DHS awards $3.8M for PSO services in Maryland, raising questions about value and competition

Contract Overview

Contract Amount: $3,855,698 ($3.9M)

Contractor: CDA Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-06

End Date: 2022-09-30

Contract Duration: 24 days

Daily Burn Rate: $160.7K/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 $3.9 million to CDA INC for work described as: PSO SERVICES THROUGHOUT THE STATE OF MARYLAND Key points: 1. The contract's short duration and specific geographic focus may limit its overall value. 2. Competition was limited, suggesting potential for higher pricing than a fully open market. 3. The firm-fixed-price structure offers some cost certainty but may not incentivize efficiency. 4. Performance context is minimal, making it difficult to assess the effectiveness of security services. 5. This contract falls within the security and protective services sector, a common area for federal spending.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its limited scope and short duration. The total award of $3.86 million for a single month of security services appears high when considered on a monthly basis. Without more detailed performance metrics or comparisons to similar, longer-term contracts for security services in Maryland, it's difficult to definitively assess value for money. The firm-fixed-price nature provides cost predictability but doesn't inherently guarantee optimal resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while competition was sought, certain sources were excluded. This suggests a less competitive environment than a truly full and open competition. The number of bidders is not specified, but the exclusion of sources implies a potentially narrowed field, which could impact price discovery and potentially lead to less favorable pricing for the government.

Taxpayer Impact: The limited competition may have resulted in taxpayers paying a premium compared to what might have been achieved in a broader, more inclusive bidding process.

Public Impact

The primary beneficiaries are the residents and facilities within the state of Maryland requiring security services. The services delivered are security guards and patrol services, aimed at ensuring safety and preventing incidents. The geographic impact is confined to the state of Maryland. Workforce implications include the employment of security personnel by the contractor, CDA INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Short contract duration may indicate a temporary need or a precursor to a larger, potentially less competitive award.
Lack of detailed performance metrics makes it hard to gauge service quality and effectiveness.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to CDA INC suggests established vendor relationships or capabilities.
Focus on a specific geographic area (Maryland) ensures localized security coverage.

Sector Analysis

This contract falls within the security and protective services industry, a segment of the broader professional, scientific, and technical services sector. Federal spending in this area is substantial, covering a wide range of needs from physical security to cybersecurity. Comparable spending benchmarks are difficult to establish without knowing the specific security requirements, but contracts for security guards and patrol services are common across many federal agencies. The market size for such services is significant, driven by the government's continuous need to protect its assets and personnel.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, CDA INC, is likely a larger entity, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Specific oversight mechanisms would include contract performance reviews, invoice verification, and adherence to the terms and conditions of the firm-fixed-price delivery order. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State-Specific Security Contracts
Guard Services Contracts

Risk Flags

Limited Competition
Short Contract Duration
Potential for Overpricing
Lack of Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.9 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 $3.9 million.

What is the period of performance?

Start: 2022-09-06. End: 2022-09-30.

What is the track record of CDA INC in performing similar security guard and patrol services for the federal government?

Assessing the track record of CDA INC requires a deeper dive into their past performance on federal contracts, particularly those involving security guard and patrol services. While this specific award is for $3.86 million over a short period, it's crucial to examine their history with agencies like DHS or others. Key indicators would include the number of previous contracts, their values, durations, and any reported performance issues or commendations. A review of past performance evaluations (if publicly available) and any contract disputes or terminations would provide a clearer picture of their reliability and capability in delivering these essential services. Without this historical context, it's difficult to fully gauge the risk associated with awarding this contract to CDA INC.

How does the per-unit cost of these security services compare to market rates or similar federal contracts?

Determining the per-unit cost benchmark for these security services is challenging without specific details on the number of guards, hours of service, and specific security requirements. The total award of $3.86 million for a single month suggests a significant operational scale. To benchmark effectively, one would need to compare the implied hourly rate per guard against prevailing market wages and benefits for security personnel in Maryland, factoring in overhead and profit. Additionally, comparing this rate to similar federal contracts awarded in the same region for comparable services, especially those awarded under full and open competition, would provide valuable insights into whether the government secured a competitive price. The limited competition aspect of this award raises concerns that the per-unit cost might be higher than optimal.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type presents specific risks primarily related to reduced competition and potentially higher costs. By excluding certain sources, the pool of potential bidders is narrowed, which can stifle price discovery and innovation. This exclusion might be based on specific technical requirements, past performance issues with certain vendors, or other justifications. However, if the exclusions are not well-founded or overly broad, the government risks not receiving the most advantageous offers. This can lead to taxpayers paying more than necessary for the required services and potentially limiting the government's access to the best available solutions in the market. It necessitates careful justification and documentation to ensure fairness and value.

What is the expected effectiveness and impact of these security services given the short duration of the contract?

The effectiveness and impact of security services are typically measured over sustained periods, making the short duration (one month) of this contract a key factor. While the services are intended to provide immediate security coverage, a one-month engagement may not allow for the establishment of long-term security protocols, relationship building with site personnel, or comprehensive threat assessment and mitigation strategies that contribute to sustained safety. The impact is likely limited to the immediate period of service delivery. It raises questions about whether this is a stop-gap measure, a test for future, longer-term contracts, or if the security needs are indeed transient. Without further context, assessing long-term effectiveness is not feasible.

How does this contract's spending compare to historical federal spending on security guards and patrol services in Maryland?

Comparing this $3.86 million, one-month contract to historical federal spending on security guards and patrol services in Maryland requires access to historical procurement data. Analyzing past awards for similar services within the state would reveal trends in pricing, contract durations, and the number of bidders. If historical contracts were significantly longer-term and awarded at a lower aggregate annual cost, this short-term, high-value award might indicate a shift in procurement strategy or a response to a specific, urgent need. Conversely, if similar monthly expenditures have been common, it suggests a consistent level of investment in security services in the region. Understanding these historical patterns is crucial for evaluating the current contract's financial prudence.

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: $3,855,698

Exercised Options: $3,855,698

Current Obligation: $3,855,698

Actual Outlays: $3,855,698

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP318DE3000002

IDV Type: IDC

Timeline