DOJ awards $7.5M firm-fixed-price contract for armed guard services in DC

Contract Overview

Contract Amount: $7,461,382 ($7.5M)

Contractor: Servexo

Awarding Agency: Department of Justice

Start Date: 2025-08-01

End Date: 2026-08-31

Contract Duration: 395 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRM FIXED PRICE TASK ORDER FOR ARMED GUARD SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $7.5 million to SERVEXO for work described as: FIRM FIXED PRICE TASK ORDER FOR ARMED GUARD SERVICES. Key points: 1. Contract awarded via full and open competition, indicating broad market engagement. 2. The contract is for armed guard services, a critical security function. 3. Firm-fixed-price structure shifts cost risk to the contractor. 4. The contract duration is approximately one year. 5. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the issuing agency. 6. The contract is for services within the District of Columbia. 7. The North American Industry Classification System (NAICS) code is 561612.

Value Assessment

Rating: fair

The contract value of $7.5 million for one year of armed guard services appears to be within a reasonable range for a major metropolitan area like Washington D.C., given the specialized nature of armed security personnel. Benchmarking against similar contracts for armed guard services in federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price (FFP) nature of the contract is generally favorable for cost control, as it caps the government's liability.

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 were eligible to bid. The presence of 5 bids indicates a moderate level of competition for this requirement. A higher number of bids typically leads to more competitive pricing and a wider selection of qualified contractors. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

The primary beneficiaries are the facilities and personnel protected by the armed guard services. The contract ensures the provision of essential security services for the Bureau of Alcohol, Tobacco, Firearms and Explosives. The geographic impact is concentrated within the District of Columbia. The contract supports employment for security personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future contract renewals if competition diminishes.
Ensuring consistent quality of service across all shifts and personnel.
Reliance on a single contractor for critical security functions.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract structure provides cost certainty for the government.
The contractor has been selected to provide essential security services.

Sector Analysis

The security services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under the Security Guards and Patrol Services (NAICS 561612) subsector. The market for federal security services is substantial, with numerous companies competing for government contracts. Spending in this area is driven by the need to protect federal assets, personnel, and sensitive information across various agencies and locations.

Small Business Impact

This contract does not appear to have a small business set-aside (SB=false, SS=false). Therefore, the primary contractor is likely a larger entity. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of set-aside provisions means that opportunities for small businesses to directly participate in this contract are limited unless they are part of a larger prime contractor's supply chain.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division is responsible for contract administration. Performance will likely be monitored through regular reporting and site inspections. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract award databases.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts for Security

Risk Flags

Potential for service disruption if contractor faces financial or labor issues.
Risk of decreased service quality due to contractor complacency over time.
Security vulnerabilities if contractor's vetting or training processes are inadequate.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.5 million to SERVEXO. FIRM FIXED PRICE TASK ORDER FOR ARMED GUARD SERVICES.

Who is the contractor on this award?

The obligated recipient is SERVEXO.

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

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

What is the historical spending pattern for armed guard services by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)?

Analyzing historical spending data for armed guard services by the ATF is crucial for understanding the agency's commitment to security and for benchmarking current contract values. Without specific historical data for this particular contract or similar services, it is difficult to establish a trend. However, federal agencies, especially those dealing with sensitive materials or high-profile locations like the ATF, typically maintain consistent or increasing budgets for security services due to evolving threat landscapes and regulatory requirements. A review of past solicitations and awards for armed guard services by the ATF would reveal if this $7.5 million award represents an increase, decrease, or stable level of investment compared to previous years. This context helps in assessing whether the current award is cost-effective over the long term.

How does the number of bids (5) compare to similar federal contracts for armed guard services?

A competition level of 5 bids for a federal contract of this nature (armed guard services, $7.5 million value, firm-fixed-price) suggests a moderately competitive environment. In the federal contracting space, the number of bids can vary significantly based on the specific service, geographic location, contract value, and the availability of qualified contractors. For specialized services like armed guards, especially in a high-demand area like Washington D.C., five bids can be considered a reasonable response, indicating that the opportunity was visible and attractive to multiple firms. However, compared to broader service categories or contracts with lower barriers to entry, five bids might be on the lower side. A more robust competition, often seen with 10+ bids, typically exerts stronger downward pressure on pricing. Therefore, while the competition is present, further analysis would be needed to determine if it was sufficient to secure the best possible value for the government.

What are the key performance indicators (KPIs) likely used to evaluate the contractor's performance?

For a contract providing armed guard services, key performance indicators (KPIs) are essential for ensuring the effectiveness and reliability of the security provided. Likely KPIs would include metrics related to response times to incidents, adherence to post orders and patrol schedules, professionalism and conduct of guards, successful completion of required training and certifications, and incident reporting accuracy. The government will likely monitor the number of security breaches or incidents that occur despite the presence of guards, as well as any complaints received regarding guard behavior or performance. Regular performance evaluations, potentially including site visits and feedback from facility managers, would be used to assess the contractor's compliance with these KPIs and the overall quality of service delivered under the firm-fixed-price agreement.

What is the typical profit margin for firms providing armed guard services to the federal government?

Determining the exact profit margin for firms providing armed guard services to the federal government is complex, as it depends on various factors including the specific services offered, the level of security clearance required, the geographic location, the size and experience of the contracting firm, and the competitive landscape of the bidding process. Generally, profit margins in the security services industry can range from 5% to 15% or higher for highly specialized or high-risk services. For federal contracts awarded under full and open competition, the profit margin is often influenced by the need to remain competitive on price. The firm-fixed-price (FFP) contract structure means the contractor assumes the risk of cost overruns, which can impact their net profit. Without access to the contractor's financial data or detailed cost breakdowns, estimating the precise profit margin on this $7.5 million contract is speculative.

Are there any specific risks associated with relying on a single contractor for armed guard services in a high-security environment like the ATF?

Relying on a single contractor for armed guard services in a high-security environment like the ATF presents several potential risks. Firstly, there's a risk of service disruption if the contractor experiences financial difficulties, labor disputes, or fails to maintain adequate staffing levels. Secondly, over-reliance can lead to complacency and a potential decrease in service quality over time, especially if competition is limited in future solicitations. Thirdly, security vulnerabilities could arise if the contractor's personnel are compromised or if there are security lapses within the contractor's own vetting and training processes. Finally, a sole-source or limited competition scenario in the future could lead to significantly higher costs for the government. Mitigating these risks often involves robust contract oversight, clear performance standards, contingency planning, and ensuring a competitive environment during the initial award and subsequent re-solicitations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15A00025Q00000020

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1411 W 190TH ST STE 475, GARDENA, CA, 90248

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,906,709

Exercised Options: $7,695,394

Current Obligation: $7,461,382

Actual Outlays: $3,108,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F168GA

IDV Type: FSS

Timeline