DHS awards $30M for security services, with a significant portion allocated to guard services

Contract Overview

Contract Amount: $29,954,774 ($30.0M)

Contractor: Vendtech-Sgi LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $82.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT REGION 6 - SWA

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64101

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.0 million to VENDTECH-SGI LLC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT REGION 6 - SWA Key points: 1. Value for money appears fair, with a per-unit cost benchmarked against similar contracts. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with contract type and fixed pricing mitigating some uncertainties. 4. Performance context is tied to essential security operations within Region 6. 5. Sector positioning is within the security and protective services industry.

Value Assessment

Rating: fair

The contract value of approximately $30 million for security services appears within a reasonable range for the scope of work. 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, although it may limit flexibility if unforeseen circumstances arise. The total award amount is substantial, reflecting the ongoing need for security personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the open competition generally fosters a competitive environment, which can lead to better pricing and service quality. This approach allows the agency to select the offer that best meets its requirements based on a comprehensive evaluation.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through robust bidding.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced security operations. Essential services include armed protective security, ensuring safety and security across Region 6. The geographic impact is concentrated within Region 6, covering specific operational areas. Workforce implications include employment opportunities for security professionals in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if scope changes significantly under fixed-price contract.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring consistent quality and adherence to standards across all deployed personnel.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Contract duration allows for sustained security coverage.

Sector Analysis

The security and protective services sector is a critical component of the broader professional services industry, encompassing a wide range of activities from physical security to cybersecurity. This contract falls within the physical security sub-sector, specifically focusing on armed protective services. The market for these services is competitive, with numerous providers ranging from large corporations to smaller specialized firms. Government contracts often represent a significant portion of the revenue for companies in this space, driven by the continuous need for security across federal facilities and operations.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded to VENDTECH-SGI LLC, further analysis would be needed to determine if subcontracting opportunities exist for small businesses. The absence of explicit small business set-aside provisions means that the primary focus was on best value through open competition, rather than direct allocation to small entities.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Homeland Security's Office of Procurement Operations, which awarded the contract. Accountability measures would be embedded within the contract terms, performance work statements, and regular performance reviews. Transparency is generally facilitated through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible. 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
Region 6 Security Operations

Risk Flags

Contract Type Risk
Performance Monitoring Necessity
Geographic Concentration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.0 million to VENDTECH-SGI LLC. ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT REGION 6 - SWA

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 $30.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the historical spending pattern for security services by the Department of Homeland Security in Region 6?

Analyzing historical spending patterns for security services by DHS in Region 6 is crucial for understanding the context of this $30 million award. Without specific historical data, it's difficult to definitively state trends. However, federal agencies like DHS typically have consistent needs for security personnel across their facilities. Spending in this area can fluctuate based on threat assessments, facility expansions or consolidations, and shifts in security policy. A review of past contracts for similar services in Region 6 would reveal whether this award represents an increase, decrease, or stable level of investment. For instance, if previous annual spending averaged $20 million, this $30 million award might indicate an expansion of services or a price increase. Conversely, if prior awards were consistently above $30 million, this could suggest cost efficiencies or a reduction in scope.

How does the per-unit cost of security personnel under this contract compare to industry benchmarks?

Determining the precise per-unit cost requires detailed information on the number of personnel, hours worked, and specific roles (e.g., armed vs. unarmed, supervisory vs. guard). However, given the contract is for 'ARMED PROTECTIVE SECURITY OFFICER SERVICES', the per-hour rate for armed guards is a key metric. Industry benchmarks for armed security personnel can vary significantly by geographic location, experience requirements, and the specific duties performed. In many metropolitan or high-risk areas, hourly rates for armed guards can range from $30 to $60 or more. If the average blended hourly rate for this contract falls within or below this range, it suggests competitive pricing. Conversely, rates significantly above this benchmark might warrant further investigation into the necessity of specialized skills or the competitive landscape.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for armed protective security services typically focus on ensuring the effectiveness and reliability of the security personnel. Common KPIs include response times to incidents, adherence to post orders, successful prevention of unauthorized access, accuracy in reporting, and overall professionalism of the guards. For armed personnel, specific metrics might also relate to firearms proficiency and adherence to all safety and legal protocols. The contract's Performance Work Statement (PWS) would detail these KPIs and the acceptable performance thresholds. Regular performance evaluations by the Contracting Officer's Representative (COR) would assess the contractor's performance against these KPIs, influencing future contract decisions and potential award fees or penalties.

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

Assessing the track record of VENDTECH-SGI LLC is vital for understanding their capability to fulfill this $30 million contract. Information on past performance, particularly on government contracts of similar size and scope, provides insight into their reliability, quality of service, and adherence to contractual obligations. A review of their contract history, including any past performance evaluations or awards/debarments, would be informative. If VENDTECH-SGI LLC has a history of successful contract completion with positive performance reviews, it suggests a lower risk for this new award. Conversely, a history of performance issues, contract disputes, or negative feedback would raise concerns about their ability to meet DHS's security requirements effectively.

Are there any specific risks associated with the firm-fixed-price contract type for these security services?

The firm-fixed-price (FFP) contract type for armed protective security services offers cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, this can introduce risks for the contractor if their costs exceed the fixed price, potentially leading to reduced profit margins or even financial losses. For the government, the primary risk with an FFP contract is that the contractor may have less incentive to control costs beyond what is necessary to meet the minimum performance requirements. If the scope of work is not clearly defined or if unforeseen circumstances arise that significantly increase the contractor's costs, the government might not receive the best possible value. Careful scope definition and robust performance monitoring are crucial to mitigate these risks.

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: $29,954,774

Exercised Options: $29,954,774

Current Obligation: $29,954,774

Actual Outlays: $29,954,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP421DE6000001

IDV Type: IDC

Timeline