DHS awards $33M for protective security services in DC, with 8 bidders competing

Contract Overview

Contract Amount: $33,041,897 ($33.0M)

Contractor: Universal Protection Service, Limited Partnership

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-01

End Date: 2026-09-30

Contract Duration: 606 days

Daily Burn Rate: $54.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN WASHINGTON DISTRICT OF COLUMBIA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.0 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN WASHINGTON DISTRICT OF COLUMBIA Key points: 1. The contract value of $33 million over approximately two years suggests a significant investment in security infrastructure. 2. With 8 bidders, the competition level indicates a healthy market for protective security services, potentially driving competitive pricing. 3. The firm-fixed-price contract type shifts risk to the contractor, which can be beneficial for budget predictability. 4. The duration of 606 days (approx. 20 months) allows for consistent service delivery but requires ongoing performance monitoring. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized service within the security sector. 6. The contract's focus on Washington D.C. highlights its importance for federal operations in the nation's capital.

Value Assessment

Rating: good

The contract value of $33 million for protective security services in Washington D.C. appears reasonable given the scope and duration. Benchmarking against similar contracts for PSO services in major metropolitan areas would provide a more precise value-for-money assessment. The firm-fixed-price structure generally leads to predictable costs for the government, assuming the contractor can effectively manage their expenses. Without specific per-unit cost data, a detailed pricing assessment is limited, but the competitive bidding process suggests that prices were likely scrutinized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders participating. This indicates a robust and accessible market for protective security services, allowing the Department of Homeland Security to solicit offers from a wide range of qualified vendors. The presence of multiple bidders generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The agency's ability to attract a significant number of interested parties suggests that the contract requirements were well-defined and attainable.

Taxpayer Impact: A high level of competition benefits taxpayers by driving down costs through market forces and encouraging vendors to offer their best value propositions. This ensures that federal funds are used efficiently for essential security services.

Public Impact

Federal facilities and personnel within Washington D.C. will benefit from enhanced security measures provided by Universal Protection Service. The services delivered include protective security, likely encompassing access control, surveillance, and response to security incidents. The geographic impact is concentrated within the District of Columbia, ensuring security for critical federal assets in the capital. The contract supports jobs within the security services industry, contributing to the local workforce in the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent quality of service across all designated locations within D.C. requires diligent oversight.
The firm-fixed-price nature necessitates careful monitoring to prevent potential scope creep or quality degradation.
Reliance on a single contractor for critical security functions in the capital raises concerns about contingency planning for service disruptions.

Positive Signals

The full and open competition process suggests a strong pool of qualified vendors, increasing the likelihood of selecting a capable provider.
The firm-fixed-price contract type provides cost certainty for the government, simplifying budget management.
The contract duration allows for stable and continuous security operations, minimizing disruptions.

Sector Analysis

The security services industry, particularly guard and patrol services (NAICS 561612), is a significant sector supporting government and private entities. Federal spending in this area is substantial, driven by the need to protect sensitive facilities and personnel. This contract fits within the broader landscape of federal security contracting, which often involves large, multi-year agreements. Comparable spending benchmarks for similar PSO contracts in major urban centers can range widely based on the number of posts, hours, and specific security requirements.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Universal Protection Service, Limited Partnership, is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific service requirements. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely 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 meet defined performance standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Washington D.C. Federal Security Contracts
Security Guard Services
Protective Services

Risk Flags

Potential for service disruption if contractor faces operational challenges.
Need for rigorous performance monitoring to ensure quality standards are met.
Reliance on a single entity for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.0 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP. PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN WASHINGTON DISTRICT OF COLUMBIA

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 $33.0 million.

What is the period of performance?

Start: 2025-02-01. End: 2026-09-30.

What is the historical spending pattern for protective security services by the Department of Homeland Security in Washington D.C.?

Analyzing historical spending for DHS protective security services in D.C. requires access to detailed federal procurement data. Generally, DHS, as a major security agency, consistently allocates significant funds to security personnel and services, especially in the capital. Spending can fluctuate based on evolving threat landscapes, changes in facility requirements, and the award of new contracts or task orders. For instance, prior contracts for similar services in the D.C. area might show annual expenditures ranging from several million to tens of millions of dollars, depending on the scale and duration. The current $33 million award over approximately 20 months suggests a substantial, ongoing need for these services, aligning with typical federal security investments in high-risk, high-visibility locations.

How does the per-hour cost of these protective security officers compare to market rates in the D.C. area?

Determining the precise per-hour cost requires breaking down the total contract value by the estimated hours of service. Given the $33 million award over roughly 606 days (approximately 20 months), and assuming a standard 24/7 operation for multiple posts, the effective hourly rate can be estimated. However, without explicit details on the number of officers, shifts, and specific duties, a direct comparison to market rates is challenging. Generally, government contracts for security services in high-cost-of-living areas like D.C. tend to reflect prevailing wages, benefits, and overhead. If the estimated hourly rate falls significantly below or above typical commercial rates for comparable security personnel (e.g., armed vs. unarmed, level of experience), it could indicate either exceptional value or potential risks related to service quality or contractor viability.

What are the key performance indicators (KPIs) that will be used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for protective security officer (PSO) services typically focus on operational effectiveness, personnel reliability, and responsiveness. Common KPIs include post orders compliance, response times to alarms or incidents, incident reporting accuracy and timeliness, personnel attendance and punctuality, and adherence to security protocols. For this DHS contract, specific KPIs would be detailed in the Performance Work Statement (PWS). These might include metrics related to access control efficiency, surveillance effectiveness, and the successful prevention of unauthorized access or security breaches. The government will monitor these KPIs to ensure the contractor meets the required standards, with potential financial implications tied to performance outcomes.

What is the track record of Universal Protection Service, Limited Partnership in providing similar federal security contracts?

Universal Protection Service, Limited Partnership (now Allied Universal) has a substantial history of providing security services across various sectors, including federal government contracts. They are a major player in the security industry, often winning large-scale contracts for facility protection, event security, and personnel screening. Their track record with federal agencies typically involves managing large workforces and adhering to stringent government requirements. Past performance evaluations, available through federal procurement databases like SAM.gov or through agency-specific reports, would provide insights into their reliability, quality of service, and ability to meet contractual obligations on similar projects. Reviewing past performance data is crucial for assessing their suitability for this significant DHS contract.

What are the potential risks associated with relying on a single contractor for critical security services in the nation's capital?

Relying on a single contractor for critical security services in the nation's capital presents several potential risks. Firstly, there's a risk of service disruption due to unforeseen events such as labor disputes, financial instability of the contractor, or natural disasters affecting the contractor's operations. Secondly, a lack of ongoing competition could lead to complacency and a potential decline in service quality or innovation over time. Thirdly, if the contractor fails to meet performance standards, the process of transitioning to a new provider can be complex, costly, and potentially create security gaps. Robust contingency planning, clear contract termination clauses, and strong government oversight are essential to mitigate these risks.

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: 70RFP224QEC000003

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 WASHINGTON ST STE 600, CONSHOHOCKEN, PA, 19428

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

Financial Breakdown

Contract Ceiling: $63,211,303

Exercised Options: $33,041,897

Current Obligation: $33,041,897

Actual Outlays: $9,751,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000001

IDV Type: IDC

Timeline