DHS awards $54.3M for security services, with 7 bidders competing for a 2019-2026 contract

Contract Overview

Contract Amount: $54,316,108 ($54.3M)

Contractor: Master Security Company LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-10-01

End Date: 2026-03-31

Contract Duration: 2,373 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICE (PSO) SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.3 million to MASTER SECURITY COMPANY LLC for work described as: PROTECTIVE SECURITY OFFICE (PSO) SERVICES Key points: 1. Value for money appears reasonable given the 7 bids received and firm fixed-price structure. 2. Competition dynamics were strong with 7 bidders, suggesting a competitive market for these services. 3. Risk indicators are moderate, with a long contract duration and potential for cost creep if scope changes. 4. Performance context is a long-term security service contract for the Department of Homeland Security. 5. Sector positioning is within the security and protective services industry, a mature and competitive market.

Value Assessment

Rating: good

The contract value of $54.3 million over approximately 6.5 years averages to about $8.3 million annually. Benchmarking against similar large-scale security contracts for federal agencies suggests this pricing is within a competitive range, especially considering the firm fixed-price nature which limits upside risk for the government. The number of bidders also supports the notion of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This indicates a robust bidding process and suggests that the government was able to solicit a wide range of potential offerors. The presence of multiple bidders generally leads to better price discovery and a higher likelihood of selecting the most cost-effective solution.

Taxpayer Impact: The high level of competition benefits taxpayers by driving down prices and ensuring that the contract is awarded to a capable vendor at a fair market rate.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its various components, which receive essential protective security services. The services delivered include security guard and patrol functions, ensuring the safety and security of federal facilities and personnel. The geographic impact is concentrated in Maryland (MD), where the services are presumably being rendered. Workforce implications include the creation of jobs for security personnel employed by the contractor, MASTER SECURITY COMPANY LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) could lead to potential scope creep or increased costs if not managed tightly.
Reliance on a single contractor for critical security services may pose a risk if performance issues arise.
Firm fixed-price contracts can sometimes disincentivize innovation or proactive problem-solving by the contractor if not structured with performance incentives.

Positive Signals

Awarded under full and open competition, indicating a competitive process that likely secured a fair price.
Firm fixed-price contract type provides cost certainty for the government.
Multiple bidders (7) suggest a healthy market and contractor capability.

Sector Analysis

The security and protective services sector is a significant part of the broader professional services industry. Federal spending in this area is substantial, driven by the need to protect government assets and personnel. This contract fits within the established market for security guards and patrol services (NAICS 561612), where numerous private companies compete for government contracts. Comparable spending benchmarks are difficult to pinpoint without specific service details, but the annual value suggests a mid-to-large scale contract within this sector.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, although the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officers and program managers. The firm fixed-price nature provides some cost control, but performance monitoring is crucial. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues investigated.

Related Government Programs

DHS Protective Security Services
Federal Security Guard Contracts
Department of Homeland Security Contracts
Security Services for Government Facilities

Risk Flags

Long contract duration
Potential for scope creep
Reliance on single contractor for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.3 million to MASTER SECURITY COMPANY LLC. PROTECTIVE SECURITY OFFICE (PSO) SERVICES

Who is the contractor on this award?

The obligated recipient is MASTER SECURITY COMPANY LLC.

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 $54.3 million.

What is the period of performance?

Start: 2019-10-01. End: 2026-03-31.

What is the track record of MASTER SECURITY COMPANY LLC in performing similar federal contracts?

MASTER SECURITY COMPANY LLC has been awarded federal contracts primarily within the security and protective services domain. While specific details on past performance for this exact type of large-scale protective security service are not fully detailed in the provided data, their presence as a prime contractor suggests they have experience meeting federal requirements. A deeper dive into their contract history, including past performance reviews and any reported issues on prior DHS or other agency contracts, would be necessary for a comprehensive assessment. However, winning a full and open competition for a significant contract like this implies a level of demonstrated capability and compliance with federal procurement regulations.

How does the awarded price compare to market rates for similar security services?

The awarded value of $54.3 million over approximately 6.5 years, averaging around $8.3 million annually, appears competitive given the firm fixed-price structure and the fact that seven bids were received. Without specific details on the scope of services (e.g., number of guards, hours, specific security measures), a precise market rate comparison is challenging. However, the competitive bidding process suggests that the price achieved is likely reflective of market conditions. Industry benchmarks for large federal security contracts often fall within a similar annual spending range, indicating that DHS likely secured a fair value for these essential protective services.

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

The primary risks include potential scope creep, performance deficiencies by the contractor, and the long duration of the contract potentially leading to price escalation if not managed effectively. Mitigation strategies are inherent in the contract type and oversight. The firm fixed-price (FFP) structure limits the government's exposure to cost overruns, shifting that risk to the contractor. DHS contracting officers and program managers are responsible for diligent performance monitoring, ensuring adherence to the statement of work, and enforcing contract terms. Regular performance reviews and clear communication channels are essential to address any emerging issues proactively and maintain service quality throughout the contract period.

How effective has this contract been in meeting DHS's security needs?

Assessing the effectiveness requires performance data not provided in the summary. However, the contract's continuation through March 2026 suggests satisfactory performance to date, as agencies typically exercise options or award follow-on contracts only when needs are being met. The presence of 7 bidders in the initial competition also indicates a perceived market need and potential for robust service delivery. Effectiveness would be measured by metrics such as incident response times, adherence to security protocols, and overall facility security posture, which are typically tracked through internal DHS performance management systems.

What are the historical spending patterns for protective security services at DHS?

Historical spending patterns for protective security services at DHS are substantial, reflecting the agency's broad mandate. While specific figures for this particular contract's predecessors are not detailed, DHS consistently awards significant contracts for security guards, access control, and related protective services across its various components. Annual spending in this category often runs into the hundreds of millions of dollars government-wide. This $54.3 million contract represents a portion of that overall expenditure, fitting within the agency's established budget for ensuring the security of its personnel and facilities.

What is the significance of the 'Delivery Order' award type in this context?

The 'Delivery Order' award type, indicated by 'aw': 'DELIVERY ORDER', suggests that this contract was likely established under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that while the overall contract framework and terms were established (potentially through the initial competition), the specific tasking, quantities, and delivery schedules are issued via individual delivery orders. This approach provides flexibility for the agency to order services as needed over the contract period, rather than committing to a fixed quantity upfront. It is a common method for procuring services that have fluctuating demand.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RFP219QEC000022

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10946 BEAVER DAM RD, COCKEYSVILLE, MD, 21030

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,746,719

Exercised Options: $54,316,108

Current Obligation: $54,316,108

Actual Outlays: $27,014,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000016

IDV Type: IDC

Timeline