Agriculture Department's $67M Security Contract Awarded to American Eagle Protective Services Corp

Contract Overview

Contract Amount: $67,296,195 ($67.3M)

Contractor: American Eagle Protective Services Corp

Awarding Agency: Department of Agriculture

Start Date: 2013-07-25

End Date: 2019-04-27

Contract Duration: 2,102 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CL::IGF

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 $67.3 million to AMERICAN EAGLE PROTECTIVE SERVICES CORP for work described as: IGF::CL::IGF Key points: 1. The contract, valued at $67.3 million, was awarded to American Eagle Protective Services Corp. for security guard services. 2. Awarded under full and open competition, the contract saw 7 bids, suggesting a competitive marketplace for these services. 3. The contract duration was 2102 days, indicating a long-term need for security services. 4. The contract was a definitive contract type, often used for complex or long-term requirements. 5. The primary service provided falls under NAICS code 561612, Security Guards and Patrol Services. 6. The contract was awarded to a single vendor, American Eagle Protective Services Corp. 7. The contract was not set aside for small businesses, nor did it include specific subcontracting goals.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this contract is challenging without specific performance metrics or detailed cost breakdowns. The total award amount of $67.3 million over approximately 5.7 years suggests an average annual spend of roughly $11.8 million. This figure needs to be compared against the scope of services, number of personnel, and geographic coverage to assess if it represents a fair price. Without comparable contract data for similar security services within the Department of Agriculture or other federal agencies, a definitive value assessment is difficult. The contract type (labor hours) can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, certain sources were initially excluded before the final award. Seven bids were received, which suggests a healthy level of interest and competition for this type of service. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of this procurement, with seven bids, is beneficial for taxpayers as it likely drove down the final contract price compared to a sole-source award. This competition helps ensure that taxpayer funds are used more efficiently for essential security services.

Public Impact

The primary beneficiaries are the Department of Agriculture facilities and personnel who receive security guard services. The services delivered include the provision of security guards and patrol services to protect government property and personnel. The contract's geographic impact is centered in the District of Columbia, as indicated by the 'ST' and 'SN' fields. The contract supports jobs within the private security sector, contributing to the workforce in the Washington D.C. area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type warrants further investigation into the rationale for excluding specific bidders.
The definitive contract type, while suitable for long-term needs, requires diligent oversight to manage scope and prevent cost creep.
Lack of specific small business subcontracting goals may limit opportunities for smaller firms in the security sector.
The contract's duration of over 5 years necessitates ongoing performance monitoring to ensure continued value and service quality.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
Received a significant number of bids (7), suggesting robust market interest and competition.
The contract addresses a clear need for security services within the Department of Agriculture.
The vendor, American Eagle Protective Services Corp., was selected through a competitive process.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal spending on security guards and patrol services is substantial, driven by the need to protect government assets and personnel across numerous agencies and locations. This contract fits within the segment of government contracting focused on physical security and protective services. Comparable spending benchmarks would involve analyzing other large federal contracts for similar security guard services, considering factors like hourly rates, number of guards, and specific security requirements.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific requirements for small business subcontracting. This means that opportunities for small businesses to directly participate in this contract are limited to subcontracting roles, if any are offered by the prime contractor. The absence of set-aside provisions or subcontracting goals suggests that the primary focus was on securing the most competitive offer from the broader market, potentially overlooking opportunities to bolster the small business ecosystem in this sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers responsible for security services. Accountability measures would be embedded in the contract's performance standards and delivery requirements. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Federal Protective Service Contracts
Department of Agriculture Security Operations
Physical Security Services Contracts
Government Security Guard Contracts

Risk Flags

Competition Type Ambiguity
Lack of Performance Benchmarks
Limited Small Business Impact

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $67.3 million to AMERICAN EAGLE PROTECTIVE SERVICES CORP. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is AMERICAN EAGLE PROTECTIVE SERVICES CORP.

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 $67.3 million.

What is the period of performance?

Start: 2013-07-25. End: 2019-04-27.

What was the specific rationale for excluding certain sources in the 'full and open competition after exclusion of sources' award type?

The contract's award type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates that while the competition was intended to be broad, specific potential offerors were identified and excluded prior to the final solicitation or evaluation. The precise reasons for these exclusions are not detailed in the provided data but typically stem from factors such as past performance issues, failure to meet pre-qualification criteria, or specific agency requirements that certain vendors could not satisfy. Understanding these exclusions is crucial for a complete picture of the competition's integrity and fairness. Without further documentation from the agency, the specific justification remains unknown, but it implies a deliberate vetting process before the main competitive phase.

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

Directly comparing the awarded price to market rates for similar security guard services in the Washington D.C. area is challenging without granular data on the specific services rendered, the number of personnel deployed, their skill levels, and the exact hours worked. The total contract value of $67.3 million over approximately 5.7 years averages to about $11.8 million annually. This figure encompasses all aspects of the security service. To perform a robust comparison, one would need to analyze prevailing wage rates, overhead costs, and profit margins for security firms operating in that specific geographic region and benchmark the contract's effective hourly rates against these market indicators. Publicly available data often lacks the specificity needed for a precise comparison.

What were the key performance indicators (KPIs) used to evaluate American Eagle Protective Services Corp.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate American Eagle Protective Services Corp.'s performance. Federal contracts typically include performance standards related to response times, guard attentiveness, incident reporting accuracy, adherence to post orders, and overall professionalism. The agency's contracting officer and relevant program managers would be responsible for monitoring these KPIs throughout the contract's life. Performance evaluations would likely be documented in contract performance reports, which are not included in this dataset. A thorough assessment would require access to these performance records and any associated award or incentive fees, or penalties.

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

Historical spending patterns for security guard services within the Department of Agriculture (USDA) are not detailed in the provided data. To establish such a pattern, one would need to analyze USDA's contracting data over several fiscal years, identifying all contracts awarded for security guard and patrol services (NAICS 561612). This analysis would reveal trends in total spending, average contract values, the number of contracts awarded, and the primary contractors utilized. Understanding this history would provide context for the $67.3 million awarded to American Eagle Protective Services Corp., indicating whether this represents an increase, decrease, or stable level of spending for these services within the agency.

Were there any specific risks identified during the procurement process, and how were they mitigated?

The provided data does not explicitly detail specific risks identified during the procurement process for this contract or the mitigation strategies employed. However, common risks in large service contracts include contractor performance failures, cost overruns, security breaches, and inadequate service delivery. The 'exclusion of sources' clause might suggest that certain risks associated with specific vendors were identified and addressed prior to the main competition. The use of a definitive contract type implies a need for careful management to mitigate risks related to scope creep and cost control. A comprehensive risk assessment would typically be documented in the contract file.

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

Solicitation ID: AG-3143-S-13-0017

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7700 CHEVY CHASE DR STE 230, AUSTIN, TX, 78752

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

Financial Breakdown

Contract Ceiling: $67,296,195

Exercised Options: $67,296,195

Current Obligation: $67,296,195

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline