HHS awards $36.6M for 500 emergency shelter beds in Homestead, FL to Acuity-CHS, LLC

Contract Overview

Contract Amount: $36,556,866 ($36.6M)

Contractor: Acuity-Chs, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2018-02-22

End Date: 2018-07-06

Contract Duration: 134 days

Daily Burn Rate: $272.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF ORR EMERGENCY SHELTER - HOMESTEAD, FL - 500 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 $36.6 million to ACUITY-CHS, LLC for work described as: IGF::OT::IGF ORR EMERGENCY SHELTER - HOMESTEAD, FL - 500 UAC BEDS Key points: 1. Contract awarded for emergency shelter services in Florida. 2. Acuity-CHS, LLC is the contractor. 3. The contract value is $36.6 million. 4. Services are for 500 UAC beds. 5. The contract duration is 134 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar emergency relief contracts is difficult due to the unique nature of disaster response.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms for this emergency contract are not detailed, potentially impacting the final cost-effectiveness.

Taxpayer Impact: Taxpayer funds are used to provide essential services during an emergency, but the cost-plus nature warrants scrutiny for efficiency.

Public Impact

Provides critical shelter for unaccompanied alien children (UAC). Addresses immediate humanitarian needs during a crisis. Supports federal efforts in managing border-related humanitarian challenges. Ensures basic necessities like housing and care for vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contract type may incentivize higher spending.
Emergency nature of the contract could lead to rushed decisions and potential cost overruns.
Limited duration may not reflect long-term needs or cost efficiencies.

Positive Signals

Awarded under full and open competition.
Addresses a critical humanitarian need.
Provides essential services for vulnerable children.

Sector Analysis

This contract falls under Emergency and Other Relief Services, a sector often characterized by urgent needs and rapid deployment. Spending benchmarks are highly variable due to the unpredictable nature of emergencies.

Small Business Impact

Information on small business participation is not provided for this contract. The focus appears to be on fulfilling an immediate, large-scale service requirement.

Oversight & Accountability

Oversight is crucial for cost-plus contracts, especially during emergencies. The Department of Health and Human Services (HHS) is responsible, but specific oversight mechanisms for this award are not detailed.

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

Potential for cost overruns due to CPFF structure.
Limited duration may not be cost-effective for sustained needs.
Lack of detailed pricing benchmarks for emergency services.
Oversight effectiveness is not explicitly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $36.6 million to ACUITY-CHS, LLC. IGF::OT::IGF ORR EMERGENCY SHELTER - HOMESTEAD, FL - 500 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 $36.6 million.

What is the period of performance?

Start: 2018-02-22. End: 2018-07-06.

What was the justification for the Cost Plus Fixed Fee contract type for this emergency shelter, and how was the fixed fee determined?

The Cost Plus Fixed Fee (CPFF) contract type is often used in situations where the scope of work is not precisely defined or when costs are difficult to estimate beforehand, such as emergency responses. The fixed fee is negotiated separately and represents the contractor's profit. For this contract, the CPFF structure likely allowed for flexibility in responding to the unpredictable demands of an emergency shelter operation, though it necessitates robust oversight to control the cost-plus component.

How effectively did the full and open competition process ensure competitive pricing for emergency shelter services under urgent conditions?

While the contract was awarded under full and open competition, the urgency of an emergency situation can sometimes limit the effectiveness of traditional competitive pricing. Bidders may factor in higher risk premiums, and the time constraints for proposal evaluation might reduce the depth of price analysis. Therefore, while competition was present, the pricing achieved may not reflect the lowest possible cost achievable under less pressured circumstances.

What measures were in place to ensure the efficient use of taxpayer funds given the cost-plus nature of the contract and the emergency context?

Ensuring efficient use of funds in a cost-plus emergency contract relies heavily on stringent government oversight, clear performance metrics, and regular audits. The government contracting officer must actively monitor expenditures, verify the necessity and reasonableness of costs incurred, and ensure the contractor meets all performance obligations. Without detailed reporting on these oversight activities, it's difficult to definitively assess the efficiency of taxpayer fund utilization.

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: 17233SOL00063

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Comprehensive Health Services, LLC (UEI: 116768247)

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: $36,556,866

Exercised Options: $36,556,866

Current Obligation: $36,556,866

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201700026I

IDV Type: IDC

Timeline