Agriculture awards $7.6M security guard contract to Defense Contracting Activity, LLC in Iowa

Contract Overview

Contract Amount: $7,593,551 ($7.6M)

Contractor: Defense Contracting Activity, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-08-23

End Date: 2027-08-31

Contract Duration: 1,834 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AMES, IA SECURITY GUARD CONTRACT

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.6 million to DEFENSE CONTRACTING ACTIVITY, LLC for work described as: AMES, IA SECURITY GUARD CONTRACT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for security guard services, a common requirement for federal facilities. 3. The duration of the contract is over 4 years, indicating a long-term need. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, Defense Contracting Activity, LLC, is a new entity with limited public track record. 7. The contract is geographically focused in Iowa.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more data on the scope of services and specific security requirements. However, the award to a new contractor warrants closer scrutiny. The firm-fixed-price contract type is generally favorable for the government when requirements are well-defined, as it caps costs. The total value of $7.6 million over approximately 5 years (including potential option periods) needs to be compared against similar security contracts for facilities of comparable size and risk profile.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While competition is generally positive, the limited number of bidders could mean that the market for this specialized service is not as robust as it could be, or that other factors limited participation.

Taxpayer Impact: Full and open competition is the preferred method as it typically leads to better pricing and value for taxpayers by encouraging multiple companies to offer their best terms.

Public Impact

The primary beneficiaries are the facilities managed by the Animal and Plant Health Inspection Service (APHIS) in Iowa, which will receive security services. The contract ensures the physical security and protection of government assets and personnel at these locations. The geographic impact is concentrated in Iowa, specifically where APHIS operates facilities requiring security. The contract supports jobs within the security services industry, likely benefiting local workforces in Iowa.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's limited track record and potential for performance issues.
Potential for price increases in future contract modifications or renewals given the firm-fixed-price structure.
Dependence on a single contractor for critical security services.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract duration allows for stable security provision.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal agencies frequently contract for security guard services to protect facilities, personnel, and sensitive information. This contract falls within the North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services. Spending in this category is substantial across the government, with agencies like Defense, Homeland Security, and others being major consumers.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor's own size and business structure are not detailed.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers within APHIS. The contract is a delivery order, suggesting it might be under an existing IDIQ contract that has its own oversight framework. Inspector General reviews could occur if performance issues or allegations of fraud arise. Transparency is generally maintained through contract databases like SAM.gov.

Related Government Programs

Federal Security Guard Contracts
Department of Agriculture Contracts
Animal and Plant Health Inspection Service Contracts
Security Services Industry Spending
Iowa Federal Contracts

Risk Flags

Contractor Performance Risk
Limited Contractor Track Record
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.6 million to DEFENSE CONTRACTING ACTIVITY, LLC. AMES, IA SECURITY GUARD CONTRACT

Who is the contractor on this award?

The obligated recipient is DEFENSE CONTRACTING ACTIVITY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2022-08-23. End: 2027-08-31.

What is the specific track record of Defense Contracting Activity, LLC?

Information regarding the specific track record of Defense Contracting Activity, LLC is limited in publicly available databases. As a relatively new entity or one with minimal federal contract history, assessing their past performance, financial stability, and ability to execute contracts of this magnitude is challenging. Further due diligence by the awarding agency would have been necessary to verify their capabilities. Without more data, it's difficult to compare their performance to established security providers. Future performance on this contract will be a key indicator of their capabilities.

How does the value of this contract compare to similar federal security contracts?

Direct comparison of this $7.6 million contract value is difficult without knowing the precise scope of services, number of posts, hours, and specific security requirements (e.g., armed vs. unarmed guards, specialized equipment). However, federal security guard contracts can range from tens of thousands to hundreds of millions of dollars annually depending on the agency and facility size. For a multi-year contract covering potentially multiple APHIS facilities in Iowa, $7.6 million appears to be within a reasonable range, assuming standard security needs. Benchmarking against contracts for similar-sized facilities or agencies in the Midwest would provide a more precise valuation.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include the potential performance issues stemming from Defense Contracting Activity, LLC's limited track record. Ensuring consistent quality of service, guard reliability, and adherence to security protocols are critical. Another risk is the potential for cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen operational challenges, although this risk is primarily borne by the contractor. Finally, the reliance on a single contractor for essential security functions presents a risk if the contractor fails to perform or faces financial instability.

How effective is the firm-fixed-price contract type for security services?

The firm-fixed-price (FFP) contract type is generally considered effective for services like security guards where the scope of work is well-defined and unlikely to change significantly. It provides the government with cost certainty, as the price is fixed regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently. For the government, this means predictable budgeting. However, if the requirements are poorly defined or scope creep occurs, the contractor may resist necessary changes or seek costly modifications.

What is the historical spending pattern for security guard services by APHIS or USDA?

Historical spending data for security guard services by the Animal and Plant Health Inspection Service (APHIS) or the broader Department of Agriculture (USDA) would reveal trends in demand and contractor relationships. Agencies like APHIS often require security at research facilities, ports of entry, and administrative offices. Analyzing past contract awards, including the number of competitors, contract values, and incumbent contractors, would indicate market stability and pricing trends. Consistent spending suggests a stable need, while fluctuating amounts might indicate changes in facility requirements or security postures.

What are the implications of this contract being a delivery order?

This contract being a 'Delivery Order' implies it was issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQs allow agencies to procure services or supplies over a set period, with specific orders placed as needed. This structure provides flexibility for the agency to order services when and where required, up to a certain ceiling amount. For taxpayers, it can be efficient if the IDIQ itself was competitively awarded. However, it can sometimes obscure the total spending picture if multiple delivery orders are issued across different task orders or contract vehicles.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14101 PARKE LONG CT STE P, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,593,551

Exercised Options: $7,593,551

Current Obligation: $7,593,551

Actual Outlays: $5,120,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0085Y

IDV Type: FSS

Timeline