State Department awards $8.87M for security services to IDS INTERNATIONAL, LLC under full and open competition

Contract Overview

Contract Amount: $8,870,522 ($8.9M)

Contractor: IDS International, LLC

Awarding Agency: Department of State

Start Date: 2020-09-10

End Date: 2025-11-30

Contract Duration: 1,907 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FOR SECURITY SERVICES

Plain-Language Summary

Department of State obligated $8.9 million to IDS INTERNATIONAL, LLC for work described as: FOR SECURITY SERVICES Key points: 1. Contract awarded for facilities support services, indicating a need for ongoing operational security. 2. The contract duration of 1907 days suggests a long-term requirement for these security services. 3. Awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. No small business set-aside was utilized, suggesting the competition was open to all qualified large and small businesses. 6. The contractor, IDS INTERNATIONAL, LLC, is responsible for delivering these critical security functions.

Value Assessment

Rating: fair

Benchmarking the value of this $8.87 million contract for security services is challenging without more specific details on the scope of work and service levels. However, the duration of nearly five years (1907 days) suggests a significant, ongoing need. The Time and Materials (T&M) pricing structure, while common for services where exact labor hours are unpredictable, can lead to cost overruns if not meticulously monitored. Comparing this to similar facilities support services contracts would require access to a broader dataset of government procurements with comparable service descriptions and performance metrics. The absence of a specific performance period start date within the provided data also limits a precise annual cost assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 2 offers were received. While the number of bidders is low, the 'full and open' designation suggests a deliberate effort to solicit broad participation. The level of competition, with only two offers, might suggest potential barriers to entry for other firms or a niche market for these specific security services. This limited number of bids could potentially impact price discovery, as fewer competitors may lead to less aggressive pricing.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it aims to ensure the government receives competitive pricing. However, with only two offers, the potential for significant cost savings compared to a more robustly competed contract may be reduced.

Public Impact

The Department of State benefits from enhanced security for its facilities, ensuring operational continuity and safety. This contract supports the delivery of essential security services, likely including physical security, access control, and monitoring. The geographic impact is concentrated at the facilities managed by the Department of State where these services are deployed. The contract supports jobs within the security services industry, primarily through the contractor IDS INTERNATIONAL, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed effectively.
Low number of bids (2) in a full and open competition may indicate limited market interest or high barriers to entry.
Contract duration of nearly 5 years requires sustained oversight to ensure performance and value.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the security services provided.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
Contract provides essential security services, crucial for government facility operations.
Long contract duration suggests a stable, long-term partnership for critical services.

Sector Analysis

The security services sector is a significant component of the broader facilities support services industry. Government contracts for security are consistently in demand, driven by the need to protect federal assets, personnel, and information. This contract, valued at approximately $8.87 million over its term, falls within the typical range for specialized security support at federal facilities. The North American Industry Classification System (NAICS) code 561210 (Facilities Support Services) encompasses a wide array of services, including security, maintenance, and cleaning. Benchmarking requires comparing this contract's scope and pricing against other government contracts for similar security functions, considering factors like personnel levels, technology deployed, and geographic location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to businesses of all sizes, and the award was made to IDS INTERNATIONAL, LLC, which may be a large business. There is no information provided regarding subcontracting plans or requirements. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited, unless they are part of the supply chain or subcontracting network established by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Department of State. As a delivery order, it likely falls under a larger IDIQ contract, which would have its own oversight framework. The Time and Materials pricing structure necessitates rigorous monitoring of labor hours, rates, and material costs to ensure compliance and prevent overcharging. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. However, detailed performance reports and Inspector General (IG) involvement would depend on specific performance issues or audits initiated by the agency or the IG's office.

Related Government Programs

Federal Protective Service Contracts
Department of State Security Operations
Facilities Management Services
Guard Services Contracts
Physical Security Systems

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition (2 offers) may result in suboptimal pricing.
Long contract duration requires sustained oversight to ensure performance and value.
Scope of services not fully detailed, hindering performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.9 million to IDS INTERNATIONAL, LLC. FOR SECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is IDS INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2020-09-10. End: 2025-11-30.

What is the specific scope of security services being provided under this contract?

The provided data indicates the contract is for 'Facilities Support Services' under NAICS code 561210, and the description is 'FOR SECURITY SERVICES'. However, the precise details of the security services are not specified. This could range from physical guarding, access control, alarm monitoring, security system maintenance, to potentially cybersecurity-related physical security measures. A comprehensive understanding would require reviewing the Statement of Work (SOW) or Performance Work Statement (PWS) associated with this delivery order. Without this, it's difficult to ascertain the full value and risk associated with the service delivery.

How does the pricing structure (Time and Materials) compare to fixed-price contracts for similar security services?

Time and Materials (T&M) contracts are typically used when the extent or duration of the work cannot be predetermined, offering flexibility but also posing risks of cost escalation. For security services, fixed-price contracts are often preferred when the scope is well-defined (e.g., a set number of guards for a specific period, routine maintenance). T&M might be suitable if the security needs are dynamic or involve unpredictable incident response. However, T&M contracts require robust government oversight to manage labor hours and rates effectively. If the scope were stable, a fixed-price contract could potentially offer better cost certainty and value for taxpayers by shifting more risk to the contractor.

What is the track record of IDS INTERNATIONAL, LLC in providing similar security services to the federal government?

Assessing the track record of IDS INTERNATIONAL, LLC requires examining their past performance on federal contracts. This includes reviewing contract histories for on-time delivery, quality of service, adherence to budget, and any past performance issues or disputes. Information on previous awards, contract values, and customer feedback (if available through sources like the Contractor Performance Assessment Reporting System - CPARS) would provide insight into their reliability and capability. Without access to this specific performance data, it is difficult to definitively assess their suitability and past success in delivering comparable security services.

What are the potential risks associated with a nearly five-year contract for security services?

A contract duration of 1907 days (approximately 5.2 years) for security services carries several potential risks. Firstly, the long duration may lead to complacency in performance if oversight is not consistently rigorous. Secondly, technology and security threats evolve rapidly; a long-term contract might not adequately adapt to new challenges or incorporate more efficient technologies unless strong contract modification clauses are in place. Thirdly, the T&M pricing structure over such an extended period increases the risk of cost creep if not managed meticulously. Finally, market conditions and labor costs can fluctuate significantly over five years, potentially impacting the initial pricing assumptions.

How does the number of bids (2) impact the government's ability to secure competitive pricing for these security services?

Receiving only two bids in a full and open competition can limit the government's leverage in securing the most competitive pricing. Ideally, a larger number of bidders increases the likelihood of receiving aggressive offers as companies vie for the contract. With only two competitors, there is a higher chance that the pricing reflects the cost structure and profit margins of those two specific firms, rather than a broader market assessment. This could result in prices that are higher than what might be achieved in a more crowded field. However, the 'full and open' nature means the government did solicit widely, and the low bid count might reflect market realities for specialized services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11156 ZEALAND AVE N, CHAMPLIN, MN, 55316

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

Financial Breakdown

Contract Ceiling: $11,964,128

Exercised Options: $8,870,522

Current Obligation: $8,870,522

Actual Outlays: $5,717,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0080

IDV Type: IDC

Timeline