DHS awards $40.2M for facilities support, with 3 bidders competing for this firm-fixed-price delivery order

Contract Overview

Contract Amount: $40,201,511 ($40.2M)

Contractor: B.I. Incorporated

Awarding Agency: Department of Homeland Security

Start Date: 2011-11-06

End Date: 2012-11-05

Contract Duration: 365 days

Daily Burn Rate: $110.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISAP II CONTRACT (HSCECR-09-D-00002) OPTION YEAR 2 TASK ORDER (HSCECR-12-J-00001)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.2 million to B.I. INCORPORATED for work described as: ISAP II CONTRACT (HSCECR-09-D-00002) OPTION YEAR 2 TASK ORDER (HSCECR-12-J-00001) Key points: 1. The contract value represents a significant investment in essential facilities support services for U.S. Immigration and Customs Enforcement. 2. Competition dynamics indicate a healthy market for these services, with multiple bidders vying for the contract. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable expenses. 4. Performance context is crucial, as the quality of facilities support directly impacts operational efficiency and safety. 5. This contract falls within the broader facilities support services sector, a critical component of government operations. 6. The duration of the order suggests a need for sustained and reliable service delivery.

Value Assessment

Rating: good

Benchmarking this specific $40.2 million delivery order against similar facilities support contracts is challenging without more granular data on the scope of services. However, the firm-fixed-price structure suggests an expectation of cost control. The number of bidders (3) implies a reasonable level of competition that should have driven a fair market price. Further analysis would require comparing the specific deliverables and service levels to industry standards and other government contracts for comparable facilities.

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. With three bidders participating, the competition level appears moderate. This suggests that while there was some market interest, it may not represent the maximum possible competition, which could potentially lead to slightly higher prices than if more bidders had been involved. The agency likely sought to balance competition with the need for specialized facilities support.

Taxpayer Impact: The full and open competition, with three bidders, suggests that taxpayers received a reasonably competitive price. While more bidders could have potentially driven the price lower, the presence of multiple offers indicates that the government was not locked into a single provider, mitigating the risk of excessive costs.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) operations are directly supported by the facilities maintenance and support services provided under this contract. The contract ensures the proper functioning and upkeep of critical government facilities, contributing to operational continuity. The geographic impact is centered in the District of Columbia, where the facilities are located. Workforce implications include the potential for direct employment by the contractor and its subcontractors to perform the required services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen facility issues.
Risk of service quality degradation if contractor performance is not rigorously monitored.
Dependence on a single contractor for essential facilities operations could create vulnerabilities.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
Full and open competition suggests a competitive bidding process was utilized.
The contract is for essential facilities support, indicating a clear and defined need.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a range of services necessary for the operation and maintenance of buildings and grounds. This sector is critical for government agencies to maintain secure and functional workspaces. The market is competitive, with many providers ranging from large, diversified companies to specialized service firms. Government spending in this area is substantial and consistent, reflecting the ongoing need for facility upkeep across federal agencies. This contract fits within the typical scope of services provided by large facility management companies to government entities.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. The award to B.I. INCORPORATED, a company not immediately identifiable as a small business from the data, suggests that larger firms were likely the primary participants in this competition. This means the direct economic benefit to the small business ecosystem from this specific award may be limited unless B.I. INCORPORATED actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and their representatives. The firm-fixed-price nature of the award places a strong emphasis on contractor performance against the defined scope of work. Transparency is generally maintained through contract award databases, though detailed performance metrics and inspection reports are often internal. The Department of Homeland Security's Office of Inspector General may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Department of Homeland Security Facilities Management Contracts
Immigration and Customs Enforcement Operational Support
Federal Facilities Maintenance Services
Government Building Operations and Maintenance

Risk Flags

Potential for service quality issues if contractor performance is not closely monitored.
Risk of cost escalation if contract terms do not adequately cover unforeseen facility maintenance needs.
Dependence on a single contractor for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.2 million to B.I. INCORPORATED. ISAP II CONTRACT (HSCECR-09-D-00002) OPTION YEAR 2 TASK ORDER (HSCECR-12-J-00001)

Who is the contractor on this award?

The obligated recipient is B.I. INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2011-11-06. End: 2012-11-05.

What is the track record of B.I. INCORPORATED with federal contracts, particularly within the Department of Homeland Security?

A comprehensive review of B.I. INCORPORATED's federal contracting history would be necessary to assess their track record. This would involve examining past performance evaluations, any contract disputes or terminations, and their history of delivering services on time and within budget. Specifically, their experience with similar facilities support services for agencies like ICE would be a key indicator of their capability. Without access to the Federal Procurement Data System (FPDS) or similar databases, a detailed analysis of their past performance, including any awards, past due amounts, or negative performance flags, cannot be provided. However, their ability to win this $40.2 million delivery order suggests a level of established capability and a positive past performance record with the agency or in the federal contracting space.

How does the $40.2 million value of this delivery order compare to historical spending on facilities support by ICE?

To compare the $40.2 million value of this delivery order to historical ICE spending on facilities support, one would need to analyze multi-year spending data for relevant NAICS codes (e.g., 561210) awarded by ICE. This analysis should account for inflation and changes in the scope of facilities managed by ICE over time. If this order represents a significant increase or decrease compared to previous years' average spending, it could indicate a change in the agency's operational needs, facility footprint, or contracting strategy. For instance, a substantial increase might suggest new facility acquisitions or expanded service requirements, while a decrease could point to consolidation or outsourcing of certain functions. Without historical data, it's difficult to contextualize this single award within ICE's broader budgetary trends for facilities management.

What are the specific risks associated with a firm-fixed-price contract for facilities support services, and how are they mitigated?

A primary risk with firm-fixed-price (FFP) contracts for facilities support is that the contractor may cut corners on quality or service to maximize profit if unforeseen issues arise or costs escalate beyond their initial estimates. This can lead to degraded facility conditions or service disruptions. Mitigation strategies employed by the government include rigorous performance monitoring, clearly defined service level agreements (SLAs), and robust inspection protocols. The contracting officer's representative (COR) plays a crucial role in ensuring the contractor meets all contractual obligations. Furthermore, the contract may include clauses for remedies in case of non-performance, such as service credits or termination for default. The government also benefits from the contractor assuming the financial risk of cost overruns, which provides cost certainty.

What is the expected effectiveness of these facilities support services in enabling ICE's mission objectives?

The effectiveness of these facilities support services is directly tied to their ability to ensure that ICE facilities are safe, secure, operational, and well-maintained. Reliable facilities management is foundational for the agency's mission, which involves law enforcement, detention, and removal operations. When facilities are properly maintained, it minimizes disruptions to critical operations, ensures the safety and well-being of personnel and detainees, and upholds the integrity of government property. Conversely, failures in facilities support could lead to operational downtime, security breaches, or health and safety hazards, thereby hindering ICE's ability to execute its mission effectively. The quality of services, therefore, directly impacts the agency's overall operational readiness and success.

How does the competition level (3 bidders) for this contract potentially impact price discovery and value for money?

A competition with three bidders for this $40.2 million delivery order suggests a moderate level of market engagement. While three bidders are generally considered sufficient to establish a competitive price, a larger pool of bidders could potentially drive prices lower through increased rivalry. The specific nature of facilities support services, which can be specialized and require specific certifications or geographic proximity, might limit the number of truly capable and competitive bidders. The government's value for money is influenced not only by price but also by the quality of service delivered. With three bidders, the agency likely achieved a reasonable balance between cost and expected performance, but it's possible that a more robust competition could have yielded even greater savings or superior service offerings. Further analysis would require comparing the winning bid against the bids of the other two competitors.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCECR-09-R-00004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE GEO Group, Inc. (UEI: 612706465)

Address: 6400 LOOKOUT RD STE 101, BOULDER, CO, 80301

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

Financial Breakdown

Contract Ceiling: $77,846,325

Exercised Options: $77,846,325

Current Obligation: $40,201,511

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCECR09D00002

IDV Type: IDC

Timeline