VA awards $10.6M for unarmed security guards in NYC, with 3 bids received

Contract Overview

Contract Amount: $10,619,892 ($10.6M)

Contractor: THE Whitestone Group, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2026-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNARMED SECURITY GUARDS (BROOKLYN, MANHATTAN, ST. ALBANS)

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.6 million to THE WHITESTONE GROUP, INC. for work described as: UNARMED SECURITY GUARDS (BROOKLYN, MANHATTAN, ST. ALBANS) Key points: 1. Value for money appears fair given the scope and duration of services. 2. Competition dynamics indicate a healthy level of interest from potential bidders. 3. Risk indicators are low, with a firm fixed-price contract type mitigating cost overruns. 4. Performance context is essential to evaluate the effectiveness of security services. 5. Sector positioning places this contract within the broader government security services market.

Value Assessment

Rating: fair

The contract value of $10.6 million over approximately 3.5 years for unarmed security guards in high-cost urban areas like Brooklyn and Manhattan suggests a reasonable rate. Benchmarking against similar contracts for security services in major metropolitan areas would provide a clearer picture of value. The firm fixed-price structure aims to control costs, but the ultimate value will depend on the quality and effectiveness of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bids received. This level of competition suggests that the solicitation was accessible to a reasonable number of qualified vendors. While three bidders is not exceptionally high, it indicates that the market was sufficiently engaged to generate multiple proposals, which typically aids in price discovery and encourages competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans and staff at VA facilities in Brooklyn, Manhattan, and St. Albans will benefit from enhanced security. The contract ensures the provision of unarmed security guard services to protect government property and personnel. Geographic impact is concentrated within New York City, specifically serving multiple VA locations. Workforce implications include the creation of jobs for security guards within the New York metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations among different guard providers.
Ensuring consistent adherence to security protocols across all locations.
Managing guard performance and addressing any personnel issues effectively.

Positive Signals

Firm fixed-price contract helps control costs.
Full and open competition suggests a competitive market.
Clear service locations and requirements.

Sector Analysis

This contract falls within the security services sector, a significant market for government contracting. The North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services represents a broad category of businesses. Government spending in this area is consistent, driven by the need to protect federal facilities and assets nationwide. The value of this specific contract is moderate within the context of large-scale federal security procurements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Further review would be needed to determine if small businesses had an opportunity to participate as subcontractors or if any specific goals were established for their involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services

Risk Flags

Potential for service quality variability.
Ensuring consistent performance across multiple locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.6 million to THE WHITESTONE GROUP, INC.. UNARMED SECURITY GUARDS (BROOKLYN, MANHATTAN, ST. ALBANS)

Who is the contractor on this award?

The obligated recipient is THE WHITESTONE GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-09-30.

What is the historical spending by the VA on security guard services in New York City?

Analyzing historical spending by the Department of Veterans Affairs (VA) on security guard services specifically within New York City would provide crucial context for the current $10.6 million award. This would involve examining past contract values, durations, and the number of bidders for similar services in the region. Understanding trends in VA spending on security in NYC can reveal whether this award represents an increase, decrease, or stable level of investment. It can also highlight any shifts in contracting strategies, such as a move towards or away from full and open competition or changes in the types of security services procured. Without this historical data, it is difficult to definitively assess if the current award is cost-effective or indicative of market changes.

How does the per-guard cost compare to industry benchmarks for unarmed security in major metropolitan areas?

To assess the value for money, a comparison of the per-guard cost against industry benchmarks for unarmed security services in major metropolitan areas like New York City is essential. This involves calculating the approximate number of guards and their hours based on the contract value and duration, then dividing the total cost by the estimated guard hours or full-time equivalents. Benchmarking against data from private security firms or industry reports for comparable services (e.g., unarmed, 24/7 coverage, specific skill requirements) would reveal if the VA is paying a competitive rate. Factors such as the specific security requirements, the level of experience needed, and the prevailing wage rates in NYC would influence this comparison. A significantly higher per-guard cost than the benchmark might indicate potential overpayment or unique service demands.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The specific performance metrics and service level agreements (SLAs) are critical for evaluating the effectiveness and accountability of the security services provided under this $10.6 million contract. These metrics typically define the expected standards for guard presence, response times to incidents, reporting procedures, and overall site security. Understanding these SLAs allows for an assessment of how the VA will measure the contractor's performance and ensure that the services meet the required level of protection for facilities and personnel. Without detailed knowledge of these metrics, it is challenging to gauge the potential risks associated with service delivery or to determine if the contract is achieving its intended security objectives beyond simply awarding the funds.

What is the track record of The Whitestone Group, Inc. with federal contracts, particularly with the VA?

Investigating the track record of The Whitestone Group, Inc. with federal contracts, especially those awarded by the Department of Veterans Affairs (VA), is crucial for assessing potential performance risks. This involves reviewing their past contract history, including the types of services provided, contract values, performance evaluations (if publicly available), and any instances of contract disputes, terminations, or penalties. A history of successful contract performance, particularly with similar security services and within the VA system, would suggest a lower risk profile. Conversely, a pattern of underperformance or issues with previous federal contracts might raise concerns about the reliability and effectiveness of The Whitestone Group in fulfilling the current award.

How does the number of bidders (3) compare to similar VA security contracts awarded through full and open competition?

Comparing the number of bidders (3) for this VA contract to similar security service awards procured under full and open competition provides insight into the level of market interest and potential competition. If typical VA security contracts in comparable geographic areas or of similar value attract significantly more bidders, it could suggest that the solicitation for this contract was either too restrictive, the market is consolidating, or there are specific challenges associated with this particular requirement. Conversely, if three bidders is within the normal range for such contracts, it indicates a reasonably competitive environment. A lower number of bidders can sometimes lead to less competitive pricing and potentially limit the VA's options for ensuring the best value.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6422 E MAIN ST STE 101, REYNOLDSBURG, OH, 43068

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,252,889

Exercised Options: $10,619,892

Current Obligation: $10,619,892

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F9142S

IDV Type: FSS

Timeline