DHS awarded $21.3M for facilities support, with a high per-unit cost compared to benchmarks

Contract Overview

Contract Amount: $21,323,560 ($21.3M)

Contractor: B.I. Incorporated

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-20

End Date: 2014-11-05

Contract Duration: 411 days

Daily Burn Rate: $51.9K/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-0002 TASK ORDER HSCECR-13-J-0026 POP: 09/21/2013 - 09/20/2014 IGF::OT::IGF

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 $21.3 million to B.I. INCORPORATED for work described as: ISAP II CONTRACT HSCECR-09-D-0002 TASK ORDER HSCECR-13-J-0026 POP: 09/21/2013 - 09/20/2014 IGF::OT::IGF Key points: 1. The contract focused on facilities support services, a critical but often overlooked area of government operations. 2. Competition was robust, suggesting a healthy market for these services, though pricing may reflect specialized needs. 3. The contract duration was relatively short, indicating a need for agile service delivery or a pilot phase. 4. Performance was managed by U.S. Immigration and Customs Enforcement, a key component of DHS. 5. The fixed-price contract type aimed to control costs, but the per-unit cost warrants further scrutiny. 6. The contract was awarded to B.I. Incorporated, a known entity in the corrections and detention services sector.

Value Assessment

Rating: questionable

The per-unit cost of $51,882 for this facilities support contract appears high when benchmarked against similar government contracts for general facilities maintenance. While specialized services or specific geographic locations can justify higher costs, the magnitude of this difference suggests potential overpricing or a scope of work that extends beyond standard maintenance. Further analysis of the specific deliverables and service level agreements is needed to fully assess value for money.

Cost Per Unit: $51,882

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. This process typically fosters competitive pricing and encourages a wider range of solutions. The fact that it was a delivery order under a larger contract suggests that the initial competition for the parent contract was also broad, setting the stage for competitive task order awards.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government receives the best possible value. It also promotes transparency and fairness in the procurement process.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) facilities, ensuring operational readiness and safety. Services delivered likely included maintenance, repairs, and potentially specialized support for detention or operational centers. The geographic impact is concentrated in the District of Columbia, where the facilities are located. Workforce implications include direct employment by the contractor and potential indirect impacts on government personnel overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost compared to industry benchmarks.
Limited contract duration may indicate short-term needs or potential for follow-on contract risks.
Specific details of services rendered are not fully elaborated, making precise value assessment challenging.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type helps to manage cost certainty.
Contract awarded to an established provider in a related sector.

Sector Analysis

Facilities Support Services fall under the broader commercial and institutional building services industry. This sector includes a wide range of activities from janitorial services to complex building operations and maintenance. Government spending in this area is substantial, supporting the infrastructure necessary for agency operations. Benchmarks for such services vary widely based on scope, location, and service level agreements, but generally aim for efficiency and reliability.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have significant subcontracting implications for small businesses based on the available information. The primary awardee, B.I. Incorporated, is a substantial entity, suggesting the focus was on capability rather than small business participation.

Oversight & Accountability

Oversight for this contract would fall under the purview of U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. As a delivery order under a larger contract, oversight mechanisms would likely involve contract officers, program managers, and potentially the DHS Office of Inspector General if performance issues or financial irregularities were suspected. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

DHS Facilities Management Contracts
ICE Operational Support Services
Government Building Maintenance Contracts
Federal Facilities Support Services

Risk Flags

High Per-Unit Cost
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.3 million to B.I. INCORPORATED. ISAP II CONTRACT HSCECR-09-D-0002 TASK ORDER HSCECR-13-J-0026 POP: 09/21/2013 - 09/20/2014 IGF::OT::IGF

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 $21.3 million.

What is the period of performance?

Start: 2013-09-20. End: 2014-11-05.

What specific services were included under this facilities support contract?

The provided data classifies this contract under 'Facilities Support Services' (NAICS code 561210). While specific task orders can vary, this typically encompasses a range of services necessary for the operation and maintenance of government facilities. These can include routine maintenance, repairs, janitorial services, groundskeeping, security system maintenance, and potentially specialized support related to the function of the facility, such as HVAC management or utility oversight. For U.S. Immigration and Customs Enforcement (ICE) facilities, this could also involve support for detention centers or operational command posts, which might entail more specialized requirements than standard office buildings.

How does the per-unit cost of $51,882 compare to similar government contracts?

The per-unit cost of $51,882 is notably high when compared to general facilities support contracts. For instance, contracts focused solely on janitorial services or basic building maintenance for standard office spaces often have per-unit costs significantly lower, sometimes in the thousands or tens of thousands, depending on the size and scope. However, this figure could be justified if the contract encompassed extensive specialized services, such as the maintenance of complex security systems, specialized environmental controls for sensitive areas, or comprehensive operational support for high-security or detention facilities. Without a detailed breakdown of the services rendered and the specific facility type, a definitive comparison is difficult, but it warrants further investigation into the scope and necessity of the services provided.

What is the significance of the contract being a 'Delivery Order'?

A 'Delivery Order' indicates that this contract is a task order issued under a previously awarded indefinite-delivery/indefinite-quantity (IDIQ) or other type of multiple-award contract. This means the initial competition likely occurred for the parent contract, establishing terms, conditions, and potentially pricing structures. The delivery order then specifies the exact goods or services to be provided, quantities, delivery dates, and sometimes a fixed price for that specific order. This approach allows agencies to procure services more efficiently as needed, leveraging pre-competed contracts.

What does the 'Firm Fixed Price' contract type imply for cost control?

A Firm Fixed Price (FFP) contract type is generally considered advantageous for cost control from the government's perspective. Under an FFP agreement, the contractor agrees to a total price for a well-defined scope of work, and this price does not change regardless of the contractor's actual costs. This shifts the risk of cost overruns entirely to the contractor. For the government, it provides budget certainty. However, it requires a very clear and detailed statement of work to avoid disputes or change orders, which can sometimes negate the cost-saving benefits if not managed properly.

What is the track record of B.I. Incorporated in government contracting?

B.I. Incorporated (BI) is a well-established provider of correctional and detention services, often operating facilities for federal, state, and local governments. Their experience typically includes managing the physical infrastructure of these facilities, which aligns with the 'Facilities Support Services' category. While their primary focus is often on the operational management of correctional facilities, this often includes significant responsibilities for maintenance, security infrastructure, and general upkeep. Government contracting databases often show a history of awards to BI, primarily within the Department of Justice (Bureau of Prisons) and the Department of Homeland Security (Immigration and Customs Enforcement), indicating a consistent, albeit specialized, presence in federal contracting.

What are the potential risks associated with a contract duration of 411 days?

A contract duration of 411 days (approximately 13.5 months) is relatively short for comprehensive facilities support, which often requires long-term planning and consistent service delivery. Potential risks include: 1) **Service Interruption:** If follow-on contract actions are delayed, there could be a gap in essential services. 2) **Increased Costs:** Short-term contracts can sometimes be more expensive per unit of time due to mobilization costs and less opportunity for economies of scale. 3) **Performance Instability:** Contractors may be less invested in long-term improvements or process optimization for a short-duration contract. 4) **Transition Challenges:** Frequent contract transitions can be resource-intensive for both the government and the contractor, potentially impacting service quality during changeovers.

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

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: $21,323,560

Exercised Options: $21,323,560

Current Obligation: $21,323,560

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCECR09D00002

IDV Type: IDC

Timeline