State Department Awards $359M Security Contract to Inter-con Security Systems
Contract Overview
Contract Amount: $358,935,467 ($358.9M)
Contractor: Inter-Con Security Systems, Inc.
Awarding Agency: Department of State
Start Date: 2018-12-15
End Date: 2021-10-31
Contract Duration: 1,051 days
Daily Burn Rate: $341.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS CONTRACT IS IN SUPPORT OF DS/DO/DFP IF YOU HAVE ANY QUESTIONS PLEASE CONTACT: ALFRED MAASS- 202-647-3005
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $358.9 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: THIS CONTRACT IS IN SUPPORT OF DS/DO/DFP IF YOU HAVE ANY QUESTIONS PLEASE CONTACT: ALFRED MAASS- 202-647-3005 Key points: 1. Contract value of $358.9M for security guard services. 2. Inter-con Security Systems, Inc. is the sole awardee. 3. The contract was not competed, raising potential value concerns. 4. Services are for security guards and patrol, a common government need.
Value Assessment
Rating: questionable
The contract value is substantial. Without competition, it's difficult to assess if the pricing is optimal compared to market rates for similar security guard services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible price for security services.
Public Impact
Ensures security for Department of State facilities. Provides employment for security personnel. Potential for cost savings if competition were introduced in the future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Potential for price inflation
Positive Signals
- Consistent service delivery over contract period
- Established provider for government security needs
Sector Analysis
This contract falls under security services, a sector that often involves significant government spending to ensure safety and protection of assets and personnel. Benchmarks for security guard services can vary widely based on location and specific requirements.
Small Business Impact
The awardee, Inter-con Security Systems, Inc., is not indicated as a small business. This contract did not appear to involve set-asides for small businesses.
Oversight & Accountability
The contract was awarded by the Department of State. Oversight would typically involve contract management officials ensuring performance and adherence to terms, but the lack of competition warrants closer scrutiny.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- No small business participation noted
Tags
security-guards-and-patrol-services, department-of-state, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $358.9 million to INTER-CON SECURITY SYSTEMS, INC.. THIS CONTRACT IS IN SUPPORT OF DS/DO/DFP IF YOU HAVE ANY QUESTIONS PLEASE CONTACT: ALFRED MAASS- 202-647-3005
Who is the contractor on this award?
The obligated recipient is INTER-CON SECURITY SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $358.9 million.
What is the period of performance?
Start: 2018-12-15. End: 2021-10-31.
What was the justification for the sole-source award, and were any market research efforts conducted to determine if competition was feasible?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies are typically required to conduct market research to identify potential sources and determine if a competitive process is viable. Without this information, it's impossible to assess if the government adequately explored options to secure the best value and price.
How does the per-unit cost of security personnel under this contract compare to industry averages for similar services, considering the scope and duration?
Benchmarking the per-unit cost against industry averages is essential for evaluating value. Factors like guard qualifications, hours, and geographic location influence pricing. A detailed cost analysis, even for a sole-source contract, should be performed to ensure the pricing is reasonable and reflects fair market value, preventing potential overpayment.
What performance metrics are in place to ensure the effectiveness of the security services provided, and how are these monitored?
Effective performance monitoring is crucial, especially in non-competed contracts. Clear metrics for response times, incident reporting, and personnel conduct should be established and regularly reviewed. Robust oversight ensures that the services meet the Department of State's security requirements and that taxpayer funds are used efficiently to achieve desired outcomes.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 210 S DE LACEY AVE, PASADENA, CA, 91105
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $358,935,468
Exercised Options: $358,935,468
Current Obligation: $358,935,467
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-15
Current End Date: 2021-10-31
Potential End Date: 2021-10-31 00:00:00
Last Modified: 2024-05-29
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