HHS awards $29M NIOSH security guard services contract to Bering Global Solutions, LLC

Contract Overview

Contract Amount: $29,086,415 ($29.1M)

Contractor: Bering Global Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-06-01

End Date: 2024-11-30

Contract Duration: 2,009 days

Daily Burn Rate: $14.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NIOSH SECURITY GUARD SERVICES

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15236

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.1 million to BERING GLOBAL SOLUTIONS, LLC for work described as: NIOSH SECURITY GUARD SERVICES Key points: 1. Contract awarded as a definitive contract with a firm fixed price. 2. Services are categorized under 'Other Scientific and Technical Consulting Services'. 3. The contract duration spans over 5 years, from June 2019 to November 2024. 4. The contract was not competed, raising questions about potential price discovery. 5. The base contract value is $14.48M, with potential for growth. 6. The contract is managed by the Centers for Disease Control and Prevention (CDC).

Value Assessment

Rating: fair

The contract's base value of $14.48M over five years suggests an average annual cost of approximately $2.89M for security guard services. Without specific details on the number of guards, hours, or locations, a direct value-for-money assessment is challenging. However, the 'Other Scientific and Technical Consulting Services' NAICS code might indicate a broader scope than just physical security, potentially including consulting or technical support related to security operations. Benchmarking against similar security contracts would require more granular data on service levels and geographic coverage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for avoiding full and open competition. The lack of competition limits the government's ability to solicit and evaluate multiple offers, potentially leading to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these services due to the absence of competitive bidding. The government missed an opportunity to leverage market forces to drive down costs and ensure optimal value.

Public Impact

The primary beneficiaries are the National Institute for Occupational Safety and Health (NIOSH) facilities, ensuring secure operations. Services delivered include the provision of security guard personnel to protect government property and personnel. The contract has a geographic impact primarily within Pennsylvania, where the services are rendered. Workforce implications include the direct employment of security guards by Bering Global Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award raises concerns about justification and transparency.
Potential for less innovation or service improvement without competitive pressure.

Positive Signals

Definitive contract provides a framework for ongoing service delivery.
Firm fixed price contract offers cost certainty for the government.
Long-term contract (over 5 years) allows for stable security operations.

Sector Analysis

The security services market is a significant sector within government contracting. This contract falls under the broader category of professional services, specifically security and protective services. While the NAICS code suggests 'Other Scientific and Technical Consulting Services,' the description points to physical security guard services. The federal government is a major consumer of such services across various agencies, with spending often influenced by security needs, facility types, and threat levels. Benchmarking this contract's value against the overall federal spending on security guards would require aggregating data from similar contracts across different agencies.

Small Business Impact

This contract was awarded to Bering Global Solutions, LLC, and there is no indication of a small business set-aside. Furthermore, the data does not specify any subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors, are not explicitly facilitated by the contract's structure as presented.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Centers for Disease Control and Prevention (CDC) program officials. As a definitive contract, it allows for task orders or modifications, each subject to oversight. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts for Security

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency on service scope and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.1 million to BERING GLOBAL SOLUTIONS, LLC. NIOSH SECURITY GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is BERING GLOBAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $29.1 million.

What is the period of performance?

Start: 2019-06-01. End: 2024-11-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is capable of providing the required services, or in cases of urgent and compelling need where competition is not feasible. Without further documentation from the agency (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it is impossible to ascertain the precise rationale. This lack of transparency can be a concern for ensuring fair and efficient use of taxpayer funds.

How does the annual cost of this contract compare to industry benchmarks for similar security guard services?

The contract's base value is $14,478,000, and it spans from June 1, 2019, to November 30, 2024, a period of approximately 5.4 years. This results in an average annual base cost of roughly $2.68 million. However, a direct comparison to industry benchmarks is difficult without knowing the exact scope of services, number of personnel, hours of coverage, and specific locations. Security guard costs vary significantly based on these factors, as well as the level of training and security clearance required. General industry estimates for security guard services can range widely, but for a federal facility of significant size, this annual figure might be within a reasonable range, though the lack of competition prevents a definitive value assessment.

What are the potential risks associated with a sole-source security contract of this duration?

A primary risk of a sole-source contract is the potential for reduced price competition, which could lead to the government paying more than necessary. Without the pressure of competing bids, the contractor may have less incentive to offer the most cost-effective solutions or to innovate service delivery. Another risk is vendor lock-in, where the government becomes dependent on a single provider, making it difficult to switch even if performance or pricing becomes unsatisfactory. Furthermore, the lack of a competitive process can sometimes mask inefficiencies or a lack of robust performance management if oversight is not rigorous. For a long-term contract, these risks are amplified over the duration of the agreement.

What is the track record of Bering Global Solutions, LLC in providing federal security services?

Information regarding the specific track record of Bering Global Solutions, LLC in providing federal security services is not detailed in the provided data snippet. To assess their track record, one would need to examine past performance evaluations, contract history with federal agencies, and any reported issues or successes on previous security contracts. A thorough review would involve looking at contract databases, agency performance reports (if publicly available), and potentially news archives or industry reviews. Without this external data, it's impossible to comment on their specific capabilities or reliability in this domain.

What is the total spending on NIOSH security guard services over the past five years, including this contract?

The provided data focuses on a single contract for NIOSH security guard services awarded to Bering Global Solutions, LLC, with a base value of $14,478,000 and an estimated total value that could be higher. This contract began in June 2019 and extends to November 2024. To determine the total spending over the past five years, one would need to aggregate data from all active security guard service contracts for NIOSH during that period. This would involve querying federal procurement databases for all relevant contracts, their award dates, and their total obligated amounts or final payment amounts. The provided data only represents a portion of the potential total spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D30119R67896

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C STREET, SUITE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,086,415

Exercised Options: $29,086,415

Current Obligation: $29,086,415

Actual Outlays: $17,683,206

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $865,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline