The Whitestone Group secures $15.2M contract for security guard services, awarded by the Department of Energy
Contract Overview
Contract Amount: $15,247,976 ($15.2M)
Contractor: THE Whitestone Group, Inc.
Awarding Agency: Department of Energy
Start Date: 2022-04-01
End Date: 2027-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SECURITY GUARD SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $15.2 million to THE WHITESTONE GROUP, INC. for work described as: SECURITY GUARD SERVICES Key points: 1. Contract value of $15.2 million over a 5-year period suggests a significant need for security services. 2. The contract was awarded using full and open competition, indicating a potentially competitive bidding process. 3. The firm fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies. 4. The duration of 1825 days (5 years) allows for consistent service delivery and contractor stability. 5. The contract is for security guards and patrol services, a critical function for federal facilities. 6. Awarded to The Whitestone Group, Inc., their track record with this type of service warrants further examination.
Value Assessment
Rating: good
The contract value of $15.2 million over five years averages to approximately $3.05 million annually. Benchmarking this against similar federal contracts for security guard services requires access to a broader dataset of comparable awards. However, the firm fixed-price nature of the contract suggests that the government has negotiated a set price, which can be advantageous if the contractor manages costs effectively. Without specific per-unit cost data or comparisons to market rates for similar security services in the Washington D.C. area, a definitive value-for-money assessment is challenging, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates there were 4 bids received. A higher number of bidders generally suggests a more robust competition, which can lead to better pricing and service options for the government. The fact that four bids were submitted implies that the market for these services is sufficiently competitive to attract multiple interested parties.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging contractors to offer their best value propositions. This process helps ensure that federal funds are used efficiently by selecting the most cost-effective and capable provider.
Public Impact
The primary beneficiaries are the Department of Energy and the Federal Energy Regulatory Commission, which will receive enhanced security for their facilities. The services delivered include security guards and patrol services, crucial for maintaining safety and order. The geographic impact is concentrated in the District of Columbia, where the services are to be performed. This contract supports jobs within the security services industry, contributing to the local workforce in D.C.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals if competition diminishes.
- Reliance on a single contractor for an extended period could lead to complacency or reduced service quality over time.
- The effectiveness of security services can be difficult to quantify and may vary based on personnel and specific threats.
Positive Signals
- The firm fixed-price contract structure incentivizes the contractor to control costs and deliver services efficiently.
- Awarding through full and open competition suggests a competitive market, likely resulting in favorable pricing.
- The 5-year duration provides service stability and allows for the development of a strong working relationship between the agency and the contractor.
Sector Analysis
The security guard services sector is a significant component of the broader professional, scientific, and technical services industry. Federal spending in this area is driven by the need to protect government assets, personnel, and sensitive information across various agencies. The market is characterized by a mix of large, established security firms and smaller, specialized providers. This contract, valued at $15.2 million over five years, represents a substantial award within this sector, particularly for services concentrated in a major metropolitan area like Washington D.C.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The award to The Whitestone Group, Inc. does not preclude them from utilizing small businesses as subcontractors, but it is not a requirement of this specific contract. The impact on the small business ecosystem would depend on whether the prime contractor chooses to engage small businesses for specialized services or support.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract means that the contractor bears the primary responsibility for cost control. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General jurisdiction is not detailed here, the DOE's Office of Inspector General typically oversees agency spending for waste, fraud, and abuse.
Related Government Programs
- Federal Protective Service Contracts
- Department of Homeland Security Security Services
- General Services Administration Schedules for Security Services
- Department of Defense Security Contracts
Risk Flags
- Performance Risk: Ensuring consistent quality of security personnel over a 5-year period.
- Cost Escalation Risk: Potential for contractor cost increases impacting profitability under a fixed-price contract.
- Contract Modification Complexity: Managing changes to scope or requirements within a fixed-price structure.
Tags
security-services, guard-services, department-of-energy, federal-energy-regulatory-commission, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, contract-value-10m-50m, contract-duration-5-years, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $15.2 million to THE WHITESTONE GROUP, INC.. SECURITY GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is THE WHITESTONE GROUP, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $15.2 million.
What is the period of performance?
Start: 2022-04-01. End: 2027-03-31.
What is the historical spending pattern for security guard services by the Federal Energy Regulatory Commission?
Analyzing historical spending for security guard services by the Federal Energy Regulatory Commission (FERC) requires access to detailed procurement data over multiple fiscal years. Without this specific historical data, it's difficult to establish a precise spending trend. However, federal agencies typically maintain consistent needs for security services, especially for facilities housing critical infrastructure or sensitive information. If FERC has experienced stable operational requirements and facility footprints, one might expect relatively consistent annual spending on security, barring significant changes in threat levels or agency policy. The current $15.2 million, 5-year contract (averaging $3.04 million annually) provides a benchmark for recent spending. Further analysis would involve comparing this to previous contract awards for similar services to identify any significant increases, decreases, or shifts in procurement strategy.
How does the per-unit cost of security personnel under this contract compare to industry benchmarks?
Determining the precise per-unit cost of security personnel under this contract is challenging without specific details on the number of guards, hours worked, and their respective pay grades or roles. The contract is a firm fixed-price award, meaning the total cost is set, and the contractor manages the labor expenses. To benchmark per-unit costs, one would need to compare the average hourly rate or monthly cost per guard against market data for similar security services in the Washington D.C. metropolitan area. Industry reports and salary surveys for security professionals can provide a basis for comparison. Given the competitive bidding process (4 offers), it is likely that the pricing is within a reasonable range for the market. However, a definitive comparison requires more granular data on the labor inputs and service levels expected under the contract.
What is The Whitestone Group, Inc.'s track record in providing security services to federal agencies?
The Whitestone Group, Inc. has a history of providing security services, including to federal agencies. To assess their track record thoroughly, one would need to examine past performance evaluations, any documented instances of contract disputes or awards, and the scope and value of previous federal contracts they have held. Information available through federal procurement databases (like SAM.gov or FPDS) can shed light on their past performance ratings and the types of services they have delivered. A positive performance history with similar federal contracts, particularly those involving security guard services and patrol functions, would indicate a lower risk associated with this current award. Conversely, any significant past performance issues would raise concerns about their ability to meet the requirements of this new Department of Energy contract.
What are the potential risks associated with a 5-year firm fixed-price contract for security services?
A significant risk with a 5-year firm fixed-price contract for security services is the potential for the contractor's costs to increase over the contract period due to factors like inflation, rising labor costs, or unexpected operational challenges, while the contract price remains fixed. This could incentivize the contractor to cut corners on service quality, staffing levels, or training to maintain profitability, potentially impacting the effectiveness of the security provided. Another risk is the 'contractor lock-in' effect; if the contractor underperforms but is difficult to replace mid-contract, the agency may be stuck with subpar services. Furthermore, if the scope of work changes significantly, the fixed-price nature can make modifications costly or complex. The agency must have robust performance monitoring in place to mitigate these risks.
How does the competition level (4 bidders) impact the value received by the government for this security contract?
A competition level of four bidders for this security contract is generally considered healthy and suggests that the government likely received competitive pricing and a range of service options. With multiple interested parties, contractors are motivated to submit their most competitive offers to win the award. This level of competition helps ensure that the government is not overpaying for the services and that the selected contractor is capable and offers good value. It reduces the risk of a sole-source or limited-competition scenario where prices might be higher due to a lack of market pressure. The presence of four bidders indicates that the market is sufficiently robust to support multiple providers, which is beneficial for price discovery and overall value for the taxpayer.
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: 89603022Q0001
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6422 E MAIN ST STE 101, REYNOLDSBURG, OH, 43068
Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $15,247,976
Exercised Options: $15,247,976
Current Obligation: $15,247,976
Actual Outlays: $10,990,519
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS07F9142S
IDV Type: FSS
Timeline
Start Date: 2022-04-01
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-03-26
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