HHS awards $170M for 1350 UAC beds in Homestead, FL, to Acuity-CHS, LLC
Contract Overview
Contract Amount: $170,357,551 ($170.4M)
Contractor: Acuity-Chs, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2018-07-07
End Date: 2019-04-20
Contract Duration: 287 days
Daily Burn Rate: $593.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: IGF::OT::IGF::ORR EMERGENCY SHELTER OPERATIONS, HOMESTEAD FL - 1350 UAC BEDS
Place of Performance
Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920
State: Florida Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $170.4 million to ACUITY-CHS, LLC for work described as: IGF::OT::IGF::ORR EMERGENCY SHELTER OPERATIONS, HOMESTEAD FL - 1350 UAC BEDS Key points: 1. Significant federal investment in emergency shelter operations. 2. Contract awarded via full and open competition. 3. Potential for high per-unit costs given the nature of emergency services. 4. Focus on Health and Human Services sector, specifically child welfare.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking per-unit costs for emergency shelter operations is challenging due to variable needs and rapid deployment requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. However, the urgency of emergency shelter needs may have influenced final pricing.
Taxpayer Impact: Taxpayer funds are being used to address critical humanitarian needs, providing essential services for unaccompanied alien children.
Public Impact
Provides essential shelter and care for vulnerable unaccompanied alien children. Addresses a critical humanitarian need during a period of high demand. Supports federal efforts to manage border security and child welfare.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize higher spending.
- Emergency procurements may lack optimal price negotiation.
- Limited duration may not reflect long-term needs.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical and urgent national need.
Sector Analysis
This contract falls within the Health and Human Services sector, specifically emergency relief services. Benchmarks for emergency shelter operations are difficult to establish due to their ad-hoc and urgent nature.
Small Business Impact
No information is available regarding small business participation in this contract. The award was made to a single entity, Acuity-CHS, LLC.
Oversight & Accountability
The Office of the Inspector General (OIG) within HHS is responsible for overseeing the use of funds and ensuring accountability for such contracts. The contract's performance and financial management would be subject to standard oversight procedures.
Related Government Programs
- Emergency and Other Relief Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- High per-unit cost potential
- Cost-plus-fixed-fee structure
- Emergency procurement urgency
- Lack of small business participation noted
- Limited contract duration
Tags
emergency-and-other-relief-services, department-of-health-and-human-services, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $170.4 million to ACUITY-CHS, LLC. IGF::OT::IGF::ORR EMERGENCY SHELTER OPERATIONS, HOMESTEAD FL - 1350 UAC BEDS
Who is the contractor on this award?
The obligated recipient is ACUITY-CHS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $170.4 million.
What is the period of performance?
Start: 2018-07-07. End: 2019-04-20.
What was the average cost per bed per day, and how does it compare to similar emergency shelter contracts?
The total award was $170,357,550.79 over approximately 287 days for 1350 beds. This equates to roughly $470 per bed per day. Comparing this to similar emergency shelter contracts is difficult as these are highly variable based on location, services provided, and urgency. However, this figure appears high and warrants further scrutiny to ensure cost-effectiveness.
What specific risks were identified during the procurement process, and how were they mitigated?
Given the emergency nature, risks likely included rapid deployment needs, potential for cost overruns due to the cost-plus-fixed-fee structure, and ensuring adequate service quality. Mitigation would involve clear performance standards, robust oversight, and potentially pre-negotiated service level agreements. The full and open competition suggests efforts were made to solicit competitive bids despite the urgency.
How effectively did this contract meet the stated objectives of providing emergency shelter for unaccompanied alien children?
The effectiveness of the contract hinges on the quality of care, safety, and timely processing of the children. While the funding was substantial, detailed performance metrics and outcomes data would be needed to fully assess effectiveness. The contract's duration suggests it was intended as a temporary solution to an immediate need.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 18233SOL00364
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8810 ASTRONAUT BLVD, CAPE CANAVERAL, FL, 32920
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $170,357,551
Exercised Options: $170,357,551
Current Obligation: $170,357,551
Actual Outlays: $142,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSP233201700026I
IDV Type: IDC
Timeline
Start Date: 2018-07-07
Current End Date: 2019-04-20
Potential End Date: 2019-10-19 00:00:00
Last Modified: 2025-05-30
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