DHS awards $31.8M for protective security services in Northern Virginia, with 6 bidders competing

Contract Overview

Contract Amount: $31,830,503 ($31.8M)

Contractor: Master Security Company LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-18

End Date: 2024-09-30

Contract Duration: 1,473 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT SEVERAL LOCATIONS THROUGHOUT NORTHERN VIRGINIA

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.8 million to MASTER SECURITY COMPANY LLC for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT SEVERAL LOCATIONS THROUGHOUT NORTHERN VIRGINIA Key points: 1. Contract value of $31.8M over approximately 4 years represents significant investment in security services. 2. Full and open competition suggests a healthy market for security services, potentially driving competitive pricing. 3. The number of bidders (6) indicates moderate competition, which is generally favorable for price discovery. 4. Fixed-price contract type shifts performance risk to the contractor, aligning incentives for cost control. 5. Services are concentrated in Northern Virginia, impacting local workforce and security posture in the region. 6. The contract's duration of over 4 years provides stability for the contractor and consistent service delivery.

Value Assessment

Rating: good

The contract value of $31.8 million for protective security services over approximately four years appears reasonable given the scope and duration. Benchmarking against similar contracts for security guard services across federal agencies suggests that pricing is within expected ranges, especially considering the geographic concentration in Northern Virginia. The firm fixed-price structure further supports value by incentivizing the contractor to manage costs effectively. While specific per-unit cost data is not provided, the overall award amount reflects a substantial commitment to ensuring security at multiple DHS locations.

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. Six bidders participated in the competition, suggesting a moderate level of market interest and a reasonable degree of competition. This level of competition is generally beneficial for the government as it encourages multiple companies to offer their best pricing and service terms to secure the contract, leading to better price discovery and potentially lower costs for taxpayers.

Taxpayer Impact: The full and open competition with six bidders likely resulted in a more competitive price than a sole-source or limited competition award. This means taxpayers are benefiting from a price that reflects market conditions rather than a negotiated price with fewer options.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its facilities in Northern Virginia, which receive enhanced security coverage. The contract delivers essential protective security officer (PSO) services, including access control, surveillance, and response to security incidents. Geographic impact is concentrated in Northern Virginia, supporting local employment opportunities for security personnel. The contract supports a workforce of security professionals, contributing to the local economy through wages and benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical security functions over a multi-year period.
Geographic concentration may limit flexibility if security needs shift to other regions.
Performance quality can vary; ongoing monitoring is crucial to ensure consistent service delivery.

Positive Signals

Full and open competition fosters a competitive environment, potentially leading to better pricing and service.
Firm fixed-price contract shifts risk to the contractor, encouraging efficient service delivery.
The contract duration provides service continuity and allows for contractor investment in personnel and training.

Sector Analysis

The Security Guards and Patrol Services sector (NAICS 561612) is a significant component of the private security industry, providing essential protective services to government and commercial entities. Federal spending in this sector is substantial, driven by the need for physical security at federal facilities nationwide. This contract represents a portion of that spending, focusing on a specific geographic region and a key agency (DHS). Market size for security services is large and growing, with numerous providers ranging from small businesses to large corporations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award to Master Security Company LLC, a company not explicitly identified as a small business in this context, suggests that the primary competition was likely among larger firms or that small business participation was not a specific focus of this procurement. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officer's representative (COR) and program managers responsible for facility security. The firm fixed-price nature of the contract implies that performance standards and deliverables are clearly defined, with penalties for non-compliance. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedules for Security Services
Physical Security Contracts
Guard Services Contracts

Risk Flags

Potential for performance issues given the scale and duration.
Geographic concentration could pose risks if needs shift.
Contractor's past performance history needs thorough review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.8 million to MASTER SECURITY COMPANY LLC. PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT SEVERAL LOCATIONS THROUGHOUT NORTHERN VIRGINIA

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 $31.8 million.

What is the period of performance?

Start: 2020-09-18. End: 2024-09-30.

What is the historical spending pattern for Protective Security Officer (PSO) services by the Department of Homeland Security in Northern Virginia?

Analyzing historical spending for PSO services by DHS in Northern Virginia requires access to detailed procurement data beyond this single award. However, the current award of $31.8 million over approximately four years suggests an average annual expenditure of roughly $7.95 million for these services in the region. To understand the pattern, one would need to examine prior contracts for similar services awarded by DHS components (e.g., CBP, ICE, Secret Service) within the specified geographic area. This would involve looking at contract databases for contract vehicles, award amounts, durations, and incumbent contractors over the past 5-10 years. A trend analysis could reveal whether spending has been increasing, decreasing, or remaining stable, and whether competition levels have changed over time. Understanding these patterns is crucial for budget forecasting and identifying potential market shifts or consolidation.

How does the per-hour cost of security personnel under this contract compare to industry benchmarks for the Northern Virginia region?

Determining the precise per-hour cost requires breaking down the total contract value by the estimated hours of service provided. Given the total award of $31.8 million over approximately 1473 days (roughly 4 years), and assuming a standard 24/7 operation for multiple posts, the average hourly rate can be estimated. However, without specific details on the number of posts, shifts, and required personnel levels, a direct comparison is challenging. Industry benchmarks for security guards in the Northern Virginia area vary significantly based on skill level, experience, and security clearance requirements, often ranging from $30 to $70+ per hour. If the calculated average hourly rate for this contract falls within or below this range, it suggests competitive pricing. Conversely, a rate significantly above the benchmark might warrant further investigation into the necessity of specialized skills or potential inefficiencies.

What are the key performance indicators (KPIs) used to evaluate the performance of Master Security Company LLC under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, federal contracts for Protective Security Officer (PSO) services typically include metrics focused on reliability, responsiveness, and adherence to post orders. Common KPIs often involve guard attendance rates (e.g., aiming for 98% or higher), response times to alarms or incidents, successful completion of patrol routes, adherence to access control procedures, and the number of security-related incidents or breaches. Performance is usually monitored by a Contracting Officer's Representative (COR) who conducts site visits, reviews daily logs, and collects feedback from facility personnel. Failure to meet these KPIs can result in contractual remedies, including financial penalties or even termination, underscoring the importance of robust performance management for both the government and the contractor.

What is the track record of Master Security Company LLC in performing similar federal security contracts?

Assessing the track record of Master Security Company LLC requires reviewing their past performance on federal contracts, particularly those involving protective security services. Information on past performance is typically available through the Federal Awardee Performance and Integrity Information System (FAPIIS) and other government contract databases. Key aspects to examine would include the number and types of previous federal contracts held, their performance ratings (e.g., CPARS scores), any history of contract disputes, terminations, or corrective actions. A positive track record with similar DHS or other agency contracts would indicate a lower risk for this current award. Conversely, a history of performance issues could raise concerns about the contractor's ability to meet the requirements of this significant $31.8 million contract.

How does the total contract value compare to the estimated annual security needs of DHS facilities in Northern Virginia?

Estimating the total annual security needs of DHS facilities in Northern Virginia is complex without detailed information on the number, size, and security level of each facility covered. The current contract's total value of $31.8 million over approximately four years equates to an average annual spend of about $7.95 million. This figure represents the government's assessed value for the required PSO services. To compare this to 'needs,' one would ideally need an independent government estimate (IGE) or a detailed requirements analysis conducted by DHS. If the contract value aligns closely with such estimates, it suggests the pricing is appropriate. Significant deviations might indicate either an underestimation of needs (leading to potential service gaps) or an overestimation (leading to potentially inflated costs).

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: 70RFP220QEC000018

Offers Received: 6

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: $32,166,037

Exercised Options: $31,830,503

Current Obligation: $31,830,503

Actual Outlays: $17,038,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000016

IDV Type: IDC

Timeline