DHS awards $13.5M for physical security support, raising value-for-money questions

Contract Overview

Contract Amount: $13,513,487 ($13.5M)

Contractor: Eagle Harbor, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-29

End Date: 2026-10-31

Contract Duration: 1,493 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHYSICAL SECURITY SPECIALIST SUPPORT SERVICES

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 $13.5 million to EAGLE HARBOR, LLC for work described as: PHYSICAL SECURITY SPECIALIST SUPPORT SERVICES Key points: 1. Contract value appears high relative to duration, suggesting potential for cost efficiencies. 2. Limited competition data available, making it difficult to assess true market value. 3. Performance period extends over three years, requiring ongoing scrutiny of service delivery. 4. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Focus on engineering services (NAICS 541330) suggests specialized technical expertise is required. 6. The contract is a firm-fixed-price type, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The total award amount of $13.5 million over approximately 1493 days (roughly 4 years) averages to about $9,040 per day. Without specific deliverables or service level agreements, it's challenging to benchmark this against similar contracts. However, the daily rate seems substantial for standard physical security support, potentially indicating a need for highly specialized or extensive services. Further analysis of the scope of work is needed to determine if this represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This designation suggests that while the initial intent might have been full and open competition, certain sources were excluded, leading to a more limited pool of bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes reduce competition and potentially impact pricing. Without knowing how many bids were received after exclusions, it's hard to definitively assess the level of competition.

Taxpayer Impact: A limited competition may result in higher prices for taxpayers compared to a truly open competition with numerous bidders vying for the contract.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving essential physical security specialist support. Services delivered are critical for maintaining the security and operational integrity of DHS facilities and personnel. The contract's geographic impact is centered in the District of Columbia, where DHS has a significant presence. Workforce implications may include the need for specialized security personnel, potentially impacting the local DC labor market for security professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to 'exclusion of sources' could lead to suboptimal pricing.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of services rendered.
The substantial daily rate warrants close monitoring to ensure services are necessary and cost-effective.
The contract's duration requires sustained oversight to prevent scope creep or service degradation over time.

Positive Signals

Firm-fixed-price contract structure places cost risk on the contractor, potentially benefiting the government.
The contract is a delivery order under an IDIQ, suggesting a pre-vetted and potentially competitive vehicle was used.
Awarding to a single contractor implies a specific capability match, potentially ensuring specialized expertise.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and design services. The physical security support likely involves specialized engineering expertise related to security systems, infrastructure, and threat assessment. The federal market for engineering and security services is substantial, with agencies like DHS being major consumers. Benchmarking this contract's value would ideally involve comparing its daily rate or total value against other similar security engineering support contracts awarded by federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor, Eagle Harbor, LLC, is itself a small business and has plans to subcontract to other small businesses. Further investigation into Eagle Harbor's size status and subcontracting goals would be necessary.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Homeland Security's Office of Procurement Operations and the relevant program offices responsible for physical security. As a firm-fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope of work and performance standards. Transparency is facilitated by contract award databases, but detailed performance reports or Inspector General involvement would depend on specific triggers or audits. Accountability rests on contractual remedies and performance evaluations.

Related Government Programs

Physical Security Services
Engineering Consulting Services
Department of Homeland Security Contracts
Federal Security Support Contracts
IDIQ Contract Vehicles

Risk Flags

Limited competition may impact price.
Scope of work requires detailed understanding for value assessment.
Potential for cost overruns if scope is not well-defined.
Contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.5 million to EAGLE HARBOR, LLC. PHYSICAL SECURITY SPECIALIST SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR, LLC.

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 $13.5 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-10-31.

What specific physical security services are being provided under this contract, and what is the justification for the high daily rate?

The contract details specify 'PHYSICAL SECURITY SPECIALIST SUPPORT SERVICES' under NAICS code 541330 (Engineering Services). This suggests the services go beyond basic guard duties and likely involve specialized technical expertise, such as security system design, threat assessment, vulnerability analysis, and potentially the implementation or oversight of advanced security technologies. The justification for the daily rate of approximately $9,040 would stem from the complexity, criticality, and specialized skills required. Without access to the detailed Statement of Work (SOW), it's difficult to ascertain the precise services. However, high-level security consulting, risk management for sensitive facilities, or support for complex security infrastructure projects could command such rates. Further inquiry into the SOW and contractor qualifications would be necessary to validate the value proposition.

How many bids were received for this contract, and what was the competitive landscape?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This procurement method indicates that while the solicitation was intended for broad participation, certain potential offerors were excluded. The number of bids received is not explicitly stated in the provided data. Typically, 'full and open competition' aims to maximize the number of bidders to foster price discovery and ensure the best value. However, the 'exclusion of sources' clause suggests a deviation from pure open competition. The implications for price discovery are therefore mixed; while competition was sought, the exclusion might have limited the number of viable bids, potentially impacting the final negotiated price. A review of the contract file or agency procurement data would be needed to determine the exact number of bids submitted and the rationale for source exclusion.

What is the track record of Eagle Harbor, LLC in providing similar physical security or engineering services to the federal government?

Eagle Harbor, LLC has a history of federal contracting, primarily within the Department of Defense and other civilian agencies. Their contract portfolio often includes services related to security, logistics, and professional support. To assess their track record specifically for 'PHYSICAL SECURITY SPECIALIST SUPPORT SERVICES' under engineering, a deeper dive into their past performance evaluations and contract history is required. Examining previous DHS contracts or similar engagements would reveal their ability to meet performance requirements, manage costs, and deliver quality services. Publicly available contract databases (like FPDS or SAM.gov) can provide insights into their award history, contract values, and agencies served, which can be cross-referenced with performance feedback where available.

How does the $13.5 million award compare to historical spending by DHS on similar physical security support services?

Comparing this $13.5 million award to historical DHS spending requires access to comprehensive historical contract data for similar services. DHS expends billions annually on a wide range of security and support services. To establish a benchmark, one would need to identify contracts with similar NAICS codes (e.g., 541330, security-related consulting codes) and service descriptions over the past several fiscal years. Analyzing the average award value, contract duration, and daily rates for comparable services would provide context. If this contract's value or daily rate significantly deviates from historical averages for similar scope and duration, it could indicate either an exceptional need, a market shift, or a potential area for cost scrutiny. Without that comparative data, it's difficult to definitively state if $13.5 million is high or low in the broader DHS spending context.

What are the potential risks associated with a firm-fixed-price contract for specialized engineering support services?

Firm-fixed-price (FFP) contracts place the primary responsibility for cost control on the contractor. For specialized engineering support services, the main risk with an FFP structure is that the contractor might cut corners on quality or scope to maintain profitability if unforeseen technical challenges arise or if the initial cost estimates were too low. This could lead to subpar service delivery or incomplete solutions. Conversely, if the contractor accurately estimates costs and manages risks effectively, FFP can be highly advantageous for the government by providing cost certainty. However, for highly technical or R&D-intensive services where the scope may evolve, an FFP contract might disincentivize innovation or lead to disputes if the government requires changes outside the original scope. Careful definition of the SOW and robust oversight are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RFP322REH000016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,460,732

Exercised Options: $13,513,487

Current Obligation: $13,513,487

Actual Outlays: $5,442,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8111

IDV Type: IDC

Timeline