Homeland Security awards $58M for airport security screening in Montana over 5 years

Contract Overview

Contract Amount: $57,993,017 ($58.0M)

Contractor: Aviation Security Management LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-01

End Date: 2024-08-31

Contract Duration: 1,826 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TO FOR SECURITY SCREENING SERVICES AT 8 AIRPORTS IN MONTANA. (BZN, GDV, GGW, GPI, HVR, OLF, SDY, WYS).

Place of Performance

Location: MANHATTAN, GALLATIN County, MONTANA, 59741

State: Montana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $58.0 million to AVIATION SECURITY MANAGEMENT LLC for work described as: TO FOR SECURITY SCREENING SERVICES AT 8 AIRPORTS IN MONTANA. (BZN, GDV, GGW, GPI, HVR, OLF, SDY, WYS). Key points: 1. Contract value represents a significant investment in regional aviation security infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Performance period spans five years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Services are geographically concentrated across eight Montana airports. 6. The contractor, Aviation Security Management LLC, is responsible for delivering these critical services.

Value Assessment

Rating: good

The total contract value of approximately $58 million over five years averages to about $11.6 million annually. This figure needs to be benchmarked against similar contracts for security screening services at comparable-sized airports. Without specific per-airport or per-screening data, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders is better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: A full and open competition, even with two bidders, provides a baseline for fair pricing and ensures that taxpayers are not subjected to potentially inflated costs associated with sole-source or limited competition awards.

Public Impact

Passengers and staff at eight Montana airports benefit from enhanced security screening. The services ensure compliance with federal aviation security regulations. The contract supports the operational continuity and safety of regional air travel. Local economies in the vicinity of the airports may see indirect benefits through employment and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to seek contract modifications if unforeseen operational challenges arise.
Dependence on a single contractor for critical security functions across multiple locations.
Ensuring consistent service quality and adherence to security protocols across all eight airports.

Positive Signals

Firm-fixed-price contract insulates the government from cost overruns.
Long-term contract provides stability and predictability for security operations.
Awarded through full and open competition, suggesting a competitive pricing environment.

Sector Analysis

The aviation security sector is a critical component of national infrastructure, with significant government spending focused on ensuring passenger and cargo safety. This contract falls within the broader security services industry, specifically catering to the unique demands of airport operations. Benchmarking this contract's value would involve comparing it to other TSA contracts for similar services at airports of comparable size and traffic volume, as well as considering the specific security requirements mandated for each location.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside criterion (ss: false, sb: false). Therefore, the primary contractor, Aviation Security Management LLC, is likely responsible for managing subcontracting opportunities. The extent to which small businesses will be involved will depend on the contractor's subcontracting plan and the availability of qualified small business providers for specific security-related tasks or support services within the scope of this contract.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Homeland Security's Transportation Security Administration (TSA). The firm-fixed-price nature of the contract provides a degree of accountability by placing cost control responsibility on the contractor. Performance metrics and service level agreements, typically included in such contracts, will be key to monitoring effectiveness. The TSA's contracting officers and program managers are responsible for ensuring compliance with contract terms and addressing any performance issues.

Related Government Programs

Airport Security Services
Federal Aviation Administration Contracts
Transportation Security Administration Operations
Homeland Security Contracts
Guard and Patrol Services

Risk Flags

Potential for inconsistent service quality across multiple locations.
Dependence on contractor performance for critical national security functions.
Limited competition (two bidders) may impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $58.0 million to AVIATION SECURITY MANAGEMENT LLC. TO FOR SECURITY SCREENING SERVICES AT 8 AIRPORTS IN MONTANA. (BZN, GDV, GGW, GPI, HVR, OLF, SDY, WYS).

Who is the contractor on this award?

The obligated recipient is AVIATION SECURITY MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $58.0 million.

What is the period of performance?

Start: 2019-09-01. End: 2024-08-31.

What is the historical spending pattern for security screening services at these specific Montana airports prior to this contract?

Analyzing historical spending for security screening at these eight Montana airports prior to the current $58 million contract would require access to previous contract awards and task orders issued by the TSA or other relevant agencies. Without specific historical data, it's difficult to establish a baseline for comparison. However, the duration of the current contract (five years) suggests a sustained need for these services. If previous contracts were shorter-term or awarded to different entities, it could indicate shifts in procurement strategy or contractor performance. Understanding past spending levels would help determine if the current award represents an increase, decrease, or stable investment in security screening for these locations.

How does the per-airport cost of this contract compare to national averages for similar security screening services?

To compare the per-airport cost, we first divide the total contract value ($57,993,017) by the contract duration in years (5), yielding an annual cost of approximately $11,598,603. Dividing this annual cost by the number of airports (8) gives an average annual cost per airport of roughly $1,449,825. National averages for airport security screening costs can vary significantly based on airport size, passenger volume, threat levels, and specific services required. Smaller regional airports typically have lower costs than major hubs. Without specific data on passenger throughput and the exact scope of services for these Montana airports, a precise comparison is difficult. However, this average annual cost per airport can serve as a starting point for benchmarking against publicly available data for similar-sized airports or TSA contract awards.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this contract. Typically, contracts of this nature, especially those involving critical security functions, would include stringent SLAs related to screening wait times, equipment functionality, personnel training and certification, incident reporting, and adherence to security protocols. The TSA would monitor these metrics to ensure the contractor, Aviation Security Management LLC, is meeting its obligations. Failure to meet these SLAs could result in penalties, corrective action plans, or even contract termination. The firm-fixed-price nature suggests that meeting these performance standards is crucial for the contractor to achieve profitability.

What is the track record of Aviation Security Management LLC in delivering similar security screening services?

Information regarding the specific track record of Aviation Security Management LLC in delivering similar security screening services is not detailed in the provided data. To assess their performance, one would typically look at past contract performance evaluations (e.g., CPARS reports), any history of contract disputes or terminations, and the successful completion of previous security contracts, particularly with government agencies like the TSA. A positive track record would indicate reliability, efficiency, and adherence to security standards. Conversely, a history of issues could raise concerns about the contractor's ability to meet the requirements of this significant five-year contract across eight airports.

What is the potential impact of this contract on workforce development and employment in the affected Montana regions?

This contract is likely to create or sustain a significant number of jobs related to security screening personnel across the eight Montana airports. The exact number of positions would depend on the operational tempo, screening technology employed, and passenger volume at each location. These roles typically include security screeners, supervisors, and potentially administrative or training staff. The firm-fixed-price nature of the contract incentivizes the contractor to manage its workforce efficiently. The economic impact extends beyond direct employment, potentially benefiting local economies through wages, local procurement of goods and services, and increased confidence in regional air travel safety.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17885 FRALEY BLVD SUITE 201, DUMFRIES, VA, 22026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $65,566,052

Exercised Options: $57,993,017

Current Obligation: $57,993,017

Actual Outlays: $27,348,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0516DSPP902

IDV Type: IDC

Timeline