DHS awards $34.3M for security services, with significant portion for guard services

Contract Overview

Contract Amount: $34,274,848 ($34.3M)

Contractor: ISS Action Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-29

End Date: 2024-08-16

Contract Duration: 231 days

Daily Burn Rate: $148.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TRANSPORTATION AND GUARD SERVICE

Place of Performance

Location: JAMAICA, QUEENS County, NEW YORK, 11434

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.3 million to ISS ACTION INC for work described as: TRANSPORTATION AND GUARD SERVICE Key points: 1. Contract value represents a substantial investment in safeguarding critical infrastructure and personnel. 2. The use of Time and Materials pricing may introduce cost variability, requiring diligent oversight. 3. Competition was robust, suggesting potential for competitive pricing and a wide range of vendor capabilities. 4. The contract duration is relatively short, indicating potential for re-competition or adjustments. 5. Geographic focus on New York suggests a concentration of security needs in that region. 6. The specific service category points to a need for specialized security personnel.

Value Assessment

Rating: good

The contract value of $34.3 million for security guard services appears reasonable given the scope and duration. Benchmarking against similar contracts for security guard services in major metropolitan areas like New York would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while flexible, necessitates careful monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep. The award amount is a significant figure, suggesting a substantial need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that a broad range of qualified vendors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation implies multiple interested parties, which typically leads to a more robust bidding process and potentially better value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging innovation among bidders. This approach ensures that public funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

U.S. Customs and Border Protection officers and facilities benefit from enhanced security. The services provided include security guards and patrol services, ensuring physical safety and access control. The contract has a geographic impact primarily in New York (NY), focusing security efforts in this state. The contract supports a workforce of security personnel, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely managed.
The relatively short contract duration might lead to frequent re-procurement efforts and potential disruption.
Dependence on a single contractor for critical security services in a specific region could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
The contract addresses a clear need for security services, indicating alignment with agency mission requirements.
The contractor, ISS ACTION INC, has experience in providing security services, which can be a positive indicator of capability.

Sector Analysis

The security services sector is a critical component of government operations, encompassing a wide range of protective measures. This contract falls within the broader category of professional services, specifically focusing on guard and patrol services. The market for these services is competitive, with numerous providers ranging from large corporations to smaller specialized firms. Spending in this sector is often driven by national security concerns, infrastructure protection, and the need for personnel safety across various government agencies. Comparable spending benchmarks would typically involve analyzing the average cost per guard hour or per facility secured across similar federal contracts.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false). Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the necessary services through the most competitive means available, rather than prioritizing small business participation through set-asides. The impact on the small business ecosystem would likely be indirect, as larger prime contractors may or may not engage small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security, specifically U.S. Customs and Border Protection. Accountability measures are inherent in the contract terms, including performance standards and the Time and Materials pricing structure which requires detailed reporting and justification of hours and materials. Transparency is facilitated through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Customs and Border Protection Security Operations
Guard and Patrol Services Contracts
Time and Materials Service Contracts

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Short Contract Duration
Geographic Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.3 million to ISS ACTION INC. TRANSPORTATION AND GUARD SERVICE

Who is the contractor on this award?

The obligated recipient is ISS ACTION INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $34.3 million.

What is the period of performance?

Start: 2023-12-29. End: 2024-08-16.

What is the historical spending pattern for security guard services by U.S. Customs and Border Protection?

Analyzing historical spending patterns for security guard services by U.S. Customs and Border Protection (CBP) is crucial for understanding trends and identifying potential anomalies. While specific historical data for CBP's guard services is not provided in this dataset, a comprehensive review would involve examining contract awards over the past 5-10 fiscal years. This analysis would look at the total dollar amounts awarded annually, the number of contracts issued, the types of services procured (e.g., armed vs. unarmed guards, patrol services, access control), and the primary contracting vehicles used (e.g., GSA schedules, direct solicitations). It would also identify key incumbent contractors and assess whether spending has increased, decreased, or remained stable. Understanding these patterns helps in budgeting, forecasting future needs, and evaluating the efficiency of current procurement strategies. For instance, a significant year-over-year increase in spending might warrant an investigation into the drivers behind it, such as expanded operational requirements or rising market costs.

How does the per-unit cost of security guards under this contract compare to market rates in New York?

To assess the per-unit cost of security guards under this contract against market rates in New York, one would need to derive an effective hourly rate. Given the contract is Time and Materials (T&M), this requires estimating the total labor hours and dividing the total labor cost by those hours. Without specific labor hour data, a precise calculation is impossible. However, if we assume a typical guard works 2080 hours per year (40 hours/week * 52 weeks), and if the entire $34.3 million were solely for guard labor, the average annual cost per guard would be extremely high, suggesting significant overhead, materials, or multiple guards per role. A more realistic approach involves obtaining the average billable rate for security guards in the New York metropolitan area from industry reports or salary surveys. These typically range from $25-$50 per hour for unarmed guards and higher for armed guards, depending on experience, licensing, and specific duties. Comparing the contractor's billed rates (including any markups for overhead and profit) to these market benchmarks is essential for determining value for money.

What is the track record of ISS ACTION INC in providing federal security services?

ISS ACTION INC's track record in providing federal security services is a key indicator of their capability and reliability. A thorough assessment would involve reviewing their past performance on federal contracts, particularly those with agencies like the Department of Homeland Security (DHS) or U.S. Customs and Border Protection (CBP). This includes examining past performance evaluations, any documented instances of contract disputes, termination for default, or significant performance issues. Additionally, understanding the scale and complexity of previous contracts they have managed is important. For example, have they successfully managed large-scale security operations in high-security environments? Information on their safety records, employee turnover rates, and compliance history with federal regulations would also contribute to a comprehensive understanding of their track record. Positive performance history suggests a lower risk for this current contract.

What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract?

The Time and Materials (T&M) pricing structure for this contract presents several potential risks. Primarily, T&M contracts can lead to cost uncertainty and potential overruns if not managed diligently. Unlike fixed-price contracts, the final cost is not predetermined and depends on the actual hours worked and materials used. This creates an incentive for the contractor to bill for more hours or use more expensive materials, potentially increasing costs beyond initial estimates. For the government, this necessitates robust oversight, including detailed review of timesheets, material invoices, and verification that the work performed was necessary and efficient. Without strong controls, there's a risk of paying for inefficiencies or unnecessary work. Furthermore, T&M contracts can sometimes stifle contractor innovation in cost-saving measures, as their profit is often tied to the volume of resources consumed.

How does the geographic concentration in New York impact the overall security strategy of CBP?

The geographic concentration of this security services contract in New York (NY) suggests a significant operational presence or critical infrastructure managed by U.S. Customs and Border Protection (CBP) within that state. New York's extensive coastline, major ports (like the Port of New York and New Jersey), international airports, and border crossings necessitate substantial security measures. This contract likely supports CBP's efforts to secure these vital entry and exit points, protect federal facilities, and maintain law enforcement presence. The concentration implies that CBP prioritizes resource allocation for security in this region due to its strategic importance in trade, travel, and national security. It may also reflect specific threats or vulnerabilities identified in the area. Understanding this geographic focus helps contextualize the contract's role within CBP's broader national security mission and resource deployment strategy.

What is the significance of the 'Security Guards and Patrol Services' (NAICS 561612) classification for this contract?

The NAICS code 561612, 'Security Guards and Patrol Services,' specifically defines the core service being procured under this contract. This classification indicates that the primary function of the contractor is to provide on-site security personnel for the protection of persons or property. Services typically include uniformed guards for access control, surveillance, patrolling premises, and responding to incidents. This contrasts with other security-related services like investigation, alarm systems, or security system installation. For U.S. Customs and Border Protection, this classification suggests a need for physical security presence at facilities, ports of entry, or other operational areas to deter unauthorized access, monitor activities, and ensure the safety of personnel and assets. The specific nature of these services is critical for maintaining operational integrity and security in sensitive environments.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 204 E MCKENZIE ST, PUNTA GORDA, FL, 33950

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $34,274,848

Exercised Options: $34,274,848

Current Obligation: $34,274,848

Actual Outlays: $34,274,848

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70B03C19A00000040

IDV Type: BPA

Timeline