HHS awards $39.3M for influx care facility services in Texas, with a 3-year duration

Contract Overview

Contract Amount: $39,338,957 ($39.3M)

Contractor: Deployed Resources LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-27

End Date: 2025-05-26

Contract Duration: 1,095 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INFLUX CARE FACILITY - CARRIZO SPRINGS

Place of Performance

Location: CARRIZO SPRINGS, DIMMIT County, TEXAS, 78834

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.3 million to DEPLOYED RESOURCES LLC for work described as: INFLUX CARE FACILITY - CARRIZO SPRINGS Key points: 1. Contract awarded to DEPLOYED RESOURCES LLC for logistics consulting. 2. The contract is a Time and Materials type, indicating payment based on labor hours and material costs. 3. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework for services. 4. The contract duration is 1095 days, spanning from May 2022 to May 2025. 5. The North American Industry Classification System (NAICS) code 541614 points to a focus on logistics and distribution consulting. 6. The contract was awarded through full and open competition. 7. The base award amount is $35,926, with the total potential value reaching $39.3 million.

Value Assessment

Rating: fair

The contract's value of $39.3 million over three years for logistics consulting services for an influx care facility requires careful benchmarking. While the base award is modest, the significant increase to the total potential value suggests substantial scope expansion or unforeseen needs. Without specific deliverables or performance metrics, it's challenging to assess value for money. Comparing this to similar contracts for emergency facility logistics would provide better context on pricing and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the process suggests a competitive environment. This approach is generally favored for ensuring fair pricing and access to a wide range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive marketplace, which can lead to more favorable pricing and better service quality, ultimately maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are likely the individuals requiring services at the influx care facility in Carrizo Springs, Texas. The services delivered are related to process, physical distribution, and logistics consulting, crucial for the operation of such a facility. The geographic impact is concentrated in Carrizo Springs, Texas, where the facility is located. Workforce implications could include the need for logistics and support personnel at the facility, potentially creating local employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the significant difference between base award and total potential value.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of the logistics consulting.
The 'influx care facility' context suggests a potentially volatile or rapidly changing operational environment, which could impact service delivery and costs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract is structured as Time and Materials, allowing flexibility to adapt to evolving needs.
The BPA Call mechanism suggests that pre-negotiated terms and conditions are in place, potentially streamlining service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics and distribution consulting. The market for such services is broad, encompassing firms that specialize in supply chain management, operational efficiency, and support services for government and private entities. The size of this contract, with a potential value of $39.3 million, positions it as a significant award within its niche, particularly for supporting critical government operations like influx care facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, DEPLOYED RESOURCES LLC, may choose to subcontract portions of the work to small businesses as part of their overall project management strategy, which could indirectly benefit the small business ecosystem.

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). The contract's Time and Materials nature necessitates close monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by HHS or an Inspector General's office, particularly given the sensitive nature of operating an influx care facility.

Related Government Programs

Influx Care Facility Operations
Logistics and Supply Chain Management Services
Emergency Response Support
Administration for Children and Families Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of detailed performance metrics for assessing contractor effectiveness.
Significant difference between base award and total potential value requires scrutiny.
Nature of 'influx care facility' implies potential for rapid changes and increased demand.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.3 million to DEPLOYED RESOURCES LLC. INFLUX CARE FACILITY - CARRIZO SPRINGS

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 $39.3 million.

What is the period of performance?

Start: 2022-05-27. End: 2025-05-26.

What is the track record of DEPLOYED RESOURCES LLC in managing similar government contracts, particularly those involving logistics for care facilities?

Information regarding the specific track record of DEPLOYED RESOURCES LLC in managing similar government contracts, especially those involving logistics for care facilities, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal awards. Understanding their experience with Time and Materials contracts and operations in sensitive environments like influx care facilities is crucial for evaluating their capability to successfully execute this current award. Further research into their contract portfolio and client feedback would be necessary to form a definitive opinion on their suitability and past performance.

How does the potential value of $39.3 million compare to the typical costs for similar logistics consulting services for influx care facilities?

Benchmarking the potential value of $39.3 million for logistics consulting services at an influx care facility requires specific data on comparable contracts. The provided information lacks details on the scope of services, the number of individuals served, or the duration of operational needs, making direct comparison difficult. However, the significant difference between the base award ($35,926) and the total potential value ($39.3 million) suggests a wide range of potential service requirements or a high degree of uncertainty in the facility's operational needs. Without more context on the scale and complexity of the facility's logistics requirements, it is challenging to definitively state whether this amount is typical or excessive. Further analysis would involve examining contracts for similar facilities, considering factors like capacity, service duration, and specific logistical challenges.

What are the primary risks associated with a Time and Materials contract for logistics services at an influx care facility?

Time and Materials (T&M) contracts, like the one awarded to DEPLOYED RESOURCES LLC, carry inherent risks, particularly in the context of an influx care facility. The primary risk is cost escalation, as the government pays for actual labor hours and material costs incurred by the contractor. Without strong oversight and defined ceilings, this can lead to costs exceeding initial estimates. For an influx care facility, which may experience fluctuating demand and unpredictable operational challenges, the T&M structure could incentivize longer work hours or higher material usage than strictly necessary. This necessitates robust monitoring by the contracting agency to ensure efficiency and prevent contractor overcharging. Additionally, defining the 'materials' and 'labor categories' clearly in the contract is crucial to avoid disputes.

What are the implications of this contract being awarded under a BPA Call?

Awarding this contract under a Blanket Purchase Agreement (BPA) Call signifies that a pre-existing BPA was already in place, likely with DEPLOYED RESOURCES LLC or a broader agreement that allows for task orders. BPAs are established with vendors to streamline the procurement of supplies or services when specific needs are anticipated but not precisely defined in advance. A BPA Call means a specific order has been placed against that BPA. This method can expedite the acquisition process, potentially reduce administrative burden, and leverage pre-negotiated pricing or terms. For taxpayers, it can mean faster delivery of needed services and potentially better pricing due to the established relationship and volume commitments inherent in a BPA.

How does the geographic location in Texas influence the logistics and cost of operating this influx care facility?

The geographic location in Carrizo Springs, Texas, can significantly influence the logistics and cost of operating an influx care facility. Texas, particularly its southern border regions, has historically faced challenges related to the influx of migrants, which can strain resources and necessitate rapid deployment of facilities. Logistics costs can be affected by transportation distances to the facility for supplies, personnel, and potentially for the individuals being housed. The availability of local labor, infrastructure (like utilities and transportation networks), and the cost of goods and services in that specific region will also play a role. Furthermore, the climate in Texas can impact operational needs, such as requirements for cooling or specific types of supplies. These factors collectively contribute to the overall cost and complexity of managing the facility's logistics.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

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: $41,209,254

Exercised Options: $39,338,957

Current Obligation: $39,338,957

Actual Outlays: $39,338,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75ACF121A00009

IDV Type: BPA

Timeline