Strategic Security Corp awarded $2.98M for armed security guard services in Kentucky disaster areas

Contract Overview

Contract Amount: $2,975,600 ($3.0M)

Contractor: Strategic Security Corp

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-25

End Date: 2026-04-24

Contract Duration: 364 days

Daily Burn Rate: $8.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IN ACCORDANCE WITH E.O. 14222 SECTION 2(D) - THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, TOOLS, MATERIALS, TRANSPORTATION AND INCIDENTAL ITEMS TO PERFORM LEVEL II ARMED SECURITY GUARD SERVICES AT DISASTER RELATED COUNTIES, SITES AND FACILITIES

Place of Performance

Location: FRANKFORT, FRANKLIN County, KENTUCKY, 40601

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.0 million to STRATEGIC SECURITY CORP for work described as: IN ACCORDANCE WITH E.O. 14222 SECTION 2(D) - THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, TOOLS, MATERIALS, TRANSPORTATION AND INCIDENTAL ITEMS TO PERFORM LEVEL II ARMED SECURITY GUARD SERVICES AT DISASTER RELATED COUNTIES, SITES AND FACILITIES Key points: 1. Contract provides essential security for disaster relief operations, ensuring protection of critical sites and personnel. 2. Competition under SAP suggests a streamlined procurement process, potentially impacting price discovery. 3. The contract duration of 364 days aligns with typical disaster response timelines. 4. Focus on armed guard services indicates a high-threat environment requiring specialized security. 5. Geographic focus on disaster-related counties in Kentucky highlights a specific, urgent need. 6. The award to Strategic Security Corp warrants review of their past performance in similar emergency situations.

Value Assessment

Rating: fair

The contract value of $2.98 million for 364 days of armed security guard services appears to be within a reasonable range for emergency response operations. However, without specific details on the number of guards, hours, and specific site requirements, a precise value-for-money assessment is challenging. Benchmarking against similar disaster response security contracts would provide a clearer picture of cost-effectiveness. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and a less extensive solicitation process compared to full and open competition. While this can expedite procurement, it may limit the breadth of competition and potentially impact price discovery. The number of bidders (4) is noted, but the specific solicitation method under SAP is not detailed, making it difficult to fully assess the competitive landscape.

Taxpayer Impact: Limited competition under SAP may result in less aggressive pricing than a full and open competition, potentially leading to higher costs for taxpayers. However, the urgency of disaster response often necessitates faster procurement, which SAP facilitates.

Public Impact

Residents and businesses in disaster-affected areas of Kentucky benefit from enhanced security of relief sites and resources. The contract ensures the protection of critical infrastructure and personnel involved in disaster recovery efforts. Services are geographically focused on disaster-related counties within Kentucky, addressing immediate local needs. The contract supports the deployment of armed security personnel, contributing to the safety and stability of disaster zones.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hour-based pricing if not closely monitored.
Limited competition may not yield the most cost-effective solution for taxpayers.
Ensuring consistent quality and performance from security personnel across multiple disaster sites can be challenging.

Positive Signals

Provides critical security services during a time of urgent need for disaster relief.
The contract is geographically targeted to address specific disaster-affected areas.
The use of armed guards addresses the potential security risks in disaster zones.

Sector Analysis

The security services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under the 'Security Guards and Patrol Services' (NAICS 561612) subsector. Spending in this area often fluctuates with security needs, including emergency response and disaster management. Comparable contracts for armed security services can vary widely based on location, duration, and the level of threat.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, this contract does not appear to have a direct small business set-aside component. Subcontracting opportunities for small businesses are not explicitly detailed in this summary, and their impact on the small business ecosystem would depend on the prime contractor's subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Accountability measures would include performance monitoring, adherence to contract terms, and reporting requirements. Transparency is facilitated through contract databases, though specific operational details of security deployments may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Disaster Relief Funding
Emergency Management Services
Homeland Security Contracts
Federal Security Services
FEMA Operations

Risk Flags

Limited competition may impact cost-effectiveness.
Need to verify contractor's past performance in disaster environments.
Potential for cost overruns with labor-hour based contracts.
Ensuring adequate oversight of security personnel performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.0 million to STRATEGIC SECURITY CORP. IN ACCORDANCE WITH E.O. 14222 SECTION 2(D) - THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, TOOLS, MATERIALS, TRANSPORTATION AND INCIDENTAL ITEMS TO PERFORM LEVEL II ARMED SECURITY GUARD SERVICES AT DISASTER RELATED COUNTIES, SITES AND FACILITIES

Who is the contractor on this award?

The obligated recipient is STRATEGIC SECURITY CORP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2025-04-25. End: 2026-04-24.

What is the track record of Strategic Security Corp in providing armed security services during disaster relief operations?

Assessing the track record of Strategic Security Corp in disaster relief is crucial for understanding their capability and reliability. While the data indicates they have been awarded this contract, further investigation into their past performance on similar FEMA or other federal disaster response contracts is necessary. This would involve reviewing past performance evaluations, any documented issues or commendations, and their experience with armed security in potentially volatile post-disaster environments. Understanding their history with surge capacity, site security management, and adherence to strict protocols during emergencies will provide insight into their suitability for this role and the potential risks associated with their performance.

How does the per-hour cost of armed security guards under this contract compare to market rates for similar services in Kentucky?

A detailed comparison of the per-hour cost for armed security guards under this contract against market rates in Kentucky requires access to the specific labor hour rates and the total hours anticipated. Given the contract value of $2.98 million over 364 days, and assuming an average of X guards working Y hours per day, an estimated hourly rate can be calculated. This estimated rate should then be benchmarked against prevailing wages and commercial security service rates in the relevant Kentucky counties. Factors such as the level of armament, required training, insurance, and the specific security environment (e.g., disaster zone) will influence these rates. Without the granular data on labor hours and specific rates, a precise comparison is not feasible, but the overall contract value suggests a significant operational scale.

What are the primary risks associated with using a limited competition procurement (SAP) for disaster response security?

Utilizing Simplified Acquisition Procedures (SAP) for disaster response security, while expediting procurement, carries inherent risks. The primary risk is reduced price competition, potentially leading to higher costs for taxpayers compared to a full and open competition. Limited bidders may not be incentivized to offer their most competitive pricing. Furthermore, SAP may not always attract the widest pool of qualified vendors, potentially limiting the selection of the most capable or innovative security providers. There's also a risk that the streamlined process might overlook certain due diligence aspects that a more extensive competition would uncover. Ensuring robust oversight and performance management becomes even more critical when competition is limited.

How effective are armed security guards in mitigating risks at disaster relief sites?

Armed security guards can be highly effective in mitigating risks at disaster relief sites by deterring criminal activity, protecting valuable assets and personnel, and maintaining order in potentially chaotic environments. Their presence can prevent looting, unauthorized access, and violence, thereby ensuring the safe and efficient distribution of aid and resources. However, effectiveness is contingent upon proper training, clear rules of engagement, adequate supervision, and integration with overall disaster response management. Risks associated with armed guards themselves, such as accidental discharge or escalation of force, must be carefully managed through stringent vetting and operational protocols. Their role is primarily preventative and protective, contributing to the overall security posture.

What is the historical spending pattern for security guard services by FEMA in Kentucky, particularly in disaster-declared areas?

Analyzing historical spending patterns for security guard services by FEMA in Kentucky, especially in disaster-declared areas, would provide valuable context for this $2.98 million contract. This involves examining past FEMA contracts awarded for similar services in Kentucky following previous disasters. Key metrics to review would include the number and duration of contracts, the types of security services procured (armed vs. unarmed), the average contract values, and the contractors typically utilized. Understanding these historical trends can help identify any significant increases or decreases in spending, potential patterns of contractor reliance, and whether current spending aligns with or deviates from past norms, offering insights into the reasonableness of the current award.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70FBR425R00000026

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 19 BELLEMEADE AVE, SMITHTOWN, NY, 11787

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,975,600

Exercised Options: $2,975,600

Current Obligation: $2,975,600

Actual Outlays: $1,675,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline