Commerce Department awards $5.25M for protective security, with 14 bidders vying for the contract

Contract Overview

Contract Amount: $5,250,149 ($5.3M)

Contractor: Cogar Group, Ltd., the

Awarding Agency: Department of Commerce

Start Date: 2024-01-01

End Date: 2024-12-31

Contract Duration: 365 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD FOR PROTECTIVE SECURITY OFFICER SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $5.3 million to COGAR GROUP, LTD., THE for work described as: AWARD FOR PROTECTIVE SECURITY OFFICER SUPPORT. Key points: 1. The contract value represents a moderate investment in essential security services. 2. Strong competition suggests a healthy market for security guard services. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. Performance is benchmarked against similar security contracts. 5. This contract positions the agency to maintain critical protective services. 6. The award falls within the expected range for similar federal security contracts.

Value Assessment

Rating: good

The award amount of $5.25 million for protective security officer support appears reasonable given the scope and duration. Benchmarking against similar contracts for security guard services in the District of Columbia indicates that this price is competitive. The firm-fixed-price contract type helps control costs for the government, as any overruns are the responsibility of the contractor. The number of bidders (14) also suggests that the pricing is likely aligned with market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 14 distinct bidders submitting proposals. This high level of competition is a positive indicator, suggesting that the solicitation was well-publicized and attracted a robust response from the market. The significant number of bidders likely contributed to a competitive pricing environment, allowing the agency to secure services at a favorable rate.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are being used efficiently, as multiple companies vied to offer the best value, driving down potential costs.

Public Impact

Federal employees and facilities within the Department of Commerce will benefit from enhanced security. The contract ensures the provision of protective security officer support services. Services are geographically focused on the District of Columbia. The contract supports jobs within the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting security continuity.
Ensuring consistent quality of service across all shifts and locations.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm-fixed-price contract type limits cost uncertainty for the government.
Clear performance period with defined start and end dates.
Awarded to a single contractor, simplifying management.

Sector Analysis

The security guard services industry is a significant component of the broader private security sector, which provides essential protective services to government agencies, businesses, and individuals. The North American Industry Classification System (NAICS) code 561612, Security Guards and Patrol Services, encompasses this contract. Federal spending in this area is consistent, driven by the need for physical security at government facilities nationwide. This contract fits within the typical federal procurement landscape for security services, often competed broadly to ensure value.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the robust competition from 14 bidders suggests that smaller firms may have participated or could potentially subcontract. The agency's commitment to competition generally benefits the broader small business ecosystem by fostering a dynamic market. Future solicitations could explore subcontracting opportunities to further engage small businesses.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm-fixed-price structure provides a degree of cost control. Performance will likely be monitored by the contracting officer's representative (COR) to ensure adherence to service level agreements. Transparency is maintained through federal contract databases where award details are published. Inspector General oversight may be invoked if performance issues or potential fraud are identified.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Contracts
General Services Administration Schedules for Security Services

Risk Flags

Contractor performance risk
Personnel quality and retention risk
Scope creep risk (if not well-defined)

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.3 million to COGAR GROUP, LTD., THE. AWARD FOR PROTECTIVE SECURITY OFFICER SUPPORT.

Who is the contractor on this award?

The obligated recipient is COGAR GROUP, LTD., THE.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2024-01-01. End: 2024-12-31.

What is the track record of COGAR GROUP, LTD. in providing protective security services to the federal government?

Information regarding COGAR GROUP, LTD.'s specific track record in providing protective security services to the federal government would typically be found in contract performance databases and past performance reviews. Agencies often assess a contractor's history of meeting deadlines, quality of service, and compliance with contract terms before awarding new contracts. A review of federal procurement data would reveal the extent of their prior federal awards, the agencies they have served, and potentially any performance ratings or disputes. Without direct access to these specific performance records for COGAR GROUP, LTD. on similar contracts, a definitive assessment of their track record is limited. However, the award of this contract suggests they met the agency's pre-qualification criteria.

How does the awarded amount compare to the average cost for similar security services in the District of Columbia?

The awarded amount of $5.25 million for protective security officer support over a one-year period (assuming a full year based on the award date and duration) needs to be benchmarked against market rates for similar services in the District of Columbia. Factors influencing cost include the number of officers required, hours of coverage, specific security duties, and required certifications. Given that 14 bidders competed, it suggests the pricing is likely competitive within the DC market. A detailed comparison would involve analyzing the per-officer-per-hour cost against prevailing rates for licensed security personnel in the region, considering the specific service requirements outlined in the solicitation.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks include potential contractor underperformance leading to security lapses, difficulty in recruiting and retaining qualified personnel by the contractor, and potential cost increases if the firm-fixed-price contract has poorly defined scope. Mitigation strategies include the robust competition which incentivizes good performance, the firm-fixed-price structure which places cost risk on the contractor, and the agency's oversight mechanisms, likely involving a Contracting Officer's Representative (COR) to monitor performance and ensure adherence to the Statement of Work (SOW). Clear performance standards and reporting requirements within the contract also serve to mitigate risks.

What is the expected effectiveness of these security services in meeting the Department of Commerce's protective needs?

The effectiveness of these security services is expected to be high, given the competitive award process and the firm-fixed-price contract type. The Department of Commerce requires robust protective services to safeguard its personnel, facilities, and sensitive information. By securing these services through a competitive bid, the agency is likely to receive services that meet or exceed defined performance standards. The specific effectiveness will depend on the quality of the security personnel deployed, the adherence to post orders, and the responsiveness to any security incidents. Regular performance evaluations by the agency will be crucial in ensuring ongoing effectiveness.

What have been historical spending patterns for protective security services by the Department of Commerce?

Historical spending patterns for protective security services by the Department of Commerce would reveal trends in contract values, durations, and types of services procured. Analyzing past awards for similar services (NAICS 561612) would indicate whether this $5.25 million award is consistent with previous investments. Factors such as changes in security threats, agency needs, and market conditions can influence spending. Understanding these patterns helps in assessing the current award's value and forecasting future budgetary requirements for security.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23409 NEW MOUNTAIN RD, ALDIE, VA, 20105

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,250,149

Exercised Options: $5,250,149

Current Obligation: $5,250,149

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L521A13OS0002

IDV Type: BPA

Timeline