VA Awards $13.3M Security Guard Contract to Servexo for California Operations
Contract Overview
Contract Amount: $13,260,179 ($13.3M)
Contractor: Servexo
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-04-01
End Date: 2026-09-30
Contract Duration: 547 days
Daily Burn Rate: $24.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SECURITY GUARD SERVICES
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073
Plain-Language Summary
Department of Veterans Affairs obligated $13.3 million to SERVEXO for work described as: SECURITY GUARD SERVICES Key points: 1. Contract value of $13.3 million over 547 days. 2. Servexo is the sole awardee, raising questions about competition. 3. Risk of inflated pricing due to limited competition. 4. Spending falls within the Security Guards and Patrol Services sector.
Value Assessment
Rating: fair
The contract value of $13.3 million for 547 days suggests a daily rate of approximately $24,242. Benchmarking this against similar contracts for security guard services is difficult without more granular data on service levels and locations.
Cost Per Unit: $24,242 per day
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data shows only one award, which warrants further investigation into the bidding process and the number of proposals received.
Taxpayer Impact: While competition was intended to be open, the single award may limit price discovery, potentially leading to higher costs for taxpayers than if multiple competitive bids were secured.
Public Impact
Ensures security for VA facilities in California. Supports jobs within the security services industry. Potential for cost savings if competition was robust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of awards despite full and open competition.
- Lack of detailed performance metrics in provided data.
Positive Signals
- Contract supports essential government functions.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the Security Guards and Patrol Services sector, which is a common area of government spending. Benchmarks for this sector can vary widely based on geographic location, service complexity, and contract duration.
Small Business Impact
The provided data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure service delivery and adherence to contract terms.
Related Government Programs
- Security Guards and Patrol Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for limited price competition despite 'full and open' designation.
- High daily rate requires thorough justification and benchmarking.
- Lack of transparency on the number of bids received.
- Need for detailed performance metrics to ensure effectiveness.
Tags
security-guards-and-patrol-services, department-of-veterans-affairs, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $13.3 million to SERVEXO. SECURITY GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is SERVEXO.
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 $13.3 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-09-30.
What was the total number of bids received for this contract, and why was only one award made under full and open competition?
The provided data indicates 'FULL AND OPEN COMPETITION' but only lists one awardee, Servexo. To understand the competitive landscape, it's crucial to know how many bids were submitted and the reasons for disqualifying or not selecting other proposals. This information is vital for assessing whether the competition truly drove the best value for the government.
How does the daily rate of $24,242 compare to industry benchmarks for similar security guard services in California?
A daily rate of $24,242 for security guard services is substantial. Without specific details on the number of guards, their qualifications, hours of service, and the specific security needs of the VA facilities, a direct comparison to industry benchmarks is challenging. However, this rate warrants scrutiny to ensure it aligns with market conditions and the scope of work.
What are the key performance indicators (KPIs) for Servexo, and how will their performance be measured to ensure effective security services?
Effective oversight requires clearly defined KPIs and a robust performance measurement system. The contract should outline specific metrics such as response times, incident reporting accuracy, personnel reliability, and adherence to post orders. Regular performance reviews by the VA contracting officer's representative are essential to ensure Servexo meets all contractual obligations and provides high-quality security.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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: 1411 W 190TH ST STE 475, GARDENA, CA, 90248
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $40,461,412
Exercised Options: $13,260,179
Current Obligation: $13,260,179
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS07F168GA
IDV Type: FSS
Timeline
Start Date: 2025-04-01
Current End Date: 2026-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2026-02-10
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