DHS awards $15.5M for Indiana security services, with a significant per-unit cost

Contract Overview

Contract Amount: $15,545,621 ($15.5M)

Contractor: Simmons & Golden Security LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $42.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF INDIANA

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46204

State: Indiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.5 million to SIMMONS & GOLDEN SECURITY LLC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF INDIANA Key points: 1. The contract value of $15.5 million for security services over approximately one year represents a substantial investment. 2. Competition was full and open, suggesting a potentially competitive bidding process that could drive value. 3. The fixed-price contract type shifts performance risk to the contractor, which can be beneficial for the government. 4. The contract is for security guard services, a critical function for agency operations. 5. The geographic focus is Indiana, indicating a localized service requirement. 6. The contractor, Simmons & Golden Security LLC, will be responsible for delivering these services.

Value Assessment

Rating: fair

The total award of $15.5 million for approximately one year of security services appears high when considering the benchmarked per-unit cost. While direct comparisons are difficult without knowing the exact scope and number of personnel, the calculated per-unit cost is significantly above the market average for similar services. This suggests potential overpricing or a scope that justifies the higher cost, which requires further investigation.

Cost Per Unit: $42,708 per unit (estimated annual cost per guard, based on 364 days and 1 guard)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates a broad solicitation, the 'after exclusion of sources' phrasing suggests that specific sources may have been initially excluded before the full and open competition was initiated. The number of bidders is not specified, but the full and open nature generally promotes price discovery and allows for a wider range of potential contractors to compete.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering all qualified sources.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) facilities and personnel within Indiana, who will receive enhanced security. The services delivered include armed protective security, ensuring a secure environment. The geographic impact is statewide within Indiana, covering all required DHS locations in the state. The contract supports jobs within the security services sector in Indiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The per-unit cost appears high compared to industry benchmarks, raising questions about value for money.
The 'after exclusion of sources' clause in the competition type warrants further examination to understand any potential limitations on competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The contract duration of approximately one year may lead to recurring contract management overhead and potential for price increases in subsequent years.

Positive Signals

The use of a firm-fixed-price contract shifts cost-overrun risk to the contractor.
Full and open competition, even with exclusions, generally aims to achieve competitive pricing.
The contract is for essential protective security services, addressing a critical government need.
The contractor is responsible for providing armed personnel, indicating a higher level of security provision.

Sector Analysis

The security services sector is a significant part of the federal contracting landscape, with agencies like DHS relying heavily on private security firms to protect facilities and personnel. This contract falls within the broader 'Security Guards and Patrol Services' industry. Federal spending in this sector is driven by national security needs, facility protection, and the increasing reliance on outsourced services. Benchmarking this contract's value requires comparison against other federal and state contracts for similar armed protective services, considering factors like geographic location, security clearance requirements, and service hours.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the competition was open to all qualified offerors, regardless of size. While there is no explicit small business set-aside, the prime contractor, Simmons & Golden Security LLC, may still engage small businesses as subcontractors. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem remains uncertain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Office of Procurement Operations is listed as the servicing agency. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services as specified. Transparency is generally facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Statewide Security Contracts
Armed Guard Services Contracts
Security Services for Government Facilities

Risk Flags

High Per-Unit Cost
Potential Competition Limitation
Contractor Performance History Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.5 million to SIMMONS & GOLDEN SECURITY LLC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF INDIANA

Who is the contractor on this award?

The obligated recipient is SIMMONS & GOLDEN SECURITY 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 $15.5 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of Simmons & Golden Security LLC in performing federal contracts, particularly for similar security services?

Information regarding the specific track record of Simmons & Golden Security LLC in performing federal contracts, especially for armed protective security services, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations on federal contracts, including any awards, past performance questionnaires, and any documented issues or successes. Examining their history with the Department of Homeland Security or other agencies would provide crucial insights into their reliability, quality of service, and ability to manage complex security operations. Without this historical data, it is difficult to definitively assess their capability to meet the requirements of this new contract.

How does the per-unit cost of $42,708 compare to similar federal contracts for armed protective security officers in Indiana or the Midwest region?

The per-unit cost of $42,708, estimated as an annual cost per guard, appears to be on the higher end when benchmarked against typical federal contracts for armed protective security officers. While exact comparisons are challenging due to variations in service requirements, hours, security clearances, and geographic locations, average annual costs for armed guards in similar regions often fall within the $30,000 to $40,000 range. Factors that could justify a higher cost include specialized training, specific equipment requirements, 24/7 coverage at multiple high-risk locations, or unique environmental challenges within Indiana. A detailed analysis of comparable contracts, considering these variables, would be necessary to definitively determine if this rate represents excellent value, is fair, or is potentially inflated.

What are the specific risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential cost overruns if the firm-fixed-price model is not managed effectively by the contractor, performance failures leading to security breaches, and contractor personnel issues such as high turnover or inadequate vetting. Mitigation strategies are primarily embedded in the contract terms: the firm-fixed-price structure places financial risk on the contractor. The Department of Homeland Security will likely employ robust contract surveillance, performance monitoring, and regular reporting requirements to ensure compliance. Clear performance standards and penalties for non-performance, along with the potential for contract termination, also serve as risk mitigation tools. The 'after exclusion of sources' aspect of the competition could also introduce a risk if it inadvertently limited the pool of highly qualified, competitive bidders.

What is the expected effectiveness of the armed protective security services in enhancing the security posture of DHS facilities in Indiana?

The expected effectiveness of these armed protective security services hinges on several factors, including the quality of the personnel provided by Simmons & Golden Security LLC, the precise deployment strategy across DHS facilities in Indiana, and the integration of these services with existing security protocols. Armed guards are intended to deter threats, respond to incidents, and provide a visible security presence. Their effectiveness is maximized when they are well-trained, properly equipped, and strategically positioned in areas of highest risk. The contract's success will be measured by its ability to prevent security incidents, ensure timely response to emergencies, and maintain a secure environment for DHS operations and personnel throughout the state. Regular performance reviews and feedback will be crucial for ensuring ongoing effectiveness.

How does the total spending of $15.5 million for this contract compare to historical DHS spending on security services in Indiana?

Without specific historical spending data for DHS security services in Indiana, a direct comparison is not possible. However, $15.5 million for approximately one year of armed protective security services across an entire state represents a significant allocation. To contextualize this, one would need to analyze DHS's budget for security services in Indiana over previous years, looking at the number of facilities covered, the scope of services, and the contract vehicles used. If previous contracts were smaller in scope, shorter in duration, or utilized different service models (e.g., unarmed guards, different security technologies), then this award could represent an increase in spending due to expanded needs, inflation, or a shift towards more robust security measures. Conversely, if historical spending was higher for similar coverage, this award might indicate cost savings or a reduction in service scope.

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

Solicitation ID: 70RFP424RE5000001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1230 ELSBORN RIDGE RD, MARYVILLE, TN, 37801

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,657,069

Exercised Options: $16,657,069

Current Obligation: $15,545,621

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP424DE5000001

IDV Type: IDC

Timeline