DHS awards $19.4M contract for security services in Maryland, highlighting need for consistent guard presence

Contract Overview

Contract Amount: $19,424,026 ($19.4M)

Contractor: CDA Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-07-31

Contract Duration: 303 days

Daily Burn Rate: $64.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER 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 $19.4 million to CDA INC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF MARYLAND Key points: 1. Contract value represents a significant investment in state-wide security infrastructure. 2. Competition dynamics suggest a potentially competitive market for security services. 3. Contract duration of 30 months indicates a need for sustained security operations. 4. Fixed-price contract type offers cost certainty for the agency. 5. Focus on Maryland suggests a geographically concentrated security requirement. 6. The award to CDA INC warrants a review of their past performance and capacity.

Value Assessment

Rating: good

The contract value of $19.4 million over approximately 30 months for security services in Maryland appears reasonable given the scope. Benchmarking against similar contracts for armed protective security officers across the state would provide a clearer picture of value for money. Without specific per-unit cost data or comparison to market rates for similar services in Maryland, a definitive assessment of pricing efficiency is challenging. However, the firm fixed-price nature of the contract provides cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a robust process was followed to solicit proposals from various security service providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down costs and improving the quality of services received.

Public Impact

Federal facilities and personnel within Maryland will benefit from enhanced security. The contract ensures the provision of armed protective security officer services. Geographic impact is statewide across Maryland. Workforce implications include job creation for security officers in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor over-reliance on a single large contract.
Need to ensure consistent quality of service across all deployed officers.
Risk of price escalation in future contract renewals if competition diminishes.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm fixed-price contract provides cost certainty for the government.
Clear service delivery area (statewide Maryland) simplifies operational oversight.

Sector Analysis

The security services sector is a significant component of government contracting, encompassing a wide range of protective and monitoring functions. This contract falls within the Security Guards and Patrol Services industry (NAICS 561612), which is characterized by numerous providers ranging from small local firms to large national corporations. Government spending in this sector is substantial, driven by the need to protect federal assets and personnel. This award to CDA INC is a typical example of how agencies procure essential security functions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless CDA INC voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's Office of Procurement Operations, with specific contract officers and CORs (Contracting Officer's Representatives) responsible for monitoring performance and ensuring compliance. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Statewide Security Guard Contracts
Armed Security Personnel Contracts

Risk Flags

Potential for service quality variability
Dependence on contractor's personnel retention
Need for continuous performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.4 million to CDA INC. ARMED PROTECTIVE SECURITY OFFICER 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 $19.4 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-07-31.

What is CDA INC's track record with federal contracts, particularly in security services?

A review of CDA INC's federal contract history would be necessary to assess their performance. This would involve examining past awards, performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. Understanding their experience with similar-sized contracts and security requirements in Maryland or comparable regions would provide insight into their capability to fulfill this current award. A positive track record with consistent performance and adherence to contract terms would be a strong indicator of reliability for this new DHS contract.

How does the awarded price compare to market rates for similar security services in Maryland?

To benchmark the value, the awarded price of $19.4 million over approximately 30 months needs to be compared against prevailing market rates for armed protective security officers in Maryland. This involves researching average hourly wages, overhead costs, and profit margins for security firms operating in the state. Factors such as the specific security clearances required, the level of training mandated, and the 24/7 operational tempo will influence these rates. If the contract's per-hour or per-officer cost is significantly lower than market averages, it suggests good value. Conversely, a higher cost might indicate potential overpayment or unique service requirements justifying the premium.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential service disruptions due to personnel turnover, failure to meet performance standards, or security breaches. Mitigation strategies likely involve robust contractor performance monitoring by DHS, clear performance metrics within the contract, and contingency plans for service continuity. The firm fixed-price nature mitigates cost overrun risks for the government. Ensuring CDA INC has adequate bonding and insurance, along with a strong quality control plan, further addresses financial and operational risks. Regular communication and site visits by CORs are crucial for early risk identification.

How effective is the current security service provision in Maryland, and what improvements does this contract aim to achieve?

The effectiveness of current security services would be assessed based on historical incident reports, response times, and overall security posture within DHS facilities in Maryland. This new contract aims to ensure a consistent and high level of security by potentially consolidating services, updating operational requirements, or addressing identified gaps in previous service provisions. Improvements could include enhanced surveillance capabilities, more rigorous officer training, or better integration with local law enforcement. The contract's success will be measured by its ability to maintain a secure environment and prevent security incidents.

What are the historical spending patterns for security services by DHS in Maryland?

Analyzing historical spending by DHS for security services in Maryland would reveal trends in contract values, durations, and types of services procured. This includes examining previous contracts awarded for similar security functions, noting any significant increases or decreases in spending over time. Understanding these patterns helps contextualize the current $19.4 million award, indicating whether it represents a typical investment, an expansion of services, or a cost-saving measure. It also informs future budget planning and identifies potential areas for efficiency improvements.

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

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: $19,424,026

Exercised Options: $19,424,026

Current Obligation: $19,424,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP324DE3000002

IDV Type: IDC

Timeline