Department of Labor Awards $16.3M for 24/7 Armed Guard Services to Diversified Protection Corp

Contract Overview

Contract Amount: $16,292,597 ($16.3M)

Contractor: Diversified Protection Corp

Awarding Agency: Department of Labor

Start Date: 2024-12-28

End Date: 2025-03-31

Contract Duration: 93 days

Daily Burn Rate: $175.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 24/7/365, ARMED GUARD SERVICES AWARD AT FPB

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $16.3 million to DIVERSIFIED PROTECTION CORP for work described as: 24/7/365, ARMED GUARD SERVICES AWARD AT FPB Key points: 1. Spending is concentrated on security services, a critical but potentially high-cost area. 2. The award is a delivery order, suggesting it's part of a larger contract vehicle. 3. Competition was full and open, indicating a competitive bidding process. 4. The contract duration is short (93 days), implying a specific, immediate need. 5. The contract is firm-fixed-price, providing cost certainty for the government.

Value Assessment

Rating: fair

The contract value of $16.3M for 93 days of armed guard services appears high. Benchmarking against similar contracts for security services is crucial to assess if this pricing is competitive, especially given the short duration.

Cost Per Unit: $175,189 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of armed guard services and the short duration might limit the pool of qualified bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayers are funding essential security services. The firm-fixed-price structure provides budget predictability, but the overall value needs to be assessed against market rates to ensure efficiency.

Public Impact

Ensures continuous security operations for Department of Labor facilities. Supports local employment through the contracted security personnel. Provides a critical safety net for government assets and personnel. The high dollar amount for a short period may raise questions about long-term cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost for security services.
Short contract duration may indicate emergency or temporary need, requiring further justification.
Lack of specific performance metrics in provided data.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract provides cost certainty.
Addresses a clear need for armed guard services.

Sector Analysis

The security and guard services sector is characterized by varying levels of specialization and risk. Spending benchmarks for armed guard services can fluctuate significantly based on location, threat level, and required personnel qualifications. This award falls within the broader professional, scientific, and technical services category.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight of this contract would involve monitoring service delivery, ensuring compliance with security protocols, and verifying billing accuracy. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this award.

Related Government Programs

Security Guards and Patrol Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

High daily cost per unit.
Short contract duration.
Potential for limited competition despite 'full and open' status.
Lack of transparency on small business participation.
Need for detailed justification of pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $16.3 million to DIVERSIFIED PROTECTION CORP. 24/7/365, ARMED GUARD SERVICES AWARD AT FPB

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED PROTECTION CORP.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2024-12-28. End: 2025-03-31.

What is the justification for the high daily rate of $175,189 for armed guard services, and how does it compare to industry benchmarks for similar services in the Washington D.C. area?

The justification for the high daily rate requires detailed examination of the specific security requirements, including the number of guards, their armament, training, clearance levels, and the operational tempo. Benchmarking against similar contracts in the D.C. area, considering factors like prevailing wages, insurance costs, and profit margins for security firms, is essential to determine if this rate represents fair market value or if it indicates potential overpricing.

Given the short 93-day duration, what is the anticipated long-term strategy for securing these armed guard services, and why was a short-term contract necessary?

The short duration suggests this contract may be fulfilling an immediate, possibly unforeseen, security need, or it could be a bridge to a longer-term solution. Understanding the agency's long-term security plan is crucial. Was this a stopgap measure due to delays in a larger procurement, or is the requirement inherently temporary? Clarifying the rationale behind the short term is key to assessing the overall procurement strategy and potential future spending.

How will the effectiveness and performance of Diversified Protection Corp be measured and evaluated throughout the contract period to ensure taxpayer value?

Effectiveness will be measured through key performance indicators (KPIs) likely outlined in the contract's statement of work. These could include response times to incidents, adherence to post orders, guard professionalism, and incident reporting accuracy. Regular performance reviews, site inspections, and feedback mechanisms from facility managers will be critical for ongoing oversight and ensuring the contractor meets all contractual obligations and provides adequate 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: 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: 1605C3-25-Q-00010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 RIVER LANDING DR STE 300, DANIEL ISLAND, SC, 29492

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,340,534

Exercised Options: $19,835,043

Current Obligation: $16,292,597

Actual Outlays: $13,783,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F120GA

IDV Type: FSS

Timeline