DHS awards $36.1M for security services across four Midwest states, with VENDTECH-SGI LLC as the prime contractor

Contract Overview

Contract Amount: $36,165,710 ($36.2M)

Contractor: Vendtech-Sgi LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $99.4K/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 $36.2 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. Contract value of $36.1 million over one year indicates significant investment in security infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract is for security guard and patrol services, a critical function for government facilities. 4. Performance period from October 2024 to September 2025 aligns with typical annual security needs. 5. The geographic scope covers Iowa, Kansas, Missouri, and Nebraska, requiring broad operational reach. 6. The contract type is Firm Fixed Price, which transfers cost overrun risk to the contractor.

Value Assessment

Rating: good

The contract value of $36.1 million for one year of security services appears reasonable given the broad geographic coverage across four states and the nature of armed protective services. Benchmarking against similar large-scale security contracts for federal agencies would provide a more precise value-for-money assessment. The Firm Fixed Price (FFP) contract type is generally favorable for the government as it caps costs, assuming the initial price was set competitively.

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 method typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive price, preventing potential overspending that could occur with less competitive procurement methods.

Public Impact

Federal facilities and personnel within Iowa, Kansas, Missouri, and Nebraska will receive enhanced security coverage. The services provided are armed protective security, crucial for maintaining safety and order. The contract supports the Department of Homeland Security's mission to secure the nation. Employment opportunities for security professionals in the Midwest region are likely generated by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues given the scale and geographic spread of services.
Ensuring consistent quality of armed personnel across multiple states requires robust oversight.
Risk of price creep if contract modifications are frequent or substantial.

Positive Signals

Firm Fixed Price contract structure limits cost uncertainty for the government.
Full and open competition suggests a competitive pricing environment was established.
The contract duration of one year allows for annual review and potential re-competition.

Sector Analysis

The security services sector is a significant component of the federal procurement landscape, encompassing a wide range of protective and monitoring functions. This contract falls within the Security Guards and Patrol Services industry, which is characterized by a mix of large established firms and smaller specialized providers. Federal spending in this area is driven by the need to protect critical infrastructure, government buildings, and personnel, often requiring specialized security clearances and capabilities, including armed personnel.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses likely dominated the bidding process. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem. Future solicitations could benefit from including specific subcontracting goals to ensure small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price structure, which penalizes contractor cost overruns. Transparency is facilitated by the contract's award under full and open competition, with the award details being publicly available. 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 Contracts
Security Services for Federal Buildings

Risk Flags

Geographic dispersion may complicate oversight and rapid response.
Ensuring consistent quality of armed personnel across multiple states.
Potential for contractor to face challenges in recruiting and retaining qualified personnel in all service areas.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.2 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 $36.2 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending pattern for similar security services by the Department of Homeland Security?

Analyzing historical spending by DHS for security guard and patrol services reveals a consistent demand for these critical functions. In recent fiscal years, DHS has allocated substantial budgets towards securing its vast array of facilities and personnel across the nation. This often involves multiple contracts, some awarded through full and open competition and others through set-asides, depending on the scope and value. For instance, prior awards for similar services have ranged from multi-million dollar regional contracts to smaller, site-specific agreements. The trend generally shows an increasing reliance on contracted security personnel, reflecting evolving security threats and the need for specialized expertise. Understanding these patterns helps contextualize the current $36.1 million award as part of a larger, ongoing federal commitment to security.

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

Determining the precise per-unit cost for this contract is challenging without knowing the exact number of personnel, hours, and specific roles (e.g., armed vs. unarmed, supervisory vs. field). However, federal contracts for armed protective security officers (PSOs) typically fall within a range influenced by geographic location, required security clearances, and the level of threat. For a contract of this magnitude covering four states, the average hourly rate for an armed PSO could range from $40 to $70 or more, depending on prevailing wages, benefits, and overhead. The Firm Fixed Price nature of this award means VENDTECH-SGI LLC absorbed these costs. A detailed analysis would require comparing the total contract value against the estimated labor hours and rates to see if it aligns with or deviates significantly from established benchmarks for similar federal contracts in the Midwest region.

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

VENDTECH-SGI LLC's track record in performing similar federal contracts is a key indicator of their capability to execute this $36.1 million security services award. A review of past performance would involve examining their history with federal agencies, particularly the Department of Homeland Security (DHS) or other entities requiring protective security services. Key aspects to assess include on-time delivery, quality of service, adherence to contract terms, and any history of disputes, claims, or performance deficiencies. Federal procurement systems often include past performance evaluations as a significant factor in award decisions. Without specific data on VENDTECH-SGI LLC's prior federal contracts, it's difficult to definitively assess their reliability, but the award suggests they met the government's criteria during the selection process.

What are the potential risks associated with the geographic scope of this contract?

The primary risk associated with the broad geographic scope of this contract—covering Iowa, Kansas, Missouri, and Nebraska—is the logistical complexity and the challenge of maintaining consistent service quality across diverse locations. VENDTECH-SGI LLC must establish and manage operations, including recruitment, training, and deployment of personnel, across potentially large distances and varied operational environments. This can increase administrative overhead and the potential for communication breakdowns. Ensuring uniform adherence to security protocols, performance standards, and reporting requirements across all sites requires robust management systems and potentially higher operational costs, which are factored into the Firm Fixed Price. The government's risk lies in potential inconsistencies in service delivery or difficulties in rapid response across the expansive area.

How does the 'Full and Open Competition' designation impact the government's ability to manage contractor performance?

The 'Full and Open Competition' designation primarily impacts the government's ability to secure competitive pricing and a wide range of potential solutions during the initial award phase. It doesn't directly dictate how contractor performance is managed post-award. However, a competitive award process often means the government selects a contractor based on a balance of price and technical merit, including past performance. This selection process, theoretically, should lead to choosing a capable vendor. Post-award performance management relies on the contracting officer's representative (COR) and the contract's terms and conditions, including service level agreements, reporting requirements, and inspection clauses. The government retains the right to enforce these terms, regardless of the competition method used for award.

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: $36,165,710

Exercised Options: $36,165,710

Current Obligation: $36,165,710

Actual Outlays: $31,590,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP421DE6000001

IDV Type: IDC

Timeline