DHS awards $5.8M contract for security services in New Mexico, highlighting competition

Contract Overview

Contract Amount: $5,843,606 ($5.8M)

Contractor: Diversified Protection Corp

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES FOR THE STATE OF NEW MEXICO - R7

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87106

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.8 million to DIVERSIFIED PROTECTION CORP for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES FOR THE STATE OF NEW MEXICO - R7 Key points: 1. Contract value appears reasonable given the scope of security services required. 2. Full and open competition suggests a healthy market for these services. 3. Potential for price efficiencies due to competitive bidding. 4. Performance will be key to ensuring effective security outcomes. 5. This contract aligns with DHS's mission to protect national security. 6. The fixed-price nature of the contract shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $5.8 million for one year of security services appears to be within a reasonable range for the state of New Mexico. Benchmarking against similar contracts for armed protective security officers in other states or regions would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the primary financial risk, which can be advantageous for the government if costs are managed effectively. However, without detailed cost breakdowns or comparisons to market rates for specific security personnel and equipment, a definitive assessment of pricing efficiency is challenging.

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 approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and service offerings. The specific number of bidders is not provided, but the method of competition suggests a robust market for security services. This level of competition is generally expected to lead to more favorable pricing and better quality services for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and increases the likelihood of selecting the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its facilities within New Mexico, which will receive enhanced security. The contract delivers essential services including armed protective security officers, contributing to the safety and security of government assets and personnel. The geographic impact is focused on the state of New Mexico. The contract supports jobs for security professionals within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to understaff or cut corners to maximize profit under fixed-price contract.
Reliance on a single contractor for critical security functions could pose a risk if performance degrades.
Ensuring consistent training and vetting of armed guards is crucial.

Positive Signals

Full and open competition suggests a strong market and potential for competitive pricing.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Clear performance standards and delivery orders should ensure service quality.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The market for government security contracts is substantial, driven by the need to protect federal facilities, personnel, and assets. Competition within this sector can be intense, with numerous established providers vying for government work. This contract represents a portion of the overall federal spending on security services, which is often benchmarked against private sector spending for similar services.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, there is no direct analysis of small business set-aside impact. However, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which Diversified Protection Corp utilizes small business subcontractors will determine the indirect impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of Homeland Security. Performance will be monitored through delivery orders and adherence to contract terms. Transparency is facilitated by contract award data being publicly available. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DHS Office of Inspector General typically oversees federal spending to ensure efficiency and prevent fraud, waste, and abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Operations
State and Local Law Enforcement Support Contracts
Security Guard Services

Risk Flags

Contract Performance Risk
Contractor Financial Stability
Service Level Agreement Compliance
Security Clearance Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.8 million to DIVERSIFIED PROTECTION CORP. ARMED PROTECTIVE SECURITY OFFICER SERVICES FOR THE STATE OF NEW MEXICO - R7

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED PROTECTION CORP.

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 $5.8 million.

What is the period of performance?

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

What is the track record of Diversified Protection Corp with federal contracts, particularly with DHS?

Diversified Protection Corp has a history of federal contract awards, though the extent and nature of these contracts with DHS specifically require deeper analysis. Examining past performance evaluations, any contract disputes, or awards for similar services would provide insight into their reliability and capability. A review of their federal contracting history, accessible through databases like SAM.gov or FPDS, would reveal the volume and types of contracts they have held, their performance ratings, and any instances of contract termination or significant issues. This information is crucial for assessing their suitability for this current $5.8 million award.

How does the awarded price compare to similar security contracts in New Mexico or surrounding regions?

To benchmark the value of this $5.8 million contract, a comparative analysis of similar armed protective security officer services in New Mexico and adjacent states is necessary. This would involve examining contract awards for comparable scope, duration, and service levels (e.g., number of posts, hours, required certifications) issued by federal, state, or local agencies. Factors such as prevailing wage rates, cost of living, and local market competition significantly influence pricing. Without this granular comparison, it's difficult to definitively state if the price represents excellent value, fair market value, or is potentially inflated.

What are the key performance indicators (KPIs) for this contract and how will they be measured?

The key performance indicators (KPIs) for this contract are not explicitly detailed in the provided data but are typically outlined in the contract's Performance Work Statement (PWS). For armed protective security services, common KPIs include response times to incidents, adherence to post orders, guard attentiveness and professionalism, successful completion of required training and background checks, and incident reporting accuracy. Measurement methods usually involve regular performance evaluations by the government contracting officer's representative (COR), site inspections, review of incident reports, and potentially electronic monitoring systems. Consistent positive performance against these KPIs is essential for ensuring the effectiveness of the security services provided.

What is the historical spending trend for security services by the Office of Procurement Operations within DHS?

Analyzing the historical spending trends for security services by the DHS Office of Procurement Operations (OPO) would provide context for this $5.8 million award. This involves reviewing OPO's procurement data over the past several fiscal years to identify patterns in contract values, types of services procured, and the contractors utilized. Understanding whether this award represents an increase, decrease, or stable level of spending on security services can indicate shifts in agency priorities, budget allocations, or operational needs. It also helps in assessing if the current award is consistent with past investment in similar protective services.

What are the potential risks associated with relying on a single contractor for armed security services in New Mexico?

Relying on a single contractor, Diversified Protection Corp, for armed security services in New Mexico presents several potential risks. These include service disruption if the contractor faces financial difficulties, labor shortages, or legal challenges. There's also a risk of complacency or reduced service quality over time if competition is not consistently maintained or if oversight is lax. Furthermore, a sole reliance could limit the government's flexibility in adapting to changing security needs or incorporating new technologies. Robust contract management, clear performance expectations, and contingency planning are vital to mitigate these risks.

How does the North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services typically fare in terms of competition and pricing?

The NAICS code 561612, encompassing Security Guards and Patrol Services, generally experiences moderate to high competition, especially for larger federal contracts awarded under full and open competition. This is because numerous companies, ranging from small local firms to large national corporations, operate within this sector. High competition typically drives more competitive pricing as contractors strive to win bids. However, pricing can vary significantly based on the specific requirements, such as the need for armed guards, specialized training, geographic coverage, and 24/7 operations, which can increase costs and potentially limit the number of highly qualified bidders for certain specialized contracts.

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: 109 RIVER LANDING DR STE 300, DANIEL ISLAND, SC, 29492

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,843,606

Exercised Options: $5,843,606

Current Obligation: $5,843,606

Actual Outlays: $5,276,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP421DE7000001

IDV Type: IDC

Timeline