DHS awards $32.3M for security services in four Midwest states, with VENDTECH-SGI LLC as prime

Contract Overview

Contract Amount: $32,298,800 ($32.3M)

Contractor: Vendtech-Sgi LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-10-11

End Date: 2019-09-30

Contract Duration: 354 days

Daily Burn Rate: $91.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF IA, KS, MO AND NE

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64106

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.3 million to VENDTECH-SGI LLC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF IA, KS, MO AND NE Key points: 1. Contract value represents a significant investment in physical security across multiple states. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Performance period of approximately one year indicates a need for ongoing security operations. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. The contract's geographic scope covers Iowa, Kansas, Missouri, and Nebraska, requiring broad operational reach. 6. The use of 'LABOR HOURS' pricing suggests a focus on personnel time rather than fixed deliverables.

Value Assessment

Rating: fair

The total award of $32.3 million for approximately one year of security services appears substantial. Benchmarking against similar contracts for armed protective security officers is difficult without more granular data on service levels, geographic coverage, and specific security requirements. The provided 'br' (benchmark rate) of 91240 is unclear in its context (e.g., per hour, per day, per contract) and thus cannot be definitively assessed for value. Further analysis would require comparing the hourly rates or overall cost per guard to market averages for similar armed security services in the specified regions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bids received, which is crucial for a comprehensive assessment of the competition's intensity. A robust competition typically leads to better price discovery and potentially lower costs for the government. Without knowing the number of bidders, it's challenging to definitively state how effectively price competition was achieved.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation among contractors, leading to better value for public funds.

Public Impact

The Department of Homeland Security (DHS) benefits through enhanced physical security at its facilities and operations within the covered states. Services delivered include armed protective security, ensuring a secure environment for government personnel and assets. The geographic impact spans Iowa, Kansas, Missouri, and Nebraska, providing security coverage across a significant portion of the Midwest. Workforce implications include the employment of security personnel by VENDTECH-SGI LLC and potentially its subcontractors within these states.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the security services provided.
The 'LABOR HOURS' pricing model could potentially lead to cost overruns if not managed diligently.
Geographic dispersion across four states may present logistical challenges for oversight and consistent service delivery.
The benchmark rate (br) is provided without sufficient context to evaluate its reasonableness.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process for potential bidders.
The contract addresses a critical need for physical security for a major federal agency.
The prime contractor, VENDTECH-SGI LLC, is responsible for delivering these essential services.

Sector Analysis

The security services industry is a large and diverse sector, encompassing a wide range of protective and investigative activities. NAICS code 561612 specifically covers establishments primarily engaged in providing security guards and patrol services. This contract falls within the broader government contracting landscape for professional services, where agencies like DHS rely heavily on external providers for specialized functions. Comparable spending benchmarks are difficult to establish without detailed service requirements, but federal spending on security services is substantial across various agencies.

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 benefits for small businesses mandated by a set-aside. The prime contractor, VENDTECH-SGI LLC, may choose to subcontract portions of the work, potentially including small businesses, but this is not a requirement of the contract as presented. The impact on the small business ecosystem would depend on VENDTECH-SGI's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Homeland Security's Office of Procurement Operations. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Operations
Guard and Patrol Services Contracts
Physical Security Services
Labor Hour Contracts

Risk Flags

Potential for cost overruns due to 'LABOR HOURS' pricing.
Lack of specific performance metrics makes objective evaluation difficult.
Geographic dispersion may complicate oversight and increase logistical costs.
Benchmark rate (br) provided without sufficient context for validation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.3 million to VENDTECH-SGI LLC. ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF IA, KS, MO AND NE

Who is the contractor on this award?

The obligated recipient is VENDTECH-SGI 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 $32.3 million.

What is the period of performance?

Start: 2018-10-11. End: 2019-09-30.

What is the track record of VENDTECH-SGI LLC in performing similar federal contracts, particularly for the Department of Homeland Security?

Assessing VENDTECH-SGI LLC's track record requires a review of their past performance on federal contracts. This would involve examining contract databases (like FPDS or SAM.gov) for previous awards, their value, duration, and the agencies they served. Specific attention should be paid to performance evaluations, any past disputes or contract terminations, and their experience with providing armed protective security services. Without this specific data, it's difficult to gauge their reliability and capability for this particular $32.3 million contract. A positive track record would indicate a lower risk of performance issues, while a history of problems could signal potential concerns for DHS.

How does the total contract value of $32.3 million compare to typical spending for similar security services by DHS or other federal agencies?

The total contract value of $32.3 million for approximately one year of armed protective security services across four states is substantial. To benchmark this, one would need to compare it against similar contracts awarded by DHS or other agencies for comparable services (e.g., security guards, patrol services) within similar geographic regions and for similar contract durations. Factors like the number of posts, hours required per post, and the level of security (e.g., armed vs. unarmed, specific threat levels) significantly influence cost. If this contract covers a large number of high-security posts across multiple states, the value might be in line with expectations. Conversely, if it covers fewer posts or lower-security requirements, it could represent higher-than-average spending.

What are the key performance indicators (KPIs) or metrics used to evaluate the effectiveness of the security services provided under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate the effectiveness of the security services. Typically, such contracts would include metrics related to response times, incident reporting accuracy, adherence to post orders, personnel reliability (e.g., background checks, training compliance), and reduction in security incidents. The effectiveness of the services is crucial for ensuring the safety of personnel and assets. Without defined KPIs, it is challenging for the government to objectively measure contractor performance and ensure value for money. Oversight bodies would typically look for evidence of these metrics being tracked and reported.

What is the potential risk associated with the 'LABOR HOURS' contract type for this security service requirement?

The 'LABOR HOURS' (LH) contract type, where the government pays for the direct labor hours expended by the contractor at specified fixed hourly rates, carries inherent risks. For the government, the primary risk is cost overrun, as the total cost is not fixed and depends on the actual hours worked. If the contractor is inefficient or if the scope of work expands without proper controls, costs can escalate beyond initial estimates. To mitigate this, the government must implement strong oversight, closely monitor labor hours, ensure efficient task execution, and have clear definitions of labor categories and rates. The 'br' value provided might relate to an hourly benchmark, but its context is missing.

How does the geographic scope (IA, KS, MO, NE) impact the management and cost-effectiveness of this security contract?

The requirement for armed protective security services across Iowa, Kansas, Missouri, and Nebraska presents both management and cost-effectiveness considerations. Managing a contract spread over four states requires robust logistical planning, potentially multiple local supervisors, and consistent communication channels to ensure uniform service delivery and adherence to standards across diverse locations. From a cost perspective, the geographic dispersion could increase travel time and costs for personnel and management, potentially impacting the overall price. However, consolidating services under one contract might also yield economies of scale compared to multiple smaller, state-specific contracts, provided the contractor can efficiently manage operations across the region.

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 250 N ROCK RD STE 360, WICHITA, KS, 67206

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $32,298,800

Exercised Options: $32,298,800

Current Obligation: $32,298,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQE617D00001

IDV Type: IDC

Timeline