Transportation awards $78.5M for security services, with competition impacting value

Contract Overview

Contract Amount: $78,471,342 ($78.5M)

Contractor: Bering Global Solutions, LLC

Awarding Agency: Department of Transportation

Start Date: 2019-02-28

End Date: 2023-11-30

Contract Duration: 1,736 days

Daily Burn Rate: $45.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW GUARD CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $78.5 million to BERING GLOBAL SOLUTIONS, LLC for work described as: NEW GUARD CONTRACT Key points: 1. Contract value represents a significant investment in essential security services. 2. The procurement method suggests potential limitations in market engagement. 3. Performance duration indicates a long-term need for these services. 4. The contract type, firm fixed price, aims to control costs. 5. Geographic concentration in DC highlights a specific operational focus.

Value Assessment

Rating: fair

The total award of $78.5 million over nearly five years for security guard services appears substantial. Benchmarking against similar contracts for security personnel in federal agencies is crucial for a precise value assessment. Given the firm fixed-price structure, the government has a degree of cost certainty, but the absence of detailed performance metrics or cost breakdowns makes it difficult to definitively assess value-for-money without further analysis of the scope of work and service levels provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources were excluded. This procurement approach can sometimes limit the pool of potential bidders and may not always yield the most competitive pricing compared to unrestricted full and open competition. The number of offers received (5) indicates some level of interest, but the exclusion clause warrants further investigation into its justification and impact on the bidding landscape.

Taxpayer Impact: The exclusion of certain sources may have limited the potential for lower prices that could have been achieved through broader competition, potentially costing taxpayers more than a fully open process might have.

Public Impact

The Department of Transportation benefits from continuous security coverage for its facilities and personnel. Essential security guard and patrol services are delivered to protect government assets. The primary geographic impact is within the District of Columbia, where the services are concentrated. The contract supports a workforce of security professionals, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to source exclusion.
Lack of detailed cost breakdown makes value assessment challenging.
Firm fixed-price contract may not incentivize efficiency beyond meeting minimum requirements.

Positive Signals

Firm fixed-price contract provides cost certainty.
Long contract duration suggests a stable, ongoing need met.
Award to a single entity streamlines management.

Sector Analysis

The security services sector for the federal government is a significant market, encompassing a wide range of protective services. This contract falls within the broader professional, scientific, and technical services category. Federal spending on security guards and related services is consistently high, driven by the need to protect sensitive government facilities, personnel, and information across various agencies. Benchmarking this contract against the average cost per guard or per facility secured within the federal landscape would provide further context on its economic efficiency.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of small business set-aside provisions or significant subcontracting plans directed towards small businesses. This suggests that the prime contractor, BERING GLOBAL SOLUTIONS, LLC, is likely a larger entity, and the contract's structure did not prioritize opportunities for the small business ecosystem in this instance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's contracting officer and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. The extent of Inspector General involvement would depend on any reported issues of fraud, waste, or abuse related to the contract's performance.

Related Government Programs

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

Risk Flags

Potential for reduced competition
Lack of detailed cost transparency
Justification for source exclusion requires review

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $78.5 million to BERING GLOBAL SOLUTIONS, LLC. NEW GUARD CONTRACT

Who is the contractor on this award?

The obligated recipient is BERING GLOBAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $78.5 million.

What is the period of performance?

Start: 2019-02-28. End: 2023-11-30.

What is the historical spending trend for security services at the Department of Transportation?

Analyzing historical spending on security services at the Department of Transportation (DOT) requires accessing detailed procurement data over multiple fiscal years. While this specific contract award is $78.5 million, understanding the broader trend involves looking at all DOT contracts for similar services (e.g., PSC codes related to security guards and patrol). A consistent or increasing trend might indicate growing security needs or inflation, while a decreasing trend could suggest efficiency gains or shifting priorities. Without access to a comprehensive historical database for DOT's security spending, it's difficult to provide precise figures, but federal agencies generally maintain significant and often growing budgets for physical security due to evolving threats and regulatory requirements.

How does the per-unit cost of security guards under this contract compare to industry benchmarks?

Determining the per-unit cost requires knowing the number of guards, hours worked, and the total contract value allocated to guard services. The provided data does not specify the number of guards or their hours, making a direct per-unit cost calculation impossible. However, federal contracts for security guards often range from $30 to $70 per hour per guard, depending on location, security clearance requirements, and the specific services provided. If this $78.5 million contract covers approximately 4.5 years (1736 days is roughly 4.7 years) and assumes a significant number of guards working full-time, the average hourly rate would need to be calculated and then compared to these benchmarks. The 'N/A' for CPU in the schema suggests this specific metric is not readily available or calculable from the provided summary data.

What specific risks are associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition, which can lead to higher prices and less innovation. By excluding certain potential bidders, the government may inadvertently limit the number of qualified offerors, thereby diminishing the competitive pressure to offer the best value. This method requires a strong justification for the exclusion, often based on specific technical requirements, past performance, or proprietary data. If the exclusion is not well-founded, it can raise concerns about fairness and potentially lead to protests. The risk is that the government might not achieve the most advantageous outcome possible if a broader competitive field had been allowed.

What is the track record of BERING GLOBAL SOLUTIONS, LLC in performing similar federal security contracts?

BERING GLOBAL SOLUTIONS, LLC has been awarded federal contracts, including this significant definitive contract with the Department of Transportation. To assess their track record, one would need to examine their past performance on similar security guard and patrol services contracts. This includes reviewing contract performance evaluations (e.g., CPARS reports), identifying any instances of contract disputes, overruns, or quality issues, and noting the size and duration of previous awards. A history of successful contract completions, positive performance reviews, and timely delivery of services would indicate a strong track record. Conversely, any significant negative performance indicators would raise concerns about their capability to fulfill this current $78.5 million award effectively.

How does the duration of this contract (1736 days) impact the overall value and risk?

A contract duration of 1736 days (approximately 4.7 years) suggests a long-term, stable requirement for security services. From a value perspective, a longer duration can allow for economies of scale and potentially lower administrative costs per year compared to multiple short-term contracts. It also provides continuity of service, which is critical for security operations. However, a longer duration also increases risk. Market conditions, technology, and threat landscapes can change significantly over nearly five years, potentially making the contracted services or pricing less optimal over time. There's also a risk of contractor complacency or performance degradation if robust oversight is not maintained throughout the contract's life.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 693JK418\R500007

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C STREET, SUITE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $78,471,342

Exercised Options: $78,471,342

Current Obligation: $78,471,342

Actual Outlays: $72,396,041

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $37,563,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline