Nearly $49M for security guard services awarded to USEC SERVICE CORPORATION by the Department of Agriculture

Contract Overview

Contract Amount: $48,931,982 ($48.9M)

Contractor: Usec Service Corporation

Awarding Agency: Department of Agriculture

Start Date: 2007-12-14

End Date: 2013-10-27

Contract Duration: 2,144 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $48.9 million to USEC SERVICE CORPORATION for work described as: SECURITY GUARD SERVICES Key points: 1. Contract value of $48.9M over its period of performance suggests a significant need for security services. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a competitive process with specific exclusions. 3. With 11 bidders, the competition level appears robust, potentially leading to favorable pricing. 4. The contract duration of 2144 days (approx. 6 years) indicates a long-term need and commitment. 5. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial for the government if managed effectively. 6. Awarded to USEC SERVICE CORPORATION, their track record and performance on this contract warrant further examination. 7. The service falls under NAICS code 561612, Security Guards and Patrol Services, a common requirement across federal agencies.

Value Assessment

Rating: good

The total contract value of $48.9M over approximately six years averages to about $8.15M annually. Benchmarking this against similar large-scale federal security contracts requires detailed analysis of scope, location, and specific security requirements. However, the presence of 11 bidders suggests a competitive market, which typically drives pricing towards fair market value. The firm-fixed-price structure also implies that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', with 11 bidders participating. This indicates a substantial level of competition, where multiple vendors were given the opportunity to bid. The exclusion of certain sources, if clearly justified and documented, should not significantly hinder price discovery. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: The robust competition suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best price and service. This competitive environment helps ensure the government secures security services at a reasonable cost.

Public Impact

The primary beneficiaries are the Department of Agriculture facilities and personnel requiring security services. The contract delivers essential security guard and patrol services to protect government assets and ensure safety. The geographic impact is concentrated in the District of Columbia, as indicated by the 'ST' and 'SN' fields. The contract supports jobs within the security services industry, contributing to the local workforce in Washington D.C.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for an extended period (approx. 6 years).
The 'exclusion of sources' clause requires scrutiny to ensure it did not unduly limit competition or inflate costs.
Performance monitoring is crucial to ensure the quality and effectiveness of security services over the contract's long duration.

Positive Signals

Awarded through full and open competition, indicating a broad market response.
A significant number of bidders (11) suggests a healthy competitive landscape.
Firm-fixed-price contract type transfers cost risk to the contractor.
Long-term contract provides stability and predictability for security operations.

Sector Analysis

The security services industry is a significant component of the broader professional, scientific, and technical services sector. Federal spending on security guards and patrol services (NAICS 561612) is substantial, driven by the need to protect federal facilities, personnel, and assets across the country. This contract, valued at nearly $49M, represents a considerable portion of spending within this specific sub-sector for the District of Columbia. Comparable contracts would involve other large federal agencies requiring similar security coverage in major metropolitan areas.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'ss' and 'sb' fields are false. This suggests that the primary award was not specifically targeted towards small businesses. However, the prime contractor, USEC SERVICE CORPORATION, may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would be detailed in their subcontracting plan. The absence of set-asides means that larger, established companies likely dominated the bidding process.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Agriculture's Office of the Chief Financial Officer. Performance metrics and service level agreements outlined in the contract would be used to monitor contractor performance. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for security services
Department of Homeland Security (DHS) security contracts
Department of Defense (DoD) security contracts
Other agency-specific security guard contracts

Risk Flags

Potential for price escalation if contract terms do not adequately address inflation over its long duration.
Risk of service degradation if performance monitoring is not rigorous throughout the contract period.
Dependence on a single contractor for critical security functions over an extended timeframe.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $48.9 million to USEC SERVICE CORPORATION. SECURITY GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is USEC SERVICE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $48.9 million.

What is the period of performance?

Start: 2007-12-14. End: 2013-10-27.

What is the historical spending pattern for security guard services by the Department of Agriculture?

Analyzing historical spending for security guard services by the Department of Agriculture requires accessing and aggregating data from sources like the Federal Procurement Data System (FPDS) over multiple fiscal years. This specific contract, valued at $48.9M and spanning from late 2007 to late 2013, represents a significant expenditure during its performance period. To understand the broader pattern, one would need to examine the total annual spending on NAICS code 561612 by the USDA, identify the primary contractors, and observe trends in contract values, competition levels, and contract types. This would reveal whether spending has been consistent, increasing, or decreasing, and if there's a trend towards specific types of security contracts or contractors.

How does the per-unit cost of security services in this contract compare to market rates or similar federal contracts?

Determining a precise per-unit cost benchmark for this contract is challenging without detailed service level agreements and specific task orders. The total value of $48.9M over approximately 2144 days (roughly 6 years) averages to about $8.15M annually. To compare per-unit costs, we would need to know the number of guards, hours worked, specific security measures implemented (e.g., armed vs. unarmed, technology used), and the geographic locations covered. Federal procurement data can be used to find average hourly rates or contract values per guard for similar services in the same region. However, the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award with 11 bidders suggests a competitive pricing environment, which likely pushed the rates towards market efficiency.

What is the track record of USEC SERVICE CORPORATION in performing federal security contracts?

USEC SERVICE CORPORATION's track record on federal contracts, particularly this $48.9M security guard services contract with the Department of Agriculture, is a key indicator of their performance capabilities. A review of their contract history in FPDS would reveal the number and value of previous federal awards, the agencies they've served, and the types of services provided. Performance evaluations (Contractor Performance Assessment Reporting System - CPARS) are crucial for assessing past performance, noting any issues related to quality, timeliness, cost control, and management. Understanding their history with similar-sized contracts and their success in competitive bidding processes provides insight into their reliability and effectiveness as a federal contractor.

What specific risks are associated with a long-duration contract like this (approx. 6 years)?

Long-duration contracts, such as this approximately six-year security guard services agreement, carry several potential risks. Firstly, there's the risk of contractor complacency or a decline in service quality over time, as the immediate pressure of re-competition is distant. Secondly, market conditions, technology, and security threats can evolve significantly over six years, potentially making the contracted services or pricing less optimal compared to current market standards. Thirdly, the government may become locked into a specific solution or vendor, limiting flexibility to adapt to changing needs or adopt more cost-effective alternatives. Robust performance monitoring, clear contract modification clauses, and regular reviews are essential to mitigate these risks.

How effective was the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in achieving value for money?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in achieving value for money hinges on the justification for excluding certain sources and the overall competitiveness. With 11 bidders, the competition itself was robust, which is a positive sign for price discovery. If the exclusions were narrowly defined and based on legitimate technical or security requirements, they might not have significantly hampered competition. However, if the exclusions were broad or poorly justified, they could have limited the pool of potential bidders, potentially leading to higher prices than a truly open competition. A detailed review of the solicitation documents and the rationale for exclusions would be necessary to fully assess the value achieved.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7531 LEESBURG PIKE STE 402, FALLS CHURCH, VA, 22043

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $48,931,982

Exercised Options: $48,931,982

Current Obligation: $48,931,982

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline