DHS awarded $10.8M for Batavia SPC maintenance, raising questions about competition and value

Contract Overview

Contract Amount: $10,780,943 ($10.8M)

Contractor: Ahtna Technical Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-26

End Date: 2009-12-31

Contract Duration: 827 days

Daily Burn Rate: $13.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: Other

Official Description: ESTABLISH A FY 2008 SAF REQUISITION FOR CONTINUATION OF MAINTENANCE SERVICES AT THE BATAVIA SPC. PERIOD OF PERFORMANCE IS OCTOBER 1, 2007 - MARCH 4, 2008.

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14202

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.8 million to AHTNA TECHNICAL SERVICES, INC. for work described as: ESTABLISH A FY 2008 SAF REQUISITION FOR CONTINUATION OF MAINTENANCE SERVICES AT THE BATAVIA SPC. PERIOD OF PERFORMANCE IS OCTOBER 1, 2007 - MARCH 4, 2008. Key points: 1. Contract awarded on a 'not available for competition' basis, limiting price discovery. 2. Performance period spans over two years, indicating a need for sustained services. 3. The contract value is substantial, requiring careful scrutiny of cost-effectiveness. 4. Geographic location in New York suggests localized service delivery. 5. The awarding agency is Homeland Security, highlighting critical infrastructure support. 6. Contract type 'other' suggests a non-standard procurement approach.

Value Assessment

Rating: questionable

The contract value of $10.8 million for approximately 27 months of maintenance services at the Batavia SPC appears high without a competitive bidding process to establish a fair market price. Benchmarking against similar facilities maintenance contracts is difficult due to the lack of detailed service descriptions and the 'not available for competition' status. The absence of competition prevents a clear assessment of whether this price represents good value for money or if taxpayers are overpaying for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis, meaning that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the agency's needs, or in urgent situations. The lack of multiple bidders means there was no opportunity to compare proposals or negotiate pricing based on market competition, potentially leading to a higher cost for the government.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to drive down costs. The government did not benefit from the price discovery that typically occurs in a competitive procurement.

Public Impact

The primary beneficiaries are the U.S. Immigration and Customs Enforcement (ICE) through the continued operation of the Batavia Special Processing Center (SPC). The services delivered are essential for the maintenance and operational readiness of a critical federal facility. The geographic impact is localized to Batavia, New York, where the SPC is located. The contract supports the workforce employed by AHTNA TECHNICAL SERVICES, INC. for the maintenance operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
The 'not available for competition' justification needs thorough review to ensure it was appropriate.
Limited transparency into the specific services provided and their necessity.
The duration of the contract (over two years) requires ongoing monitoring of performance and costs.

Positive Signals

The contract ensures the continued operation of a critical federal facility, supporting national security and immigration enforcement objectives.
Awarding to AHTNA TECHNICAL SERVICES, INC. may leverage existing expertise if they are the sole capable provider.
The contract provides a stable service provider for essential maintenance, reducing operational risks for ICE.

Sector Analysis

This contract falls within the facilities maintenance and support services sector, a critical component of government operations. The market for such services is broad, encompassing numerous private sector companies. However, specialized facilities like SPCs may have a limited number of providers with the necessary security clearances and expertise. The contract value of $10.8 million is significant for a single facility maintenance contract, suggesting a complex or large-scale operation.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available in the provided data. Given the 'not available for competition' status, it is less likely that small business participation was a primary consideration in the award process, unless the sole source contractor has a robust small business subcontracting program.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Transparency is limited by the 'not available for competition' award. Accountability would be tied to the performance metrics outlined in the contract, if any, and the contractor's adherence to service level agreements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Sole-source award justification requires scrutiny.
Potential for overpricing due to lack of competition.
Limited transparency into service scope and performance metrics.
Contract duration may exceed optimal value realization period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.8 million to AHTNA TECHNICAL SERVICES, INC.. ESTABLISH A FY 2008 SAF REQUISITION FOR CONTINUATION OF MAINTENANCE SERVICES AT THE BATAVIA SPC. PERIOD OF PERFORMANCE IS OCTOBER 1, 2007 - MARCH 4, 2008.

Who is the contractor on this award?

The obligated recipient is AHTNA TECHNICAL SERVICES, INC..

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 $10.8 million.

What is the period of performance?

Start: 2007-09-26. End: 2009-12-31.

What specific maintenance services are covered under this $10.8 million contract?

The provided data is limited and does not specify the exact maintenance services covered under this contract. It only states that it is for 'continuation of maintenance services at the Batavia SPC.' To understand the scope, one would need to review the full contract documentation, including any statements of work (SOW) or performance work statements (PWS). These documents would detail requirements such as building upkeep, HVAC, electrical, plumbing, grounds maintenance, security systems maintenance, and potentially specialized equipment upkeep relevant to the Special Processing Center's function. Without this detail, it is difficult to fully assess the value or necessity of the awarded amount.

Why was this contract deemed 'not available for competition'?

The designation 'not available for competition' indicates that a full and open competitive bidding process was not utilized for this award. Common justifications for such a designation include that only one responsible source is available to meet the agency's needs, or that an urgent and compelling requirement prevents the use of competitive procedures. For this specific contract, the U.S. Immigration and Customs Enforcement (ICE) would have had to provide a detailed justification to the contracting officer explaining why AHTNA TECHNICAL SERVICES, INC. was the sole capable provider or why competition was otherwise impossible. This justification is typically subject to review and approval to ensure compliance with federal procurement regulations.

How does the contract value compare to similar facilities maintenance contracts?

Direct comparison of this $10.8 million contract value to similar facilities maintenance contracts is challenging without more specific details on the scope of services, facility size, and location-specific labor costs. However, for a contract spanning approximately 27 months (October 1, 2007 - March 4, 2008, with an end date of Dec 31, 2009), the average annual cost is roughly $4 million. This figure needs to be benchmarked against contracts for facilities of comparable size, complexity, and security requirements, ideally those that underwent competitive procurement to establish a fair market price. The 'not available for competition' status makes a direct value-for-money assessment difficult.

What is the track record of AHTNA TECHNICAL SERVICES, INC. with federal contracts, particularly with DHS?

AHTNA TECHNICAL SERVICES, INC. is a federal contractor, and its track record with the Department of Homeland Security (DHS) and other agencies can be assessed through publicly available contract databases like the Federal Procurement Data System (FPDS). A review of their past performance would involve examining the types of contracts awarded, their values, performance ratings (if available), and any history of contract disputes or terminations. Understanding their experience with similar maintenance services, especially at secure facilities, would provide insight into their capability to fulfill this requirement. Without specific historical data on this contractor's performance with DHS, it's difficult to definitively assess their reliability for this particular contract.

What are the potential risks associated with a sole-source contract for facility maintenance?

Sole-source contracts, like this one designated 'not available for competition,' carry several inherent risks. The primary risk is the potential for inflated pricing, as the absence of competition removes the incentive for the contractor to offer the most cost-effective solution. There's also a risk of complacency, where the contractor may not feel pressured to maintain high service standards or innovate. Furthermore, the government may miss out on opportunities to leverage new technologies or more efficient service delivery methods that could emerge from a competitive market. Finally, the justification for sole-source awards must be rigorously scrutinized to prevent potential abuse or mismanagement of taxpayer funds.

How does the duration of the contract impact its overall value and risk?

The contract's duration, spanning over two years (from Oct 1, 2007, to Dec 31, 2009, for a period of performance of Oct 1, 2007 - Mar 4, 2008, but with an extended end date), influences its overall value and risk profile. A longer duration can provide stability and ensure continuity of essential services, which is critical for facility operations. However, it also locks the government into a specific provider and pricing structure for an extended period. This increases the risk of the government overpaying if market rates decrease or if the contractor's performance falters over time. Without competitive re-evaluation, the initial pricing may not remain optimal throughout the contract's life.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ahtna, Incorporated (UEI: 069586055)

Address: 1400 W BENSON BLVD STE 210, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,780,943

Exercised Options: $10,780,943

Current Obligation: $10,780,943

Parent Contract

Parent Award PIID: HSACB3C0003

IDV Type: IDC

Timeline