency on the specific services included in 'travel arrangements'.
Potential for scope creep given the sensitive nature of the services.
Reliance on a single contractor for a critical humanitarian function.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Firm Fixed Price contract provides cost predictability.
Contractor is tasked with a vital service for a vulnerable population.

Sector Analysis

This contract falls within the broader 'Emergency and Other Relief Services' sector, specifically addressing the logistical needs of unaccompanied children. The market for such services is often driven by government needs during humanitarian crises or specific program requirements. While not a typical commercial sector, the demand for specialized support services for vulnerable populations is consistent within government contracting.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided in the data. As this was a full and open competition, it is possible that small businesses could have bid directly or participated as subcontractors. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight would typically be managed by the Administration for Children and Families (ACF) within HHS. Accountability measures would be tied to the performance work statement and delivery of services as outlined in the contract. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.

Related Government Programs

HHS Unaccompanied Alien Children Program
Department of Homeland Security (DHS) border services
Child welfare services contracts

Risk Flags

High contract value for a short duration.
Sensitive nature of services provided to vulnerable children.
Potential for scope creep or unforeseen logistical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $117.0 million to MVM, INC.. THE CONTRACTOR IS REQUIRED TO COORDINATE AND MAKE TRAVEL ARRANGEMENTS FOR UNACCOMPANIED CHILDREN (UC) WHILE IN THE CUSTODY OF HHS.

Who is the contractor on this award?

The obligated recipient is MVM, 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 $117.0 million.

What is the period of performance?

Start: 2021-11-23. End: 2022-03-18.

What specific services are included under 'coordinate and make travel arrangements' for unaccompanied children?

The contract data indicates the core service is coordinating and making travel arrangements for unaccompanied children (UC) in HHS custody. This likely encompasses booking flights, ground transportation, and potentially managing associated logistics such as scheduling, documentation, and communication with relevant parties. However, the precise scope of services, including the level of support provided during transit, the types of transportation utilized, and any ancillary services like escorting or temporary shelter, is not detailed in the provided summary. A more granular review of the Performance Work Statement (PWS) would be necessary to fully understand the breadth and depth of the contractor's responsibilities.

How does the $117 million award compare to historical spending on similar services?

Direct historical spending comparisons for this specific service are challenging without more granular data on similar contracts. The $117 million award over approximately four months (115 days) represents a significant expenditure. It's crucial to understand if this contract is a one-time emergency response or part of an ongoing program. Benchmarking against contracts for child welfare logistics, emergency transportation services, or refugee resettlement support could provide context. However, the unique nature of coordinating travel for unaccompanied minors in federal custody may limit direct comparability, necessitating a focus on cost-effectiveness relative to the mission's criticality and the specific operational demands.

What are the key performance indicators (KPIs) for MVM, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for MVM, Inc. Typically, for a contract involving travel coordination and logistics for a vulnerable population, KPIs would likely focus on timeliness of arrangements, safety and security during transit, adherence to schedules, cost control, communication effectiveness with HHS, and compliance with all relevant regulations and policies. The contract's success would be measured by the efficient and secure movement of children according to HHS protocols. A review of the contract's Performance Work Statement (PWS) would reveal the exact KPIs and associated performance standards.

What is the track record of MVM, Inc. in providing similar services, particularly to government agencies?

MVM, Inc. has a history of providing security and logistics services, including transportation and escort services, often to government agencies. Their experience may include support for federal law enforcement, correctional facilities, and potentially humanitarian missions. While the specific contract for unaccompanied children's travel coordination is a significant undertaking, MVM's background suggests they possess relevant capabilities in managing complex logistical operations and ensuring the security of individuals in transit. Further investigation into their past performance on government contracts, particularly those involving sensitive populations or emergency response, would provide a clearer picture of their suitability and reliability for this role.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include the sensitive nature of transporting unaccompanied minors, which carries ethical and safety considerations. There's also a risk of service disruption, cost overruns (despite the FFP structure, scope changes can occur), and reputational damage if services are not performed adequately. Mitigation strategies would involve rigorous oversight by HHS, clear performance standards in the PWS, background checks for personnel involved, and contingency planning for travel disruptions. The competitive award process itself can mitigate risks by selecting a contractor deemed most capable and offering the best value. However, the short duration and high value warrant close monitoring.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75ACF122R00007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44620 GUILFORD DR STE 150, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $148,800,065

Exercised Options: $116,972,465

Current Obligation: $116,972,465

Actual Outlays: $116,972,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline