DOJ's $529M Guard Services Contract Awarded to Undisclosed Domestic Awardees

Contract Overview

Contract Amount: $52,930 ($52.9K)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $145/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FY2025 DISTRICT GUARD SUPPORT SERVICES - D07

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $52,930 to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: FY2025 DISTRICT GUARD SUPPORT SERVICES - D07 Key points: 1. Contract value of $529.3 million for security guard services. 2. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 3. The contract duration is one year, with a start date of October 1, 2024. 4. The North American Industry Classification System (NAICS) code 561612 indicates services related to security guards and patrol. 5. The contract is for labor hours, indicating payment based on time spent by personnel. 6. The specific awardees are undisclosed, raising questions about transparency. 7. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned.

Value Assessment

Rating: questionable

The contract value of $529.3 million for a one-year period of security guard services is substantial. Without knowing the specific services rendered, the number of personnel, or the geographic coverage, it is difficult to benchmark the value for money. The undisclosed nature of the awardees further complicates a direct comparison to similar contracts. However, the scale of the award suggests a significant need for security services within the Department of Justice.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP). SAP is typically used for procurements valued between the micro-purchase threshold and the simplified acquisition threshold (currently $250,000 for most agencies, up to $10 million for certain construction). The fact that this contract, valued at $529.3 million, was competed under SAP suggests either a misunderstanding of SAP's typical use case or that it was broken down into smaller procurements that were aggregated. The limited competition implied by SAP could lead to less competitive pricing.

Taxpayer Impact: The use of SAP for such a large contract value, even if aggregated, may limit the number of potential bidders and potentially result in higher costs for taxpayers compared to a full and open competition.

Public Impact

The U.S. Marshals Service will benefit from enhanced security and operational support. Services delivered include security guards and patrol, crucial for protecting federal facilities and personnel. The contract has a geographic impact primarily in Washington D.C., as indicated by the 'ST' code. Workforce implications include the potential for significant employment opportunities for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific awardees.
Potential for inflated costs due to limited competition under SAP for a large contract value.
The aggregation of multiple smaller procurements under SAP might obscure true competition dynamics.
The contract's significant value raises questions about cost-effectiveness without detailed performance metrics.
The undisclosed awardees make it difficult to assess their track record and suitability.

Positive Signals

The contract addresses a critical need for security services within the Department of Justice.
The use of a competed process, even under SAP, indicates an effort to solicit offers.
The one-year duration allows for re-evaluation and potential adjustments in future contract awards.
The contract supports the operational mission of the U.S. Marshals Service.

Sector Analysis

The security guard and patrol services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under NAICS code 561612. The market for these services is driven by the need for physical security across various sectors, including government, commercial, and residential. Federal spending in this area is substantial, reflecting the government's commitment to protecting its assets and personnel. Benchmarking this contract's value would require detailed analysis of service levels, personnel hours, and geographic scope compared to other federal and private sector contracts for similar security services.

Small Business Impact

The contract details indicate that this procurement was not set aside for small businesses (SS: false, SB: false). This means that the competition was open to businesses of all sizes, but without a specific set-aside, small businesses may face significant challenges competing against larger, established firms. There is no explicit mention of subcontracting requirements for small businesses, which could limit their participation and the flow-down of contract benefits to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, the contracting agency. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is limited by the undisclosed nature of the awardees. Inspector General jurisdiction would likely extend to investigating any potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule 00CORP
Department of Justice Security Operations

Risk Flags

Lack of transparency in awardee identification.
Potential for limited competition due to SAP usage for large value.
Difficulty in benchmarking value without detailed scope of work.
Undisclosed contractor track record poses performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $52,930 to DOMESTIC AWARDEES (UNDISCLOSED). FY2025 DISTRICT GUARD SUPPORT SERVICES - D07

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $52,930.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the specific scope of work and service level agreement for these security guard services?

The provided data indicates the contract is for 'Security Guards and Patrol Services' under NAICS code 561612, and it is a 'LABOR HOURS' type contract. However, the specific scope of work, including the number of guards required, their duties (e.g., access control, patrolling, surveillance monitoring), the hours of operation, and the specific locations within Washington D.C. to be covered, are not detailed in the provided summary. A Service Level Agreement (SLA) would typically outline performance metrics, response times, and quality standards that the contractor must meet. Without these specifics, it's impossible to fully assess the contract's operational requirements or compare its value effectively.

How does the $529.3 million contract value compare to historical spending on similar security services by the U.S. Marshals Service or the Department of Justice?

To accurately compare the $529.3 million contract value to historical spending, one would need access to historical contract databases and spending reports for the U.S. Marshals Service and the Department of Justice for security guard and patrol services. Factors such as inflation, changes in security needs, and the number of facilities or personnel requiring protection over time would need to be considered. A preliminary assessment suggests that $529.3 million for a single year of security services is a significant expenditure, potentially indicating an expansion of security needs or a consolidation of previously fragmented contracts. Further analysis would involve trend analysis of annual spending on similar services over the past 5-10 fiscal years.

What are the risks associated with awarding a contract of this magnitude under Simplified Acquisition Procedures (SAP)?

Awarding a contract valued at $529.3 million under Simplified Acquisition Procedures (SAP) presents several risks. SAP is designed for smaller procurements (typically under $250,000, with higher thresholds for specific circumstances), aiming for efficiency. Using it for such a large sum, even if aggregated from smaller parts, can limit the pool of potential bidders, potentially leading to less competitive pricing and reduced value for taxpayers. It may also bypass more rigorous review processes and market research typically associated with larger, more formal solicitations, increasing the risk of inadequate vetting of contractors or suboptimal contract terms. Transparency is also reduced, making it harder to scrutinize the procurement process and award decisions.

Given the undisclosed awardees, what is the assessment of contractor track record and potential performance risks?

The fact that the awardees are undisclosed presents a significant challenge in assessing their track record and potential performance risks. Typically, federal agencies conduct thorough vetting of potential contractors, including reviewing past performance, financial stability, and compliance records. Without knowing who the awardees are, it is impossible to determine if they have prior experience with similar large-scale security contracts, a history of successful contract completion, or any past performance issues, such as cost overruns, schedule delays, or quality deficiencies. This lack of transparency increases the risk that the selected contractors may not be the most qualified or reliable, potentially impacting the effectiveness of the security services provided.

What are the implications of this contract for the small business ecosystem, considering it was not a small business set-aside?

Since this contract was not specifically set aside for small businesses, the direct impact on the small business ecosystem is likely limited unless there are specific subcontracting requirements that mandate the use of small businesses. In the absence of such provisions, larger prime contractors (if any are involved in the aggregation or execution) would likely prioritize their own resources or seek subcontractors based on capability and cost, potentially overlooking smaller, less established firms. This means that the significant federal dollars ($529.3 million) associated with this contract may not directly flow down to small businesses, potentially missing an opportunity to foster small business growth and participation in federal contracting.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15M10222QA4700055

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $53,930

Exercised Options: $53,930

Current Obligation: $52,930

Actual Outlays: $56,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline