DOT Awards $24.6M for Armed Security Guards at WJHTC, Competition Limited by Source Exclusion
Contract Overview
Contract Amount: $24,633,508 ($24.6M)
Contractor: Hana Industries, Inc.
Awarding Agency: Department of Transportation
Start Date: 2021-04-19
End Date: 2026-04-30
Contract Duration: 1,837 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED SECURITY GUARDS AT THE WJHTC
Place of Performance
Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405
Plain-Language Summary
Department of Transportation obligated $24.6 million to HANA INDUSTRIES, INC. for work described as: ARMED SECURITY GUARDS AT THE WJHTC Key points: 1. Spending on security guards totals $24.6M over the contract period. 2. HANA INDUSTRIES, INC. is the sole awardee. 3. The contract is a definitive contract with a firm fixed price. 4. The contract is for Security Guards and Patrol Services. 5. The contract duration is 1837 days.
Value Assessment
Rating: fair
The contract value of $24.6M for security guard services appears high for the specified NAICS code (561612). Benchmarking against similar contracts is necessary to determine if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competitive process. This approach may have restricted price discovery and potentially led to higher costs.
Taxpayer Impact: The limited competition raises concerns about taxpayer value, as a more open process could have yielded better pricing.
Public Impact
Ensures security at the WJHTC facility. Supports jobs within the security services sector. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Lack of clear justification for source exclusion.
- Firm Fixed Price contract with long duration could pose risks if scope changes.
Positive Signals
- Provides essential security services.
- Clear contract end date.
- Definitive contract structure.
Sector Analysis
The security services sector is competitive, but specific requirements like armed guards at critical infrastructure can lead to specialized contracts. Benchmarks for similar services at transportation hubs are needed.
Small Business Impact
There is no indication that small businesses were involved in this contract award, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight is crucial to ensure HANA INDUSTRIES, INC. meets all security requirements and that the pricing remains justified throughout the contract's duration, especially given the limited competition.
Related Government Programs
- Security Guards and Patrol Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Limited competition.
- Potential for overpricing.
- Lack of transparency in source exclusion.
- Long contract duration.
- No clear indication of small business participation.
Tags
security-guards-and-patrol-services, department-of-transportation, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $24.6 million to HANA INDUSTRIES, INC.. ARMED SECURITY GUARDS AT THE WJHTC
Who is the contractor on this award?
The obligated recipient is HANA INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2021-04-19. End: 2026-04-30.
What was the specific justification for excluding other sources in the competition?
The provided data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' but does not detail the rationale behind excluding other potential bidders. Understanding this justification is critical for assessing the fairness and potential cost implications of the procurement process.
How does the $24.6M contract value compare to industry benchmarks for similar armed security services at transportation facilities?
Without specific industry benchmarks for armed security guards at transportation facilities of similar size and scope, it's difficult to definitively assess value. A comparative analysis against contracts for comparable services and locations is needed to determine if the $24.6M represents a fair market price.
What are the performance metrics and oversight mechanisms in place to ensure effective service delivery and taxpayer value?
The contract details do not specify performance metrics or detailed oversight mechanisms. Effective service delivery and taxpayer value depend on robust monitoring of guard performance, adherence to security protocols, and regular reviews of contract compliance by the Federal Aviation Administration.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 841 BISHOP ST STE 1050, HONOLULU, HI, 96813
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,754,325
Exercised Options: $24,633,508
Current Obligation: $24,633,508
Actual Outlays: $23,061,147
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-19
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-04-02
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