DHS awards $33M for protective security services, with a significant portion allocated to a single delivery order

Contract Overview

Contract Amount: $33,095,598 ($33.1M)

Contractor: Universal Protection Service, Limited Partnership

Awarding Agency: Department of Homeland Security

Start Date: 2024-02-01

End Date: 2025-01-31

Contract Duration: 365 days

Daily Burn Rate: $90.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN REGION 11

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.1 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN REGION 11 Key points: 1. The contract value of $33,095,598.16 represents a substantial investment in security services for Region 11. 2. Competition dynamics indicate a full and open approach, suggesting a broad market engagement. 3. The contract is structured as a Firm Fixed Price (FFP) award, which typically offers cost certainty. 4. Performance is set to occur over a 365-day duration, aligning with annual operational needs. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. The award amount of $906,730 for the delivery order suggests a significant portion of the total contract value. 7. The absence of small business set-aside flags indicates a focus on larger, established providers.

Value Assessment

Rating: good

The total contract value of $33.1 million for protective security services appears reasonable given the scope and duration. The specific delivery order value of $906,730 needs further context to benchmark against similar regional security contracts. However, the firm-fixed-price structure provides cost predictability for the Department of Homeland Security. Without more granular data on service levels and geographic coverage, a precise value-for-money assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competition was intended and likely achieved, which is beneficial for price discovery and innovation.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overcharges that could arise from limited competition.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its various facilities within Region 11, which will receive enhanced security coverage. The services delivered include protective security officer (PSO) functions, crucial for maintaining a secure environment. The geographic impact is concentrated within Region 11, likely encompassing multiple federal sites or areas requiring security presence. The contract supports the workforce employed by Universal Protection Service, Limited Partnership, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess the quality and effectiveness of the security services.
The total contract value is high, and without detailed breakdowns, it's hard to confirm if it represents optimal value for the services rendered.
The duration of the contract (365 days) is standard, but the potential for follow-on work or extensions could lead to long-term dependency on a single provider without re-competition.

Positive Signals

The award was made under full and open competition, indicating a commitment to leveraging market forces for the best possible outcome.
The firm-fixed-price contract type provides budget certainty for the agency, mitigating risks associated with cost overruns.
The contract is for essential protective security services, directly supporting the mission-critical functions of the Department of Homeland Security.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) subsector. The market is characterized by a mix of large national providers and smaller regional players. Federal spending in this area is substantial, driven by the need to protect government facilities, personnel, and sensitive information across various agencies. Benchmarking this contract's value would involve comparing its per-officer cost and overall price against similar federal and commercial contracts for PSO services in comparable geographic regions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely deemed to be beyond the scope or capacity of small businesses, or that the competition was opened broadly to all responsible sources. Consequently, there are no direct subcontracting implications for small businesses mandated by a set-aside provision within this specific award. The primary contractor, Universal Protection Service, Limited Partnership, will be responsible for delivering the services, and their internal subcontracting practices would determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The contract's firm-fixed-price nature simplifies some aspects of financial oversight. Transparency is generally maintained through contract databases like SAM.gov, where award details are published. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues, with the DHS OIG being the relevant body for investigating fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Regional Security Guard Services
Government Facility Security Contracts

Risk Flags

Potential for service quality degradation under FFP if not adequately monitored.
Need for detailed performance metrics to ensure value for money.
Limited visibility into the number of bidders and specific competition details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.1 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP. PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN REGION 11

Who is the contractor on this award?

The obligated recipient is UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP.

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 $33.1 million.

What is the period of performance?

Start: 2024-02-01. End: 2025-01-31.

What is the historical spending pattern for protective security services by the Department of Homeland Security in Region 11?

Analyzing historical spending for DHS in Region 11 for similar protective security services requires access to detailed federal procurement data beyond this single award. Typically, agencies like DHS maintain ongoing contracts for security personnel to ensure continuous coverage at various facilities. Spending patterns can fluctuate based on changes in security requirements, facility needs, and the competitive landscape. A review of past solicitations and awards for NAICS code 561612 within Region 11, specifically for DHS, would reveal trends in contract values, durations, and incumbent contractors. This would help determine if the current $33.1 million award represents an increase, decrease, or stable level of investment compared to previous periods. Factors such as inflation, increased threat levels, or expansion of protected areas could drive higher spending over time.

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

Benchmarking the per-unit cost requires detailed information on the number of hours, number of guards, and specific duties performed, which are not fully detailed in the provided data. However, we can infer a potential average daily cost for the delivery order ($906,730 / 365 days = ~$2,484 per day). If this delivery order represents a significant portion of the total contract, it suggests a substantial operational tempo. To compare effectively, one would need to find contracts with similar guard-to-population ratios, facility types (e.g., office buildings, critical infrastructure), and geographic locations. Federal procurement data often shows a wide range in hourly rates for security personnel, influenced by labor costs, required certifications, and the level of risk involved. Without more granular data, a precise comparison is difficult, but the 'full and open' competition suggests the pricing is likely market-driven.

What is the track record of Universal Protection Service, Limited Partnership with the federal government, particularly with DHS?

Universal Protection Service, Limited Partnership (now Allied Universal) is a major player in the security services industry and has a substantial history of contracting with various federal agencies, including the Department of Homeland Security. Their track record typically involves providing a wide range of security solutions, from unarmed and armed guards to access control and emergency response. Federal procurement databases (like SAM.gov or FPDS) would contain records of their past performance, including contract values, agencies served, and contract types. While specific performance ratings are often proprietary or require deeper database access, their continued success in winning large federal contracts suggests a generally positive performance history. However, as with any large contractor, there may be instances of past performance issues or disputes that would be detailed in more comprehensive contract reviews.

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

Firm-fixed-price (FFP) contracts, while offering cost certainty, can introduce risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on service quality or staffing levels to maximize profit, especially if the initial price was set too low or if unforeseen operational challenges arise. This could lead to a degradation of security. For the contractor, the risk lies in underestimating costs, labor fluctuations, or scope creep, which could lead to financial losses if they cannot renegotiate terms. In this case, with a 365-day duration, the contractor has a clearer picture of labor and operational needs, potentially mitigating some risk. However, the agency must maintain robust oversight to ensure service quality is not compromised.

How does the geographic focus on 'Region 11' impact the competition and pricing for these security services?

Focusing on a specific geographic region like 'Region 11' can influence competition and pricing in several ways. If Region 11 has a high concentration of DHS facilities or a significant need for security services, it might attract more bidders, including specialized regional providers, potentially leading to more competitive pricing. Conversely, if Region 11 is geographically vast or has limited local security providers with the capacity to meet federal standards, competition might be reduced, potentially leading to higher prices. The presence of established security firms with existing operations and personnel in the region would also impact bidding dynamics. The specific economic conditions and labor costs within Region 11 would directly affect the pricing proposed by bidders.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 450 EXCHANGE, IRVINE, CA, 92602

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

Financial Breakdown

Contract Ceiling: $33,095,598

Exercised Options: $33,095,598

Current Obligation: $33,095,598

Actual Outlays: $32,676,208

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000012

IDV Type: IDC

Timeline