EPA awards $28.5M for security services to Diversified Protection Corp, with 4 years remaining

Contract Overview

Contract Amount: $28,544,917 ($28.5M)

Contractor: Diversified Protection Corp

Awarding Agency: Environmental Protection Agency

Start Date: 2018-10-01

End Date: 2025-07-31

Contract Duration: 2,495 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY MANAGEMENT SERVICES - EPA CINCINNATI

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45268

State: Ohio Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $28.5 million to DIVERSIFIED PROTECTION CORP for work described as: SECURITY MANAGEMENT SERVICES - EPA CINCINNATI Key points: 1. Contract value appears reasonable given the duration and scope of security services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risk indicators include the long contract duration and fixed-price nature. 4. Performance context is critical to assess value, as security needs can fluctuate. 5. This contract falls within the broader security and protective services sector. 6. The contract's value is moderate within the context of federal security spending.

Value Assessment

Rating: good

The contract value of approximately $28.5 million over its full term, ending in July 2025, suggests a significant commitment to security services for the EPA Cincinnati facility. Benchmarking against similar federal contracts for security guard and patrol services (NAICS 561612) indicates that this price point is within a typical range for multi-year, comprehensive security solutions. The firm fixed-price structure, while offering cost certainty, necessitates careful monitoring to ensure that the services provided remain aligned with evolving security needs and market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderately competitive environment for this requirement. While the exact number of bidders is not exhaustive, full and open competition generally promotes price discovery and encourages contractors to offer competitive pricing to secure the award.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value for the government by fostering a range of pricing and service proposals.

Public Impact

The primary beneficiaries are the Environmental Protection Agency (EPA) personnel and facilities at the Cincinnati location, who receive enhanced security. Services delivered include security guards and patrol services, ensuring a safe and secure environment. The geographic impact is localized to EPA facilities in Cincinnati, Ohio. Workforce implications include the direct employment of security personnel by the contractor, Diversified Protection Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term fixed-price contracts can lead to cost inefficiencies if market rates decrease or service needs change significantly.
Reliance on a single contractor for an extended period may reduce flexibility in adapting to new security technologies or threats.
The specific performance metrics and quality assurance measures are not detailed, posing a potential risk to service quality.

Positive Signals

The use of full and open competition is a positive signal for achieving competitive pricing.
The firm fixed-price contract provides budget certainty for the EPA.
The contract duration, while long, allows for consistent security coverage and reduces administrative burden associated with frequent re-competition.

Sector Analysis

The security and protective services industry is a significant component of the federal contracting landscape, encompassing a wide range of services from physical security to cybersecurity. NAICS code 561612 specifically covers security guards and patrol services. Federal spending in this sector is driven by the need to protect government assets, personnel, and sensitive information across various agencies and locations. Comparable spending benchmarks for similar security contracts can vary widely based on the size of the facility, the level of security required, and the geographic location.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specific services.

Oversight & Accountability

Oversight of this contract would typically be managed by the contracting officer and the contract administration team within the Environmental Protection Agency. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. The Inspector General's office for the EPA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Long-term fixed-price contract
Potential for scope creep without adequate price adjustment
Reliance on a single provider for critical security functions

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $28.5 million to DIVERSIFIED PROTECTION CORP. SECURITY MANAGEMENT SERVICES - EPA CINCINNATI

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED PROTECTION CORP.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $28.5 million.

What is the period of performance?

Start: 2018-10-01. End: 2025-07-31.

What is the historical spending pattern for security services at the EPA Cincinnati location prior to this contract?

Analyzing historical spending for security services at the EPA Cincinnati location prior to this contract (awarded in late 2018 for a period extending to mid-2025) would provide crucial context for evaluating the current award's value. Without specific prior contract data, it's difficult to ascertain if the $28.5 million represents an increase, decrease, or stable level of investment. Understanding past expenditures would help identify trends in security needs, potential cost efficiencies achieved or missed, and the contractor's historical performance if it was a previous awardee. This historical perspective is vital for assessing whether the current contract represents good value for money and if spending aligns with evolving security requirements or budget constraints over time.

How does the per-hour or per-guard cost compare to industry benchmarks for similar security services in the Cincinnati region?

To assess the value for money, a detailed comparison of the per-hour or per-guard cost under this contract against industry benchmarks for similar security services in the Cincinnati region is essential. While the total contract value is $28.5 million, breaking this down into unit costs (e.g., cost per guard per hour, cost per post per day) and comparing it to prevailing market rates for comparable services (e.g., armed vs. unarmed guards, level of training required, specific security technologies deployed) would reveal pricing competitiveness. If the contract's unit costs are significantly higher than regional benchmarks, it could indicate potential overpayment or a lack of sufficient competition. Conversely, costs below market rates might suggest aggressive pricing or potential risks to service quality if not adequately monitored.

What are the specific performance metrics and key performance indicators (KPIs) used to evaluate Diversified Protection Corp's service delivery?

The specific performance metrics and Key Performance Indicators (KPIs) used to evaluate Diversified Protection Corp's service delivery are critical for assessing the contract's effectiveness and ensuring accountability. Without these details, it is challenging to determine if the EPA is receiving the quality and level of security required. Typical KPIs for security contracts include response times to incidents, guard presence and punctuality, incident reporting accuracy, adherence to post orders, and overall effectiveness in preventing unauthorized access or security breaches. The presence of clearly defined, measurable, and achievable KPIs, coupled with a robust quality assurance surveillance plan, is fundamental to ensuring that the contractor meets its obligations and that taxpayer funds are used efficiently to maintain a secure environment.

What is the track record of Diversified Protection Corp in fulfilling federal security contracts of similar size and scope?

Evaluating the track record of Diversified Protection Corp in fulfilling federal security contracts of similar size and scope is crucial for risk assessment. Information on past performance, including any documented issues, contract modifications, or awards for outstanding performance, provides insight into the contractor's reliability and capability. Examining their history with federal agencies, particularly for contracts involving security guard and patrol services (NAICS 561612), can highlight their ability to manage complex security operations, adhere to federal regulations, and meet performance expectations. A history of successful contract completion suggests a lower risk of performance issues, while past difficulties might warrant closer scrutiny of current contract management and oversight.

How has the scope of security services evolved at EPA Cincinnati over the contract's duration, and has the pricing remained competitive with these changes?

Understanding how the scope of security services at EPA Cincinnati has evolved over the contract's duration is important for assessing its continued relevance and value. Security needs can change due to evolving threat landscapes, new building access requirements, or shifts in facility usage. If the scope has expanded significantly without corresponding price adjustments, the fixed-price nature could become disadvantageous. Conversely, if the scope has remained static or decreased, the current pricing might represent diminishing value. Analyzing contract modifications, task orders, and any formal scope reviews would shed light on this evolution and whether the firm fixed-price structure has effectively managed changes while maintaining competitive pricing relative to the services rendered.

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: 68HE0C18Q0052

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 RIVER LANDING DR STE 300, DANIEL ISLAND, SC, 29492

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,139,607

Exercised Options: $31,139,607

Current Obligation: $28,544,917

Actual Outlays: $16,923,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F120GA

IDV Type: FSS

Timeline