DHS's $32.4M contract for security services awarded to ISS Action Inc. shows strong competition

Contract Overview

Contract Amount: $32,392,183 ($32.4M)

Contractor: ISS Action Inc

Awarding Agency: Department of Homeland Security

Start Date: 2018-01-19

End Date: 2023-06-30

Contract Duration: 1,988 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF TRANSPORTATION AND ARMED GUARD SERVICES FOR THE NEW YORK FIELD OFFICE

Place of Performance

Location: JAMAICA, QUEENS County, NEW YORK, 11434

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.4 million to ISS ACTION INC for work described as: IGF::OT::IGF TRANSPORTATION AND ARMED GUARD SERVICES FOR THE NEW YORK FIELD OFFICE Key points: 1. The contract value of $32.4 million over five years represents a significant investment in security services. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (1988 days) indicates a long-term need for these security functions. 5. The award to ISS Action Inc. warrants a review of their past performance and capacity. 6. Geographic concentration in New York may limit broader market engagement for other providers.

Value Assessment

Rating: good

The contract's total value of $32.4 million over approximately five years averages to about $6.5 million annually. Benchmarking this against similar contracts for security and armed guard services requires access to a broader dataset of government procurements. However, the firm fixed-price nature of the contract is a positive indicator for value, as it caps the government's financial exposure. The number of bids received (5) suggests a reasonable level of interest, but a deeper analysis of the bid prices would be needed to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Five bids were received, indicating a competitive environment for this procurement. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios. The level of competition suggests that the market has sufficient capacity and interest to meet the government's needs.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment that can drive down costs and ensure the government receives the best possible value for its spending on security services.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE), receiving essential security and armed guard services. The services delivered include physical security, patrol, and potentially response to security incidents at the New York Field Office. The geographic impact is concentrated in New York, specifically within the operational area of the New York Field Office. The contract supports jobs within the security services sector, likely benefiting personnel employed by ISS Action Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical security functions over a long period.
Need to ensure ISS Action Inc. maintains adequate staffing levels and quality of personnel throughout the contract duration.
Geographic concentration might limit opportunities for other security firms in different regions.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Multiple bidders (5) suggest a competitive market for these services.
Long contract duration implies a stable and ongoing need, allowing for contractor investment in resources and personnel.

Sector Analysis

The security and guard services industry is a significant component of the broader professional, scientific, and technical services sector. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The market for these services is substantial, driven by government agencies, commercial enterprises, and private institutions requiring physical security. Government spending in this area is often characterized by long-term contracts, firm-fixed pricing, and competitive bidding processes to ensure value and reliability.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor, ISS Action Inc., may not be obligated to subcontract a specific portion of the work to small businesses under this award. Further review of the contract details would be necessary to confirm subcontracting requirements and their potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE). As a firm fixed-price contract, oversight would focus on performance standards, service delivery, and adherence to contract terms rather than cost management. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General for DHS 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 Services
Immigration and Customs Enforcement Support Services
Armed Guard Services
Physical Security Contracts

Risk Flags

Contract Duration
Contractor Performance History
Service Quality Assurance
Geographic Concentration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.4 million to ISS ACTION INC. IGF::OT::IGF TRANSPORTATION AND ARMED GUARD SERVICES FOR THE NEW YORK FIELD OFFICE

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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2018-01-19. End: 2023-06-30.

What is the track record of ISS Action Inc. in performing similar federal contracts, particularly regarding performance quality and adherence to deadlines?

A thorough review of ISS Action Inc.'s past performance on federal contracts is crucial. This would involve examining contract performance reports (CPARs) if available, looking for any past disputes, terminations, or contract modifications that indicate performance issues. Specifically, assessing their history with security guard and armed guard services for agencies like DHS or ICE would provide relevant context. A positive track record with consistent delivery, meeting performance metrics, and maintaining good client relationships would suggest a lower risk for this current contract. Conversely, a history of performance deficiencies or unresolved issues would raise concerns about their ability to meet the requirements of this $32.4 million award.

How does the awarded price compare to market rates for similar security and armed guard services in the New York region?

To assess the value for money, the awarded price of approximately $6.5 million annually needs to be benchmarked against prevailing market rates for comparable security and armed guard services in the New York metropolitan area. This would involve researching industry pricing data, consulting with subject matter experts, and potentially analyzing other government or commercial contracts for similar services. Factors such as the level of security required (e.g., armed vs. unarmed, specific threat levels), the number of personnel, hours of service, and specialized equipment influence pricing. If the awarded price is significantly lower than market rates, it could indicate exceptional value or potentially unrealistic pricing that might lead to performance issues. Conversely, if it's higher, it warrants scrutiny of the competition and the justification for the price.

What are the specific risks associated with a five-year firm fixed-price contract for security services, and how are they being mitigated?

A five-year firm fixed-price (FFP) contract for security services presents several risks. For the contractor, the primary risk is underestimating costs or facing unforeseen increases in labor, insurance, or operational expenses, potentially leading to reduced profitability or even losses. For the government, the risk lies in potential degradation of service quality if the contractor cuts corners to maintain profit margins, or if the contractor becomes financially unstable. Mitigation strategies include robust performance monitoring by ICE/DHS, clear performance standards and metrics within the contract, and potentially incorporating price adjustment clauses for significant, uncontrollable external factors (though this is less common in FFP). The contractor's financial stability and past performance are key indicators of their ability to manage these risks over the contract's duration.

How effective are the current oversight mechanisms in ensuring the quality and reliability of security services provided by ISS Action Inc. under this contract?

The effectiveness of oversight hinges on the diligence of the contracting officer's representative (COR) and the quality assurance surveillance plan (QASP) implemented by ICE/DHS. Regular site visits, performance reviews, and prompt addressing of any reported deficiencies are critical. Given the firm fixed-price nature, the focus is on ensuring the contractor meets all specified performance standards. The contract's duration necessitates ongoing vigilance to prevent service degradation. Transparency through reporting and communication channels between the government and the contractor is also key. The Inspector General's office provides an additional layer of oversight for potential fraud, waste, or abuse, but day-to-day quality assurance relies on the agency's internal processes.

What has been the historical spending trend for security and armed guard services by the Department of Homeland Security, and how does this contract fit within that trend?

Analyzing historical spending by DHS on security and armed guard services provides context for this $32.4 million award. If DHS has consistently awarded similar-sized contracts through competitive processes, this award aligns with established patterns. However, if this contract represents a significant increase in spending or a shift in contracting strategy (e.g., moving from multiple smaller contracts to one large one), it warrants further investigation. Understanding past spending levels helps assess whether current expenditure is reasonable and whether the agency is achieving economies of scale or facing inflationary pressures. This contract appears to be a substantial, long-term commitment, suggesting a stable and ongoing requirement for these services within the New York Field Office.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

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: $52,133,440

Exercised Options: $48,292,107

Current Obligation: $32,392,183

Actual Outlays: $5,125,772

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F072GA

IDV Type: FSS

Timeline