DOL Awards $2.89M for Armed Guard Services to Diversified Protection Corp

Contract Overview

Contract Amount: $2,890,446 ($2.9M)

Contractor: Diversified Protection Corp

Awarding Agency: Department of Homeland Security

Start Date: 2026-08-01

End Date: 2026-09-30

Contract Duration: 60 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED GUARD II SERVICES AT THE DEPARTMENT OF LABOR HEADQUARTERS IN WASHINGTON DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.9 million to DIVERSIFIED PROTECTION CORP for work described as: ARMED GUARD II SERVICES AT THE DEPARTMENT OF LABOR HEADQUARTERS IN WASHINGTON DC Key points: 1. Contract awarded to Diversified Protection Corp for armed guard services. 2. The contract is for services at the Department of Labor headquarters. 3. The total award amount is $2,890,446.04. 4. Services are for security guards and patrol, NAICS 561612. 5. The contract duration is 60 days.

Value Assessment

Rating: good

The award amount of $2.89M for a 60-day period appears high for security guard services. Benchmarking against similar contracts for armed guard services in the DC area is recommended to assess value.

Cost Per Unit: $48,174 (per day)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: Taxpayer funds are being used for essential security services, with competition aiming to ensure efficient use of these funds.

Public Impact

Ensures security at the Department of Labor headquarters. Supports federal agency operations by maintaining a safe environment. Provides employment for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Security guard services fall under the broader professional, scientific, and technical services sector. Benchmarks for similar contracts are crucial given the high daily rate.

Small Business Impact

The contract was not set aside for small businesses and was awarded to Diversified Protection Corp, which may or may not be an SMB. Further analysis is needed to determine the impact on small business participation.

Oversight & Accountability

The Department of Homeland Security, Office of Procurement Operations, managed this award. Oversight is critical to ensure service delivery meets requirements and costs remain justified.

Related Government Programs

Risk Flags

Tags

security-guards-and-patrol-services, department-of-homeland-security, dc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.9 million to DIVERSIFIED PROTECTION CORP. ARMED GUARD II SERVICES AT THE DEPARTMENT OF LABOR HEADQUARTERS IN WASHINGTON DC

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED PROTECTION CORP.

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 $2.9 million.

What is the period of performance?

Start: 2026-08-01. End: 2026-09-30.

What is the justification for the high per-day cost of armed guard services?

The high per-day cost of $48,174 warrants further investigation. Factors such as the number of guards required, specific security clearances, specialized equipment, and the high-risk environment of a federal building could contribute. However, a detailed breakdown of costs and comparison with industry standards for similar services in Washington D.C. is necessary to validate this rate.

What are the specific risks associated with this contract?

Key risks include potential overpayment due to the high per-day cost, service disruptions if the contractor fails to meet performance standards, and security breaches if guard performance is inadequate. The short duration also poses a risk if the need for these services extends beyond the current contract period, requiring a new, potentially rushed procurement.

How effective is the full and open competition in ensuring value for money?

Full and open competition is generally effective in promoting value for money by encouraging multiple bids and driving down prices. However, the effectiveness in this specific case depends on the clarity of the solicitation, the responsiveness of potential bidders, and the government's ability to evaluate proposals accurately. The high award cost suggests that further scrutiny of the evaluation and pricing is warranted.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RFP225QEC000032

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 RIVER LANDING DR STE 300, DANIEL ISLAND, SC, 29492

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $94,846,103

Exercised Options: $2,890,446

Current Obligation: $2,890,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000004

IDV Type: IDC

Timeline

Start Date: 2026-08-01

Current End Date: 2026-09-30

Potential End Date: 2031-07-31 00:00:00

Last Modified: 2026-04-06

More Contracts from Diversified Protection Corp

View all Diversified Protection Corp federal contracts →

Other Department of Homeland Security Contracts

View all Department of Homeland Security contracts →

Explore Related Government Spending