DHS awards $30.1M for Illinois PSO services, with 6 bidders competing for a 5-year contract

Contract Overview

Contract Amount: $30,186,192 ($30.2M)

Contractor: Universal Protection Service, Limited Partnership

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-01

End Date: 2030-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE ILLINOIS STATEWIDE AREA

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60612

State: Illinois Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.2 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE ILLINOIS STATEWIDE AREA Key points: 1. The contract value of $30.1M over five years suggests a moderate annual spend for protective security services. 2. Full and open competition with six bidders indicates a healthy market for these services, potentially driving competitive pricing. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of 1825 days (5 years) provides long-term stability for service delivery. 5. The contract is for security guard services, a critical function for government facilities. 6. The award to Universal Protection Service, Limited Partnership, represents a significant single award for this provider in this category.

Value Assessment

Rating: good

The total award of $30.1M over five years averages to approximately $6M annually. Benchmarking this against similar large-scale protective security contracts across federal agencies suggests this is within a reasonable range, especially considering the statewide coverage in Illinois. The firm fixed-price structure provides cost certainty. Without specific per-unit data (e.g., cost per officer hour), a precise value-for-money assessment is challenging, but the competitive bidding process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six distinct bidders participating. This level of competition is generally considered robust for services of this nature and geographic scope. The presence of multiple bidders suggests that the market is accessible and that the solicitation was structured to attract a reasonable number of qualified vendors, which typically aids in achieving fair market prices.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are likely being used efficiently, as vendors had to offer competitive pricing to win the contract. This reduces the risk of overpayment and promotes a more cost-effective outcome for the government.

Public Impact

The primary beneficiaries are the Department of Homeland Security and potentially other federal agencies operating within Illinois that require protective security services. The contract delivers essential protective security officer (PSO) services across the entire state of Illinois. The geographic impact is statewide, ensuring security coverage across various federal facilities and locations within Illinois. The contract supports jobs for security professionals within the Illinois region, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is satisfactory and future competitions are limited.
Dependence on a single contractor for critical security functions across a large geographic area.
Risk of service degradation if contractor prioritizes cost-cutting over quality over the contract term.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract type provides cost certainty.
Long contract duration (5 years) offers stability in service provision.
Multiple bidders (6) suggest a healthy vendor landscape.

Sector Analysis

The Security Guards and Patrol Services sector is a significant component of the broader security industry, encompassing a wide range of services from physical guarding to electronic surveillance monitoring. Federal spending in this sector is substantial, driven by the need to protect government assets, personnel, and facilities. This contract fits within the established federal procurement landscape for security services, where agencies frequently issue solicitations for uniformed guards and related protective measures. Comparable spending benchmarks would typically involve analyzing annual contract values for similar PSO services across different federal agencies and geographic regions.

Small Business Impact

The data indicates that this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, the direct impact on small business set-asides appears minimal for this specific award. However, the prime contractor, Universal Protection Service, Limited Partnership, may engage small businesses as subcontractors to fulfill aspects of the contract, though this is not detailed in the provided data. The absence of set-asides means larger, established firms were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver services at the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for post-award analysis. Specific Inspector General (IG) jurisdiction would depend on DHS's internal policies and the nature of any potential performance issues or fraud allegations.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Statewide Security Contracts
Uniformed Protective Services
Guard Services Contracts

Risk Flags

Potential for service quality degradation over long contract term.
Reliance on a single vendor for critical statewide security functions.
Market shifts in labor costs or technology could impact value over five years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.2 million to UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP. PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE ILLINOIS STATEWIDE AREA

Who is the contractor on this award?

The obligated recipient is UNIVERSAL PROTECTION SERVICE, LIMITED PARTNERSHIP.

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 $30.2 million.

What is the period of performance?

Start: 2025-12-01. End: 2030-11-30.

What is the historical spending pattern for Protective Security Officer (PSO) services by the Department of Homeland Security (DHS) in Illinois?

Analyzing historical spending for PSO services by DHS in Illinois requires access to detailed federal procurement databases. However, based on the current award of $30.1M over five years (approximately $6M annually), we can infer a consistent need for these services. Federal agencies like DHS typically maintain long-term contracts for security personnel due to the ongoing nature of facility protection. Past awards for similar services in Illinois would likely show a pattern of multi-year, fixed-price contracts, potentially with varying numbers of bidders depending on market conditions and specific service requirements. Without specific historical data, it's difficult to pinpoint exact trends, but the current award suggests a stable and significant investment in security infrastructure within the state.

How does the number of bidders (6) compare to typical competition levels for similar federal security contracts?

A competition level of six bidders for a federal contract of this magnitude ($30.1M) and scope (statewide PSO services) is generally considered healthy and indicative of a competitive market. Many federal solicitations, particularly for specialized services or in niche geographic areas, may receive fewer than five bids. Conversely, highly commoditized services or those with very broad applicability might attract dozens of offers. For security guard services, especially those requiring statewide coverage, six bidders suggests that the solicitation was well-structured to attract qualified vendors and that the market has sufficient capacity to support multiple providers. This level of competition typically provides a strong basis for achieving fair and reasonable pricing.

What are the potential risks associated with a five-year contract for protective security services?

A five-year contract for protective security services, while offering stability, carries several potential risks. Firstly, there's the risk of vendor complacency or degradation of service quality over time, especially if performance monitoring is not rigorous. Secondly, market conditions for labor and security technology can change significantly over five years, potentially making the fixed-price contract less advantageous for the government if costs rise unexpectedly for the contractor, leading to pressure for contract modifications or reduced service levels. Thirdly, if the contractor experiences financial instability or significant operational issues, it could disrupt critical security operations. Finally, a long-term commitment might limit the government's ability to adopt newer, more cost-effective security solutions that emerge during the contract period.

What is the typical cost structure for Protective Security Officer (PSO) services in federal contracts?

The cost structure for PSO services in federal contracts typically revolves around labor costs, which form the largest component. This includes wages, benefits, overtime, and associated payroll taxes for the security officers. Other significant cost drivers include training, uniforms, equipment (radios, access control devices), administrative overhead, insurance, and profit margins. Federal contracts often utilize Firm Fixed Price (FFP) or Cost Plus Fixed Fee (CPFF) structures. FFP, as seen in this DHS contract, sets a ceiling price, incentivizing the contractor to manage costs efficiently. The specific rates are usually negotiated based on prevailing wage laws, market rates for similar services in the geographic area, and the required skill level and security clearances of the officers.

How does the 'Security Guards and Patrol Services' category (NAICS 561612) compare to other federal security-related spending?

The 'Security Guards and Patrol Services' category (NAICS 561612) represents a significant portion of federal spending on physical security personnel. However, it is just one facet of broader federal security expenditures. Other related categories include alarm systems installation and monitoring (NAICS 561621), investigation services (NAICS 561611), security system integration, cybersecurity services, and the procurement of security equipment and technology. While NAICS 561612 focuses on human-provided security presence, spending in other categories addresses technological and intelligence-based security measures. The total federal investment in security is a complex ecosystem involving both personnel and advanced systems to protect national interests.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RFP424QE5000002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 WASHINGTON ST STE 600, CONSHOHOCKEN, PA, 19428

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $198,246,950

Exercised Options: $30,186,192

Current Obligation: $30,186,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000001

IDV Type: IDC

Timeline