HHS awards $11.1M for emergency child welfare services, citing sole-source need

Contract Overview

Contract Amount: $11,116,069 ($11.1M)

Contractor: Deployed Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-05-19

End Date: 2024-11-30

Contract Duration: 195 days

Daily Burn Rate: $57.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DIRECT CARE SERVICES (DCS) INCLUDING ALL PERSONNEL, SERVICES, AND RESOURCES NECESSARY TO PROVIDE FOR ICF BASED CARE AND SUPERVISION OF UC AGED 13 TO 17-YEARS-OLD, UC RECORDS MANAGEMENT.

Place of Performance

Location: GREENSBORO, GUILFORD County, NORTH CAROLINA, 27410

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.1 million to DEPLOYED SERVICES, LLC for work described as: DIRECT CARE SERVICES (DCS) INCLUDING ALL PERSONNEL, SERVICES, AND RESOURCES NECESSARY TO PROVIDE FOR ICF BASED CARE AND SUPERVISION OF UC AGED 13 TO 17-YEARS-OLD, UC RECORDS MANAGEMENT. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Focus on emergency relief services suggests a response to urgent needs. 3. Short contract duration (195 days) indicates a temporary or immediate requirement. 4. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. No small business set-aside, potentially limiting opportunities for smaller firms. 6. Geographic focus on North Carolina for services.

Value Assessment

Rating: questionable

The contract's value of $11.1 million for a 195-day period for direct care services is substantial. Benchmarking is difficult without more specific service details and comparison to similar emergency relief contracts. The Cost Plus Fixed Fee structure, while common for services where costs are uncertain, carries inherent risks of exceeding initial estimates if not rigorously managed. The lack of competition further complicates a direct value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This approach is typically used when there is a compelling justification, such as an urgent need or a lack of available qualified sources. The absence of a competitive bidding process means that the government did not explore potential cost savings or service improvements that could have arisen from multiple offers.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not secure the most competitive pricing available in the market.

Public Impact

Provides essential direct care services, including supervision and records management, for unaccompanied alien children aged 13-17. Addresses critical needs for vulnerable youth in the child welfare system. Services are specifically targeted for unaccompanied children in North Carolina. Supports the operational capacity of the Administration for Children and Families in managing emergency situations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value.
Cost Plus Fixed Fee contract type introduces risk of cost escalation.
Lack of small business participation may limit broader economic impact.

Positive Signals

Addresses urgent need for direct care services for vulnerable youth.
Contract provides essential support to a critical government function.
Clear definition of services required for unaccompanied children.

Sector Analysis

The contract falls within the broader social services sector, specifically focusing on child welfare and emergency relief. This sector often involves government-funded programs addressing societal needs. Comparable spending in this area can vary widely based on the scale and duration of emergencies, but contracts for residential care and support services for youth are common. The market for such services includes non-profit organizations and specialized service providers.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that opportunities for small businesses to participate in delivering these critical services were not explicitly prioritized through this award mechanism. The absence of set-asides could limit the direct economic benefit to the small business ecosystem in this specific instance.

Oversight & Accountability

Oversight for this contract would primarily fall under the Administration for Children and Families (ACF) within HHS. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure adherence to the contract terms and prevent unnecessary expenditures. Inspector General reviews may be triggered based on specific concerns or audits.

Related Government Programs

Unaccompanied Alien Children Program
Child Welfare Services
Emergency Relief Services
Social Services Block Grant

Risk Flags

Sole-source award may limit cost savings.
Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
Short contract duration requires continuous procurement oversight.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.1 million to DEPLOYED SERVICES, LLC. DIRECT CARE SERVICES (DCS) INCLUDING ALL PERSONNEL, SERVICES, AND RESOURCES NECESSARY TO PROVIDE FOR ICF BASED CARE AND SUPERVISION OF UC AGED 13 TO 17-YEARS-OLD, UC RECORDS MANAGEMENT.

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 $11.1 million.

What is the period of performance?

Start: 2024-05-19. End: 2024-11-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which typically implies a sole-source or limited competition award. For emergency and relief services, the justification often centers on an urgent and compelling need that cannot be met through a full and open competition process within the required timeframe. This could be due to unforeseen circumstances, a sudden surge in demand, or the unique capabilities required that only one contractor can provide. A detailed justification document would normally be required by federal acquisition regulations to support such a sole-source award, outlining the specific circumstances and why competition was not feasible or practical.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for these direct care services?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. While it allows for flexibility when project scope or costs are uncertain, it can incentivize cost overruns if not managed diligently. The government pays for actual costs, so the contractor has less financial risk for cost increases compared to fixed-price contracts. Effective oversight by the contracting officer and technical team is crucial to scrutinize costs, ensure they are reasonable and allocable, and prevent scope creep that could inflate the total contract value beyond the initial estimates. The fixed fee itself is negotiated upfront and does not increase with costs, providing some level of cost certainty for the profit component.

What are the potential risks associated with the short contract duration of 195 days?

A short contract duration of 195 days (approximately 6.5 months) for direct care services suggests a temporary or emergency need. Potential risks include the possibility of service disruption if a follow-on contract is not secured in time, or the contractor potentially incurring higher mobilization costs for a short-term engagement. It also limits the ability to establish long-term performance metrics or build deep institutional knowledge within the contractor's team. For the government, it necessitates a continuous procurement process to ensure continuity of essential services, which can be resource-intensive.

What is the typical market rate or benchmark for similar direct care services for unaccompanied minors?

Benchmarking the per-unit cost for direct care services for unaccompanied minors is complex due to variations in service scope, geographic location, and the specific needs of the children (e.g., age, medical conditions, trauma). However, costs can range significantly, often from several hundred dollars per child per day to over a thousand dollars, depending on the level of care (e.g., basic shelter, therapeutic services, medical support). Without specific details on the services provided by DEPLOYED SERVICES, LLC, and the exact number of children served, a precise benchmark is difficult. The $11.1 million contract over 195 days, serving an unspecified number of children, suggests a substantial daily operational cost that would need detailed comparison against similar HHS-funded programs or state-level contracts for comparable services.

What is the track record of DEPLOYED SERVICES, LLC in providing similar government services?

Information regarding DEPLOYED SERVICES, LLC's specific track record in providing direct care services for unaccompanied minors or similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract history with federal agencies, and any reported issues or successes. Understanding their experience in managing complex service delivery, compliance with regulations pertaining to child welfare, and financial stability would be crucial for evaluating their capability to fulfill this contract effectively.

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

Solicitation ID: 75ACF124R00016

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $219,692,107

Exercised Options: $11,116,069

Current Obligation: $11,116,069

Actual Outlays: $11,116,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline