DHS spent $19.8M on unaccompanied alien child transportation, raising questions about value and competition

Contract Overview

Contract Amount: $19,862,146 ($19.9M)

Contractor: MVM, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-09-30

End Date: 2019-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF UNACCOMPANIED ALIEN CHILDREN (UAC) TRANSPORTATION SERVICES

Place of Performance

Location: MCALLEN, HIDALGO County, TEXAS, 78501

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.9 million to MVM, INC. for work described as: IGF::OT::IGF UNACCOMPANIED ALIEN CHILDREN (UAC) TRANSPORTATION SERVICES Key points: 1. Contract awarded to MVM, Inc. for security guard services, primarily transportation. 2. Significant duration of 5 years suggests a long-term need for these services. 3. The contract was awarded under full and open competition, indicating broad market access. 4. Fixed-price contract type aims to control costs, but requires careful monitoring of performance. 5. Awarded as a delivery order, suggesting it was part of a larger contract vehicle. 6. Geographic focus on Texas (st: TX) highlights a specific operational area.

Value Assessment

Rating: fair

The total award of $19.8 million over five years for transportation services appears substantial. Benchmarking against similar contracts for unaccompanied alien child transportation is difficult without more specific service details and performance metrics. However, the fixed-price nature suggests an attempt to cap costs. Further analysis would require comparing the per-mile or per-child transportation costs to industry standards and assessing the efficiency of the services provided against the total expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery and potentially competitive pricing. However, the number of bidders is not specified, which is crucial for a thorough assessment of the competition's intensity. A robust competition typically involves multiple qualified bidders submitting proposals, driving down costs and improving service quality. Without knowing the number of bidders, it's hard to definitively say if the competition was sufficient to secure the best value for taxpayers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better services. It ensures that multiple companies have the opportunity to bid, increasing the likelihood of obtaining cost-effective solutions.

Public Impact

Benefits unaccompanied alien children by providing necessary transportation services. Services delivered likely include escorting and transporting children to designated locations. Geographic impact is concentrated in Texas, a key state for border crossings and child welfare. Workforce implications include employment for drivers, security personnel, and support staff involved in transportation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-unit costs if efficiency is not rigorously managed.
Dependence on a single contractor for a sensitive service requires strong oversight.
Geographic concentration in Texas may limit flexibility if needs shift elsewhere.
The nature of transporting vulnerable populations carries inherent risks that need mitigation.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Fixed-price contract type provides cost certainty for the government.
Long contract duration (5 years) indicates a stable, ongoing need being met.
Focus on a specific geographic area (Texas) allows for tailored service delivery.

Sector Analysis

This contract falls within the broader security and transportation services sector, specifically catering to government needs related to border security and child welfare. The market for such specialized transportation services can be competitive, with companies offering logistics, security, and personnel transport. Benchmarking would involve comparing the contract's value to other government contracts for similar services, considering factors like the number of individuals transported, distance covered, and security requirements.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. Therefore, the direct impact on small businesses within this specific award is unclear. However, large contracts like this can sometimes create opportunities for small businesses as subcontractors, depending on the prime contractor's strategy and the nature of the services required.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially an Inspector General's office within DHS. Accountability measures would be tied to performance metrics outlined in the contract, service level agreements, and adherence to regulations concerning the transportation of minors. Transparency is generally facilitated through contract databases, but detailed performance reports and audits would be crucial for a full assessment.

Related Government Programs

Unaccompanied Alien Children Program
Department of Homeland Security Transportation Contracts
Immigration and Customs Enforcement Services

Risk Flags

Potential for high cost per unit if not efficiently managed.
Contract duration may exceed actual need if migration patterns change.
Oversight complexity due to sensitive nature of transported individuals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.9 million to MVM, INC.. IGF::OT::IGF UNACCOMPANIED ALIEN CHILDREN (UAC) TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is MVM, 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 $19.9 million.

What is the period of performance?

Start: 2014-09-30. End: 2019-09-29.

What was the specific nature of the security services provided by MVM, Inc. under this contract, beyond general transportation?

The contract NAICS code 561612 indicates 'Security Guards and Patrol Services.' While the primary function appears to be transportation of unaccompanied alien children (UAC), the 'security' aspect likely implies that personnel provided by MVM, Inc. were trained to ensure the safety and security of the children during transit. This could involve background checks for personnel, protocols for handling potential incidents, and ensuring the children's well-being and secure delivery to designated shelters or facilities. The exact security protocols and the level of security personnel deployed would be detailed in the contract's statement of work, which is not provided here.

How does the $19.8 million expenditure compare to other DHS contracts for similar UAC transportation services?

Direct comparison of the $19.8 million expenditure is challenging without access to a comprehensive database of all DHS contracts for UAC transportation, including their specific scopes of work, durations, and performance outcomes. However, given the scale and five-year duration, this represents a significant investment. The Department of Health and Human Services (HHS), which is primarily responsible for UAC care, also contracts for transportation and shelter services. Analyzing spending across different agencies and contract types would provide a fuller picture of the overall federal investment in UAC logistics and care.

What were the key performance indicators (KPIs) for MVM, Inc. under this contract, and how were they measured?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. Typically, for transportation services involving vulnerable populations, KPIs would include on-time delivery rates, safety incident rates (e.g., accidents, injuries), compliance with child welfare regulations during transit, and successful handovers at destinations. Performance would likely be monitored through regular reporting by the contractor, site visits by government officials, and potentially feedback from receiving facilities. Failure to meet KPIs could result in penalties or contract termination.

What is the track record of MVM, Inc. in providing government transportation and security services, particularly for vulnerable populations?

MVM, Inc. has a history of providing transportation and security services to various government agencies, including federal, state, and local entities. Their experience often includes logistical support, secure transportation, and personnel services. Information regarding their specific track record with unaccompanied alien children or other vulnerable populations would require a deeper dive into past performance reviews, contract awards, and any reported issues or commendations. Government contract databases and agency performance reports can offer insights into their reliability and effectiveness in similar roles.

Were there any significant risks identified during the procurement or performance phases of this contract?

Potential risks associated with a contract of this nature could include operational risks (e.g., transportation delays, accidents, security breaches), compliance risks (e.g., failure to adhere to child welfare standards, immigration regulations), contractor performance risks (e.g., inadequate staffing, poor service quality), and financial risks (e.g., cost overruns if not managed effectively under a fixed-price contract). The government's procurement process would typically involve a risk assessment, and ongoing contract management would focus on mitigating these identified risks through oversight and performance monitoring.

How has federal spending on UAC transportation services evolved over the years, and does this contract represent a trend?

Federal spending on UAC transportation services has historically fluctuated based on migration patterns and policy changes. Increased border apprehensions, particularly of families and unaccompanied children, often lead to surges in demand for transportation and shelter services, consequently driving up federal expenditures. This $19.8 million contract, awarded between 2014 and 2019, falls within a period that saw significant increases in UAC arrivals. Analyzing spending trends requires looking at aggregate data across multiple contracts and agencies over extended periods to identify patterns and drivers of expenditure.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44620 GUILFORD DR STE 150, ASHBURN, VA, 20147

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

Financial Breakdown

Contract Ceiling: $19,862,146

Exercised Options: $19,862,146

Current Obligation: $19,862,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM14D00006

IDV Type: IDC

Timeline