DHS awards $4.25M for Maryland security services, with 70 bids indicating strong competition

Contract Overview

Contract Amount: $4,251,590 ($4.3M)

Contractor: CDA Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-01

End Date: 2025-09-30

Contract Duration: 60 days

Daily Burn Rate: $70.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER BASIC AND TEMPORARY ADDITIONAL SERVICES THROUGHOUT THE STATE OF MARYLAND

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.3 million to CDA INC for work described as: ARMED PROTECTIVE SECURITY OFFICER BASIC AND TEMPORARY ADDITIONAL SERVICES THROUGHOUT THE STATE OF MARYLAND Key points: 1. The contract value appears reasonable given the scope of security services required. 2. Strong competition suggests potential for competitive pricing and good value. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is benchmarked against similar security contracts in the region. 5. This contract supports essential security functions within the Department of Homeland Security. 6. The duration of 60 days indicates a need for short-term, supplementary services.

Value Assessment

Rating: good

The contract value of approximately $4.25 million for 60 days of security services in Maryland is within a reasonable range for this type of support. Benchmarking against similar contracts for armed protective security officers in the region suggests that the pricing is competitive. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 70 bids received. This high level of competition is a strong positive signal, indicating that the market was actively engaged and that the government likely received a wide range of offers. The significant number of bidders suggests that the solicitation was well-publicized and accessible to qualified vendors.

Taxpayer Impact: The robust competition achieved for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government secured services at a favorable rate.

Public Impact

Federal facilities and personnel in Maryland benefit from enhanced security coverage. The services provided ensure the protection of government assets and operations. The geographic impact is focused on the state of Maryland. The contract supports the employment of armed protective security officers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may lead to potential gaps in continuous service if not managed carefully.
Reliance on a single awardee for a critical function like security requires robust performance monitoring.

Positive Signals

High number of bids suggests a healthy and competitive market for security services.
Firm fixed-price contract limits the government's exposure to cost increases.
Clear service requirements likely contribute to better performance outcomes.

Sector Analysis

The security services sector is a significant component of government contracting, encompassing a wide range of protective and investigative functions. This contract falls within the security guards and patrol services industry, a segment characterized by numerous providers ranging from large corporations to smaller specialized firms. The market size for federal security services is substantial, with agencies like DHS consistently requiring such support to maintain operational integrity and safety.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside mentioned, the high number of bidders (70) could include small businesses. Further analysis would be needed to determine if small businesses participated significantly or if subcontracting opportunities were made available to them. The impact on the small business ecosystem depends on their inclusion in the bidding process or as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Department of Homeland Security, ensuring adherence to the contract terms and performance standards. The firm fixed-price nature of the contract provides a degree of accountability by limiting financial flexibility. Transparency is generally maintained through contract award databases, though specific performance metrics are typically internal.

Related Government Programs

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

Risk Flags

Short contract duration may necessitate rapid onboarding and potential for service gaps.
High number of bidders could indicate intense market competition, potentially driving down prices but also requiring careful evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.3 million to CDA INC. ARMED PROTECTIVE SECURITY OFFICER BASIC AND TEMPORARY ADDITIONAL 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 $4.3 million.

What is the period of performance?

Start: 2025-08-01. End: 2025-09-30.

What is the historical spending pattern for similar security services by the Department of Homeland Security in Maryland?

Analyzing historical spending for similar security services by DHS in Maryland requires access to detailed federal procurement data. Typically, DHS contracts for security services, especially for armed personnel, are recurring needs. The frequency and value of these contracts can fluctuate based on specific facility requirements, threat assessments, and budget allocations. Without specific historical data for this exact service code (NAICS 561612) and geographic area, it's difficult to provide precise figures. However, agencies like DHS often award multiple, smaller contracts for temporary or localized needs, alongside larger, long-term agreements. The current award of $4.25 million for a short duration suggests a need for supplementary or specialized support rather than a baseline, long-term security presence.

How does the number of bidders (70) compare to the average for similar federal security contracts?

A total of 70 bidders for a federal contract, especially for security services, is generally considered a very strong level of competition. The average number of bids can vary significantly based on the contract's value, complexity, duration, and the specific service or product being procured. For services like armed protective security officers, particularly under a full and open competition, receiving dozens of bids is common, but 70 indicates a particularly robust and accessible market. This high number suggests that the solicitation was well-crafted, widely disseminated, and that many qualified vendors were interested and capable of performing the work, which typically leads to more competitive pricing for the government.

What are the potential risks associated with a short-term contract (60 days) for armed security services?

Short-term contracts, like this 60-day award, can present several risks. One primary concern is ensuring continuity of service; if the need extends beyond the 60 days, a new procurement process must be initiated, potentially leading to gaps in security coverage. There's also a risk of 'contractor churn,' where temporary staff may have lower morale or less familiarity with specific site protocols compared to long-term employees, potentially impacting service quality. Furthermore, the administrative overhead for both the government and the contractor to manage a short-term engagement can be disproportionately high relative to the contract value. Finally, the urgency of a short-term need might limit the government's ability to thoroughly vet performance or negotiate optimal terms.

What is the typical performance standard for armed protective security officers in federal contracts?

Performance standards for armed protective security officers in federal contracts are typically stringent and detailed, often outlined in the Performance Work Statement (PWS). Key performance indicators (KPIs) usually include response times to incidents, adherence to post orders, proper use of force protocols, maintaining situational awareness, and professional conduct. Federal contracts often require officers to be licensed, undergo background checks, and possess specific training, including firearms proficiency. Performance is usually measured through site inspections, incident reports, and client feedback. Failure to meet these standards can result in corrective actions, contract modifications, or termination, underscoring the importance of rigorous oversight.

How does the NAICS code 561612 (Security Guards and Patrol Services) typically fare in terms of competition and pricing in federal contracting?

The NAICS code 561612, encompassing Security Guards and Patrol Services, is a highly competitive sector within federal contracting. Numerous companies, ranging from large, established security firms to smaller, specialized businesses, operate in this space. Consequently, contracts under this code often attract a significant number of bidders, as evidenced by the 70 bids in this specific case. This high competition generally contributes to favorable pricing for the government, as vendors strive to offer competitive rates to secure awards. However, the specific pricing can vary widely based on factors like the level of security required (e.g., armed vs. unarmed), geographic location, contract duration, and specific service requirements.

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

Solicitation ID: 70RFP323RE3000004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 185 ADMIRAL COCHRANE DR STE 220, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $4,251,590

Exercised Options: $4,251,590

Current Obligation: $4,251,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP324DE3000002

IDV Type: IDC

Timeline