DHS awards $29.6M for security services across four Midwest states, with a focus on Missouri

Contract Overview

Contract Amount: $29,641,008 ($29.6M)

Contractor: Vendtech-Sgi LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2026-01-09

Contract Duration: 465 days

Daily Burn Rate: $63.7K/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 $29.6 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 $29.6 million over approximately 1.5 years indicates a significant investment in physical security. 2. The contract is for armed protective security officer services, a critical function for government facilities. 3. The geographic scope covers Iowa, Kansas, Missouri, and Nebraska, suggesting a need for widespread security coverage. 4. The award was made under full and open competition, implying a robust bidding process. 5. The contract type is Firm Fixed Price, which helps manage cost certainty for the government. 6. The duration of 465 days (approximately 1.5 years) suggests a medium-term operational requirement.

Value Assessment

Rating: good

The contract value of $29.6 million for approximately 1.5 years of armed protective security services appears reasonable given the scope. Benchmarking against similar large-scale security contracts for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns, but the specific per-hour or per-officer rates would be key to a detailed pricing analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive marketplace where contractors strive to offer the most cost-effective solutions.

Public Impact

Federal facilities and personnel within Iowa, Kansas, Missouri, and Nebraska will benefit from enhanced security. The services delivered include armed protective security, ensuring a secure environment for government operations. The geographic impact is concentrated in the Midwest, with specific operations likely in Missouri. The contract supports jobs for armed security officers in the covered states.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if contract scope expands beyond initial requirements.
Ensuring consistent quality of armed personnel across multiple states and potentially numerous sites.
Managing contractor performance and adherence to strict security protocols over the contract duration.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract type provides cost certainty.
Clear geographic scope helps in defining operational requirements and expectations.

Sector Analysis

The security services sector is a significant component of the federal contracting landscape, with agencies like Homeland Security relying heavily on private contractors for physical security. This contract falls within the broader security and protective services industry, which includes guard services, alarm systems, and investigative services. Spending in this sector is driven by the need to protect federal assets, personnel, and sensitive information across various locations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the contract was likely awarded to a larger prime contractor. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity for small business engagement in providing security services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be 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
Midwest Regional Security Contracts
Armed Guard Services Contracts

Risk Flags

Potential for inconsistent service delivery across wide geographic area.
Dependence on a single contractor for critical security functions.
Need for robust government oversight to ensure performance standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.6 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 $29.6 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-01-09.

What is the historical spending pattern for armed protective security officer services by the Department of Homeland Security in the Midwest region?

Analyzing historical spending for armed protective security officer (PSO) services by DHS in the Midwest region is crucial for context. While specific regional historical data for DHS PSOs is not directly provided in this award notice, general trends indicate a consistent and significant federal investment in security services across the nation. Agencies like DHS, responsible for a vast array of facilities and critical infrastructure, often award multi-year, multi-million dollar contracts for PSO services. These contracts are typically competed to ensure value, but the sheer volume of requirements can lead to substantial aggregate spending. Understanding past contract values, durations, and competition levels for similar services in states like Missouri, Iowa, Kansas, and Nebraska would allow for a more robust benchmark against the current $29.6 million award. Without this historical data, it's challenging to definitively assess if this award represents an increase, decrease, or stable level of spending for these specific services in the region.

How does the per-unit cost of this contract compare to similar federal security contracts?

A detailed comparison of the per-unit cost for this $29.6 million contract against similar federal security contracts is difficult without specific line-item data on hourly rates, officer levels, or service hours. The contract is a Firm Fixed Price (FFP) award, which bundles services into a total price. To perform a true per-unit cost analysis, one would need to know the total number of service hours or equivalent units expected over the contract's 465-day duration. Benchmarking would involve comparing these derived rates against other FFP or even Cost-Plus contracts for armed protective security services awarded by DHS or other agencies to similar geographic regions or facility types. Factors such as the level of armament, required certifications, and operational tempo significantly influence per-unit costs. If this contract's implied hourly rate is substantially higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The success of this armed protective security officer (PSO) services contract is typically measured through a set of Key Performance Indicators (KPIs) established within the Performance Work Statement (PWS). While not detailed in the award abstract, common KPIs for such contracts include response times to incidents, adherence to post orders, officer presence and visibility, incident reporting accuracy and timeliness, and overall effectiveness in deterring unauthorized access or activity. Client satisfaction surveys, reduction in security breaches or incidents within the protected areas, and successful completion of required training and background checks for all personnel are also critical metrics. The government's Contracting Officer's Representative (COR) is responsible for monitoring these KPIs and ensuring the contractor meets or exceeds the performance standards outlined in the contract. Failure to meet KPIs can result in contract deficiencies, performance deductions, or even termination.

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

Assessing the track record of VENDTECH-SGI LLC in performing similar federal security contracts is essential for understanding their capability and reliability. Information regarding past performance is typically available through federal procurement databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) or through past performance evaluations submitted during the bidding process. A review of their contract history would reveal the types of security services they have provided, the agencies they have served, the contract values, and importantly, their performance ratings. Positive past performance, particularly on contracts of similar size, scope, and complexity (e.g., armed security, multiple locations), would indicate a lower risk for this new DHS contract. Conversely, a history of performance issues, contract disputes, or negative evaluations would raise concerns about VENDTECH-SGI LLC's ability to successfully execute this requirement.

What are the potential risks associated with relying on a single contractor for security services across multiple states?

Relying on a single contractor, VENDTECH-SGI LLC, for armed protective security officer (PSO) services across Iowa, Kansas, Missouri, and Nebraska presents several potential risks. Firstly, there's a risk of service degradation if the contractor struggles with logistical challenges inherent in managing operations across a wide geographic area, potentially leading to inconsistent service quality or staffing shortages in certain locations. Secondly, a sole contractor may have less incentive to innovate or improve services compared to a market with more active competition. Thirdly, if the contractor experiences significant financial distress or operational failures, it could lead to a sudden disruption of critical security services, requiring the government to rapidly procure replacement services, which is often costly and time-consuming. Finally, a single point of failure increases vulnerability; if the contractor's security clearance or operational capabilities are compromised, it impacts all covered locations simultaneously.

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: $29,641,008

Exercised Options: $29,641,008

Current Obligation: $29,641,008

Actual Outlays: $25,491,060

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP421DE6000001

IDV Type: IDC

Timeline