DHS awards $12.2M for armed protective security services in Michigan, with a high benchmarked per-unit cost

Contract Overview

Contract Amount: $12,199,592 ($12.2M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-01

End Date: 2026-06-30

Contract Duration: 180 days

Daily Burn Rate: $67.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN THE STATE OF MICHIGAN

Place of Performance

Location: BERRIEN SPRINGS, BERRIEN County, MICHIGAN, 49104

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.2 million to TRIPLE CANOPY INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN THE STATE OF MICHIGAN Key points: 1. The contract value of $12.2 million for 180 days of service indicates a significant investment in security. 2. Competition was full and open, suggesting a potentially robust market for these services. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The service period is relatively short, spanning six months, implying a specific, potentially urgent, need. 5. The North American Industry Classification System (NAICS) code 561621 points to specialized security services. 6. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-competed vehicle.

Value Assessment

Rating: questionable

The benchmarked cost per day of $67,776 appears exceptionally high for security services. While specific service levels and threat environments can justify higher costs, this figure warrants further investigation. Comparing this to similar contracts for armed protective security officers in other regions or for different durations is crucial. Without more context on the required personnel, equipment, and operational tempo, it is difficult to definitively assess value for money, but the initial benchmark raises concerns.

Cost Per Unit: $67,776 per day benchmarked cost

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, which can lead to better pricing and service quality. However, the number of bidders is not specified, which would provide further insight into the actual level of competition achieved.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible value through market forces. However, the high benchmarked cost suggests that even with competition, the price achieved may be elevated.

Public Impact

The primary beneficiaries are likely federal agencies operating within Michigan that require physical security for facilities or personnel. The services delivered are armed protective security, ensuring a secure environment and deterring threats. The geographic impact is focused on the state of Michigan. The contract supports the employment of armed security professionals within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High benchmarked cost per day raises concerns about potential overpayment.
Short contract duration may indicate a temporary surge in need or a stop-gap measure, potentially leading to less efficient long-term planning.
Lack of detail on specific security requirements makes it difficult to fully assess the necessity of the high cost.

Positive Signals

Awarded under full and open competition, suggesting a competitive process was utilized.
Firm Fixed Price contract type shifts cost risk to the contractor.
Services are critical for maintaining security of federal assets and personnel.

Sector Analysis

The security services sector is a substantial part of the broader professional, scientific, and technical services industry. This contract falls under security systems services, which includes armed protective services. The market for these services is driven by government and private sector needs for physical security, often influenced by threat levels and regulatory requirements. Comparable spending benchmarks are essential for evaluating the reasonableness of costs in this specialized field.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided in the data. Without this information, it is difficult to assess the impact on the small business ecosystem or whether opportunities were specifically allocated to 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, requiring the contractor to deliver services as specified. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

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

Risk Flags

High benchmarked cost
Limited performance details

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.2 million to TRIPLE CANOPY INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN THE STATE OF MICHIGAN

Who is the contractor on this award?

The obligated recipient is TRIPLE CANOPY INC.

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 $12.2 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-06-30.

What is the specific nature of the security services required under this contract, and how do they justify the high benchmarked daily cost?

The provided data indicates the contract is for 'ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN THE STATE OF MICHIGAN.' The benchmarked cost of $67,776 per day is exceptionally high and suggests a complex or high-threat security environment. This could involve a large number of highly trained and armed personnel, specialized equipment (e.g., vehicles, surveillance technology), 24/7 operations across multiple sites, or services required in a high-risk area. Without a detailed statement of work (SOW) or performance requirements, it is difficult to ascertain the precise factors driving this cost. However, such high figures often correlate with critical infrastructure protection, high-security government facilities, or protection details for sensitive operations where the consequences of failure are severe.

How many bids were received for this contract, and what does this imply about the level of competition?

The data states the contract was awarded under 'FULL AND OPEN COMPETITION.' However, it does not specify the number of bids received. Full and open competition means that all responsible sources were permitted to submit offers. While this mechanism is designed to foster competition, the actual number of bids is a critical indicator of how effectively the market responded. A low number of bids, even under full and open competition, could suggest limited market capacity, high barriers to entry, or that the solicitation was not widely known or attractive to potential offerors. Conversely, a high number of bids would strongly indicate robust competition and potentially better price discovery for the government.

What is the historical spending pattern for armed protective security services by the Department of Homeland Security in Michigan?

The provided data does not include historical spending patterns for this specific contract or for DHS in Michigan. To assess historical spending, one would need to query federal procurement databases (like USASpending.gov or FPDS) for similar contracts awarded by DHS to Triple Canopy Inc. or other contractors for armed protective security services within Michigan over previous fiscal years. Analyzing this data would reveal trends in contract values, durations, and the number of awards, helping to contextualize the current $12.2 million award and its 180-day duration. It would also highlight if this is a recurring need or a new requirement.

What is the track record of Triple Canopy Inc. in providing similar security services to the federal government?

Triple Canopy Inc. has a significant track record of providing security services to the U.S. government, including extensive work in complex and high-risk environments, particularly in support of military and diplomatic missions. They have been awarded numerous contracts for armed protective security, base support, and other security-related services. While their past performance is generally extensive, a thorough assessment would involve reviewing specific contract performance evaluations (e.g., CPARS reports) for this contractor on similar federal contracts. These reports detail the contractor's performance in areas such as quality, timeliness, cost control, and management, providing crucial insights into their reliability and capability.

How does the benchmarked cost per day compare to industry standards for armed protective security officers?

The benchmarked cost of $67,776 per day is exceptionally high when compared to typical industry standards for individual armed protective security officers, which can range from a few hundred to perhaps a couple of thousand dollars per day depending on qualifications, threat level, and location. This benchmark likely represents the total cost for a team of officers, specialized equipment, management, and operational overhead, rather than a per-officer rate. Even so, it suggests a very high level of service or a significant number of personnel are required. A detailed analysis would require comparing this contract's specific requirements (personnel numbers, hours, equipment, operational tempo) against similar large-scale government contracts for armed security services in comparable environments to determine if the cost is justified.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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: 13530 DULLES TECHNOLOGY DR STE 500, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,199,592

Exercised Options: $12,199,592

Current Obligation: $12,199,592

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP419DE5000004

IDV Type: IDC

Timeline