DHS awards $25.3M contract for security services, with a significant portion allocated to a single vendor

Contract Overview

Contract Amount: $25,342,225 ($25.3M)

Contractor: Trailboss Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-05-23

End Date: 2020-06-30

Contract Duration: 404 days

Daily Burn Rate: $62.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSPORTATION SERVICES: IGF::CT::IGF

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78217

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.3 million to TRAILBOSS ENTERPRISES, INC. for work described as: TRANSPORTATION SERVICES: IGF::CT::IGF Key points: 1. Value for money appears fair given the fixed-price nature of the contract, though specific performance metrics are not detailed. 2. Competition dynamics indicate a full and open process, suggesting a competitive bidding environment. 3. Risk indicators are moderate, with a fixed-price contract potentially limiting cost overruns but requiring careful scope management. 4. Performance context is tied to security guard services, a critical but often standardized function. 5. Sector positioning places this within the broader government security and protective services market.

Value Assessment

Rating: fair

The contract's total value of $25.3 million for security guard services over approximately 13 months suggests a monthly expenditure of roughly $1.95 million. Benchmarking this against similar contracts for security services requires detailed service level agreements and geographic scope, which are not provided. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined and the price competitive.

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 number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. A robust competition typically leads to better value for the government.

Taxpayer Impact: A full and open competition suggests that taxpayer dollars are being used efficiently by allowing the market to determine the most cost-effective provider for these essential security services.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) personnel and facilities, ensuring operational security. Services delivered include security guards and patrol, crucial for maintaining a safe and secure environment. The geographic impact is concentrated in Texas, where the services are being rendered. Workforce implications include the creation of jobs for security personnel within the contracted region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not rigidly defined.
Reliance on a single vendor for critical security functions could pose a risk if performance falters.
Limited insight into the specific qualifications and training of the security personnel provided.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract structure shifts cost overrun risk to the contractor.
Contract duration provides a stable period for service delivery and planning.

Sector Analysis

This contract falls within the government's broader spending on protective and security services, a significant sector driven by national security and public safety needs. The market for security guards and patrol services is highly competitive, with numerous private sector firms offering these solutions. Government contracts often represent a substantial portion of revenue for larger security firms, and benchmarks for pricing are typically established through competitive bidding processes across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Trailboss Enterprises, Inc. voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine any indirect effects or subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Immigration and Customs Enforcement Support Services
Government Security Guard Contracts

Risk Flags

Potential for performance issues if contractor staffing or training is inadequate.
Risk of cost overruns if contract scope is not precisely managed, despite fixed-price nature.
Dependence on a single vendor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.3 million to TRAILBOSS ENTERPRISES, INC.. TRANSPORTATION SERVICES: IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is TRAILBOSS ENTERPRISES, 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 $25.3 million.

What is the period of performance?

Start: 2019-05-23. End: 2020-06-30.

What is the historical spending pattern for security services by U.S. Immigration and Customs Enforcement (ICE) in Texas?

Analyzing historical spending patterns for ICE security services in Texas requires access to detailed procurement data over multiple fiscal years. While this specific contract awarded $25.3 million, understanding the trend involves looking at previous awards for similar services (NAICS 561612) within the same geographic region. Factors such as changes in security needs, facility expansions, and shifts in contracting strategies (e.g., moving from sole-source to competitive bids) would influence these patterns. Without historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for ICE's security requirements in Texas.

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

To compare the per-hour cost, we would need to divide the total contract value by the estimated total hours of service. The contract value is $25,342,224.81, and the duration is 404 days (approximately 9,700 hours if operating 24/7, though actual hours would depend on staffing levels and shifts). If we assume a standard 40-hour work week per guard and an average of, say, 50 guards, that's 104,000 hours annually. This contract runs for about 1.1 years. A rough estimate of total hours could be around 114,400 hours. Dividing the total contract value by this estimated hour count yields a per-hour rate. Industry benchmarks for security guards vary widely based on location, level of training, and specific duties (e.g., armed vs. unarmed, supervisory roles). Generally, government contracts aim for competitive rates, but specific comparisons require detailed market research and knowledge of the service area's labor costs.

What is the track record of Trailboss Enterprises, Inc. in performing similar government contracts?

Trailboss Enterprises, Inc. has been awarded this $25.3 million contract by the Department of Homeland Security for security guard services. To assess their track record, one would need to examine their past performance on similar federal contracts, particularly those involving security services and firm fixed-price arrangements. Key indicators include contract values, durations, agencies served, and any documented performance evaluations or past performance questionnaires. A review of their contract history would reveal their experience level, ability to manage large-scale security operations, and compliance with federal procurement regulations. Positive past performance is often a significant factor in contract awards.

What are the specific security risks mitigated by this contract for ICE operations in Texas?

This contract directly addresses the need for physical security at ICE facilities and operational areas within Texas. The security guards and patrol services are intended to mitigate risks such as unauthorized access, theft, vandalism, and potential threats to personnel and sensitive information. By providing a visible security presence and response capability, the contract aims to deter criminal activity and ensure the orderly functioning of ICE operations. The specific risks mitigated would depend on the exact locations and types of facilities being secured, ranging from detention centers to administrative offices.

How does the $25.3 million expenditure compare to the overall budget for ICE security operations?

Determining how this $25.3 million contract compares to ICE's overall security budget requires access to ICE's annual budget allocations and specific line items for security services. Federal agencies typically have complex budgets with various funding streams. This contract represents a significant investment in security services for a specific region (Texas) and timeframe. To provide context, one would need to compare this figure against the total amount ICE allocates for all security-related contracts nationwide, or specifically for protective services, across all its operational domains. Without that broader budgetary information, it's challenging to assess the relative size of this expenditure.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 E 3RD AVE, ANCHORAGE, AK, 99501

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,342,225

Exercised Options: $25,342,225

Current Obligation: $25,342,225

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR18D00000002

IDV Type: IDC

Timeline