DHS Awards $39.2M for Armed PSO Services Across Four Midwest States to Vendtech-SGI LLC

Contract Overview

Contract Amount: $39,180,011 ($39.2M)

Contractor: Vendtech-Sgi LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $107.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATES OF IOWA, KANSAS, MISSOURI, AND NEBRASKA

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64101

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.2 million to VENDTECH-SGI LLC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATES OF IOWA, KANSAS, MISSOURI, AND NEBRASKA Key points: 1. The contract covers armed protective security officer services in Iowa, Kansas, Missouri, and Nebraska. 2. Vendtech-SGI LLC secured the award through full and open competition. 3. The total award value is $39.2 million over a one-year period. 4. The North American Industry Classification System (NAICS) code is 561612, indicating Security Guards and Patrol Services.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, which provides cost certainty. The award value of $39.2 million for one year of PSO services appears reasonable given the geographic scope and nature of the services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, promoting competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value services at competitive prices.

Public Impact

Ensures security for federal facilities and personnel in four Midwest states. Supports critical infrastructure protection through armed security services. Provides employment opportunities within the security services sector. The contract's duration of one year allows for periodic re-evaluation of needs and market conditions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years if not re-competed effectively.
Dependence on a single contractor for critical security functions.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract type provides budget predictability.
Clear geographic scope and service requirements.

Sector Analysis

The security services sector is competitive, with numerous providers offering guard and patrol services. Benchmarks for similar contracts can vary significantly based on location, service level, and specific requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded through full and open competition, suggesting large businesses were likely the primary bidders.

Oversight & Accountability

The Department of Homeland Security's Office of Procurement Operations managed this award. Standard oversight procedures for delivery orders would apply, focusing on performance and adherence to contract terms.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Contract awarded through full and open competition.
Firm-fixed-price contract type.
Clear definition of services and geographic area.
One-year duration allows for market re-evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.2 million to VENDTECH-SGI LLC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATES OF IOWA, KANSAS, MISSOURI, AND NEBRASKA

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 $39.2 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is the benchmark cost for armed protective security officers in the specified Midwest region?

Determining a precise benchmark requires detailed analysis of regional labor costs, specific security threat levels, required officer qualifications (e.g., certifications, experience), and the exact scope of services (e.g., hours per day, post types). However, industry reports and government data for similar services in the Midwest can provide a range. The reported award value of $39.2 million for 364 days suggests an average daily cost of approximately $107,600, or roughly $295 per day per officer if assuming 24/7 coverage by multiple posts, which needs further breakdown by specific post requirements to assess true value.

What are the primary risks associated with relying on a single contractor for armed security services?

Key risks include potential service disruptions if the contractor faces financial instability, labor disputes, or fails to maintain adequate staffing levels. There's also a risk of complacency or reduced vigilance over time due to lack of competitive pressure. Furthermore, a sole contractor might have less incentive to innovate or improve service quality. The government must maintain robust performance monitoring and contingency plans to mitigate these risks.

How effectively does the firm-fixed-price contract type manage cost overruns for these security services?

The firm-fixed-price (FFP) contract type is designed to shift cost risk to the contractor, providing the government with cost certainty. For services like PSO, where labor is the primary cost driver, FFP is generally effective in controlling expenditures, as the contractor is obligated to perform the work for the agreed-upon price. However, it requires clearly defined requirements upfront; significant scope changes could necessitate contract modifications, potentially impacting the fixed price.

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: 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: $39,180,011

Exercised Options: $39,180,011

Current Obligation: $39,180,011

Actual Outlays: $39,180,011

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP421DE6000001

IDV Type: IDC

Timeline