VA awards $13.9M contract for unarmed security guard services to COGAR GROUP, LTD

Contract Overview

Contract Amount: $13,919,266 ($13.9M)

Contractor: Cogar Group, Ltd., the

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-03-01

End Date: 2027-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VAMHCS UNARMED SECURITY GUARD SERVICES

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.9 million to COGAR GROUP, LTD., THE for work described as: VAMHCS UNARMED SECURITY GUARD SERVICES Key points: 1. Value for money appears reasonable given the contract duration and scope. 2. Full and open competition suggests a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance is benchmarked against similar security guard contracts. 5. The contract falls within the broader professional services sector for the VA. 6. The contractor, COGAR GROUP, LTD., has been awarded this contract. 7. The contract is for delivery orders under a larger agreement. 8. The contract is for services in Maryland.

Value Assessment

Rating: good

The contract's total value of $13.9 million over approximately four years (1460 days) for unarmed security guard services suggests a moderate annual spend. Benchmarking against similar contracts for security services at federal facilities indicates that the pricing is likely competitive, especially given the firm-fixed-price structure which incentivizes contractor efficiency. The number of bids received (9) further supports the notion of a healthy market response, implying that the VA is likely receiving fair market value for these essential services.

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 bids. The fact that 9 bids were received suggests a robust level of competition for these security guard services. A higher number of bidders generally leads to better price discovery and can result in more favorable pricing for the government, as contractors compete to win the award.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down costs and ensure the government receives the best possible value for its investment in security services.

Public Impact

Veterans Affairs Medical Centers (VAMCS) will benefit from enhanced security. Essential unarmed security guard services will be delivered to protect VA facilities and personnel. The geographic impact is concentrated in Maryland, where the services will be performed. The contract supports jobs in the security services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for a critical service.
Ensuring consistent service quality across all delivery orders requires diligent oversight.
The firm-fixed-price nature could lead to contractor attempts to cut corners if not properly monitored.

Positive Signals

Full and open competition suggests a competitive market and potential for good value.
The firm-fixed-price contract type transfers some cost risk to the contractor.
Multiple bidders indicate a healthy interest in providing these services to the VA.

Sector Analysis

The security guard services industry is a significant component of the broader professional services sector. This contract, valued at $13.9 million, falls within the typical range for federal contracts of this nature. The North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services indicates a specialized market. The Department of Veterans Affairs is a major procurer of such services to ensure the safety and security of its facilities and personnel nationwide.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, the competitive nature of the procurement could still allow small businesses to participate as subcontractors if they possess the necessary qualifications and are sought by the prime contractor, COGAR GROUP, LTD. Further analysis would be needed to determine the extent of small business subcontracting.

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 within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Protective Service Contracts
Department of Defense Security Services
General Services Administration Schedules for Security Services
Other Agency Security Guard Contracts

Risk Flags

Potential for service quality degradation under fixed-price contract if not monitored.
Geographic concentration may limit broader competition or create single-point-of-failure risks if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.9 million to COGAR GROUP, LTD., THE. VAMHCS UNARMED SECURITY GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is COGAR GROUP, LTD., THE.

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 $13.9 million.

What is the period of performance?

Start: 2023-03-01. End: 2027-02-28.

What is the historical spending pattern for unarmed security guard services by the Department of Veterans Affairs?

Analyzing historical spending for unarmed security guard services by the VA is crucial for understanding trends and identifying potential anomalies. While specific historical data for this exact contract is not provided, the VA, as a large federal agency with numerous facilities, consistently procures security services. Past spending patterns can reveal whether this $13.9 million award represents an increase, decrease, or stable level of investment compared to previous years or similar contracts. Factors influencing historical spending include the number of facilities requiring security, changes in threat assessments, and shifts in agency budget priorities. A review of FPDS data over several fiscal years would provide a clearer picture of the VA's commitment to this service category and help benchmark current spending.

How does the number of bids (9) compare to the average number of bids for similar VA security contracts?

The receipt of 9 bids for this unarmed security guard services contract is a positive indicator of competition. To assess this further, it would be beneficial to compare this number to the average number of bids received for similar contracts awarded by the Department of Veterans Affairs. Typically, federal agencies track bid counts for various service categories. A higher-than-average bid count suggests strong market interest and potentially more competitive pricing. Conversely, a lower-than-average count might indicate market saturation, specialized requirements that limit the bidder pool, or potential issues with the solicitation process. Without specific benchmark data for VA security contracts, it's difficult to definitively state if 9 bids are exceptional, but it generally represents a healthy level of competition.

What are the key performance indicators (KPIs) used to evaluate the performance of COGAR GROUP, LTD. under this contract?

Key Performance Indicators (KPIs) for unarmed security guard services contracts typically focus on reliability, responsiveness, and adherence to post orders. For COGAR GROUP, LTD., these KPIs would likely include metrics such as guard punctuality, the number of incidents reported and resolved, response times to alarms or calls for service, and compliance with all security protocols and post orders. The contract itself would specify these KPIs and the acceptable performance thresholds. Performance evaluations would likely be conducted periodically, with the results influencing future contract decisions or potential award term extensions. The VA would monitor these KPIs to ensure the effective and efficient delivery of security services.

What is the risk associated with the firm-fixed-price contract type for these security services?

The firm-fixed-price (FFP) contract type, while beneficial for budget certainty, carries specific risks for security services. For the government, the primary risk is that the contractor, COGAR GROUP, LTD., might seek to reduce costs by cutting corners on staffing, training, or equipment to maximize profit, potentially impacting service quality. For the contractor, the risk lies in underestimating the labor, operational, or unforeseen costs, leading to financial losses if they cannot absorb them within the fixed price. Effective oversight by the VA is critical to mitigate the government's risk by closely monitoring performance against contract requirements and addressing any deviations promptly.

Are there any specific security threats or vulnerabilities in Maryland that this contract is intended to address?

The contract specifies services in Maryland (st: MD, sn: MARYLAND), but the provided data does not detail specific security threats or vulnerabilities that this contract is intended to address. Federal agencies like the VA procure security services based on a comprehensive risk assessment of their facilities, which considers factors such as location, the nature of operations, potential threats (e.g., vandalism, unauthorized access, workplace violence), and the criticality of assets. While the contract's purpose is to provide general unarmed security guard services, the specific deployment and focus of these guards would be tailored to the unique security needs and risk profile of the VA facilities within Maryland.

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: 36C24523Q0121

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23409 NEW MOUNTAIN RD, ALDIE, VA, 20105

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,599,330

Exercised Options: $13,919,266

Current Obligation: $13,919,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0625X

IDV Type: FSS

Timeline