HHS awarded $56M for emergency shelter services in Florida, exceeding benchmark by 12.9M

Contract Overview

Contract Amount: $55,971,781 ($56.0M)

Contractor: American Canyon Solutions Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-12-22

End Date: 2020-02-29

Contract Duration: 434 days

Daily Burn Rate: $129.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF FACILITY MANAGEMENT SERVICES (BEGINNING 22 DEC 2018) AT THE EMERGENCY TEMPORARY SHELTER FOR UNACCOMPANIED ALIEN CHILDREN IN HOMESTEAD, FLORIDA

Place of Performance

Location: HOMESTEAD, MIAMI-DADE County, FLORIDA, 33033

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $56.0 million to AMERICAN CANYON SOLUTIONS INC for work described as: IGF::OT::IGF FACILITY MANAGEMENT SERVICES (BEGINNING 22 DEC 2018) AT THE EMERGENCY TEMPORARY SHELTER FOR UNACCOMPANIED ALIEN CHILDREN IN HOMESTEAD, FLORIDA Key points: 1. Contract value significantly higher than comparable services, raising value-for-money concerns. 2. Full and open competition was utilized, but pricing appears elevated. 3. Performance period was relatively short, suggesting a need for rapid deployment. 4. Contract is for emergency relief services, indicating a response to urgent needs. 5. Geographic concentration in Florida for unaccompanied alien children's shelter. 6. No small business set-aside was applied to this contract.

Value Assessment

Rating: questionable

The contract's total value of $55,971,780.91 for facility management services at an emergency shelter appears high when benchmarked against similar contracts. The benchmark cost of $43,075,000 suggests a potential overspend of approximately $12.9 million. This significant difference warrants further investigation into the specific services provided and the prevailing market rates during the contract period to ascertain if the pricing was justified by exceptional circumstances or if it represents a poor value for taxpayer funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While this generally promotes competitive pricing, the elevated cost compared to benchmarks suggests that either the competition did not drive prices down sufficiently, or the specific requirements of the emergency shelter led to higher bids. The number of bidders is not specified, which limits a deeper analysis of the competitive landscape.

Taxpayer Impact: Despite full and open competition, the higher-than-benchmark cost means taxpayers may have paid a premium for these emergency services, potentially due to the urgent nature of the requirement or unforeseen market conditions.

Public Impact

Beneficiaries include unaccompanied alien children requiring shelter and related services. Services delivered encompass facility management for an emergency temporary shelter. Geographic impact is concentrated in Homestead, Florida. Workforce implications include the need for personnel to manage and operate the shelter facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to emergency nature and pricing concerns.
Limited transparency on the number of bidders in the full and open competition.
Contract duration was relatively short, potentially leading to higher per-diem costs.

Positive Signals

Awarded through full and open competition, allowing for broad market participation.
Addresses an urgent humanitarian need for shelter services.
Contract was awarded to a single entity for comprehensive facility management.

Sector Analysis

This contract falls within the 'Emergency and Other Relief Services' sector, a niche area often characterized by rapid deployment and potentially higher costs due to urgency. The market for such services can be volatile, influenced by policy changes and immediate humanitarian needs. Benchmarking is challenging due to the unique nature of emergency shelters, but general facility management costs can provide a comparative basis. The total contract value of $56 million for a period of approximately 14 months is substantial for this type of service.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that larger businesses were eligible to compete and potentially win the entire contract value, with no explicit mechanism to ensure a portion of the work or funds flowed down to the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS), specifically the Office of the Assistant Secretary for Administration. Given the nature of emergency services and the significant funding, regular performance reviews, financial audits, and potentially oversight from HHS's Office of Inspector General would be expected to ensure accountability and proper use of funds. Transparency regarding the specific performance metrics and outcomes achieved is crucial.

Related Government Programs

Emergency Shelter Operations
Unaccompanied Alien Children Services
Federal Facility Management Contracts
Humanitarian Aid Services

Risk Flags

Potential for cost overruns
Elevated pricing compared to benchmark
Limited transparency on bidder numbers

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $56.0 million to AMERICAN CANYON SOLUTIONS INC. IGF::OT::IGF FACILITY MANAGEMENT SERVICES (BEGINNING 22 DEC 2018) AT THE EMERGENCY TEMPORARY SHELTER FOR UNACCOMPANIED ALIEN CHILDREN IN HOMESTEAD, FLORIDA

Who is the contractor on this award?

The obligated recipient is AMERICAN CANYON SOLUTIONS INC.

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 $56.0 million.

What is the period of performance?

Start: 2018-12-22. End: 2020-02-29.

What specific facility management services were included in this $56 million contract?

The provided data indicates the contract was for 'IGF FACILITY MANAGEMENT SERVICES' at an emergency temporary shelter. While specific line items are not detailed, facility management typically encompasses a broad range of services including, but not limited to, building maintenance, security, janitorial services, groundskeeping, waste management, pest control, and potentially utilities management. For an emergency shelter, these services would be critical to ensuring a safe, sanitary, and operational environment for the residents. The substantial value suggests a comprehensive scope of services was required to support the shelter's operations over the contract duration.

How does the contract's duration of 434 days (approx. 14 months) impact the cost-effectiveness?

A duration of 434 days for a $56 million contract implies a significant daily operational cost. While emergency situations often necessitate rapid deployment and can lead to higher per-diem rates compared to long-term, planned facilities, the cost-effectiveness needs to be evaluated against the urgency and scale of the need. If the shelter was intended for a temporary surge in population, the higher cost might be justifiable. However, if the duration extended beyond initial projections or if similar services could have been procured at a lower daily rate, the cost-effectiveness would be questionable. The benchmark comparison of $43M vs $56M suggests potential inefficiencies or premium pricing regardless of duration.

What were the key performance indicators (KPIs) for this facility management contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for facility management services at an emergency shelter, critical KPIs would likely include: maintaining facility cleanliness and sanitation standards, ensuring security and safety of residents and staff, timely response to maintenance requests and repairs, efficient utility management, and adherence to all relevant health and safety regulations. Performance would also be assessed on the contractor's ability to scale services up or down based on occupancy levels and to provide a stable, functional environment conducive to the well-being of the unaccompanied alien children.

Were there any specific challenges or risks associated with managing an emergency shelter for unaccompanied alien children that justified the contract's cost?

Managing an emergency shelter for unaccompanied alien children presents unique challenges and risks that could justify a higher contract cost. These include the need for specialized security protocols, provision of culturally sensitive services, compliance with child welfare regulations, rapid setup and operationalization, and the potential for high resident turnover. The environment demands flexibility, robust support services, and adherence to strict health and safety standards, often under time-sensitive conditions. These factors can increase operational complexity and costs compared to standard facility management contracts, potentially influencing the pricing and the overall value proposition.

What is the track record of American Canyon Solutions Inc. in managing government contracts, particularly in emergency or humanitarian services?

Information regarding the specific track record of American Canyon Solutions Inc. in managing government contracts, especially within emergency or humanitarian services, is not provided in the data. A comprehensive assessment of their past performance, including successful contract completions, any past performance issues, and experience with similar large-scale service provisions, would be necessary to fully evaluate their capability and reliability for this contract. Without this context, it is difficult to assess whether their past performance supports the awarded value and scope of this particular agreement.

How does the $12.9 million difference from the benchmark compare to typical variances in emergency relief service contracts?

A $12.9 million difference from a benchmark, representing a nearly 30% increase over the estimated $43 million, is substantial and warrants scrutiny, even within emergency relief services. While emergency contracts often command premiums due to urgency, specialized requirements, and market volatility, such a large variance suggests potential issues. Typical variances can range from 10-20% depending on the sector and specific circumstances. A difference exceeding this range may indicate factors such as unique site conditions, unforeseen logistical challenges, limited contractor availability during the period of performance, or potentially less competitive pricing than anticipated, even under full and open competition.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15233SOL00531

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Canyon Solutions, Inc.

Address: 41615 REAGAN WAY, MURRIETA, CA, 92562

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $55,971,781

Exercised Options: $55,971,781

Current Obligation: $55,971,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201600005I

IDV Type: IDC

Timeline