Treasury's $10.6M Security Equipment O&M Contract Awarded to Electronic Systems Services Inc
Contract Overview
Contract Amount: $10,608,283 ($10.6M)
Contractor: Electronic Systems Services Inc
Awarding Agency: Department of the Treasury
Start Date: 2024-06-01
End Date: 2026-05-31
Contract Duration: 729 days
Daily Burn Rate: $14.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WCF SECURITY EQUIPMENT & DEVICES OPERATIONS AND MAINTENANCE (O&M)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76131
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $10.6 million to ELECTRONIC SYSTEMS SERVICES INC for work described as: WCF SECURITY EQUIPMENT & DEVICES OPERATIONS AND MAINTENANCE (O&M) Key points: 1. Contract value of $10.6M over 729 days. 2. Electronic Systems Services Inc. is the sole awardee. 3. Risk of limited competition due to exclusion of sources. 4. Sector is Security Systems Services, a niche market.
Value Assessment
Rating: fair
The contract value of $10.6M for 729 days suggests a significant investment in security equipment O&M. Benchmarking against similar contracts is difficult without more specific service details, but the price appears reasonable for specialized security services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may restrict the pool of potential bidders and potentially impact price discovery, leading to less competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for this contract. The limited competition raises concerns about whether the best possible price was achieved for the government.
Public Impact
Ensures the operational readiness of critical security equipment for the Bureau of Engraving and Printing. Supports the physical security infrastructure of a key government agency. Potential for increased costs due to limited competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Sole awardee
- Potential for price inflation
Positive Signals
- Essential security services
- Definitive contract structure
Sector Analysis
This contract falls within the Security Systems Services sector, which includes specialized services like installation, maintenance, and repair of security equipment. Spending in this sector is driven by the need for robust physical security across government facilities.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract's 'exclusion of sources' clause warrants further oversight to ensure fair competition was genuinely pursued and that the pricing reflects value for taxpayers.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of the Treasury Contracting
- Bureau of Engraving and Printing Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of small business participation.
- Potential for vendor lock-in.
- Oversight needed on 'exclusion of sources' justification.
Tags
security-systems-services-except-locksmi, department-of-the-treasury, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $10.6 million to ELECTRONIC SYSTEMS SERVICES INC. WCF SECURITY EQUIPMENT & DEVICES OPERATIONS AND MAINTENANCE (O&M)
Who is the contractor on this award?
The obligated recipient is ELECTRONIC SYSTEMS SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-05-31.
What specific security equipment and devices are covered under this O&M contract, and how does their criticality justify the limited competition approach?
The contract covers the operations and maintenance of security equipment and devices for the Bureau of Engraving and Printing. While the specific items are not detailed, the agency's mission implies a need for highly specialized and secure systems. The justification for limited competition would likely stem from unique technical requirements, existing system integration, or specific security clearances needed for personnel servicing the equipment, which may restrict the available qualified vendors.
What is the rationale behind excluding certain sources, and how does this impact the overall risk of overpayment or suboptimal service delivery?
Excluding sources typically occurs when specific technical expertise, proprietary systems, or security requirements limit the number of capable vendors. This approach, while sometimes necessary, inherently increases the risk of overpayment by reducing competitive pressure. It also elevates the risk of suboptimal service if the chosen vendor lacks sufficient incentive to perform at peak efficiency or if alternative, potentially better, solutions are not considered.
How will the effectiveness of the security equipment O&M services be measured, and what are the key performance indicators (KPIs) to ensure value for taxpayer money?
Effectiveness is typically measured through KPIs such as system uptime, response times to service calls, successful preventative maintenance completion rates, and adherence to security protocols. The Bureau of Engraving and Printing should have established specific metrics within the contract's performance work statement. Regular performance reviews and audits will be crucial to ensure the vendor meets these KPIs and delivers value, especially given the limited competition.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2031ZA24R00004
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 368 COUNTY ROAD 4886, SPRINGTOWN, TX, 76082
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,379,436
Exercised Options: $15,443,282
Current Obligation: $10,608,283
Actual Outlays: $8,687,463
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-01
Current End Date: 2026-05-31
Potential End Date: 2029-05-31 00:00:00
Last Modified: 2026-03-10
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