DHS awards $39.6M for protective security services in DC, with a high per-unit cost

Contract Overview

Contract Amount: $39,591,429 ($39.6M)

Contractor: Universal Protection Service, Limited Partnership

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-01

End Date: 2026-01-31

Contract Duration: 364 days

Daily Burn Rate: $108.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN WASHINGTON, DISTRICT OF COLUMBIA, SECTION 2(D)

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 $39.6 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN WASHINGTON, DISTRICT OF COLUMBIA, SECTION 2(D) Key points: 1. The contract value represents a significant investment in security services for the Washington D.C. area. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. The fixed-price contract type offers cost certainty for the government. 4. Performance is benchmarked against similar security guard contracts. 5. The contract falls within the Security Guards and Patrol Services sector. 6. The duration of the contract is one year, suggesting a need for ongoing services.

Value Assessment

Rating: fair

The contract value of $39.6 million for one year of protective security services in Washington D.C. appears substantial. Benchmarking against similar contracts for security guard services is crucial to assess value for money. The provided data does not include specific service levels or performance metrics, making a definitive value assessment challenging without further context. However, the contract's fixed-price nature provides some cost predictability.

Cost Per Unit: The average annual cost per day is approximately $108,768 ($39,591,428.8 / 365 days). This figure needs to be compared against the number of officers and hours provided to determine a true per-unit cost and assess its competitiveness against market rates for similar services in the D.C. area.

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. This method generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the full and open nature suggests a robust competition was intended.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and better value by allowing a wide range of potential contractors to participate.

Public Impact

The Department of Homeland Security benefits from enhanced security for its facilities and personnel in Washington D.C. Protective security officers will be deployed to ensure safety and security. The services are geographically focused within the District of Columbia. The contract supports jobs within the security services industry in the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates, despite the fixed-price structure.
Dependence on contractor performance for critical security functions.
Risk of service disruption if the contractor faces staffing or operational issues.

Positive Signals

Full and open competition can lead to better pricing and service quality.
Fixed-price contract provides cost certainty for the government.
The contract is for a defined period, allowing for re-evaluation of needs and performance.

Sector Analysis

The Security Guards and Patrol Services sector (NAICS 561612) is a significant part of the private security industry, providing essential services to government agencies and private entities. Spending in this sector is often driven by security needs, regulatory requirements, and the protection of assets and personnel. Comparable spending benchmarks would involve analyzing other federal contracts for similar security services in major metropolitan areas.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor may still engage small businesses as subcontractors, depending on their own procurement strategies and the availability of qualified small business providers in the security services market.

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 contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting mechanisms, though specific operational details may remain sensitive.

Related Government Programs

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

Risk Flags

High per-unit cost potential
Contractor performance risk
Dependence on specific security personnel

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.6 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP. PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN WASHINGTON, DISTRICT OF COLUMBIA, SECTION 2(D)

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 $39.6 million.

What is the period of performance?

Start: 2025-02-01. End: 2026-01-31.

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

Analyzing historical spending for protective security services by DHS in Washington D.C. over the past five years would provide crucial context for the current $39.6 million award. This analysis would involve identifying previous contracts for similar services, their values, durations, and the contractors involved. Understanding trends in spending, such as increases or decreases, and identifying any recurring patterns of contract awards to specific vendors can reveal insights into the agency's long-term security needs and budget allocation strategies. For instance, a consistent rise in spending might indicate growing security requirements or inflation, while a stable pattern could suggest consistent needs. Comparing the current award to historical averages would help determine if this contract represents a significant increase or a continuation of established spending levels, aiding in the assessment of its financial significance and potential value.

How does the per-unit cost of this contract compare to other federal contracts for similar security guard services in major metropolitan areas?

To assess the value for money, the per-unit cost of this contract needs rigorous benchmarking. The provided data indicates an average daily cost of approximately $108,768. This figure must be broken down further, ideally into cost per officer per hour, to enable a meaningful comparison. Benchmarking against similar federal contracts awarded in other major metropolitan areas (e.g., New York, Los Angeles, Chicago) for comparable security guard services would reveal if the D.C. rate is competitive. Factors such as prevailing wage rates, cost of living, and specific security requirements in each locale influence these costs. If the D.C. contract's per-unit cost is significantly higher than national averages or rates in comparable cities, it could indicate potential issues with pricing or the specific service demands, warranting further investigation into the contract's value proposition.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract, and how will they be monitored?

The effectiveness and value of this $39.6 million contract for protective security services hinge on clearly defined performance metrics and robust monitoring mechanisms. While the contract is firm-fixed-price, ensuring the contractor meets specific service level agreements (SLAs) is paramount. These SLAs should detail expectations regarding officer availability, response times, incident reporting, training, and professionalism. The Department of Homeland Security's contracting officer's representative (COR) or a designated security manager would be responsible for monitoring adherence to these SLAs. This monitoring likely involves regular performance reviews, site inspections, analysis of incident reports, and potentially the use of performance tracking software. Failure to meet agreed-upon metrics could trigger contractual remedies, such as penalties or termination, ensuring accountability and safeguarding taxpayer investment.

What is the track record of Universal Protection Service, Limited Partnership in fulfilling federal contracts for security services, particularly with the Department of Homeland Security?

Evaluating the track record of Universal Protection Service, Limited Partnership (now Allied Universal) is essential for assessing the risk associated with this $39.6 million contract. A review of their past performance on federal contracts, especially those with DHS and for similar security guard services, would provide insight into their reliability, quality of service, and ability to manage large-scale security operations. This includes examining past performance evaluations, any history of contract disputes, timely delivery of services, and adherence to security protocols. Positive past performance suggests a lower risk of service disruption and better value realization, while a history of issues might raise concerns about the contractor's capability to meet the current contract's demands effectively and efficiently.

What is the estimated number of security personnel to be deployed under this contract, and how does this align with the contract value and service requirements?

Understanding the estimated number of personnel deployed is critical for assessing the value and operational scope of this $39.6 million contract. While not explicitly stated in the provided data, the contract value and the nature of protective security services suggest a significant workforce. If, for example, the contract requires 100 full-time equivalent officers working 40 hours a week at an average loaded rate of $50/hour, the annual cost would be approximately $10.4 million ($100 * 40 * 52 * $50). This rough calculation indicates that the $39.6 million contract could potentially support a substantial number of officers, possibly over 300-400 depending on exact hours, shifts, and overhead. A detailed breakdown of personnel numbers relative to the contract value and the specific security needs outlined in the statement of work is necessary to confirm that the resources allocated are appropriate and that the pricing is justified.

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: $39,591,429

Exercised Options: $39,591,429

Current Obligation: $39,591,429

Actual Outlays: $16,194,566

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000012

IDV Type: IDC

Timeline