DHS awards $77M for security services across four Midwest states, with a significant portion allocated to Missouri

Contract Overview

Contract Amount: $77,181,420 ($77.2M)

Contractor: Vendtech-Sgi LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $42.3K/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 $77.2 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 represents a substantial investment in physical security across a multi-state region. 2. The firm-fixed-price structure aims to provide cost certainty for the government. 3. Competition level indicates a potentially robust market for security services. 4. Performance period spans five years, suggesting a long-term need for these services. 5. The contract is not set aside for small businesses, implying larger prime contractors are expected. 6. Geographic scope covers multiple states, requiring significant logistical coordination.

Value Assessment

Rating: good

The contract's total value of $77.2 million over five years averages to approximately $15.4 million annually. Benchmarking this against similar large-scale security contracts is challenging without more specific service details (e.g., number of posts, hours, threat levels). However, the average annual value appears reasonable for providing armed protective security services across four states. The firm-fixed-price contract type helps manage cost overruns, but the ultimate value-for-money depends heavily on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. This approach typically fosters a competitive environment, encouraging bidders to offer competitive pricing and innovative solutions to win the contract. The specific number of bidders is not provided, but the 'full and open' designation implies a broad outreach to the market. This method is generally preferred for maximizing value and ensuring fair access for qualified contractors.

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 cost-effective and capable provider.

Public Impact

Federal facilities and personnel within Iowa, Kansas, Missouri, and Nebraska are protected by these services. The contract ensures the continuity of essential security operations for the Department of Homeland Security. Geographic impact is significant, covering a broad area of the Midwest. Workforce implications include the potential for numerous security personnel employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high turnover in security personnel impacting service consistency.
Ensuring consistent quality of armed guards across a wide geographic area can be challenging.
Dependence on a single prime contractor for critical security functions.

Positive Signals

Long-term contract provides stability for the provider and ensures continuous security coverage.
Firm-fixed-price contract offers budget predictability for the agency.
Full and open competition suggests a competitive market leading to potentially better service offerings.

Sector Analysis

The security services sector is a large and growing market, driven by increasing security needs across government and private industries. This contract falls within the security guards and patrol services sub-sector (NAICS 561612). Government contracts for security services are a significant portion of this market, with agencies like DHS requiring extensive protective measures. The value of this contract is substantial, placing it among larger regional security service awards. Comparable spending benchmarks would depend on the specific scope of services, but multi-state contracts of this duration often run into tens of millions of dollars.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate specific small business subcontracting goals in the provided data. This suggests that the prime contractor, VENDTECH-SGI LLC, is likely a larger entity capable of managing such a broad scope of services. While not directly benefiting small businesses through a set-aside, the prime contractor may still engage small businesses for subcontracting opportunities, though this is not explicitly detailed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Performance monitoring, quality assurance checks, and adherence to service level agreements would be key oversight mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Regional Security Guard Services
Armed Guard Contracts

Risk Flags

Geographic dispersion may complicate oversight and quality control.
Reliance on firm-fixed-price contract requires careful monitoring of service delivery to ensure value.
Potential for high personnel turnover in security roles.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $77.2 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 $77.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

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

Analyzing historical spending for similar security services by DHS in the Midwest requires access to detailed contract databases. However, large-scale, multi-state security contracts are common for federal agencies. Historically, DHS has awarded numerous contracts for protective security services, often with values in the tens of millions of dollars, depending on the geographic scope, duration, and specific requirements (e.g., number of posts, armed vs. unarmed, threat levels). Contracts for armed protective security officers are typically high-value due to personnel costs, training, and equipment. Without specific historical data for this exact region and service type, it's difficult to provide precise figures, but this $77 million award over five years aligns with the scale of significant regional security procurements by federal agencies.

How does the per-unit cost of security personnel under this contract compare to industry benchmarks?

Determining the precise per-unit cost (e.g., hourly rate per guard) is not possible with the provided data, as it lacks details on the number of posts, hours of coverage, specific duties, and required qualifications for the security personnel. However, the total contract value of $77.2 million over 1825 days (5 years) suggests an average annual cost of approximately $15.4 million. If we assume a significant number of posts and hours, the average hourly rate for an armed guard can range widely from $40 to $100+ depending on location, threat level, and required certifications. To perform a true benchmark, one would need to know the total labor hours purchased under the contract and compare that to prevailing wage rates and industry averages for similar armed security services in Iowa, Kansas, Missouri, and Nebraska.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

Key Performance Indicators (KPIs) for a contract like this typically focus on reliability, responsiveness, and effectiveness of the security services provided. Common KPIs include post orders compliance, response times to incidents, guard attendance and punctuality, incident reporting accuracy and timeliness, and adherence to all legal and regulatory requirements. For armed personnel, additional KPIs might relate to firearms proficiency, proper use of force protocols, and successful completion of background checks and ongoing training. The Department of Homeland Security would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs within the contract's Performance Work Statement (PWS) to ensure the contractor meets the required security standards across all covered locations.

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

Information regarding VENDTECH-SGI LLC's specific track record on similar federal security contracts is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from previous government engagements. Federal procurement systems often contain past performance information that agencies use in source selection. Without access to this specific contractor's performance history, it's difficult to definitively assess their reliability and capability for this $77 million contract. However, being awarded a contract of this magnitude by DHS suggests they likely met the agency's pre-qualification and evaluation criteria.

What are the potential risks associated with the geographic dispersion of services across four states?

The primary risks associated with providing security services across Iowa, Kansas, Missouri, and Nebraska stem from logistical challenges and maintaining consistent service quality. These include difficulties in recruiting, training, and retaining qualified personnel across a wide area, ensuring adequate supervision and quality control, managing equipment and supply chains, and responding effectively to incidents in remote locations. Variations in state and local regulations could also add complexity. The contractor must implement robust management systems to ensure uniform adherence to security protocols and performance standards throughout the entire operational region to mitigate these risks.

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: $77,181,420

Exercised Options: $77,181,420

Current Obligation: $77,181,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP421DE6000001

IDV Type: IDC

Timeline