DHS awards $25.8M for armed guard services in Northern Virginia, highlighting security needs

Contract Overview

Contract Amount: $25,774,125 ($25.8M)

Contractor: Golden Svcs, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-01

End Date: 2027-08-31

Contract Duration: 1,094 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED GUARD II SERVICES - NORTHERN VIRGINIA

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.8 million to GOLDEN SVCS, LLC for work described as: ARMED GUARD II SERVICES - NORTHERN VIRGINIA Key points: 1. Value for money appears fair given the fixed-price nature and duration, but detailed cost breakdowns are needed for a definitive assessment. 2. Competition was robust with 10 bidders, suggesting a healthy market for these services. 3. Risk indicators are moderate, with performance dependent on contractor quality and adherence to security protocols. 4. The contract duration of nearly three years provides stability for service delivery. 5. This contract positions DHS within the broader federal security services sector, a critical area for agency operations.

Value Assessment

Rating: fair

The contract's total value of $25.8 million over approximately three years suggests a moderate annual spend. Benchmarking against similar armed guard contracts is challenging without more granular data on service levels, geographic coverage, and specific security requirements. The firm-fixed-price structure provides cost certainty for the government, but it's crucial to ensure the price reflects competitive market rates and doesn't include excessive profit margins. Further analysis of the awarded price against the number of bids could indicate if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 10 bids received. This indicates a competitive marketplace for armed guard services in the Northern Virginia region. A higher number of bidders generally suggests that the government received a good range of proposals and pricing options, which can lead to better value. The agency's ability to attract multiple qualified bidders points to a well-defined requirement and a market capable of meeting it.

Taxpayer Impact: The robust competition is beneficial for taxpayers as it likely drove down prices and ensured the government secured services at a reasonable cost. It also signals that public funds are being used efficiently by leveraging market forces.

Public Impact

The Department of Homeland Security (DHS) benefits directly through enhanced security at its facilities. Essential services include armed guarding and patrol, ensuring the safety of personnel and property. The geographic impact is concentrated in Northern Virginia, a key area for federal operations. Workforce implications include job creation for security personnel employed by the winning contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality across different posts or shifts if contractor's internal quality control is weak.
Reliance on a single contractor for critical security functions could pose a risk if performance issues arise.
Ensuring adequate training and vetting of armed guards to meet stringent federal standards is paramount.

Positive Signals

Awarded under full and open competition, indicating a competitive process that likely yielded fair pricing.
Firm-fixed-price contract type provides budget certainty for the agency.
Longer contract duration (nearly 3 years) allows for stable service provision and reduces administrative burden of frequent re-competition.

Sector Analysis

The federal security services market is substantial, encompassing guarding, surveillance, and protective services for government facilities and personnel. This contract falls within the broader security and protective services industry, which is characterized by a mix of large, established firms and smaller, specialized providers. Spending in this sector is consistently high due to the critical nature of protecting federal assets and personnel. Comparable benchmarks would involve analyzing other federal contracts for similar armed guard services across different agencies and geographic locations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, GOLDEN SVCS, LLC, is likely a small business itself, but the contract was not specifically competed for small businesses. There is no explicit information on subcontracting plans for small businesses within the provided data. Future analysis could explore if the prime contractor has a history of utilizing small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program managers within DHS. The firm-fixed-price nature simplifies some aspects of financial oversight, focusing more on performance monitoring. Accountability measures are tied to the contract's performance standards and delivery requirements. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services
Security Guard and Patrol Services

Risk Flags

Performance Risk: Ensuring consistent quality and reliability of armed guards.
Cost Overrun Risk: While fixed-price, scope creep or unforeseen requirements could lead to modification costs.
Personnel Security Risk: Thorough vetting and training of armed personnel are critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.8 million to GOLDEN SVCS, LLC. ARMED GUARD II SERVICES - NORTHERN VIRGINIA

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 $25.8 million.

What is the period of performance?

Start: 2024-09-01. End: 2027-08-31.

What is the historical spending pattern for armed guard services by the Department of Homeland Security in Northern Virginia?

Analyzing historical spending requires access to detailed contract databases beyond the scope of this single award. However, the recurring need for armed guard services suggests consistent annual expenditures by DHS in critical regions like Northern Virginia. Factors influencing historical spending include changes in threat assessments, agency growth, and shifts in security policy. Without prior contract data for this specific requirement or similar ones, it's difficult to establish a precise trend. Generally, federal spending on security services remains robust, reflecting ongoing security imperatives. Future analysis could involve querying federal procurement data for all 'Security Guards and Patrol Services' (NAICS 561612) awarded by DHS in Virginia over the past 5-10 years to identify spending patterns and identify potential fluctuations or growth.

How does the awarded price per year compare to industry benchmarks for similar armed guard services?

The annual value of this contract is approximately $8.6 million ($25.8M / 3 years). Benchmarking this against industry standards requires detailed knowledge of prevailing rates for armed guards in the Northern Virginia area, considering factors like guard experience, licensing, specific post orders, and the level of risk involved. General industry estimates for armed security guards can range widely, from $40-$70+ per hour per guard, depending on location and qualifications. If we assume an average of 10 guards working 12-hour shifts, 7 days a week, that's roughly 10 * 12 * 365 * 10 guards = 438,000 hours annually. At $20/hour, this would be $8.76M, suggesting the awarded price is within a plausible range, but potentially on the higher end if labor costs are the primary driver. A more precise comparison would necessitate access to specific service level agreements and local wage data.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for armed guard services, typical KPIs often include response times to incidents, adherence to post orders, guard attendance and punctuality, incident reporting accuracy and timeliness, and overall effectiveness in preventing unauthorized access or security breaches. The contract likely includes clauses for performance standards, and failure to meet these could result in penalties or contract termination. The contracting officer's representative (COR) would be responsible for monitoring these metrics and ensuring the contractor meets the required service levels throughout the contract period.

What is the track record of GOLDEN SVCS, LLC in performing similar federal contracts?

Information regarding the specific track record of GOLDEN SVCS, LLC in performing similar federal contracts is not included in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous federal awards they have received, and any history of contract disputes or terminations. Their ability to win a full and open competition contract with DHS suggests they have met basic eligibility and capability requirements. Further due diligence would involve searching federal procurement databases and performance review systems to gauge their reliability and past performance quality in delivering security services.

Are there any specific security threats or vulnerabilities in Northern Virginia that necessitate this level of armed guard service?

While the provided data does not specify the exact security threats or vulnerabilities, Northern Virginia is a region with a high concentration of federal agencies, sensitive government facilities, and critical infrastructure. This makes it a potential target for various threats, including terrorism, espionage, and criminal activity. The presence of numerous government buildings and personnel necessitates robust physical security measures. Armed guards are typically deployed to deter potential attackers, control access points, respond to immediate threats, and protect high-value assets or sensitive information. The scale and duration of this contract suggest a sustained need for security, likely driven by ongoing risk assessments conducted by DHS.

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: 70RFP224QEC000013

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $47,361,300

Exercised Options: $25,774,125

Current Obligation: $25,774,125

Actual Outlays: $11,948,557

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000006

IDV Type: IDC

Timeline