DHS awards $11M+ for airport security screening, with potential for significant future growth

Contract Overview

Contract Amount: $11,062,666 ($11.1M)

Contractor: Defense Consulting Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-01

End Date: 2026-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: Transportation

Official Description: COMPREHENSIVE SECURITY SCREENING SERVICES AT PORTSMOUTH INTERNATIONAL AIRPORT AT PEASE (PSM) IN SUPPORT OF THE TRANSPORTATION SECURITY ADMINISTRATION (TSA), SCREENING PARTNERSHIP PROGRAM (SPP)

Place of Performance

Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.1 million to DEFENSE CONSULTING SERVICES LLC for work described as: COMPREHENSIVE SECURITY SCREENING SERVICES AT PORTSMOUTH INTERNATIONAL AIRPORT AT PEASE (PSM) IN SUPPORT OF THE TRANSPORTATION SECURITY ADMINISTRATION (TSA), SCREENING PARTNERSHIP PROGRAM (SPP) Key points: 1. Contract value indicates a substantial need for security screening services. 2. The fixed-price award fee structure incentivizes performance while managing costs. 3. Competition level suggests a potentially robust market for these services. 4. The contract duration points to a long-term commitment by the TSA. 5. Geographic focus on Portsmouth International Airport highlights specific operational needs. 6. The awardee's specialization in defense consulting services is relevant to security operations.

Value Assessment

Rating: good

The contract's total value of over $11 million for a five-year period suggests a competitive pricing environment. Benchmarking against similar TSA screening contracts would provide a clearer picture of value for money. The fixed-price award fee structure aims to balance cost control with performance incentives, which is a common and generally effective approach for service contracts. Without specific per-unit cost data or detailed performance metrics, a definitive value assessment is challenging, but the scale of the award implies a reasonable market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, certain sources were excluded. This suggests a specific reason for exclusion, possibly related to security clearances, specialized capabilities, or prior performance issues with other potential bidders. The presence of three bidders implies some level of competition, but the exclusion of sources may have limited the overall pool and potentially impacted price discovery.

Taxpayer Impact: The limited competition, even after an initial exclusion of sources, could mean that taxpayers did not benefit from the lowest possible price that might have been achieved with broader participation. However, the exclusion might have been necessary to ensure the selection of a highly qualified and secure provider.

Public Impact

Travelers at Portsmouth International Airport (PSM) benefit from enhanced security screening. The Transportation Security Administration (TSA) receives essential screening partnership program services. The contract supports security operations within New Hampshire. The contract likely supports a workforce of security screeners and administrative staff. The screening partnership program aims to improve efficiency and effectiveness in airport security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion impacting price.
Reliance on a single contractor for critical security functions could pose a risk if performance degrades.
The fixed-price award fee structure requires careful monitoring to ensure contractor meets performance targets.

Positive Signals

Long-term contract duration provides stability for service delivery.
The awardee's specialization in defense consulting may indicate strong security expertise.
The screening partnership program is designed to leverage private sector efficiencies.

Sector Analysis

The airport security screening market is a critical component of the broader transportation and homeland security sectors. This contract falls under security and investigation services, specifically within the realm of airport screening. The TSA's Screening Partnership Program (SPP) aims to allow private entities to conduct security screening, potentially leading to cost savings and improved service. The market size for airport security services is substantial, driven by regulatory requirements and the need for continuous vigilance.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the nature of the services and the potential for specialized security needs, it is possible that larger firms dominate this space. Further analysis would be needed to determine if small businesses have opportunities to participate as subcontractors or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). Mechanisms likely include performance reviews, audits, and adherence to contractual terms and conditions. The fixed-price award fee structure implies performance metrics that are monitored and evaluated. Transparency would be facilitated through contract award databases and potentially public reporting on program effectiveness, though specific operational details may be sensitive.

Related Government Programs

Transportation Security Administration Contracts
Airport Security Services
Federal Security Guard Services
Homeland Security Contracts
Screening Partnership Program

Risk Flags

Limited competition due to source exclusion.
Potential for performance issues if award fee targets are not met.
Dependence on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.1 million to DEFENSE CONSULTING SERVICES LLC. COMPREHENSIVE SECURITY SCREENING SERVICES AT PORTSMOUTH INTERNATIONAL AIRPORT AT PEASE (PSM) IN SUPPORT OF THE TRANSPORTATION SECURITY ADMINISTRATION (TSA), SCREENING PARTNERSHIP PROGRAM (SPP)

Who is the contractor on this award?

The obligated recipient is DEFENSE CONSULTING SERVICES 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 $11.1 million.

What is the period of performance?

Start: 2021-08-01. End: 2026-07-31.

What is the track record of DEFENSE CONSULTING SERVICES LLC in performing similar federal contracts, particularly with the TSA?

DEFENSE CONSULTING SERVICES LLC has been awarded this contract for comprehensive security screening services. While the provided data indicates this is a significant award, a deeper dive into the company's past performance is crucial. This would involve reviewing their history with federal agencies, specifically the TSA, to assess their reliability, quality of service, and adherence to contractual obligations on previous projects. Examining past contract awards, performance evaluations (if publicly available), and any history of disputes or corrective actions would provide a comprehensive understanding of their capabilities and suitability for this critical role. Without this historical context, it's difficult to fully gauge their reliability beyond the current award.

How does the pricing structure of this contract compare to other TSA screening contracts, and what does it indicate about value for money?

This contract utilizes a Fixed Price Award Fee (FPAF) structure, which combines a fixed price for base services with an award fee based on performance. This structure aims to incentivize high performance while providing cost certainty. To assess value for money, this contract's per-unit costs (e.g., cost per passenger screened, cost per hour of screening) would need to be benchmarked against similar contracts awarded by the TSA at other airports, especially those of comparable size and traffic volume. The 'limited' competition level, stemming from 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' might suggest that the pricing is not as competitive as it could be under truly open competition. However, if DEFENSE CONSULTING SERVICES LLC consistently meets or exceeds performance targets, the FPAF could still represent good value by ensuring effective security.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for this security screening contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type presents a nuanced risk profile. The primary risk is that excluding certain potential bidders, even if justified, inherently limits the competitive pool. This can lead to higher prices for taxpayers than might be achieved in a truly open competition where all qualified vendors could participate. Furthermore, the reasons for exclusion are critical; if they relate to security concerns or past performance issues with specific companies, then excluding them might be a necessary risk mitigation strategy. However, if the exclusions were based on less critical factors, it could stifle innovation and lead to a less optimal selection. The TSA must have had a compelling justification for these exclusions to ensure the integrity and effectiveness of the security screening process.

What is the expected impact of this contract on the efficiency and effectiveness of security screening at Portsmouth International Airport?

This contract is expected to enhance the efficiency and effectiveness of security screening at Portsmouth International Airport (PSM) through the TSA's Screening Partnership Program (SPP). The SPP aims to leverage private sector expertise and operational models to potentially streamline screening processes, reduce wait times, and improve the passenger experience, while maintaining or exceeding TSA security standards. The fixed-price award fee structure incentivizes the contractor, DEFENSE CONSULTING SERVICES LLC, to achieve specific performance metrics related to efficiency (e.g., throughput, adherence to schedule) and effectiveness (e.g., detection rates, compliance). The long duration of the contract (five years) suggests a commitment to sustained operational improvements and a stable security posture at the airport.

How does the five-year duration of this contract influence the overall cost and strategic planning for airport security at PSM?

The five-year duration (August 1, 2021, to July 31, 2026) of this contract provides significant strategic advantages and cost implications. For the TSA and Portsmouth International Airport, it offers stability and predictability in security operations, allowing for long-term planning and resource allocation. This extended period enables the contractor, DEFENSE CONSULTING SERVICES LLC, to invest in training, technology, and process improvements, potentially leading to greater efficiencies and cost savings over time compared to shorter-term, ad-hoc contracts. While the total award value is over $11 million, the five-year span means the average annual spending is approximately $2.2 million. This predictable expenditure allows for better budget management and reduces the administrative burden associated with frequent re-competitions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T05021R5900N004

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 615 ROLLING GROVE, SAN ANTONIO, TX, 78253

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,121,516

Exercised Options: $11,062,666

Current Obligation: $11,062,666

Actual Outlays: $6,967,110

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T05021D5900N003

IDV Type: IDC

Timeline