GAO awards $1.06M contract for security systems services to Versar Security Systems, LLC

Contract Overview

Contract Amount: $1,061,044 ($1.1M)

Contractor: Versar Security Systems, LLC

Awarding Agency: Government Accountability Office

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IESS - FUND OPTION YEAR 1

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Government Accountability Office obligated $1.1 million to VERSAR SECURITY SYSTEMS, LLC for work described as: IESS - FUND OPTION YEAR 1 Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Security Systems Services sector, with a focus on non-locksmith services. 3. Contract duration of 364 days suggests a short-term or operational need. 4. Time and Materials pricing structure carries inherent cost escalation risks. 5. Awarded by the Government Accountability Office, a key oversight body. 6. Geographic location is Washington D.C., a high-cost area.

Value Assessment

Rating: fair

The contract value of $1.06 million for a 364-day period for security systems services appears within a reasonable range for specialized government contracts. However, without specific details on the scope of services, it's difficult to benchmark against similar contracts precisely. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed diligently, potentially impacting overall value for money compared to fixed-price arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The use of a Blanket Purchase Agreement (BPA) Call indicates that the underlying contract vehicle was already competed, and this call-off likely involved a competitive process among BPA holders. The level of competition for the BPA itself is unknown, but the call-off process should have facilitated price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value.

Public Impact

The Government Accountability Office (GAO) is the primary beneficiary, receiving security systems services. Services likely include monitoring, installation, maintenance, or other security-related functions for GAO facilities. The contract's geographic impact is limited to Washington D.C. Workforce implications are primarily for Versar Security Systems, LLC, and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The specific scope of 'Security Systems Services' is broad and requires detailed performance metrics.
Reliance on a single awardee for a critical function like security warrants close performance oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The use of a BPA Call implies a pre-vetted and potentially cost-effective procurement vehicle.
The contractor, Versar Security Systems, LLC, is providing a specialized service.

Sector Analysis

The security systems services sector is a significant part of the broader government contracting landscape, encompassing a wide range of solutions from physical security to electronic surveillance and access control. Government agencies, particularly those with sensitive information or facilities, represent a substantial market for these services. Benchmarking spending in this area is challenging without granular data on service types, but contracts typically range from tens of thousands to millions of dollars depending on scale and complexity.

Small Business Impact

The 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 requirement. However, the prime contractor, Versar Security Systems, LLC, may choose to subcontract portions of the work to small businesses as part of their business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

The Government Accountability Office (GAO) itself is the awarding agency, which inherently provides a high level of internal oversight. As the agency responsible for auditing and evaluating federal programs, GAO is expected to have robust internal controls and accountability measures in place for its own procurements. Transparency is generally high for GAO contracts, and any Inspector General oversight would likely fall under GAO's internal audit functions.

Related Government Programs

General Services Administration (GSA) Schedules
Federal Protective Service Contracts
Department of Homeland Security (DHS) Security Contracts
Defense Security Service Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Unclear scope of services requires careful monitoring.
Short contract duration may not align with long-term security needs.

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $1.1 million to VERSAR SECURITY SYSTEMS, LLC. IESS - FUND OPTION YEAR 1

Who is the contractor on this award?

The obligated recipient is VERSAR SECURITY SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the specific scope of 'Security Systems Services' covered under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 561621 for Security Systems Services (except Locksmiths). However, the specific deliverables, equipment, and service levels are not detailed in the summary data. This could encompass a range of services such as alarm monitoring, CCTV installation and maintenance, access control systems, security guard technology integration, or emergency communication systems. A thorough review of the contract's Statement of Work (SOW) would be necessary to understand the precise services being procured and to accurately assess performance and value.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar security services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. For security services, T&M offers flexibility but carries a higher risk of cost escalation for the government compared to fixed-price contracts. Fixed-price contracts provide cost certainty but may be less adaptable to evolving security needs. Hybrid approaches, like T&M with a ceiling or cost-plus-fixed-fee, are also common. The suitability of T&M depends on the predictability of the service requirements and the government's ability to closely monitor labor hours and material costs to ensure fair pricing.

What is Versar Security Systems, LLC's track record with government contracts, particularly with GAO?

The provided data identifies Versar Security Systems, LLC as the awardee. To assess their track record, one would need to examine their past performance on federal contracts. This includes reviewing contract history for similar services, past performance evaluations (if publicly available), any documented disputes or contract terminations, and their experience with the specific security systems relevant to this award. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial for a comprehensive analysis of their reliability and performance history.

What are the potential risks associated with a 364-day contract duration for security systems?

A 364-day duration, just shy of a full year, often indicates a short-term operational need, a bridge contract, or a pilot program. For security systems, this duration might be sufficient for temporary installations or specific event-based security. However, if the requirement is for ongoing, long-term security infrastructure, a short duration could lead to frequent re-procurement costs and potential disruptions in service continuity. It also limits the contractor's incentive to invest in long-term system optimization or deep integration, focusing instead on meeting the immediate requirements within the contract period.

How does the BPA Call mechanism influence the cost-effectiveness of this award?

A Blanket Purchase Agreement (BPA) is a simplified way to fill anticipated repetitive needs for supplies or services by establishing 'charge accounts' with qualified sources. A BPA Call is an order placed against an existing BPA. The underlying BPA is typically competed, meaning the pricing and terms were negotiated and vetted during the initial BPA competition. Using a BPA Call for this award suggests that the government has already secured favorable pricing and terms through the initial competition for the BPA. This mechanism can streamline the procurement process and potentially lead to cost savings compared to a standalone, full and open competition for each individual requirement.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1025 VERMONT AVE NW STE 500, WASHINGTON, DC, 20005

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,061,044

Exercised Options: $1,061,044

Current Obligation: $1,061,044

Actual Outlays: $385,620

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 05GA0A21A0003

IDV Type: BPA

Timeline