DHS awards $18.1M for PSO services in Maryland, with CDA Inc. as the contractor

Contract Overview

Contract Amount: $18,141,754 ($18.1M)

Contractor: CDA Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-30

End Date: 2022-07-31

Contract Duration: 304 days

Daily Burn Rate: $59.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PSO SERVICES THROUGHOUT THE STATE OF MARYLAND

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.1 million to CDA INC for work described as: PSO SERVICES THROUGHOUT THE STATE OF MARYLAND Key points: 1. The contract value of $18.1 million represents a significant investment in security services for the state. 2. CDA Inc. secured this contract through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 304 days indicates a medium-term need for these services. 4. The fixed-price contract type helps to control costs and provides predictability for the agency. 5. The exclusion of sources clause in the competition type warrants further investigation into the rationale. 6. The contract is for security guards and patrol services, a critical function for public safety.

Value Assessment

Rating: fair

The total award of $18.1 million for security guard services over approximately 10 months appears to be within a reasonable range for large-scale security contracts. However, without specific details on the number of personnel, hours, and specific security measures required, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for comparable services in Maryland or other states would provide a clearer picture of whether the pricing is competitive. The contract's fixed-price nature suggests an attempt to manage cost overruns, but the ultimate value depends on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded from bidding. The specific reasons for this exclusion are not detailed in the provided data. Typically, such exclusions might occur due to national security concerns, proprietary technology, or specific performance requirements that only a limited number of entities can meet. The limited nature of the competition could potentially impact price discovery and may lead to higher costs compared to a truly open competition with all eligible sources participating.

Taxpayer Impact: Taxpayers may be impacted by potentially higher costs due to the exclusion of certain sources, as this can reduce the competitive pressure to offer the lowest possible price.

Public Impact

The primary beneficiaries of this contract are the Department of Homeland Security and potentially other federal agencies operating within Maryland that require security services. The services delivered include security guards and patrol services, aimed at ensuring the safety and security of federal facilities and personnel. The geographic impact is focused on the state of Maryland, where the PSO services will be deployed. The contract supports jobs in the security services sector, contributing to the local workforce in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type raises concerns about the breadth of competition and potential for inflated pricing.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and value of the security services provided.
The contract duration is relatively short (304 days), which might lead to recurring procurement costs and potential inefficiencies in service continuity.

Positive Signals

The contract was awarded under 'Full and Open Competition,' indicating an effort to solicit bids from a wide range of qualified vendors.
The 'Firm Fixed Price' contract type provides cost certainty for the government, mitigating the risk of cost overruns.
CDA Inc. is the selected contractor, implying they met the government's requirements and were deemed capable of delivering the necessary services.

Sector Analysis

The security services industry is a substantial sector within the broader professional, scientific, and technical services market. This contract falls under the 'Security Guards and Patrol Services' (NAICS 561612) category. The market for government security services is highly competitive, with numerous private companies vying for contracts. Federal agencies often rely on these services to maintain security at various facilities, including government buildings, critical infrastructure, and sensitive sites. Spending in this sector is influenced by national security priorities, threat assessments, and agency operational needs. Comparable spending benchmarks would involve analyzing the average cost per guard hour or per square foot secured across similar federal contracts.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CDA Inc., is likely a larger entity. While there is no direct information on subcontracting plans, large federal contracts often include provisions for small business participation. The absence of a small business set-aside suggests that the competition was open to all eligible businesses, and the focus was on selecting the best value offer. The impact on the small business ecosystem would depend on whether CDA Inc. engages small businesses as subcontractors for specialized services or support functions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of Homeland Security. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services at an agreed-upon price. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract arise.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State-Level Security Guard Contracts
Professional, Scientific, and Technical Services Contracts

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed performance metrics in summary data.
Contract duration may lead to recurring procurement costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.1 million to CDA INC. PSO SERVICES THROUGHOUT THE STATE OF MARYLAND

Who is the contractor on this award?

The obligated recipient is CDA INC.

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 $18.1 million.

What is the period of performance?

Start: 2021-09-30. End: 2022-07-31.

What specific security services are included under 'PSO SERVICES THROUGHOUT THE STATE OF MARYLAND'?

The contract specifies 'Security Guards and Patrol Services' (NAICS 561612). This typically encompasses a range of activities such as providing uniformed security personnel for access control, surveillance, patrolling designated areas, responding to incidents, and deterring unauthorized activities. The exact scope would be detailed in the Performance Work Statement (PWS) attached to the contract, outlining specific duties, post orders, reporting requirements, and operational hours for the security guards. Without the PWS, the precise nature and intensity of the services remain general.

What is the rationale behind the 'Exclusion of Sources' in the competition type?

The 'Exclusion of Sources' clause in 'Full and Open Competition After Exclusion of Sources' implies that while the competition was generally open, certain potential bidders were intentionally prevented from participating. The specific reasons for exclusion are not provided in the summary data but could stem from various factors. These might include national security requirements, the need for specialized technology or clearances possessed by only a few entities, or previous performance issues with certain contractors. Agencies may also exclude sources if they believe only a limited number of vendors can meet unique or highly complex requirements. Understanding the exact justification is crucial for assessing the fairness and potential cost implications of the procurement.

How does the $18.1 million award compare to historical spending for similar services by DHS in Maryland?

To compare the $18.1 million award to historical spending, one would need to analyze past DHS contracts for security guard and patrol services within Maryland. This would involve querying contract databases for similar NAICS codes (e.g., 561612) and geographic locations over previous fiscal years. Factors such as inflation, changes in security requirements, and the number of facilities or personnel covered would need to be considered for a meaningful comparison. Without access to this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for these services.

What are the key performance indicators (KPIs) used to evaluate CDA Inc.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for security guard services, KPIs might include metrics such as response times to incidents, adherence to post orders, number of security breaches or incidents, guard punctuality and attendance, and client satisfaction surveys. The contracting officer's representative (COR) is usually responsible for monitoring these KPIs and ensuring the contractor meets the performance standards outlined in the Performance Work Statement (PWS). Effective KPIs are essential for ensuring the value and quality of the security services delivered.

What is the typical profit margin for security guard services contracts of this size?

Profit margins for government security guard services contracts can vary significantly based on factors like contract complexity, duration, competition level, and the specific services required. Generally, for large, firm-fixed-price contracts, profit margins might range from 5% to 15%. However, this is a broad estimate. The 'Exclusion of Sources' in this contract could potentially allow for higher margins if competition was indeed limited. A more precise understanding would require analyzing the contractor's cost structure and the specific terms negotiated, which are not publicly available in this summary data.

Are there any known performance issues with CDA Inc. on previous federal contracts?

Assessing CDA Inc.'s track record requires reviewing their past performance on federal contracts. This typically involves consulting performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) and other contract databases. Without access to these specific performance records, it's impossible to determine if CDA Inc. has a history of outstanding performance, past issues, or ongoing concerns. A thorough review of their past federal contract performance would be necessary to gauge their reliability and effectiveness as a contractor.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 185 ADMIRAL COCHRANE DRIVE, SUITE 220, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,141,754

Exercised Options: $18,141,754

Current Obligation: $18,141,754

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP318DE3000002

IDV Type: IDC

Timeline