DHS awards $1.26M for PSO services to Diversified Protection Corp, covering Andover, MA facility

Contract Overview

Contract Amount: $1,258,169 ($1.3M)

Contractor: Diversified Protection Corp

Awarding Agency: Department of Homeland Security

Start Date: 2025-07-01

End Date: 2025-09-30

Contract Duration: 91 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR THE IRS FACILITY IN ANDOVER, MA

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89113

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.3 million to DIVERSIFIED PROTECTION CORP for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR THE IRS FACILITY IN ANDOVER, MA Key points: 1. Contract value appears reasonable for the service duration and scope. 2. Competition was conducted under 'full and open after exclusion of sources', suggesting a potentially limited but justified bidding process. 3. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Service is for security guards and patrol services, a critical function for facility protection. 5. The contract duration is short (91 days), suggesting a potential need for ongoing or recurring services. 6. Fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of approximately $1.26 million for a 91-day period for Protective Security Officer (PSO) services at a single IRS facility in Andover, MA, appears to be within a reasonable range for specialized security services. Benchmarking against similar contracts for PSO services at federal facilities of comparable size and security requirements would provide a more precise valuation. However, given the fixed-price nature, the government has established a clear cost ceiling. The price seems competitive considering the specialized nature of the services and the need for trained personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the intent was open competition, certain sources may have been excluded prior to the solicitation, or the competition was limited to a specific set of pre-qualified vendors. The exact number of bidders is not provided, but this contracting method suggests a potentially narrower field than a standard full and open competition, which could impact price discovery.

Taxpayer Impact: While the competition was not fully open, the 'after exclusion of sources' clause implies some level of vetting or justification for limiting the pool. This may have been done to ensure specific capabilities or security clearances were met, potentially leading to a more tailored but possibly less price-competitive outcome for taxpayers compared to a broad solicitation.

Public Impact

The primary beneficiaries are the employees and assets of the IRS facility in Andover, MA, who will receive enhanced security. The services delivered include protective security, likely encompassing access control, patrols, and response to security incidents. The geographic impact is localized to the Andover, Massachusetts area. The contract supports the employment of security personnel, contributing to the local workforce in the security services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition impacting overall value for money.
Short contract duration may indicate recurring needs, requiring continuous oversight of future solicitations.
Reliance on specific security firms could create vendor lock-in if not managed carefully.

Positive Signals

Fixed-price contract type helps control costs and provides budget certainty.
Award to a single contractor simplifies management and oversight for this specific delivery order.
The service is essential for maintaining the security and operational integrity of a federal facility.

Sector Analysis

The security services sector is a significant component of the federal contracting landscape, encompassing a wide range of services from guard duties to advanced threat assessment. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. Federal spending in this sector is substantial, driven by the need to protect government facilities, personnel, and sensitive information across various agencies. This specific contract represents a small portion of overall federal security spending but is crucial for the operational continuity of the IRS facility.

Small Business Impact

The 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 small business set-aside provisions within this particular award. The focus appears to be on securing the necessary protective services through the most effective competitive means available.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the designated contracting officer's representative (COR) within the Department of Homeland Security. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated through federal procurement databases where contract awards are recorded. Given the nature of the service, there may be specific performance metrics and reporting requirements outlined in the contract.

Related Government Programs

Federal Protective Service Contracts
General Services Administration (GSA) Security Contracts
Department of Treasury Security Services
IRS Facility Management Contracts

Risk Flags

Limited competition may impact price.
Short contract duration requires monitoring for follow-on needs.
Justification for source exclusion needs to be robust.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.3 million to DIVERSIFIED PROTECTION CORP. PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR THE IRS FACILITY IN ANDOVER, MA

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED PROTECTION CORP.

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 $1.3 million.

What is the period of performance?

Start: 2025-07-01. End: 2025-09-30.

What is the track record of Diversified Protection Corp with federal contracts, particularly for protective security services?

Diversified Protection Corp (DPC) has a history of performing federal contracts, including those for security services. A review of federal procurement data would reveal the extent and nature of their past performance. Key indicators to assess their track record would include contract values, duration, types of services rendered (e.g., unarmed vs. armed guards, specialized security), past performance evaluations from agencies, and any history of contract disputes or terminations. Understanding their experience with similar government facilities and security requirements, especially for agencies like the IRS, would provide context for their suitability for this current award. Their ability to consistently meet performance standards and manage security operations effectively on previous federal engagements is crucial for evaluating their reliability.

How does the awarded price compare to market rates for similar protective security officer services in the Andover, MA region?

To benchmark the awarded price of approximately $1.26 million for 91 days of PSO services, a detailed market analysis would be required. This would involve researching prevailing wage rates for security personnel in the Andover, MA area, factoring in benefits, overhead, and profit margins typical for security firms. Comparisons would ideally be made with other federal or large commercial contracts for similar services in the same geographic region. The 'full and open competition after exclusion of sources' clause suggests the bidding pool might have been limited, potentially influencing the final price. Without specific data on the number of bidders and their proposed prices, it's challenging to definitively state if this represents optimal value, but the fixed-price nature provides a defined cost ceiling.

What are the specific risks associated with a 'full and open competition after exclusion of sources' award for security services?

The primary risk associated with 'full and open competition after exclusion of sources' is the potential for reduced competition, which can lead to higher prices for the government and taxpayers. By excluding certain sources, the government may forgo bids from highly competitive vendors who could offer better value. This method is typically used when specific capabilities, security clearances, or past performance are critical and only a limited number of contractors can meet these stringent requirements. Other risks include the possibility that the excluded sources might have been more innovative or cost-effective. Ensuring the justification for exclusion was robust and documented is key to mitigating these risks and confirming the government acted in its best interest.

What is the expected impact of these PSO services on the operational effectiveness and security of the IRS facility in Andover, MA?

The provision of Protective Security Officers (PSOs) is expected to significantly enhance the operational effectiveness and security of the IRS facility in Andover, MA. PSOs provide a visible deterrent to unauthorized access and potential threats, ensuring a secure environment for IRS employees and sensitive taxpayer data. Their duties typically include access control, monitoring surveillance systems, conducting patrols, and responding to emergencies, thereby maintaining order and safety. This contract directly supports the IRS's mission by safeguarding its physical infrastructure and personnel, which is critical for the uninterrupted processing of tax information and other governmental functions. The presence of trained security personnel ensures compliance with federal security mandates.

Are there any historical spending patterns with Diversified Protection Corp or for PSO services at this specific IRS facility that indicate trends or anomalies?

Analyzing historical spending patterns for PSO services at the IRS facility in Andover, MA, and with Diversified Protection Corp (DPC) would provide valuable context. If DPC has previously held contracts for this facility, comparing the current award value and duration to past agreements can reveal cost trends, potential increases or decreases in service scope, and the consistency of pricing. Similarly, examining overall federal spending on PSO services nationwide or within the IRS portfolio can help identify if this contract's value is aligned with broader market dynamics or agency-specific needs. Anomalies, such as significant price hikes or sudden shifts in awarded contractors, would warrant further investigation into the underlying reasons, such as changes in security requirements, market conditions, or competition levels.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7885 W SUNSET RD STE 160, LAS VEGAS, NV, 89113

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,258,169

Exercised Options: $1,258,169

Current Obligation: $1,258,169

Actual Outlays: $849,375

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP119DE1000003

IDV Type: IDC

Timeline