HHS awarded $22.5M for temporary shelter transportation, with Southwest Key Programs Inc. as the contractor

Contract Overview

Contract Amount: $22,489,163 ($22.5M)

Contractor: Southwest KEY Programs Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2016-04-29

End Date: 2017-01-15

Contract Duration: 261 days

Daily Burn Rate: $86.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF TEMPORARY SHELTER TRANSPORTATION SERVICES CONTRACT

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78721

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.5 million to SOUTHWEST KEY PROGRAMS INC for work described as: IGF::OT::IGF TEMPORARY SHELTER TRANSPORTATION SERVICES CONTRACT Key points: 1. The contract's value of $22.5 million for a 9-month period suggests a significant operational scale. 2. Full and open competition was utilized, indicating a broad market search for qualified providers. 3. The emergency and other relief services NAICS code points to a need for rapid response capabilities. 4. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery contract vehicle. 5. The time and materials pricing structure may present cost control challenges if not closely managed. 6. The contractor, Southwest Key Programs Inc., has a history of providing services in this domain.

Value Assessment

Rating: fair

The contract value of $22.5 million over approximately 9 months for emergency transportation services appears substantial. Benchmarking against similar contracts for disaster relief or refugee transportation is difficult without more specific service details. However, the time and materials (T&M) pricing model, while flexible, can lead to higher costs if not meticulously tracked and managed, potentially impacting overall value for money compared to fixed-price arrangements. The absence of a specific base contract or task order ceiling makes direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the government sought proposals from all responsible sources. The number of bidders is not specified, but this approach generally aims to foster a competitive environment. A robust competition could lead to better pricing and service offerings. However, the nature of emergency services can sometimes limit the pool of immediately available and qualified bidders, even under full and open procedures.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of providers to offer their services, potentially driving down costs.

Public Impact

The primary beneficiaries are individuals requiring emergency transportation services, likely related to humanitarian aid or disaster relief efforts. The services delivered involve the movement of people, potentially to temporary shelters or other designated locations. The contract has a geographic impact in Texas (ST: TX, SN: TEXAS), indicating a focus on needs within that state. Workforce implications include the potential for employment of drivers, logistics personnel, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials pricing can lead to cost overruns if not strictly monitored.
The emergency nature of the contract may have limited the scope for extensive price negotiation.
Lack of detailed performance metrics in the provided data makes assessing efficiency difficult.

Positive Signals

Awarded under full and open competition, suggesting a broad search for qualified vendors.
The contractor, Southwest Key Programs Inc., has experience in related service areas.
The contract addresses critical needs within emergency and relief services.

Sector Analysis

This contract falls within the broader 'Emergency and Other Relief Services' sector, which is often characterized by rapid response needs and fluctuating demand. The market for such services can be specialized, involving logistics, transportation, and personnel management under time-sensitive conditions. While specific market size data for this niche is not readily available, government spending in disaster relief and humanitarian aid is substantial and often relies on a mix of pre-negotiated contract vehicles and emergency procurements. This contract appears to be a specific delivery order under a potentially larger framework, addressing immediate needs.

Small Business Impact

The provided 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 small business set-aside. The focus was on full and open competition, which typically involves larger, established firms, though small businesses could have participated if they met the qualifications. The absence of a set-aside means the primary contract award did not prioritize small business participation.

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. As a delivery order, it is likely managed under a broader contract vehicle with established reporting and oversight mechanisms. The time and materials nature of the contract necessitates diligent monitoring of hours and costs to ensure accountability and prevent overspending. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse.

Related Government Programs

Disaster Relief Funding
Emergency Management Services
Refugee Resettlement Services
Humanitarian Aid Transportation

Risk Flags

Potential for cost overruns due to T&M pricing
Limited transparency on specific service delivery metrics
Contract duration is relatively short, requiring potential follow-on actions

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.5 million to SOUTHWEST KEY PROGRAMS INC. IGF::OT::IGF TEMPORARY SHELTER TRANSPORTATION SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is SOUTHWEST KEY PROGRAMS 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 $22.5 million.

What is the period of performance?

Start: 2016-04-29. End: 2017-01-15.

What is the specific nature of the 'temporary shelter transportation services' provided under this contract?

The contract, identified by the NAICS code 624230 (Emergency and Other Relief Services), was awarded to Southwest Key Programs Inc. for 'TEMPORARY SHELTER TRANSPORTATION SERVICES'. While the exact details are not fully elaborated in the provided data, this typically involves the logistical coordination and execution of moving individuals or groups to and from temporary housing facilities. This could include transportation for disaster victims, refugees, asylum seekers, or other populations requiring emergency shelter. The services likely encompass vehicle deployment, driver services, route planning, and ensuring the safe and timely transit of passengers, often under urgent circumstances.

How does the $22.5 million contract value compare to similar emergency transportation contracts awarded by HHS or other agencies?

Directly comparing the $22.5 million value is challenging without knowing the precise scope, duration, and geographic coverage of similar contracts. Emergency transportation needs can fluctuate significantly based on the scale and nature of events (e.g., natural disasters, humanitarian crises). Contracts for disaster relief or refugee support can range from hundreds of thousands to tens of millions of dollars. The fact that this is a delivery order suggests it might be one of several orders under a larger IDIQ contract, making a standalone comparison less indicative of overall spending patterns. However, $22.5 million for approximately 9 months of service points to a substantial operational requirement, likely involving significant logistical complexity and resource allocation.

What are the primary risks associated with a Time and Materials (T&M) contract for emergency transportation services?

The primary risk with a Time and Materials (T&M) contract for emergency transportation is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements pay the contractor for the actual labor hours and material costs incurred, plus a fee or profit. If work is inefficiently performed, if labor rates are high, or if material costs escalate unexpectedly, the total cost to the government can exceed initial estimates. For emergency services, the urgency can sometimes lead to less stringent oversight of hours and resources, exacerbating this risk. Effective management requires robust tracking of all billable hours and expenses, clear definitions of what constitutes 'material,' and strong government oversight to ensure reasonableness and necessity.

What is Southwest Key Programs Inc.'s track record in providing services similar to emergency transportation?

Southwest Key Programs Inc. has a significant history of providing services related to child welfare, immigration, and youth services. While their primary focus has often been on shelter operations and case management for unaccompanied minors and immigrant families, these operations inherently involve logistical and transportation components. They have managed large-scale facilities and coordinated services for vulnerable populations, which requires a degree of transportation management. Although 'emergency transportation services' might not be their sole or explicit core competency advertised, their experience in managing complex social services and operating facilities, particularly in response to humanitarian needs, suggests they possess the organizational capacity and experience to undertake such contracts.

How has federal spending on emergency and relief services (NAICS 624230) trended in recent years, and how does this contract fit?

Federal spending on emergency and relief services, particularly under NAICS code 624230, can be highly variable and event-driven. Spending surges typically occur in response to major natural disasters (hurricanes, wildfires, floods) or humanitarian crises. While specific aggregate spending data for NAICS 624230 isn't readily available in a simple trend format, it's understood that agencies like HHS, FEMA, and others allocate significant funds during emergencies. This $22.5 million contract represents a specific instance of such spending, likely tied to a particular event or ongoing need within Texas. It fits within the broader pattern of federal investment in rapid response and support services during times of crisis, aiming to provide essential aid and shelter.

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: 15233SOL00103

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6002 JAIN LN, AUSTIN, TX, 78721

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,489,163

Exercised Options: $22,489,163

Current Obligation: $22,489,163

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSP233201500178I

IDV Type: IDC

Timeline