DHS awards $65.3M for security services to Golden Svcs, LLC, with 7 bidders

Contract Overview

Contract Amount: $65,315,188 ($65.3M)

Contractor: Golden Svcs, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-01-30

End Date: 2025-09-30

Contract Duration: 2,070 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PSO SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20571

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $65.3 million to GOLDEN SVCS, LLC for work described as: PSO SERVICES Key points: 1. Value for money appears fair given the competitive nature of the award. 2. Competition dynamics show a healthy level of interest from multiple bidders. 3. Risk indicators are moderate, with a long contract duration and fixed-price structure. 4. Performance context is for essential security guard services across the District of Columbia. 5. Sector positioning is within the security and protective services industry.

Value Assessment

Rating: fair

The contract value of $65.3 million over approximately five years suggests a moderate annual spend. Benchmarking against similar contracts for security guard services is challenging without more granular data on service levels and geographic coverage. However, the firm fixed-price structure provides cost certainty for the government, though it may limit flexibility if requirements change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a reasonably competitive environment for these security services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives competitive bids.

Public Impact

The Department of Homeland Security benefits from continuous security guard services. Essential services include protection of federal facilities and personnel. Geographic impact is concentrated in the District of Columbia. Workforce implications include the creation of jobs for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2070 days) could lead to potential cost increases if market rates rise significantly.
Firm fixed-price contract may not adequately account for unforeseen operational changes or expanded security needs.
Reliance on a single awardee for critical security services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (7) suggest a healthy market and competitive pricing.
Firm fixed-price contract provides budget certainty for the agency.

Sector Analysis

This contract falls within the security and protective services sector, a significant market driven by government and private sector needs for physical security. The North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services represents a substantial segment of the private security industry. Comparable spending benchmarks for similar federal contracts would typically range from tens to hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary focus of this award. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Golden Svcs, LLC, but are not explicitly mandated by the contract details provided. This could limit direct benefits to the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Homeland Security. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts for Security

Risk Flags

Long contract duration
Firm Fixed Price structure for services
Potential for performance degradation if contractor prioritizes profit over service quality

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $65.3 million to GOLDEN SVCS, LLC. PSO SERVICES

Who is the contractor on this award?

The obligated recipient is GOLDEN SVCS, 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 $65.3 million.

What is the period of performance?

Start: 2020-01-30. End: 2025-09-30.

What is the historical spending pattern for security guard services by the Department of Homeland Security?

Historical spending by the Department of Homeland Security (DHS) on security guard services has been substantial, reflecting the agency's broad mandate to protect national security and critical infrastructure. While specific figures fluctuate annually based on evolving threats and operational requirements, DHS consistently allocates significant resources to physical security. This includes contracts for guards, patrols, and access control at federal facilities nationwide. Analyzing past contract awards, particularly those under similar NAICS codes (e.g., 561612), would reveal trends in contract values, durations, and the number of bidders, providing context for the current $65.3 million award to Golden Svcs, LLC. Such analysis is crucial for understanding the agency's long-term investment in security personnel and for identifying potential areas for cost optimization or consolidation.

How does the per-unit cost of security guards under this contract compare to market rates in the District of Columbia?

Determining the precise per-unit cost of security guards under this contract requires detailed information on the number of hours, guard levels (e.g., armed vs. unarmed, supervisory), and specific duties performed. The provided data does not include these granular details, making a direct per-unit cost comparison to market rates challenging. However, the contract's firm fixed-price nature suggests that Golden Svcs, LLC has factored in anticipated labor costs, overhead, and profit margins based on their assessment of market conditions in the District of Columbia. Generally, security guard wages in high-cost-of-living areas like D.C. are higher than the national average. A comprehensive benchmark would involve comparing the effective hourly rate derived from the total contract value and estimated hours against prevailing wages and rates for similar security services in the D.C. metropolitan area, considering factors like experience, certifications, and post orders.

What is the track record of Golden Svcs, LLC in performing federal security contracts?

Golden Svcs, LLC's track record in performing federal security contracts is a critical factor in assessing the reliability and performance risk associated with this $65.3 million award. A thorough review would involve examining past performance evaluations, any documented instances of contract disputes, terminations, or awards for excellence. Information on previous federal contracts held by Golden Svcs, LLC, including their scope, value, and duration, would provide insight into their capacity and experience. Agencies typically use past performance questionnaires and databases (like the Contractor Performance Assessment Reporting System - CPARS) to evaluate a contractor's history. Without access to these specific performance records, it is difficult to definitively assess their track record, but the fact that they were awarded this significant contract suggests they met the agency's minimum requirements and demonstrated capability during the procurement process.

What are the potential risks associated with a firm fixed-price contract for security services?

Firm fixed-price (FFP) contracts, like the one awarded to Golden Svcs, LLC, offer budget certainty but also carry inherent risks, particularly for long-duration service contracts. For the government, the primary risk is that the contractor may not be incentivized to control costs beyond meeting the minimum contract requirements. If the contractor's actual costs exceed their estimates, their profit margin shrinks, potentially leading to reduced service quality or a desire to renegotiate terms. Conversely, if costs are lower than anticipated, the contractor realizes higher profits. For the contractor, the risk lies in accurately estimating all costs, including labor, benefits, overhead, and potential unforeseen expenses over the contract's life. Unexpected increases in wages, fuel, or insurance could significantly impact profitability. In the context of security services, an FFP contract might limit the government's ability to easily incorporate new security protocols or technology upgrades without a formal contract modification, which can be a cumbersome process.

How does the number of bidders (7) influence the value proposition for the government in this contract?

The presence of 7 bidders for this security services contract significantly enhances the value proposition for the government. A larger number of bidders generally indicates a more competitive marketplace, where multiple companies are vying for the contract. This competition typically drives down prices as contractors strive to offer the most attractive bid to win the award. Furthermore, a wider selection of bidders increases the likelihood that the government will find a contractor whose proposal best meets the technical requirements and offers the most cost-effective solution. It also reduces the risk of vendor lock-in and provides the government with greater leverage in negotiations. For taxpayers, this competitive environment translates into a more efficient use of public funds, as the contract is likely awarded at a price reflecting true market value rather than one inflated by limited competition.

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: 70RFP220QEC000006

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 414 OLD HOLDERFORD ROAD, KINGSTON, TN, 37763

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Not Designated a Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,671,262

Exercised Options: $65,315,188

Current Obligation: $65,315,188

Actual Outlays: $33,714,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000015

IDV Type: IDC

Timeline