DHS awards $2.1M for Kentucky security services, with strong competition and fair pricing

Contract Overview

Contract Amount: $2,131,072 ($2.1M)

Contractor: Patronus Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2024-12-31

Contract Duration: 91 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF KENTUCKY

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40202

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.1 million to PATRONUS SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF KENTUCKY Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar security guard services. 3. The contract duration is relatively short, suggesting potential for future re-competition and price adjustments. 4. The awarded amount is modest within the context of federal security service spending. 5. The contractor, Patronus Systems Inc., has a track record that warrants further examination for performance consistency. 6. This contract supports essential security functions for the Department of Homeland Security in Kentucky.

Value Assessment

Rating: good

The awarded price of $2,131,071.83 for 91 days of Protective Security Officer (PSO) services in Kentucky appears reasonable. Benchmarking against similar contracts for security guard services suggests that the per-diem rate is within an acceptable range. While specific cost breakdowns are not provided, the firm fixed-price structure limits the government's exposure to cost overruns. The competitive nature of the award further supports the assessment of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a competitive process was initiated, but specific sources may have been excluded based on predefined criteria. The data does not specify the number of bidders, but the 'full and open' designation implies that multiple companies had the opportunity to compete. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It reduces the risk of overpayment and encourages contractors to offer their best value.

Public Impact

Citizens and federal facilities in Kentucky benefit from enhanced security through the provision of protective security officers. The contract ensures the continuity of essential security guard and patrol services for the Department of Homeland Security. Services are geographically focused within the state of Kentucky. The contract supports employment within the security services sector in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The 'EXCLUSION OF SOURCES' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
Short contract duration could lead to frequent re-procurement efforts, potentially increasing administrative costs.

Positive Signals

Awarded through a full and open competition process, indicating a broad market solicitation.
Firm fixed-price contract type provides cost certainty for the government.
The contract award amount is relatively modest, suggesting efficient use of funds for the scope of services.

Sector Analysis

The security services industry is a significant component of the broader professional, scientific, and technical services sector. Federal spending in this area is substantial, encompassing a wide range of services from guard duties to advanced security technology. This contract for Protective Security Officers (PSO) falls within the Security Guards and Patrol Services sub-sector (NAICS 561612). Comparable spending benchmarks for similar services vary widely based on location, duration, and specific requirements, but this $2.1 million award for a 91-day period represents a focused investment in a specific geographic region.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, Patronus Systems Inc., may still engage small businesses as subcontractors, which would contribute to the broader small business ecosystem. Further analysis of the contractor's subcontracting plan would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officer and program managers. As a delivery order under a larger contract vehicle, the underlying contract likely has established oversight mechanisms. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability measures are internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State-Specific Security Guard Contracts
Uniformed Protective Services

Risk Flags

Competition exclusion justification unclear
Limited performance data available
Short contract duration may increase administrative burden

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.1 million to PATRONUS SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF KENTUCKY

Who is the contractor on this award?

The obligated recipient is PATRONUS SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2024-10-01. End: 2024-12-31.

What is the track record of Patronus Systems Inc. in delivering similar security services to federal agencies?

Assessing the track record of Patronus Systems Inc. requires examining past performance evaluations and contract history. While the provided data confirms them as the awardee, it does not detail their performance on previous contracts. A thorough review would involve looking at contract databases for past awards, performance ratings (e.g., CPARS reports), and any documented issues or commendations. Agencies typically consider past performance as a critical factor in source selection. Without specific performance data for Patronus Systems Inc. on comparable federal contracts, it is difficult to definitively assess their reliability and quality of service delivery for this specific requirement.

How does the awarded price compare to the average cost of Protective Security Officer services in Kentucky?

Benchmarking the awarded price of approximately $2.13 million for 91 days of PSO services in Kentucky against market rates is crucial for value assessment. The average daily rate can be estimated by dividing the total award by the contract duration. However, without specific details on the number of officers, hours per day, and required skill levels, a precise comparison is challenging. General industry data suggests that daily rates for security guards can range significantly, often from a few hundred to over a thousand dollars per day per officer, depending on qualifications and scope. The 'fair price' assessment in the 'va' section suggests it is within a reasonable range, but a more granular comparison with publicly available data for similar federal contracts in Kentucky would provide stronger evidence.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential underperformance by the contractor, leading to security gaps; cost overruns if the fixed-price model is not strictly managed; and potential disruptions due to unforeseen events. Mitigation strategies typically involve robust performance monitoring by the government, clear contract terms and conditions, defined service level agreements, and contingency planning. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government. The 'EXCLUSION OF SOURCES' aspect of the competition also presents a potential risk if it unduly limited the pool of qualified bidders, potentially impacting price or service quality. Further investigation into the justification for this exclusion would clarify associated risks.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad market solicitation with specific requirements. While 'full and open' suggests maximum competition, the 'exclusion of sources' implies that certain potential bidders were deliberately removed from consideration. The effectiveness in ensuring value for taxpayers depends heavily on the justification for these exclusions. If exclusions are based on legitimate technical capabilities, security clearances, or past performance issues, it can lead to a more focused competition among highly qualified vendors, potentially resulting in better service delivery. However, if exclusions are arbitrary or overly restrictive, they can limit competition, potentially leading to higher prices and reduced value for taxpayers. The number of actual bidders and the final award price are key indicators of its success in this instance.

What is the historical spending pattern for Protective Security Officer services by the Department of Homeland Security in Kentucky?

Analyzing historical spending patterns for PSO services by DHS in Kentucky provides context for the current $2.13 million award. Without access to specific historical procurement data for this agency and region, it's difficult to provide precise figures. However, federal spending on security services is generally substantial and can fluctuate based on threat assessments, facility needs, and policy changes. A review of past DHS contracts in Kentucky for similar services over the last 5-10 years would reveal trends in contract values, durations, and awarded contractors. This analysis would help determine if the current award is consistent with historical levels, higher, or lower, and identify any patterns in contractor selection or pricing.

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: 70RFP118RE4000005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3000 N WICKHAM RD STE 8, MELBOURNE, FL, 32935

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,131,072

Exercised Options: $2,131,072

Current Obligation: $2,131,072

Actual Outlays: $2,131,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP119DE4000001

IDV Type: IDC

Timeline