VA awards $4.78M contract for security services to JET SECURITY LLC, emphasizing firm fixed-price terms

Contract Overview

Contract Amount: $477,817 ($477.8K)

Contractor: JET Security LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-01

End Date: 2027-04-30

Contract Duration: 1,094 days

Daily Burn Rate: $437/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY SERVICES 761 CMOP

Place of Performance

Location: CHELMSFORD, MIDDLESEX County, MASSACHUSETTS, 01824

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $477,817.48 to JET SECURITY LLC for work described as: SECURITY SERVICES 761 CMOP Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Firm fixed-price contract type aims to provide cost certainty for the government. 3. The contract duration of 1094 days indicates a medium-term need for security services. 4. The award is a delivery order under a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services.

Value Assessment

Rating: good

The contract value of $4.78 million over approximately three years for security services appears reasonable given the scope. Benchmarking against similar contracts for security guards and patrol services would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the VA.

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 presence of 3 bidders suggests a moderate level of competition for this specific delivery order. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through multiple bids.

Public Impact

The Department of Veterans Affairs (VA) will benefit from enhanced security at its facilities. Services include security guards and patrol, ensuring the safety of personnel and property. The contract is geographically focused on Massachusetts, impacting the local workforce and economy. This contract supports the operational needs of the VA's Continuity of Operations Management Office (CMOP).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased reliance on a single contractor for a critical service.
Need to ensure robust performance monitoring to maintain service quality over the contract term.

Positive Signals

Awarded through full and open competition, indicating a healthy market response.
Firm fixed-price contract type provides budget predictability.
The contractor, JET SECURITY LLC, is likely experienced in providing these types of services.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. NAICS code 561612 specifically covers establishments primarily engaged in providing security guards and patrol services. This contract represents a portion of the federal government's ongoing expenditure on physical security, which is essential for protecting federal assets and personnel across various agencies, including the Department of Veterans Affairs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses were involved in the bidding process or if there are opportunities for them in future solicitations.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Performance will be monitored to ensure compliance with the firm fixed-price terms and service level agreements. Transparency is maintained through contract award databases, and any issues would likely be addressed through standard contract management procedures, potentially involving the VA's Office of Inspector General if significant performance failures or fraud were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Defense Security Contracts
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

Performance Risk
Cost Overrun Risk (mitigated by FFP)
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $477,817.48 to JET SECURITY LLC. SECURITY SERVICES 761 CMOP

Who is the contractor on this award?

The obligated recipient is JET SECURITY LLC.

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 $477,817.48.

What is the period of performance?

Start: 2024-05-01. End: 2027-04-30.

What is the track record of JET SECURITY LLC in performing similar government contracts?

A review of federal procurement data would be necessary to fully assess JET SECURITY LLC's track record. This would involve examining past performance evaluations, any history of contract disputes or terminations, and the types and values of previous government contracts they have held. Without specific data on their past performance, it is difficult to definitively gauge their reliability and capability for this VA contract. However, their ability to win this contract, especially under full and open competition, suggests they met the minimum requirements and were deemed a responsible source by the VA.

How does the awarded price compare to market rates for similar security services in Massachusetts?

To benchmark the value, we would need to compare the per-hour or per-guard cost implied by this contract against prevailing market rates for security services in Massachusetts. This comparison should account for factors such as the level of security required (e.g., armed vs. unarmed guards, specialized equipment), the experience level of personnel, and the specific geographic locations within the state. Data from industry reports, salary surveys, and other government contracts for comparable services would be essential for a thorough price analysis. The firm fixed-price nature of the contract suggests the VA sought to lock in costs, but a detailed market analysis is key to confirming value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential underperformance by the contractor, leading to security lapses, and the possibility of cost increases if the firm fixed-price contract does not adequately account for unforeseen operational challenges. Mitigation strategies likely involve robust performance monitoring by the VA, clear service level agreements, and defined penalties for non-compliance. The competitive bidding process itself helps mitigate the risk of awarding the contract to an unqualified vendor. Ensuring adequate insurance and bonding from JET SECURITY LLC would also be a standard risk mitigation measure.

How effective is the competition level in ensuring optimal pricing for the VA?

The fact that this contract was awarded under full and open competition with three bidders suggests a reasonable level of market interest. This competition is generally effective in driving prices down towards market equilibrium. However, the effectiveness can be further assessed by comparing the awarded price to independent cost estimates or historical pricing for similar services. If the number of bidders had been significantly lower, or if the bids were clustered very closely, it might indicate less robust price competition. The VA's procurement team would have evaluated the bids against established criteria to ensure the best value was obtained.

What is the historical spending pattern for security services by the VA's CMOP office?

Analyzing historical spending data for the VA's Continuity of Operations Management Office (CMOP) on security services would provide context for this $4.78 million award. This would involve looking at previous contract values, durations, and awarded contractors for similar services over the past several fiscal years. Understanding whether this award represents an increase, decrease, or stable level of spending can indicate trends in the VA's security needs and budget allocation. It also helps in assessing whether JET SECURITY LLC's award is consistent with past procurement practices or represents a shift in strategy.

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

Solicitation ID: 36C77024Q0164

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 189 WASHINGTON ST, DEDHAM, MA, 02026

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,131,937

Exercised Options: $1,131,937

Current Obligation: $477,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA21D003V

IDV Type: FSS

Timeline