Homeland Security awards $16.9M contract for armed protective security services in Ohio

Contract Overview

Contract Amount: $16,896,972 ($16.9M)

Contractor: Pinnacle Protection Partners, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-01

End Date: 2026-09-30

Contract Duration: 272 days

Daily Burn Rate: $62.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF OHIO

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44119

State: Ohio Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.9 million to PINNACLE PROTECTION PARTNERS, LLC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF OHIO Key points: 1. Contract value represents a significant investment in state-level security infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for security services. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. Contract duration of 272 days indicates a short-term operational need. 5. Focus on armed personnel highlights the critical nature of the security requirements. 6. Geographic focus on Ohio narrows the scope of service delivery.

Value Assessment

Rating: good

The contract value of $16.9 million for approximately nine months of service appears reasonable given the requirement for armed protective security officers. Benchmarking against similar contracts for armed guard services across the US indicates that pricing for this type of specialized security can range significantly based on location, threat level, and specific duties. Without detailed performance metrics or a breakdown of labor hours and rates, a precise value-for-money assessment is challenging, but the fixed-price nature suggests an attempt to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation method suggests that while the intent was open competition, certain sources may have been excluded prior to the final award. The number of bidders is not specified, but the exclusion of sources implies a potentially narrower field than a truly unrestricted full and open competition. This could impact the level of price discovery and potentially lead to higher costs compared to a scenario with maximum bidder participation.

Taxpayer Impact: Taxpayers may not have benefited from the broadest possible competition, potentially leading to a less competitive price than could have been achieved with unrestricted full and open bidding.

Public Impact

Federal facilities and personnel within the state of Ohio will receive enhanced security coverage. The contract ensures the provision of armed protective security services, contributing to national security objectives. The geographic impact is concentrated within the state of Ohio. The contract supports employment opportunities for security professionals in Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted optimal price discovery.
Exclusion of sources prior to award raises questions about the extent of true open competition.
Short contract duration might indicate a temporary need or a precursor to a larger, longer-term requirement.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Award to a specific contractor suggests they met the required qualifications for armed security.
Focus on armed personnel addresses potentially high-risk security needs.

Sector Analysis

The security services sector is a significant component of the broader government contracting landscape. This contract falls under the Security Guards and Patrol Services NAICS code (561612), which encompasses a wide range of physical security provisions. Spending in this sector is driven by the need to protect federal assets, personnel, and sensitive information across various agencies. Comparable contracts often involve significant dollar values, especially when specialized services like armed personnel are required, and competition can vary widely depending on the specific requirements and geographic scope.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made to Pinnacle Protection Partners, LLC. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's subcontracting plan, if one exists. Without specific set-aside provisions, the primary impact on the small business ecosystem would be through potential subcontracting opportunities or competition from larger firms that may engage small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State-Specific Security Guard Contracts
Armed Security Personnel Contracts

Risk Flags

Limited competition may impact value for money.
Contractor performance history requires verification.
Potential for service disruption if contractor fails to meet requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.9 million to PINNACLE PROTECTION PARTNERS, LLC. ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF 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 $16.9 million.

What is the period of performance?

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

What is the track record of Pinnacle Protection Partners, LLC in performing federal contracts, particularly for armed security services?

Pinnacle Protection Partners, LLC has a history of performing federal contracts, though specific details regarding their track record for armed security services require deeper analysis of past performance evaluations and contract completion history. Examining their prior awards, contract values, and any reported performance issues or commendations within federal databases would provide a clearer picture of their capabilities and reliability. Understanding their experience with similar scope and scale contracts, especially those involving armed personnel and fixed-price structures, is crucial for assessing their suitability and the potential risks associated with this award. A review of their past performance on contracts with the Department of Homeland Security or other agencies requiring similar security functions would be particularly relevant.

How does the awarded price compare to market rates for similar armed protective security services in Ohio?

Benchmarking the awarded price of $16.9 million for approximately nine months of armed protective security services in Ohio against market rates requires detailed analysis of labor costs, overhead, profit margins, and specific service requirements. Factors such as the number of posts, hours per post, required certifications for armed personnel, and the specific threat environment in Ohio would influence market pricing. Without access to detailed cost breakdowns or a comprehensive market survey for armed security services in the specific regions of Ohio covered by the contract, a precise comparison is difficult. However, general industry data suggests that armed security services are significantly more expensive than unarmed services due to higher personnel costs, training, and licensing requirements.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential service disruptions due to contractor performance issues, cost overruns if the fixed-price structure does not adequately account for unforeseen operational challenges, and challenges in recruiting and retaining qualified armed security personnel in the Ohio region. Risks also exist regarding the effectiveness of the 'limited competition' approach in securing the best value. Mitigation strategies likely include robust contract oversight by DHS, clear performance standards and metrics outlined in the contract, and contingency planning for service continuity. The fixed-price nature itself acts as a cost mitigation tool for the government, shifting some financial risk to the contractor. However, ensuring the contractor maintains adequate staffing and quality control is paramount.

What is the expected effectiveness of the security services provided under this contract in enhancing federal security in Ohio?

The expected effectiveness of the security services hinges on the contractor's ability to provide highly trained and vigilant armed personnel who can deter threats, respond to incidents, and maintain a secure environment for federal assets and personnel in Ohio. The contract's focus on armed officers suggests a response to identified security vulnerabilities or a need for a strong deterrent presence. The effectiveness will be measured by the contractor's adherence to post orders, response times to incidents, and overall contribution to a secure operational environment, as monitored by DHS officials. Successful execution should lead to a measurable reduction in security incidents and an increase in the perceived safety and security of federal facilities.

How does historical spending on security services by the Department of Homeland Security in Ohio compare to this contract's value?

To assess historical spending patterns, one would need to analyze DHS's contracting data specifically for security guard and patrol services within the state of Ohio over previous fiscal years. This would involve identifying contracts awarded to various vendors for similar services, noting their values, durations, and scopes. Comparing this new $16.9 million contract to historical figures would reveal whether this represents an increase, decrease, or stable level of investment in security services for DHS in Ohio. Understanding trends in spending, such as shifts towards armed versus unarmed services or changes in contract types, would provide valuable context for evaluating the current award's significance and justification.

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: $17,042,962

Exercised Options: $17,042,962

Current Obligation: $16,896,972

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP424DE5000002

IDV Type: IDC

Timeline