DHS awards $22.3M for detention management, with 5 bidders competing under full and open process

Contract Overview

Contract Amount: $22,268,546 ($22.3M)

Contractor: Akima Global Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2014-12-01

End Date: 2016-01-31

Contract Duration: 426 days

Daily Burn Rate: $52.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF DETENTION MANAGEMENT SUPPORT SERVICES FOR THE BUFFALO FEDERAL DETENTION FACILITY, LOCATED IN BATAVIA, NY.

Place of Performance

Location: BATAVIA, GENESEE County, NEW YORK, 14020

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.3 million to AKIMA GLOBAL SERVICES, LLC for work described as: IGF::CT::IGF DETENTION MANAGEMENT SUPPORT SERVICES FOR THE BUFFALO FEDERAL DETENTION FACILITY, LOCATED IN BATAVIA, NY. Key points: 1. The contract value represents a significant investment in detention facility operations. 2. Competition dynamics suggest a potentially competitive market for these specialized services. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. Performance duration of over 3 years provides a stable operational framework. 5. The geographic focus on Batavia, NY, indicates a specific regional need for these services.

Value Assessment

Rating: good

The contract's value of $22.3 million over approximately 1.4 years (426 days) for detention management services appears reasonable given the scope. Benchmarking against similar contracts for federal detention facilities is crucial for a definitive value assessment. The firm-fixed-price structure suggests an effort to establish clear cost expectations, but detailed cost breakdowns would be needed to fully assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' process, indicating that while the initial pool was broad, specific exclusions were made. With 5 bidders, the competition level suggests a healthy interest in this service area, which generally supports price discovery and potentially better value for the government. The exclusion of sources warrants further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging service providers to offer competitive terms.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), ensuring operational continuity at the Buffalo Federal Detention Facility. The services delivered include essential detention management, security, and operational support for the facility. The geographic impact is concentrated in Batavia, New York, supporting federal detention operations in that region. Workforce implications include the potential for direct and indirect employment opportunities related to the facility's operation and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the full and open competition process could limit the overall pool of potential bidders, potentially impacting price competition.
Lack of detailed cost breakdowns makes it difficult to assess the true value-for-money and identify potential areas of overpricing.
The specific nature of detention management services may present unique operational and security risks that require robust oversight.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
A competitive process with 5 bidders suggests a degree of market interest and potential for favorable pricing.
The contract duration of over a year allows for stable service delivery and operational planning.

Sector Analysis

The federal detention management sector is a specialized niche within government contracting, primarily serving agencies like DHS and DOJ. Market size is driven by the number and capacity of federal detention facilities. This contract fits within the broader security and facility management services category, where competition can vary based on contract complexity and specific requirements. Comparable spending benchmarks would focus on per-diem costs for inmate management and facility operational expenses.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Akima Global Services, LLC, is likely a large business, and their subcontracting plans, if any, would be determined by their own business strategy and contractual obligations beyond the set-aside requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Accountability measures are typically embedded within the contract's performance work statement (PWS), outlining specific deliverables, service levels, and penalties for non-compliance. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Detention Center Operations
Immigration and Customs Enforcement Contracts
Department of Homeland Security Services
Security Guard Services
Facility Management Contracts

Risk Flags

Potential for limited competition due to source exclusions.
Risk of performance issues in a high-stakes operational environment.
Need for robust oversight to ensure compliance and accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.3 million to AKIMA GLOBAL SERVICES, LLC. IGF::CT::IGF DETENTION MANAGEMENT SUPPORT SERVICES FOR THE BUFFALO FEDERAL DETENTION FACILITY, LOCATED IN BATAVIA, NY.

Who is the contractor on this award?

The obligated recipient is AKIMA GLOBAL SERVICES, LLC.

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 $22.3 million.

What is the period of performance?

Start: 2014-12-01. End: 2016-01-31.

What is the historical spending pattern for detention management services at the Buffalo Federal Detention Facility?

Analyzing historical spending for detention management at the Buffalo Federal Detention Facility requires access to prior contract awards for this specific location. Without direct historical data for this facility, we can infer general trends in federal detention spending. Agencies like ICE and the Bureau of Prisons (BOP) have consistently allocated significant budgets towards detention operations, driven by immigration policies and enforcement priorities. Spending can fluctuate based on detention population levels, contract renewals, and changes in service providers. For instance, if previous contracts were sole-source or competed differently, it could indicate shifts in market dynamics or agency procurement strategies. A comprehensive review would involve examining contract databases for all awards related to this facility over several fiscal years to identify trends in contract values, durations, and competition levels.

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

A precise per-unit cost comparison for this contract is challenging without knowing the exact number of detainees served or the specific services included in the 'per-unit' metric (e.g., per detainee per day, per square foot of facility managed). However, the total award of approximately $22.3 million over roughly 1.4 years suggests an average annual cost of about $15.9 million. Federal detention per-diem rates can vary widely based on facility type (e.g., short-term holding vs. long-term detention), location, security level, and services provided (medical, food, transportation). Industry benchmarks often range from $100 to over $300 per detainee per day. To accurately benchmark this contract, one would need to obtain the average daily population housed under this contract and divide the total contract value by the total detainee-days. This figure could then be compared to publicly available data or industry reports on similar ICE or BOP contracts to assess value for money.

What are the specific risks associated with Akima Global Services, LLC's track record in managing federal detention facilities?

Assessing the specific risks associated with Akima Global Services, LLC requires a review of their past performance on similar federal contracts, particularly those involving detention management. This would involve examining past performance evaluations, any documented instances of contract disputes, performance failures, or findings from Inspector General reports. Key areas of concern in detention management include security breaches, inmate welfare issues, staffing stability, compliance with federal regulations (e.g., Performance Based National Detention Standards), and financial management. If Akima has a history of performance issues in these areas on other contracts, it would represent a significant risk factor for this current award. Conversely, a strong performance record would mitigate these risks. Without specific performance data, a general risk assessment would consider the inherent complexities and high-stakes nature of detention operations.

What is the effectiveness of the 'full and open competition after exclusion of sources' procurement method for this type of service?

The 'full and open competition after exclusion of sources' method is a nuanced procurement approach. It begins with the intent to compete broadly but allows for specific exclusions based on justified reasons, such as national security, proprietary information, or unique capabilities. For detention management services, the effectiveness hinges on the justification for exclusions. If exclusions are minimal and well-reasoned, it can still foster significant competition among qualified vendors. However, if the exclusions are broad or poorly justified, it could unduly limit the bidder pool, potentially leading to higher prices or reduced innovation. The fact that 5 bidders participated suggests that the exclusions, in this instance, did not cripple competition. The effectiveness is ultimately measured by whether the chosen method resulted in the best value (considering price, performance, and risk) for the government compared to other potential procurement strategies.

How does the contract's duration (426 days) impact the overall value and operational stability for the facility?

The contract duration of 426 days (approximately 1 year and 2 months) provides a moderate period for operational stability and service delivery. For a facility like the Buffalo Federal Detention Facility, this duration allows the contractor, Akima Global Services, LLC, to establish consistent operations and staffing. From a value perspective, a longer duration can sometimes lead to better economies of scale and reduced transition costs compared to very short-term contracts. However, it also locks the government into a specific price and provider for that period. If market conditions change significantly or if performance issues arise, a shorter contract might offer more flexibility. The 426-day term suggests a balance, providing enough time for effective service while allowing for periodic re-evaluation of the market and contractor performance upon expiration.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCEDM-14-R-00005

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 3901 OLD INTERNATIONAL AIRPORT RD STE 200-G, ANCHORAGE, AK, 99502

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,268,546

Exercised Options: $22,268,546

Current Obligation: $22,268,546

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00002

IDV Type: IDC

Timeline