DoD awards $17.8M contract to AKAL SECURITY, INC. for security services in Kentucky

Contract Overview

Contract Amount: $17,810,769 ($17.8M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-26

End Date: 2007-04-07

Contract Duration: 558 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to AKAL SECURITY, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 558 days (approx. 1.5 years) is relatively short for a security services contract of this value. 3. Firm Fixed Price contract type indicates a defined cost, potentially limiting contractor risk but also reducing flexibility. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The contract value of $17.8 million averages to approximately $31,919 per day. 6. No indication of small business set-aside or subcontracting requirements.

Value Assessment

Rating: fair

The contract value of $17.8 million for approximately 1.5 years of security services appears within a reasonable range for federal contracts of this nature. However, without specific details on the scope of services (e.g., number of personnel, locations, specific security measures), a precise value-for-money assessment is challenging. Benchmarking against similar contracts for security services in the same geographic region would provide a clearer picture of pricing efficiency. The firm fixed-price structure suggests the government aimed for cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 20 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and can result in more favorable terms for the government. The number of bidders implies that the market for these services is robust enough to support multiple interested parties.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. The high number of bids suggests that the government likely secured a competitive price for the security services.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive essential security services. The contract ensures the physical security of facilities and assets within the operational area. Services are geographically focused within Kentucky (ST KY). The contract likely supports a workforce of security personnel, contributing to local employment in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics or outcome-based measures makes it difficult to assess effectiveness beyond basic service delivery.
The firm fixed-price nature might disincentivize contractors from exceeding basic requirements or innovating without additional compensation.
Limited information on the specific security threats or requirements addressed by this contract.

Positive Signals

Awarded through full and open competition, indicating a robust market response.
Firm fixed-price contract provides cost certainty for the government.
Contract awarded to AKAL SECURITY, INC., a known entity in the security services sector.

Sector Analysis

The federal government is a significant consumer of security services, contracting for a wide range of protective measures across various agencies and installations. The market for these services is competitive, with numerous private sector firms vying for contracts. This particular contract fits within the broader category of professional, scientific, and technical services, specifically focusing on physical security. Comparable spending benchmarks for similar security contracts can vary widely based on scope, duration, and location.

Small Business Impact

There is no indication that this contract included a small business set-aside. Furthermore, the data does not specify any subcontracting requirements for small businesses. This suggests that small businesses may not have been a primary focus for this particular procurement, and their participation would likely depend on direct subcontracting opportunities offered by the prime contractor, AKAL SECURITY, INC.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. Accountability is primarily driven by the firm fixed-price terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the public availability of contract award data. Oversight would typically involve contract officers and potentially inspectors from the Department of Defense to ensure compliance with the contract's terms and conditions.

Related Government Programs

Department of Defense Security Contracts
Federal Law Enforcement Support Services
Physical Security Services
Government Contracting

Risk Flags

Potential for minimum service delivery due to FFP structure.
Lack of detailed performance metrics.
Limited information on specific security threats addressed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 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 $17.8 million.

What is the period of performance?

Start: 2005-09-26. 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. However, given the contractor's specialization and the awarding agency (Department of the Army), it is highly probable that the services included physical security measures such as guarding facilities, access control, perimeter security, and potentially response to security incidents. The scope could range from static posts to mobile patrols, depending on the specific requirements outlined in the contract's statement of work. Without the detailed SOW, precise service details remain unknown.

How does the awarded amount of $17.8 million compare to similar security contracts awarded by the DoD?

The $17.8 million award for approximately 1.5 years of service falls within a typical range for federal security contracts, especially those involving significant personnel deployment or specialized security needs. However, a direct comparison is difficult without knowing the specific scope, duration, and geographic location of comparable contracts. Contracts for large-scale base security or high-security facility protection can easily reach tens or hundreds of millions of dollars over multiple years. This contract's value suggests a substantial but not exceptionally large requirement, likely focused on a specific set of facilities or operations within Kentucky.

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

AKAL SECURITY, INC. has a history of receiving federal contracts, primarily with the Department of Defense. The data indicates this specific contract was awarded in 2005 and completed in 2007. While this provides evidence of their capability to secure and perform federal work, a comprehensive assessment of their track record would require analyzing a broader range of their contract history, including performance reviews, past performance evaluations, and any instances of contract disputes or terminations. Their continued ability to win contracts suggests a generally satisfactory performance history.

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

A firm fixed-price (FFP) contract for security services carries several potential risks. For the contractor, the primary risk is underestimating costs, leading to reduced profit margins or even losses if unforeseen circumstances arise (e.g., increased labor costs, unexpected security threats requiring more resources). For the government, the risk is that the contractor may be incentivized to provide only the minimum required services to maximize profit, potentially compromising quality or responsiveness if not carefully monitored. Scope creep is also a risk; if the government requires additional services beyond the original scope, it necessitates a contract modification, which can be costly and time-consuming under an FFP structure.

How does the competition level (20 bidders) impact the value received by taxpayers?

A high level of competition, as indicated by 20 bidders for this contract, generally benefits taxpayers by fostering a more competitive pricing environment. When multiple companies vie for a contract, they are incentivized to offer their best possible pricing and terms to win the award. This competitive pressure helps ensure that the government is not overpaying for the services. Furthermore, a robust competition suggests that the market is healthy and that the government has a good selection of qualified providers, increasing the likelihood of selecting a contractor that offers both quality services and good value for the taxpayer's investment.

What is the significance of the contract being awarded in Kentucky?

The contract's focus on Kentucky (ST KY) signifies that the security services were required for Department of Defense assets or operations within that state. This implies a localized impact on employment, as security personnel would likely be hired from the local workforce. It also means that the economic benefit of this federal spending remains within the state. The specific location within Kentucky would determine the exact facilities or areas being secured, potentially including military bases, training grounds, or other government installations.

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