DHS awards $2.27M for protective security services in Connecticut, with a high per-unit cost

Contract Overview

Contract Amount: $2,266,756 ($2.3M)

Contractor: North American Security, Incorporated

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2025-12-31

Contract Duration: 91 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES AT FEDERAL FACILITIES THROUGHOUT CONNECTICUT

Place of Performance

Location: HARTFORD, HARTFORD County, CONNECTICUT, 06103

State: Connecticut Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.3 million to NORTH AMERICAN SECURITY, INCORPORATED for work described as: PROTECTIVE SECURITY OFFICER SERVICES AT FEDERAL FACILITIES THROUGHOUT CONNECTICUT Key points: 1. The contract value of $2.27 million for 91 days of service indicates a significant investment in security. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The fixed-price contract type aims to control costs, but the per-unit cost warrants further scrutiny. 4. The services are essential for maintaining security at federal facilities within Connecticut. 5. The contractor, North American Security, Inc., will be responsible for critical security functions. 6. The duration of the contract is relatively short, suggesting a need for ongoing or episodic security support.

Value Assessment

Rating: fair

The contract value of $2.27 million for approximately three months of service appears high when considering the daily rate. Benchmarking against similar contracts for protective security services across federal facilities is crucial to determine if this pricing reflects market value or if it represents a premium. The firm fixed-price structure provides cost certainty, but the underlying unit costs need to be assessed for efficiency.

Cost Per Unit: The daily cost per officer, based on the total contract value and duration, is approximately $24,909. This figure needs to be benchmarked against industry standards for security guard services, considering factors like the number of personnel, hours of coverage, and specific security requirements.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The number of bidders is not specified, but the 'full and open' designation suggests an effort to solicit a wide range of qualified offerors, which typically promotes competitive pricing.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple companies to offer their best pricing and services to secure the contract. This can lead to more cost-effective solutions compared to sole-source or limited competition scenarios.

Public Impact

Federal facilities throughout Connecticut will receive enhanced security coverage, ensuring the safety of personnel and assets. The services provided will include protective security officer functions, crucial for maintaining a secure environment. The geographic impact is concentrated within Connecticut, supporting federal operations in the state. The contract will likely support employment within the security services sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The high per-unit cost requires careful monitoring to ensure value for money.
The specific reasons for excluding certain sources in the 'full and open' competition need to be understood to ensure fairness and optimal competition.
The short duration of the contract may indicate a need for continuous re-competition, potentially increasing administrative burden and costs over time.

Positive Signals

The use of 'Full and Open Competition' suggests an effort to achieve competitive pricing and service quality.
The firm fixed-price contract type provides cost certainty for the government.
The contract addresses a critical need for protective security at federal facilities.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal agencies are major consumers of these services, particularly for guarding government facilities and assets. Spending in this sector is driven by national security needs, regulatory requirements, and the protection of critical infrastructure. Comparable contracts often involve guard services, access control, and surveillance, with pricing varying based on the level of security clearance, hours of operation, and specific threat environments.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Analysis of the contractor's past performance and subcontracting plans would be necessary to determine the impact on the small business ecosystem. Without specific set-aside provisions, large businesses are typically eligible to compete, and the extent of small business participation would depend on their subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's Office of Procurement Operations. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements. 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
Security Guard Services
Department of Homeland Security Procurement
Facility Security Contracts

Risk Flags

High per-unit cost
Potential for limited competition due to source exclusion
Short contract duration may lead to frequent re-procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.3 million to NORTH AMERICAN SECURITY, INCORPORATED. PROTECTIVE SECURITY OFFICER SERVICES AT FEDERAL FACILITIES THROUGHOUT CONNECTICUT

Who is the contractor on this award?

The obligated recipient is NORTH AMERICAN SECURITY, INCORPORATED.

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 $2.3 million.

What is the period of performance?

Start: 2025-10-01. End: 2025-12-31.

What is the historical spending pattern for protective security services by the Department of Homeland Security in Connecticut?

Analyzing historical spending for protective security services by DHS in Connecticut requires access to detailed federal procurement databases. Generally, DHS, through its various components like the Federal Protective Service (FPS), contracts for security personnel to protect federal buildings and personnel nationwide. Spending patterns can fluctuate based on threat assessments, facility needs, and budget allocations. For Connecticut specifically, past contracts would likely show a consistent need for security services, with contract values varying based on the number of facilities, the scope of services (e.g., armed vs. unarmed guards, hours of operation), and prevailing labor costs. Without specific historical data for this region, it's difficult to provide precise figures, but it's reasonable to assume ongoing, potentially multi-year, procurements to meet security mandates.

How does the per-unit cost of this contract compare to similar federal security contracts nationwide?

The per-unit cost of approximately $24,909 per day for this contract is a critical metric for comparison. To assess its competitiveness, it needs to be benchmarked against similar federal contracts for protective security officers. Factors influencing per-unit cost include the number of officers required, the hours of coverage (24/7 vs. specific shifts), whether the officers are armed or unarmed, the level of training and security clearances required, and the geographic location (which affects labor costs). Contracts in high-cost-of-living areas or those requiring highly specialized security personnel may naturally have higher per-unit costs. A thorough analysis would involve comparing this contract's daily rate against the average and median daily rates of other federal contracts for similar services awarded over the past 1-3 years, ideally controlling for variations in service scope and location.

What are the specific security risks associated with federal facilities in Connecticut that necessitate this level of spending?

The specific security risks associated with federal facilities in Connecticut would be detailed in threat assessments conducted by the Department of Homeland Security and relevant law enforcement agencies. These risks can encompass a range of potential threats, including terrorism, espionage, theft of sensitive information or materials, workplace violence, civil disturbances, and natural disasters. The need for protective security officers suggests that these facilities are considered targets or are critical to government operations, requiring a constant physical presence to deter threats, control access, respond to incidents, and protect personnel and assets. The level of spending reflects the perceived criticality of these facilities and the potential consequences of a security breach.

What is North American Security, Incorporated's track record with federal contracts, particularly with DHS?

Assessing North American Security, Incorporated's track record with federal contracts, especially with DHS, is crucial for evaluating performance risk. This involves reviewing their past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A company with a history of successful, on-time, and within-budget performance on similar security contracts, particularly for DHS, would be considered a lower risk. Conversely, a history of performance issues, quality control problems, or financial instability could raise concerns. Information on their experience with firm-fixed-price contracts and their capacity to manage large-scale security operations would also be relevant.

What are the implications of the 'exclusion of sources' clause in the contract's competition method?

The 'exclusion of sources' clause within a 'Full and Open Competition' award indicates that while the competition was broadly solicited, certain potential offerors were intentionally excluded from bidding. The reasons for exclusion must be justifiable and documented, often relating to factors such as past performance issues, failure to meet mandatory requirements, or specific national security concerns. This clause can impact the level of competition achieved; if significant or capable sources were excluded without clear justification, it could potentially limit price discovery and lead to higher costs for the government. Conversely, if exclusions were based on valid performance or capability concerns, it could ensure that only qualified and reliable contractors participate, ultimately benefiting the government.

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: 70RFP118RE1000001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 550 E. CARSON PLZ DR STE 222, CARSON, CA, 90746

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,266,756

Exercised Options: $2,266,756

Current Obligation: $2,266,756

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP119DE1000001

IDV Type: IDC

Timeline