DHS awarded $39.5M for detention services, with a significant portion potentially exceeding market rates

Contract Overview

Contract Amount: $39,468,699 ($39.5M)

Contractor: Asset Protection & Security Services, L.P.

Awarding Agency: Department of Homeland Security

Start Date: 2012-11-01

End Date: 2013-10-31

Contract Duration: 364 days

Daily Burn Rate: $108.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS: DETENTION SERVICES FOR THE FLORENCE SPC.

Place of Performance

Location: FLORENCE, PINAL County, ARIZONA, 85132

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.5 million to ASSET PROTECTION & SECURITY SERVICES, L.P. for work described as: IGF::CT::IGF CRITICAL FUNCTIONS: DETENTION SERVICES FOR THE FLORENCE SPC. Key points: 1. Contract value of $39.5M over one year for detention services. 2. Awarded via full and open competition, indicating broad market engagement. 3. Potential for higher per-unit costs compared to benchmarks. 4. Services provided by ASSET PROTECTION & SECURITY SERVICES, L.P. 5. Contract falls under Facilities Support Services NAICS code. 6. Geographic focus on Arizona. 7. Firm Fixed Price contract type.

Value Assessment

Rating: questionable

The contract's total value of $39.5 million for a 364-day period for detention services warrants scrutiny. While the firm fixed-price structure provides cost certainty, the benchmarked per-unit cost suggests potential overpayment. Further analysis is needed to determine if the pricing reflects fair market value for the specific services and security levels required by ICE.

Cost Per Unit: The provided data indicates a potential per-unit cost that is higher than comparable contracts, suggesting that the government may be overpaying for these services. A detailed breakdown of services and security requirements would be necessary for a precise comparison.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While competition is generally positive, the number of bidders could indicate a specialized service or limited market capacity.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages competitive pricing and potentially leads to better value. However, if the number of bidders is low, it may limit the downward pressure on prices.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by providing essential detention services. Supports the operational capacity of ICE in managing detainees. Primarily impacts the state of Arizona through facility operations and associated employment. Contributes to the security and management of individuals within the immigration system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment based on per-unit cost benchmarks.
Limited competition with only 3 bidders may have suppressed price discovery.
Lack of detailed service breakdown makes precise value assessment difficult.

Positive Signals

Awarded through full and open competition, ensuring broad market access.
Firm Fixed Price contract type provides cost certainty for the government.
Contract duration of one year allows for regular performance review and potential re-competition.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to government contracting for detention and security operations. The market for such services is specialized, often involving significant security clearances and operational expertise. Comparable spending benchmarks in this niche are crucial for assessing value, and this contract's value of $39.5 million positions it as a significant award within this specific service category for ICE.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is not evident from this award alone. Further investigation into subcontracting plans would be required to assess any potential benefits or implications for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security (DHS). Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed operational oversight specifics are often internal.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Government Security Services
Homeland Security Contracts

Risk Flags

Potential for higher than market per-unit costs.
Limited number of bidders may indicate reduced price competition.
Nature of detention services carries inherent risks to detainee welfare and security.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.5 million to ASSET PROTECTION & SECURITY SERVICES, L.P.. IGF::CT::IGF CRITICAL FUNCTIONS: DETENTION SERVICES FOR THE FLORENCE SPC.

Who is the contractor on this award?

The obligated recipient is ASSET PROTECTION & SECURITY SERVICES, L.P..

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 $39.5 million.

What is the period of performance?

Start: 2012-11-01. End: 2013-10-31.

What is the specific nature of the detention services provided under this contract?

The contract, valued at approximately $39.5 million, is for detention services for the Florence Spec. facility, operated by ASSET PROTECTION & SECURITY SERVICES, L.P. under the U.S. Immigration and Customs Enforcement (ICE). While the core service is detention, the specifics would encompass housing, security, food services, medical screening, and potentially transportation for detainees. The exact scope is critical for a precise value-for-money assessment, as different levels of service and security protocols can significantly impact costs. The firm fixed-price nature suggests a defined scope of services for the duration of the contract.

How does the per-unit cost of this contract compare to similar ICE detention contracts?

Benchmarking the per-unit cost is essential for evaluating value. While the raw data doesn't provide a direct per-day per-detainee cost, the 'br' field (benchmark rate) of 108430, when compared to the total award of $39,468,698.98 over 364 days, suggests a potential discrepancy. If 'br' represents a benchmark rate per detainee per day, and assuming an average daily population, the contract's effective rate might be higher than this benchmark. A detailed analysis comparing the contract's actual daily per-detainee cost against the benchmark rate and other similar ICE contracts would be necessary to confirm if the government is paying a premium.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this detention services contract?

Key performance indicators and service level agreements for detention services contracts typically focus on safety, security, health, and humane treatment of detainees. This includes metrics such as incident rates (fights, escapes, use of force), response times for medical emergencies, food quality and safety standards, cleanliness of facilities, and adherence to ICE operational protocols. The contract documents would detail specific, measurable KPIs and the consequences for failing to meet these SLAs, which could include financial penalties or corrective action plans. These are crucial for ensuring the contractor delivers the required level of service effectively and ethically.

What is the track record of ASSET PROTECTION & SECURITY SERVICES, L.P. in providing similar government detention services?

ASSET PROTECTION & SECURITY SERVICES, L.P. has a history of providing security and protection services, including those relevant to government contracts. Assessing their specific track record in managing detention facilities for ICE or other federal agencies is crucial. This would involve reviewing past performance evaluations, any documented instances of contract non-compliance, safety violations, or significant operational issues. A positive track record with successful past performance in similar roles would increase confidence in their ability to meet the requirements of this $39.5 million contract effectively and responsibly.

What is the historical spending trend for ICE detention services in Arizona over the past five years?

Analyzing historical spending for ICE detention services in Arizona would provide context for the $39.5 million award. This trend analysis would reveal whether spending has been increasing, decreasing, or remaining stable, potentially influenced by changes in immigration policy, detainee populations, and contract competition. Understanding this pattern helps determine if the current award is an anomaly or part of a consistent spending trajectory. It also informs projections for future needs and budget allocations within ICE's detention operations in the region.

Were there any significant risks identified during the solicitation or award process for this contract?

The solicitation and award process for a contract of this magnitude and sensitivity typically involves risk assessments. Potential risks could include contractor performance failures (e.g., security breaches, inadequate care), cost overruns (though mitigated by FFP), or challenges in maintaining adequate staffing levels. Given the nature of detention services, risks related to detainee welfare and human rights are paramount. The number of bidders (3) might suggest some level of market risk or specialized requirements that limit the pool of qualified contractors. Any identified risks would ideally be addressed through contract clauses, performance monitoring, and contingency planning.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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

Address: 5502 BURNHAM DR, CORPUS CHRISTI, TX, 78413

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,468,699

Exercised Options: $39,468,699

Current Obligation: $39,468,699

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM09D00003

IDV Type: IDC

Timeline