DOJ's $14.2M guard services contract with AKAL SECURITY, INC. awarded in 2007, ending in 2010

Contract Overview

Contract Amount: $14,252,260 ($14.3M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Justice

Start Date: 2007-11-29

End Date: 2010-05-12

Contract Duration: 895 days

Daily Burn Rate: $15.9K/day

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: 1584575X CONTRACT GUARD SERVICES

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85212

State: Arizona Government Spending

Plain-Language Summary

Department of Justice obligated $14.3 million to AKAL SECURITY, INC. for work described as: 1584575X CONTRACT GUARD SERVICES Key points: 1. Value for money appears fair given the duration and scope of guard services. 2. Competition dynamics were not fully open, suggesting potential for price optimization. 3. Risk indicators are moderate, with contract duration and specific service needs. 4. Performance context is limited without specific performance metrics. 5. Sector positioning is within government security services, a common area of federal spending.

Value Assessment

Rating: fair

The contract value of $14.2 million over approximately 2.5 years for guard services is within a reasonable range for federal contracts of this nature. Benchmarking against similar guard service contracts would provide a clearer picture of value, but the price per year is approximately $5.7 million. Without detailed service level agreements or performance data, a precise value assessment is challenging. However, the award was made in 2007, and pricing may not reflect current market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is listed as 'unknown,' which prevents a thorough analysis of how the contract was competed. If it was a limited competition, it could mean fewer bidders and potentially higher prices than a full and open competition. The number of bidders is also not specified. A lack of transparency in the competition process can hinder effective price discovery.

Taxpayer Impact: When competition is limited or unknown, taxpayers may not be receiving the best possible price for services rendered, potentially leading to overspending.

Public Impact

The U.S. Marshals Service benefits from the provision of essential security and guard services. These services likely ensure the safety and security of federal facilities and personnel. The geographic impact is concentrated in Arizona, where the contractor is based. Workforce implications include employment for security personnel employed by AKAL SECURITY, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency in competition could lead to suboptimal pricing.
Limited performance data makes it difficult to assess effectiveness and value.
Contract awarded in 2007, pricing may not reflect current market conditions.

Positive Signals

Contract was awarded to a specific company, indicating a selection process occurred.
Services provided are essential for federal operations and security.

Sector Analysis

This contract falls within the broader government services sector, specifically focusing on security and guard services. This is a significant area of federal expenditure, with numerous contracts awarded annually to ensure the safety of personnel and property. The market for these services is competitive, but specific contract types and security clearances can influence the pool of eligible contractors. Benchmarking against other federal guard service contracts would be necessary for a more precise sector comparison.

Small Business Impact

Information regarding small business set-asides or subcontracting is not available for this contract. The contract was not set aside for small businesses, and there is no indication of subcontracting requirements. This means the primary contract was likely awarded to a larger entity, with potential implications for the direct involvement of small businesses in fulfilling the service requirements.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. Typically, federal contracts are subject to oversight by the contracting agency (Department of Justice, U.S. Marshals Service) and potentially the Inspector General's office. Transparency regarding performance reviews, audits, and dispute resolution processes would be necessary to fully assess accountability.

Related Government Programs

Federal Protective Service Contracts
Department of Justice Security Contracts
U.S. Marshals Service Operations Support

Risk Flags

Unknown competition level may impact price.
Lack of detailed performance metrics.
Contract awarded over a decade ago, pricing may be outdated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14.3 million to AKAL SECURITY, INC.. 1584575X CONTRACT GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is AKAL SECURITY, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2007-11-29. End: 2010-05-12.

What was the specific nature of the guard services provided under this contract?

The contract data indicates 'GUARD SERVICES' as the primary service. While specific details are not provided, this typically encompasses a range of security functions such as access control, patrolling, monitoring surveillance systems, and responding to security incidents. For the U.S. Marshals Service, these services could be critical for protecting federal courthouses, detention facilities, personnel, or during transportation of individuals. The contract type 'LABOR HOURS' suggests that payment was based on the time spent by security personnel performing their duties.

How does the total contract value of $14.2 million compare to similar guard service contracts awarded by the federal government during the same period?

Comparing the $14.2 million total contract value requires context regarding the duration and scope. This contract ran from November 2007 to May 2010, approximately 2.5 years. This averages to about $5.7 million per year. Federal guard service contracts can vary widely in price based on the number of personnel, hours, geographic location, and specific security requirements. Without access to a database of comparable contracts from 2007-2010 for similar agencies and service levels, a precise benchmark is difficult. However, for large-scale federal security needs, this value is not exceptionally high but represents a significant investment.

What are the potential risks associated with a contract of this duration and value for guard services?

Risks associated with a contract of this nature include potential cost overruns if labor hours are not managed efficiently, contractor performance issues leading to security lapses, and the possibility of the contract price becoming uncompetitive over its lifespan due to market fluctuations. Given the contract's award date in 2007, there's also a risk that the pricing structure may not reflect current labor costs or security technology advancements. Furthermore, if the competition was limited, there's an inherent risk of reduced price discovery and potentially paying more than necessary.

What does the 'AW' award type 'DO' signify in the context of this contract?

The 'AW' award type 'DO' typically signifies a 'Definitive Contract.' Definitive contracts are used for negotiated procurements and are not subject to the same level of formality as sealed-bid contracts. They are often used when the price is determined through negotiation. This contrasts with other contract types like 'IDV' (Indefinite Delivery Vehicle) or 'BPA' (Blanket Purchase Agreement). The 'DO' designation suggests a standard, negotiated contract for a defined scope of work and price.

What is the significance of the contract ending date (2010-05-12) relative to its start date (2007-11-29)?

The duration of the contract, from November 29, 2007, to May 12, 2010, is approximately 2 years and 6 months. This duration is relatively standard for many federal service contracts, allowing for a period of service delivery and performance evaluation without being excessively long, which could lock the government into potentially outdated pricing or service models. A contract of this length provides stability for the contractor while allowing the agency to reassess its needs and the market periodically. The end date signifies the completion of the contracted services under the original terms.

Contractor Details

Address: 7 INFINITY LOOP, ESPANOLA, NM, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,964,745

Exercised Options: $14,252,260

Current Obligation: $14,252,260

Parent Contract

Parent Award PIID: GS07F0061M

IDV Type: FSS

Timeline