DoD contract awarded to AKAL SECURITY, INC. for $11.2M, with a duration of 555 days

Contract Overview

Contract Amount: $11,201,825 ($11.2M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-29

End Date: 2007-04-07

Contract Duration: 555 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to AKAL SECURITY, INC. for work described as: Key points: 1. Value for money appears fair given the firm fixed-price contract type, though detailed performance metrics are not provided. 2. Competition dynamics indicate a full and open competition, suggesting a potentially competitive pricing environment. 3. Risk indicators are moderate, with a fixed-price contract potentially shifting some risk to the contractor. 4. Performance context is limited due to the lack of specific deliverables or outcome data in the provided information. 5. Sector positioning is within defense services, a common area for federal contracting. 6. The contract was awarded in 2005, indicating historical spending patterns rather than current market conditions.

Value Assessment

Rating: fair

The contract value of $11.2 million over approximately 1.5 years suggests a moderate annual spend. Without specific service details or performance benchmarks, a direct comparison to similar contracts is difficult. The firm fixed-price nature implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price was set competitively. However, the absence of detailed performance data prevents a thorough assessment of whether the price achieved the intended value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 20 bids suggests a robust competitive landscape for this requirement. A high number of bidders typically fosters price discovery and can lead to more favorable pricing for the government. The specific nature of the services procured would influence the number and type of bidders.

Taxpayer Impact: A full and open competition with 20 bidders generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are likely Department of Defense personnel and assets requiring security services. Services delivered would pertain to physical security, access control, or other protective measures. The geographic impact is tied to the specific installation or location where the services were rendered, indicated by 'GA' for Georgia. Workforce implications include the creation of jobs 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 services rendered.
The contract duration of 555 days (approx. 1.5 years) is relatively short, potentially leading to frequent re-competition and associated administrative costs.
Limited information on the specific security services provided hinders a detailed risk assessment.

Positive Signals

Awarded under full and open competition, indicating a broad market engagement.
Firm fixed-price contract type shifts cost overrun risk to the contractor.
The existence of 20 bids suggests significant interest and a competitive bidding process.

Sector Analysis

This contract falls within the broader defense services sector, which encompasses a wide range of support functions for military operations. The market for defense security services is substantial, driven by the continuous need for physical protection of personnel, facilities, and equipment. Comparable spending benchmarks would depend heavily on the specific type and scale of security services required, such as guard services, surveillance, or access control.

Small Business Impact

The provided 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, AKAL SECURITY, INC., would have been responsible for fulfilling the contract requirements. Analysis of potential subcontracting opportunities would require further details on the contract's scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of Defense contracting activity. Accountability measures would be tied to the terms and conditions of the firm fixed-price contract, including delivery schedules and service level agreements, if 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
Base Operations Support Contracts
Physical Security Services
Federal Law Enforcement Support

Risk Flags

Lack of detailed performance data
Limited scope definition in summary data
Historical data point (awarded 2005)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 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 $11.2 million.

What is the period of performance?

Start: 2005-09-29. End: 2007-04-07.

What specific security services were provided under this contract?

The provided data does not specify the exact security services rendered under this $11.2 million Department of Defense contract awarded to AKAL SECURITY, INC. Contracts of this nature typically involve physical security measures such as guarding installations, controlling access points, monitoring surveillance systems, and potentially providing escort services. The firm fixed-price nature suggests a defined scope of work was agreed upon at the time of award. To understand the specific services, one would need to consult the contract's statement of work (SOW) or performance work statement (PWS), which are not included in the provided data.

How does the $11.2 million contract value compare to similar defense security contracts awarded around 2005?

Comparing the $11.2 million value requires context on the contract's duration and scope. This contract lasted approximately 555 days (about 1.5 years). Annualized, this represents roughly $7.5 million per year. In 2005, the Department of Defense awarded numerous security contracts, with values varying significantly based on the location, size of the facility, and complexity of security requirements. Larger base support contracts could run into hundreds of millions annually, while smaller, specialized security services might be in the low millions. Without knowing the specific services and location details beyond 'GA' (Georgia), a precise benchmark is difficult, but $7.5 million annually for security services was within a common range for significant installations or operations at that time.

What were the primary risks associated with this firm fixed-price contract?

For the government, the primary risk with a firm fixed-price (FFP) contract is paying a price that may exceed the actual cost of performance if the contractor is highly efficient or if the initial cost estimates were inflated. However, FFP contracts are generally favored for shifting performance risk to the contractor. For AKAL SECURITY, INC., the main risk was incurring costs exceeding the fixed price, potentially leading to reduced profit margins or even a loss, especially if unforeseen issues arose during the contract period. This risk is mitigated by the contractor's ability to accurately estimate costs and manage performance efficiently. The lack of detailed performance metrics in the provided data makes it hard to assess if the contractor successfully managed these risks.

What does the number of bidders (20) suggest about the market for these services in 2005?

The fact that 20 bids were received for this Department of Defense contract in 2005 indicates a healthy and competitive market for the specific security services being procured. A high number of bidders suggests that multiple companies possessed the capability and interest to perform the required work. This level of competition typically benefits the government by driving down prices, encouraging innovation, and ensuring a wider pool of qualified contractors. It implies that the barriers to entry for providing these types of security services were not prohibitively high for established firms in the defense contracting sector at that time.

How has federal spending on defense security services evolved since this contract was awarded in 2005?

Federal spending on defense security services has generally increased significantly since 2005, driven by evolving geopolitical landscapes, increased global security threats, and the expansion of military operations. While this specific contract was for $11.2 million over about 1.5 years, overall defense spending, including security-related services, has seen substantial growth. Factors such as technological advancements in security, the need for specialized cybersecurity alongside physical security, and the outsourcing of various support functions contribute to this trend. Budgetary priorities, congressional appropriations, and the nature of ongoing military engagements heavily influence year-over-year spending in this category.

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, 03

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: DABJ0103D0038

IDV Type: IDC

Timeline