DHS awarded $33.2M for security services across four Midwest states, with VENDTECH-SGI LLC as the prime contractor

Contract Overview

Contract Amount: $33,219,253 ($33.2M)

Contractor: Vendtech-Sgi LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-10-11

End Date: 2020-09-30

Contract Duration: 355 days

Daily Burn Rate: $93.6K/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 - FPS REGION 6

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64106

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.2 million to VENDTECH-SGI LLC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF IA, KS, MO AND NE - FPS REGION 6 Key points: 1. The contract value of $33.2 million for security services represents a significant investment in protecting federal facilities. 2. Competition dynamics indicate a full and open approach, suggesting potential for competitive pricing. 3. Performance context is crucial, as the quality of security services directly impacts facility safety and operational continuity. 4. Sector positioning places this contract within the broader security services industry, a critical component of federal infrastructure protection. 5. Risk indicators may include contractor performance history, adherence to security protocols, and the potential for service disruptions.

Value Assessment

Rating: fair

The contract's value of $33.2 million for approximately one year of service appears substantial. Benchmarking against similar contracts for armed protective security officers in the Midwest region is necessary to determine if the pricing is competitive. Without specific details on the number of officers, hours, and geographic coverage, a precise value-for-money assessment is challenging. However, the average monthly cost is approximately $2.77 million, which warrants further scrutiny for efficiency.

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 offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The agency's commitment to open competition suggests an effort to leverage the market effectively.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down costs and potentially leading to more innovative solutions. This approach maximizes the government's ability to secure the best value for its spending.

Public Impact

Federal facilities in Iowa, Kansas, Missouri, and Nebraska benefit from enhanced security measures. The services delivered include armed protective security, safeguarding personnel and government assets. The geographic impact covers multiple states within Federal Protective Service (FPS) Region 6. Workforce implications include employment opportunities for security professionals in the contracted region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality across different locations if not managed effectively.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring adequate training and vetting of armed security personnel is paramount.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract duration provides a period for consistent service delivery and performance evaluation.
The Department of Homeland Security's oversight is expected to ensure adherence to security standards.

Sector Analysis

The security services sector is a vital component of the federal procurement landscape, encompassing a wide range of protective and investigative services. This contract falls under the security guards and patrol services industry, which is characterized by a mix of large corporations and smaller specialized firms. Federal spending in this sector is substantial, driven by the need to protect critical infrastructure, government buildings, and sensitive information. Benchmarks for comparable contracts often consider factors like the level of security required (armed vs. unarmed), geographic scope, and the specific threat environment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary focus was on securing the most capable large-scale provider through open competition. The impact on the small business ecosystem would depend on whether VENDTECH-SGI LLC utilizes small business subcontractors, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security's Federal Protective Service (FPS) and its Office of Procurement Operations. Accountability measures would include performance metrics, site inspections, and adherence to contract terms and conditions. Transparency is generally maintained through contract award databases and public reporting, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services
Facility Security Contracts

Risk Flags

Potential for performance issues due to geographic spread
Reliance on contractor for critical security functions
Need for rigorous personnel vetting and training oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.2 million to VENDTECH-SGI LLC. ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF IA, KS, MO AND NE - FPS REGION 6

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 $33.2 million.

What is the period of performance?

Start: 2019-10-11. End: 2020-09-30.

What is the track record of VENDTECH-SGI LLC in performing similar federal security contracts?

Assessing VENDTECH-SGI LLC's track record requires a review of their past performance on federal contracts, particularly those involving armed protective security services. Information on contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or terminations would be crucial. A history of successful, on-time, and within-budget performance on comparable contracts would indicate a lower risk. Conversely, a pattern of performance issues, such as missed deadlines, inadequate staffing, or security breaches, would raise concerns about their capability to fulfill the current contract effectively. Without specific past performance data, it is difficult to definitively assess their reliability for this $33.2 million award.

How does the awarded price compare to market rates for armed security services in the specified regions?

To compare the awarded price of $33.2 million to market rates, one would need to analyze the specific deliverables: the number of armed officers, the total hours of service, the required skill sets, and the geographic distribution across Iowa, Kansas, Missouri, and Nebraska. Market rates can vary significantly based on local labor costs, the level of threat, and the specific security protocols mandated. Benchmarking would involve researching industry reports, consulting with procurement experts, and examining publicly available data on similar federal or state contracts in those regions. If the average hourly rate or the overall contract cost per officer is significantly higher than comparable services, it could indicate a potential overpayment or a lack of competitive pricing, even under full and open competition.

What are the primary risk indicators associated with this contract, beyond contractor performance?

Beyond contractor performance, primary risk indicators for this contract include the inherent risks associated with providing armed security services, such as the potential for use of force incidents, the need for rigorous background checks and ongoing training for personnel, and the possibility of security breaches. Geographically, managing a contract across four states presents logistical challenges in ensuring consistent service quality and rapid response capabilities. Furthermore, changes in federal security policies or threat assessments could necessitate contract modifications or adjustments, introducing risk. The reliance on a single award for a significant duration also poses a risk if unforeseen circumstances lead to service disruption. Finally, the potential for labor disputes or difficulties in recruiting and retaining qualified armed personnel in specific local markets could impact service continuity.

What is the expected effectiveness of these security services in achieving the Department of Homeland Security's protection goals?

The expected effectiveness of these security services hinges on several factors, including the clarity and adequacy of the performance work statement (PWS), the qualifications and training of the security personnel, and the robustness of the contractor's management and quality control processes. If the PWS accurately reflects the security needs of the facilities in Iowa, Kansas, Missouri, and Nebraska, and if VENDTECH-SGI LLC provides well-trained, vigilant, and professional armed officers who adhere strictly to protocols, the services should be highly effective in deterring threats, responding to incidents, and protecting federal assets and personnel. Regular performance monitoring by DHS, including site visits and incident reviews, will be critical to ensuring and measuring effectiveness throughout the contract period.

How does historical spending on security services by the Department of Homeland Security compare to this contract's value?

To assess historical spending, one would need to examine DHS's budget allocations and actual expenditures on security guard and patrol services over previous fiscal years. This contract, valued at $33.2 million for approximately one year, represents a significant, but not necessarily outlier, expenditure within the broader context of DHS's security operations. DHS, as a large agency responsible for national security and border protection, consistently allocates substantial funds to security services across its various components. Comparing this award to the average annual spending on similar services, or to the total security budget, would provide context. If this contract represents a disproportionately large share of the security services budget or is significantly higher than previous awards for similar scope, it might warrant further investigation into the pricing and necessity.

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: $33,219,253

Exercised Options: $33,219,253

Current Obligation: $33,219,253

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQE617D00001

IDV Type: IDC

Timeline