Armed security services contract awarded to The Whitestone Group for nearly $4 million over two years

Contract Overview

Contract Amount: $3,980,947 ($4.0M)

Contractor: THE Whitestone Group, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2024-11-06

End Date: 2026-11-05

Contract Duration: 729 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 1700 G ST ARMED SECURITY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $4.0 million to THE WHITESTONE GROUP, INC. for work described as: 1700 G ST ARMED SECURITY SERVICES Key points: 1. Value for money appears fair given the specialized nature of armed security services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, primarily related to the need for reliable and vetted personnel. 4. Performance context will be crucial to monitor service quality and adherence to security protocols. 5. Sector positioning places this contract within the broader professional services market for government facilities.

Value Assessment

Rating: fair

The contract's total value of approximately $3.98 million over two years for armed security services is within a reasonable range for this type of specialized support. Benchmarking against similar contracts for armed guards in the Washington D.C. metropolitan area would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the government has a clear understanding of the costs involved, potentially mitigating cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The agency's commitment to open competition suggests a thorough evaluation process.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for public funds. Open competition increases the likelihood of obtaining services at a fair market price, preventing potential overspending.

Public Impact

The Consumer Financial Protection Bureau (CFPB) benefits from enhanced security for its facilities and personnel. Services delivered include armed guard patrols and access control, ensuring a safe working environment. Geographic impact is concentrated in the District of Columbia, where the CFPB's facilities are located. Workforce implications include the employment of security professionals, potentially including veterans and former law enforcement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring consistent vetting and training of armed personnel is critical.
Maintaining high standards of professionalism and vigilance throughout the contract duration.
Potential for service disruptions if contractor personnel turnover is high.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type helps control costs and budget predictability.
Longer contract duration (2 years) allows for stability in security operations.

Sector Analysis

The market for security services, particularly armed guards, is a significant segment of the professional services industry. Government contracts for security are common across various agencies, driven by the need to protect federal assets and personnel. This contract fits within the broader category of facility support services, where competition can be robust, but specialized skills like armed guarding command premium pricing.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight of this contract will likely fall under the purview of the Consumer Financial Protection Bureau's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services

Risk Flags

Potential for high contractor turnover in security roles.
Need for continuous monitoring of guard performance and adherence to protocols.
Ensuring adequate background checks and vetting for armed personnel.

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $4.0 million to THE WHITESTONE GROUP, INC.. 1700 G ST ARMED SECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is THE WHITESTONE GROUP, INC..

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2024-11-06. End: 2026-11-05.

What is the track record of The Whitestone Group, Inc. with federal contracts?

The Whitestone Group, Inc. has a history of securing federal contracts, primarily in the security services domain. Analysis of federal procurement data reveals multiple awards to this contractor across various agencies, often for guard services, security systems, and related protective measures. While specific performance details for each contract are not always public, the consistent award of contracts suggests a demonstrated capability to meet federal requirements. Further investigation into past performance reviews and any reported issues or commendations would provide a more comprehensive understanding of their track record.

How does the awarded price compare to market rates for similar armed security services in the D.C. area?

Without specific details on the number of guards, hours, and specific duties, a precise per-unit cost comparison is challenging. However, the total contract value of nearly $4 million over two years for armed security services at a federal agency in D.C. is generally within the expected range for such specialized and high-stakes services. The D.C. market typically commands higher rates due to cost of living and demand. A detailed analysis would require benchmarking against contracts with similar scope, duration, and service level agreements, considering factors like guard qualifications, post orders, and response requirements.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this armed security services contract include potential lapses in security due to personnel issues (e.g., inadequate training, high turnover, misconduct), failure to respond effectively to incidents, and potential cost overruns if not managed tightly, despite the fixed-price nature. Mitigation strategies typically involve rigorous contractor vetting, clear performance standards and post orders, regular performance evaluations by the agency, and robust communication channels. The firm-fixed-price contract itself is a risk mitigation tool for the government, locking in costs. The agency's oversight and the contractor's internal quality control processes are crucial for managing these risks.

What is the historical spending pattern for security services at the Consumer Financial Protection Bureau?

Historical spending data for security services at the Consumer Financial Protection Bureau (CFPB) would provide context for this nearly $4 million, two-year contract. Analyzing past awards for similar services would reveal trends in contract values, duration, and awarded vendors. If the CFPB has consistently relied on external contractors for armed security, this award might represent a continuation of established practice. Significant deviations from historical spending could warrant further inquiry into the reasons behind the change, such as increased security needs or a shift in procurement strategy.

What are the implications of a firm-fixed-price contract for armed security services?

A firm-fixed-price (FFP) contract for armed security services means the contractor agrees to perform the work for a predetermined price, regardless of the actual costs incurred. This structure places the primary risk of cost overruns on the contractor, which incentivizes them to manage their expenses efficiently. For the government, an FFP contract provides budget certainty and predictability, as the total cost is known upfront. However, it also means the government may not benefit from cost savings if the contractor's actual costs are lower than anticipated. The success of an FFP contract relies heavily on a well-defined scope of work and clear performance requirements to avoid disputes.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $19,701,306

Exercised Options: $7,068,340

Current Obligation: $3,980,947

Actual Outlays: $3,829,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 9531CB25A0002

IDV Type: BPA

Timeline