HHS Spends $70M on Guard Services via Full and Open Competition
Contract Overview
Contract Amount: $70,153,910 ($70.2M)
Contractor: IDS International, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2003-02-19
End Date: 2008-05-31
Contract Duration: 1,928 days
Daily Burn Rate: $36.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIXED PRICE
Sector: Other
Official Description: GUARD SERVICES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $70.2 million to IDS INTERNATIONAL, LLC for work described as: GUARD SERVICES Key points: 1. Total contract value of $70.15M for security guard services. 2. Awarded to IDS INTERNATIONAL, LLC under full and open competition. 3. Contract duration spans 1928 days, indicating a long-term need. 4. The North American Industry Classification System (NAICS) code is 561612. 5. The contract was awarded by the Department of Health and Human Services.
Value Assessment
Rating: fair
The contract value of $70.15M for guard services appears substantial. Benchmarking against similar contracts for security services is necessary to determine if this represents a fair price, considering the duration and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically allows multiple vendors to bid, driving competitive pricing.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most competitive pricing available.
Public Impact
Ensures physical security for HHS facilities and personnel. Supports the operational continuity of critical government functions. Provides employment opportunities within the security services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or quality indicators.
- Potential for price creep over the contract's extended duration.
- Limited information on vendor past performance or specific capabilities.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Clear contract award date and duration provided.
- Identified agency and specific office responsible for the contract.
Sector Analysis
The security guard services sector is highly competitive, with numerous providers ranging from large corporations to smaller specialized firms. Spending benchmarks vary significantly based on location, service level, and contract duration.
Small Business Impact
While the contract was awarded through full and open competition, there is no explicit indication of small business participation or set-asides. Further analysis would be needed to determine if small businesses had a fair opportunity to compete.
Oversight & Accountability
Oversight would typically involve regular performance reviews by the contracting officer's representative (COR) to ensure service quality and adherence to contract terms. The duration suggests ongoing monitoring is crucial.
Related Government Programs
- Security Guards and Patrol Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for cost overruns on long-term contracts.
- Limited information on specific service deliverables.
- No clear indication of small business utilization.
Tags
security-guards-and-patrol-services, department-of-health-and-human-services, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $70.2 million to IDS INTERNATIONAL, LLC. GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is IDS INTERNATIONAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $70.2 million.
What is the period of performance?
Start: 2003-02-19. End: 2008-05-31.
What specific security services are included in this $70M contract, and how do they align with HHS's risk profile?
The contract covers security guards and patrol services (NAICS 561612). The specific services would detail armed/unarmed guards, patrol routes, access control, and emergency response protocols. Alignment with HHS's risk profile would depend on the threat assessment for its facilities, personnel, and sensitive information, necessitating a detailed review of the Statement of Work (SOW).
How was the pricing benchmarked against industry standards for similar guard services over the 5-year period?
Given the full and open competition, the pricing was likely determined through the bidding process. However, a formal benchmark against industry standards for similar guard services over the 5-year period would provide a clearer picture of value. This would involve comparing the per-hour rate or total contract value against market data for comparable contracts in similar geographic locations and service scopes.
What mechanisms are in place to ensure the quality and effectiveness of the guard services provided by IDS INTERNATIONAL, LLC?
Mechanisms for ensuring quality typically include performance standards outlined in the SOW, regular performance evaluations by the COR, and potential penalties for non-compliance. The effectiveness would be measured by metrics such as incident response times, security breaches prevented, and adherence to post orders. A review of past performance and any quality assurance surveillance plans (QASPs) would offer further insight.
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
Offers Received: 11
Pricing Type: FIXED PRICE (J)
Evaluated Preference: SPS
Contractor Details
Address: 14275 GOLF COURSE DR STE 250, BAXTER, MN, 56425
Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $107,394,368
Exercised Options: $125,381,909
Current Obligation: $70,153,910
Timeline
Start Date: 2003-02-19
Current End Date: 2008-05-31
Potential End Date: 2008-05-31 00:00:00
Last Modified: 2016-04-18
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