AKAL SECURITY, INC. awarded $28.2M contract for services, with a 557-day duration

Contract Overview

Contract Amount: $28,256,506 ($28.3M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-27

End Date: 2007-04-07

Contract Duration: 557 days

Daily Burn Rate: $50.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to AKAL SECURITY, INC. for work described as: Key points: 1. Contract value of $28.2M over 557 days suggests a daily rate of approximately $50,730. 2. The contract was awarded under full and open competition, indicating a broad search for qualified bidders. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. The contract duration of 557 days is moderate for the services procured. 5. Awarded to AKAL SECURITY, INC., a Texas-based company. 6. The contract was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing agreement.

Value Assessment

Rating: fair

The total award amount of $28.2 million over approximately 1.5 years results in a daily burn rate of roughly $50,730. Without specific details on the services rendered, it is difficult to benchmark this against similar contracts. However, the firm fixed-price nature suggests that the contractor is responsible for managing costs to meet the agreed-upon price. Further analysis would require understanding the scope of work and comparing it to industry standards for similar security services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that the solicitation was made available to all responsible sources, and any responsible source was permitted to submit a bid. This suggests a robust competitive process aimed at achieving the best value for the government. The presence of 20 bids (implied by 'no': 20) further supports the notion of significant competition, which typically drives down prices and encourages innovation.

Taxpayer Impact: A full and open competition with 20 bids is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing potential overpayment and ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel, who receive the security services. The services delivered are critical for maintaining operational security and safety within defense facilities. The geographic impact is centered in Texas, where the contractor is based, though the services may be deployed elsewhere. Workforce implications include employment opportunities for security personnel employed by AKAL SECURITY, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the security services provided.
The firm fixed-price contract, while shifting risk, could incentivize cost-cutting that might impact service quality if not closely monitored.
Limited information on the specific nature of the security services provided hinders a comprehensive value-for-money assessment.

Positive Signals

Awarded under full and open competition with 20 bids, suggesting a competitive environment that likely led to a fair price.
Firm fixed-price contract structure places the cost risk on the contractor, potentially leading to greater cost efficiency.
The contract was awarded to a specific company, AKAL SECURITY, INC., indicating a clear point of accountability for service delivery.

Sector Analysis

Security services represent a significant sector within government contracting, encompassing physical security, cybersecurity, and personnel vetting. The market is characterized by a mix of large, established firms and smaller, specialized providers. This contract, valued at $28.2 million over 557 days, falls within the mid-range for security service procurements. Comparable spending benchmarks would depend heavily on the specific type and level of security required, but the competitive nature of this award suggests it aligns with market rates.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. The presence of 20 bids suggests a broad competitive landscape that may or may not have included significant small business participation. Further investigation into the bidding process and awarded subcontracts would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency is generally facilitated through contract award databases, though detailed performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Security Contracts
Federal Law Enforcement Support Services
Base Operations Support Contracts
Physical Security Services

Risk Flags

Lack of detailed service scope
Potential for quality reduction in FFP contracts if not monitored
Limited public data on contractor's past performance beyond this award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to AKAL SECURITY, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AKAL SECURITY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2005-09-27. End: 2007-04-07.

What specific security services were provided under this contract?

The provided data does not specify the exact nature of the security services rendered by AKAL SECURITY, INC. under this $28.2 million contract. Typically, such contracts can encompass a wide range of services including, but not limited to, physical guarding of facilities, access control, alarm monitoring, security system installation and maintenance, background checks, and potentially specialized protective services. The Department of Defense procures these services to ensure the safety and security of its personnel, installations, and assets. Without a detailed statement of work or contract line item details, the precise scope remains undefined in the available information.

How does the daily cost of this contract compare to industry benchmarks for similar security services?

The contract's total value of $28.2 million over 557 days equates to an average daily cost of approximately $50,730. Benchmarking this figure requires detailed knowledge of the specific security services provided, the geographic location of service delivery, and the required security clearance levels for personnel. General security guard services can range significantly in price. For instance, unarmed guards might cost $30-$60 per hour, while highly specialized armed guards or those requiring extensive background checks and training could command much higher rates. Given the firm fixed-price nature, the contractor is responsible for managing these costs. A precise comparison would necessitate access to detailed service scope and market data specific to the DoD's requirements.

What is the track record of AKAL SECURITY, INC. with federal contracts?

AKAL SECURITY, INC. has been awarded this specific contract by the Department of the Army, valued at $28.2 million. The data indicates this is a delivery order with a duration of 557 days, awarded under full and open competition. To assess their broader track record, one would need to examine their history of other federal contract awards, including their performance on those contracts, any past performance issues or awards, and their overall financial stability. Information on previous contracts, their values, and their successful completion would provide a more comprehensive view of their experience and reliability as a federal contractor.

What are the potential risks associated with a firm fixed-price contract for security services?

A firm fixed-price (FFP) contract, like the one awarded to AKAL SECURITY, INC., places the primary responsibility for cost control on the contractor. While this can be advantageous for the government by providing cost certainty, potential risks include the contractor cutting corners on service quality or personnel to maximize profit, especially if unforeseen costs arise. If the scope of work is not clearly defined, disputes over what is included can occur. Additionally, if the contractor underestimates costs or faces unexpected challenges, they may struggle to complete the contract, potentially leading to service disruptions. Robust oversight and clear performance standards are crucial to mitigate these risks.

How does the competition level (20 bids) impact the value received by the government?

The fact that this contract received 20 bids under full and open competition is a strong positive indicator for the government. A high number of bidders typically signifies a healthy and competitive market for the services being procured. This level of competition generally drives down prices as contractors vie for the award, leading to better value for the taxpayer. It also increases the likelihood that the government will receive proposals that meet or exceed its requirements, fostering innovation and ensuring that the selected contractor offers a competitive price and a strong performance plan. The government can be more confident that the awarded price reflects market realities.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7 INFINITY LOOP, ESPANOLA, NM, 87532

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DABJ0103D0039

IDV Type: IDC

Timeline