DHS Awards $22.3M for Armed Security in UT/WY, Competition Method Raises Questions

Contract Overview

Contract Amount: $22,312,772 ($22.3M)

Contractor: Diversified Protection Corp

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2026-06-30

Contract Duration: 455 days

Daily Burn Rate: $49.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER AWARD SECTION 4(A) NON-COVERED CONTRACT: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF UTAH AND WYOMING

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84101

State: Utah Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.3 million to DIVERSIFIED PROTECTION CORP for work described as: TASK ORDER AWARD SECTION 4(A) NON-COVERED CONTRACT: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF UTAH AND WYOMING Key points: 1. Spending on security services is a significant federal expenditure, with this contract contributing to that total. 2. The security services sector is competitive, but the specific contract details warrant further scrutiny. 3. Potential risks include service quality and cost-effectiveness given the contract's nature. 4. This spending falls within the broader 'Professional, Scientific, and Technical Services' sector, specifically security.

Value Assessment

Rating: fair

The award amount of $22.3M over 16 months for armed protective security officer services appears high when compared to typical contracts for similar services. Benchmarking against other federal or state contracts for security personnel in comparable regions is recommended.

Cost Per Unit: $49,039 per year (estimated based on total award and duration)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the lack of specific details on the bidding process and the selected vendor's qualifications makes it difficult to fully assess the effectiveness of this competition in securing the best value.

Taxpayer Impact: Taxpayers are funding a significant contract for essential security services. While competition was utilized, ensuring the price reflects true market value is crucial for responsible stewardship of funds.

Public Impact

Ensures security presence in critical government facilities across Utah and Wyoming. Supports the Department of Homeland Security's mission to protect national interests. Creates jobs within the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics.
Potential for cost overruns if not managed tightly.
Vendor's specific experience not detailed.

Positive Signals

Awarded under full and open competition.
Addresses a clear need for security services.
Long-term contract provides stability.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically security and investigation services. Federal spending in this sector is substantial, driven by national security and facility protection needs. Benchmarks for similar security contracts vary widely based on location, threat level, and service requirements.

Small Business Impact

The data indicates that Diversified Protection Corp, the awardee, is not a small business. There is no explicit mention of small business set-asides or subcontracting goals within the provided information, suggesting limited direct impact on small businesses for this specific award.

Oversight & Accountability

Oversight will be critical to ensure Diversified Protection Corp meets all contractual obligations, maintains service quality, and adheres to security protocols. The Department of Homeland Security's Office of Procurement Operations is responsible for managing this contract, and regular performance reviews are essential.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

High contract value requires diligent oversight.
Lack of detailed service breakdown.
Potential for price not reflecting true market value despite competition.
Vendor's specific qualifications not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.3 million to DIVERSIFIED PROTECTION CORP. TASK ORDER AWARD SECTION 4(A) NON-COVERED CONTRACT: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATES OF UTAH AND WYOMING

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED PROTECTION CORP.

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 $22.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-06-30.

What is the specific breakdown of services required and how does the $22.3M award align with the estimated cost for these services across Utah and Wyoming?

The provided data lacks a detailed breakdown of the specific security services required, such as the number of officers, hours, post orders, and specialized equipment. The $22.3M award is a total figure, and without granular service requirements, it's challenging to definitively assess its alignment with estimated costs. Further analysis would require access to the full contract statement of work to compare against industry cost models for armed security personnel in the specified geographic regions.

Given the full and open competition, what factors led to Diversified Protection Corp being selected, and how does their pricing compare to other potential bidders?

The provided data states 'FULL AND OPEN COMPETITION' but does not detail the evaluation criteria or the number of bids received. To assess the value, we need to know if price was the primary factor or if technical capabilities and past performance played a significant role. Without comparative pricing data from other bidders or a clear understanding of the evaluation process, it's difficult to confirm if the selected price represents the best value for taxpayers.

What are the key performance indicators (KPIs) for this contract, and how will the Department of Homeland Security measure the effectiveness of the armed protective security services?

The provided data does not specify the Key Performance Indicators (KPIs) or the methods for measuring the effectiveness of the security services. Effective oversight requires clearly defined metrics such as response times, incident reporting accuracy, officer conduct, and adherence to post orders. Without this information, assessing the contract's success in achieving its security objectives and ensuring accountability is challenging.

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: 70RFPW25QW8000010

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 109 RIVER LANDING DR STE 300, DANIEL ISLAND, SC, 29492

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,070,953

Exercised Options: $22,312,772

Current Obligation: $22,312,772

Actual Outlays: $7,830,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000004

IDV Type: IDC

Timeline