DHS awards $17.4M for PSO services in Ohio, with Pinnacle Protection Partners securing the contract

Contract Overview

Contract Amount: $17,367,788 ($17.4M)

Contractor: Pinnacle Protection Partners, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-01-01

End Date: 2025-09-30

Contract Duration: 272 days

Daily Burn Rate: $63.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PSO SERVICES THROUGHOUT OHIO

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44119

State: Ohio Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.4 million to PINNACLE PROTECTION PARTNERS, LLC for work described as: PSO SERVICES THROUGHOUT OHIO Key points: 1. Contract value represents a significant investment in security services for the specified region. 2. The procurement method suggests a competitive process, potentially leading to favorable pricing. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract is approximately 9 months, indicating a focused service period. 5. This award falls within the broader category of security and protective services for federal agencies.

Value Assessment

Rating: good

The contract value of $17.4 million for security guard services over a 9-month period appears reasonable when benchmarked against similar large-scale security contracts. The firm-fixed-price structure provides cost certainty. While specific per-unit cost data is not provided, the overall award suggests a competitive bidding process likely yielded a fair market price for the scope of services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially narrowing the field of bidders. The exact reasons for exclusion are not detailed, but it implies a structured competitive process rather than a sole-source award.

Taxpayer Impact: While not fully open, the competition still aimed to solicit offers from multiple qualified vendors, which generally benefits taxpayers by encouraging competitive pricing and service quality.

Public Impact

The primary beneficiaries are federal agencies within Ohio requiring security guard and patrol services. The contract ensures the provision of essential security personnel to protect federal assets and personnel. Geographic impact is concentrated within the state of Ohio. The contract supports jobs within the private security sector, specifically for guards and patrol officers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Lack of detailed performance metrics in the provided data.
Reliance on a single contractor for critical security functions.

Positive Signals

Firm-fixed-price contract reduces financial risk for the government.
Award to a specific LLC suggests a focused and potentially specialized provider.
Contract duration is defined, allowing for periodic re-evaluation of needs.

Sector Analysis

The security and guard services sector is a substantial part of the federal contracting landscape, encompassing a wide range of protective services. This contract for security guards and patrol services fits within the broader professional, scientific, and technical services category. Federal spending in this area is driven by the need to protect government facilities, personnel, and sensitive information across various agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags) was not a specific set-aside requirement for this particular contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Pinnacle Protection Partners, LLC, may engage small businesses as subcontractors, depending on their own procurement practices and the specific needs of the service delivery.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through contract award databases, though specific performance monitoring details are usually internal.

Related Government Programs

Federal Protective Service Contracts
Security Guard Services
Department of Homeland Security Procurement
Law Enforcement Support Services

Risk Flags

Potential for limited competition due to source exclusion.
Need for robust performance monitoring to ensure quality under FFP.
Dependence on contractor's internal quality control for service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.4 million to PINNACLE PROTECTION PARTNERS, LLC. PSO SERVICES THROUGHOUT OHIO

Who is the contractor on this award?

The obligated recipient is PINNACLE PROTECTION PARTNERS, 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 $17.4 million.

What is the period of performance?

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

What is the historical spending pattern of the Department of Homeland Security on security guard services in Ohio?

Analyzing historical spending for DHS security guard services in Ohio requires access to detailed federal procurement databases. Generally, DHS, like other large federal agencies, maintains a consistent need for security personnel across its various facilities and operations nationwide. Spending patterns can fluctuate based on facility needs, threat assessments, and budget allocations. Without specific historical data for Ohio, it's difficult to provide precise figures, but it's reasonable to assume ongoing requirements for such services, with contract values varying based on scope, duration, and competition.

How does the awarded amount compare to the average cost of similar security contracts nationwide?

Benchmarking this $17.4 million contract against national averages for similar security contracts requires detailed analysis of contract scope, service levels, geographic location, and duration. The average cost can vary significantly. However, for a contract covering approximately 9 months and involving potentially numerous security personnel across various locations within Ohio, this value appears within a plausible range for a large federal security services award. Factors like prevailing wage rates, specific security requirements (e.g., armed vs. unarmed guards, specialized equipment), and the competitive landscape in Ohio would influence its relative cost-effectiveness.

What are the specific risks associated with a firm-fixed-price contract for security services?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty. However, for services like security, potential risks include the contractor potentially cutting corners on quality or staffing to maximize profit if the initial price was set too low or if unforeseen operational challenges arise. Conversely, if the price was set too high due to limited competition or inaccurate estimates, taxpayers may overpay. The government's risk is primarily in ensuring the contractor meets all performance requirements despite the fixed price, which necessitates robust performance monitoring and clear contract terms.

What is Pinnacle Protection Partners, LLC's track record with federal contracts, particularly with DHS?

Information regarding Pinnacle Protection Partners, LLC's specific track record with federal contracts, especially with the Department of Homeland Security, would typically be available through federal procurement data systems like SAM.gov or FPDS. A thorough review would involve examining past awards, performance evaluations (if publicly accessible), and any history of contract disputes or modifications. Without direct access to this specific company's detailed federal contract history, it's challenging to assess their performance reliability and experience in delivering similar security services at scale.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the bidding process and potential savings?

This procurement method signifies that the solicitation was intended for all responsible sources to submit an offer, but specific sources were excluded. This exclusion could be due to various reasons, such as prior performance issues, inability to meet specific qualifications, or strategic sourcing decisions. While it aims for competition, the exclusion of certain potential bidders might limit the overall number of offers received, potentially impacting the degree of price competition and the ultimate savings realized by the government compared to a truly unrestricted full and open competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1415 S WASHINGTON AVE, TITUSVILLE, FL, 32780

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,367,788

Exercised Options: $17,367,788

Current Obligation: $17,367,788

Actual Outlays: $13,137,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP424DE5000002

IDV Type: IDC

Timeline