DHS spent $84.1M on unaccompanied alien child transportation, raising questions about value and competition

Contract Overview

Contract Amount: $84,124,557 ($84.1M)

Contractor: MVM, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-22

End Date: 2018-09-29

Contract Duration: 372 days

Daily Burn Rate: $226.1K/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 $84.1 million to MVM, INC. for work described as: IGF::OT::IGF UNACCOMPANIED ALIEN CHILDREN (UAC) TRANSPORTATION SERVICES Key points: 1. Contract value of $84.1M for transportation services indicates significant federal investment in migrant support. 2. The contract was awarded under full and open competition, suggesting a broad market approach. 3. A delivery order structure implies flexibility but may require careful monitoring of task orders. 4. The primary contractor, MVM, Inc., has a history of providing similar services, offering some performance predictability. 5. The contract's duration of 372 days points to a medium-term need for these specialized services. 6. Focus on Texas (st: TX) highlights a key geographic area for migrant processing and transportation.

Value Assessment

Rating: fair

The total award of $84.1 million for transportation services requires benchmarking against similar contracts for migrant transport. Without specific per-unit cost data or detailed service scope, a precise value-for-money assessment is challenging. However, the scale of the award suggests a substantial operational requirement. Comparing this to other contracts for similar services, particularly those awarded by DHS or HHS for unaccompanied minor services, would be crucial to determine if the pricing is competitive and reflects efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought a broad range of potential providers, which should theoretically lead to a more favorable outcome for the government in terms of cost and service quality.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it maximizes the potential for cost savings through a wider pool of bidders vying for the contract.

Public Impact

Benefits unaccompanied alien children by providing essential transportation services during their processing. Facilitates the movement of minors to appropriate shelters or family reunification points. Primarily impacts the geographic region of Texas, a significant hub for border crossings and migrant processing. Supports a workforce involved in logistics, transportation, and potentially care coordination for minors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high operational costs given the sensitive nature of transporting vulnerable populations.
Ensuring consistent quality of care and safety during transit is a critical concern.
Geographic concentration in Texas may indicate specific logistical challenges or demand spikes.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contractor has experience in providing similar services, potentially leading to reliable execution.
Firm fixed-price contract type helps control costs for the government.

Sector Analysis

The contract falls within the broader security and transportation services sector, specifically addressing the logistical needs related to migrant populations. This niche within the federal contracting landscape often involves specialized providers capable of handling sensitive operations. Comparable spending benchmarks would involve looking at other contracts for migrant transportation, shelter services, or logistical support for humanitarian efforts, which can vary significantly based on demand and operational complexity.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-value contract likely requiring significant resources and infrastructure, it may have been challenging for small businesses to compete directly. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses, which could mitigate the direct impact.

Oversight & Accountability

Oversight would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) through contract officers and program managers. Transparency is enhanced by the public nature of federal contract awards. Accountability measures would involve performance monitoring, adherence to service level agreements, and potential penalties for non-compliance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Unaccompanied Alien Children Program
Migrant Shelter Services
Border Patrol Transportation Contracts
Department of Health and Human Services (HHS) Child Welfare Services

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk to child welfare and safety during transit.
Dependence on a single contractor for critical services.
Geographic concentration may limit flexibility in response to changing needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $84.1 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 $84.1 million.

What is the period of performance?

Start: 2017-09-22. End: 2018-09-29.

What is the specific scope of services provided under this contract, and how does it compare to industry standards for unaccompanied alien child transportation?

The contract, identified by IGF::OT::IGF UNACCOMPANIED ALIEN CHILDREN (UAC) TRANSPORTATION SERVICES, was awarded to MVM, INC. by the Department of Homeland Security (DHS) through U.S. Immigration and Customs Enforcement (ICE). The award amount was $84,124,557.28 with a duration of 372 days, ending September 29, 2018. While the specific details of the 'transportation services' are not fully elaborated in the provided data, such contracts typically encompass the safe and secure movement of unaccompanied alien children from border points of entry to designated shelters, processing centers, or reunification facilities. This includes logistical planning, vehicle arrangements, escort personnel, and ensuring the well-being of the children during transit. Industry standards in this sensitive area emphasize child welfare, safety protocols, and compliance with legal requirements governing the treatment of minors. Benchmarking against similar contracts would involve examining the per-child cost, travel distances covered, and the level of support services provided during transport, which are often subject to fluctuations based on border conditions and agency needs.

How does the $84.1 million contract value compare to historical spending on similar services by DHS or other agencies?

The $84.1 million expenditure for unaccompanied alien child transportation services represents a significant investment. To contextualize this figure, it's essential to compare it with historical spending patterns for similar services. Agencies like DHS (specifically ICE and CBP) and HHS (which often manages shelter and care) procure transportation and related services regularly. Analyzing previous years' spending on UAC transportation, factoring in inflation and changes in migrant flows, would provide a clearer picture of whether this contract represents an increase, decrease, or stable level of spending. For instance, comparing this award to the total annual budget allocated for UAC logistics in prior fiscal years, or examining the average value of individual transportation contracts awarded during peak migration periods, would help determine if $84.1 million is an outlier or a consistent expenditure level for managing these complex logistical challenges.

What are the key performance indicators (KPIs) used to evaluate MVM, Inc.'s performance under this contract, and what was their track record?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific contract awarded to MVM, Inc. However, for transportation services involving vulnerable populations like unaccompanied alien children, typical KPIs would likely include on-time delivery, safety incident rates (e.g., accidents, injuries), compliance with child welfare standards during transit, security breach incidents, and potentially passenger satisfaction or feedback (though this is less common for minors). MVM, Inc.'s track record would be assessed through past performance evaluations on similar government contracts. Agencies maintain performance records, and contracting officers review these when making award decisions and throughout contract execution. A review of past performance reports, any documented disputes, or contract modifications could reveal insights into MVM's reliability and effectiveness in fulfilling its obligations.

Given the firm fixed-price contract type, what are the potential risks and benefits for the government and the contractor?

A Firm Fixed-Price (FFP) contract type, like the one used here, offers significant benefits for the government by establishing a ceiling on costs, thereby providing budget certainty and protecting against cost overruns. The contractor, MVM, Inc., assumes the primary risk of cost increases. If their operational costs exceed the fixed price, their profit margin shrinks, or they may incur a loss. Conversely, if they manage costs efficiently, they can achieve higher profits. For the government, the main risk with FFP contracts lies in ensuring the scope of work is precisely defined. If unforeseen issues arise that require changes to the scope, contract modifications can become complex and potentially costly. Additionally, if the contractor cuts corners to maintain profitability under an FFP structure, it could impact service quality or safety, necessitating robust oversight.

What does the geographic focus on Texas (st: TX) imply about the operational context and potential challenges of this contract?

The designation of Texas (st: TX) as the state associated with this contract strongly suggests that the services were primarily delivered within or originating from Texas, a major border state with significant migrant influx. This geographic focus implies that the contract was likely related to the transportation of unaccompanied alien children apprehended along the Texas border or processed through facilities located there. Operational challenges in Texas can include vast distances, diverse terrain, high volumes of arrivals, and the need for coordination with multiple federal, state, and local agencies. The concentration of services in one state may also indicate specific logistical requirements, such as establishing regional hubs or managing routes that traverse long distances within the state or to other destinations. This focus necessitates robust planning to ensure timely and safe transportation amidst potentially dynamic border conditions.

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: $84,124,557

Exercised Options: $84,124,557

Current Obligation: $84,124,557

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM14D00006

IDV Type: IDC

Timeline