DOJ's $13.1M guard services contract awarded to AKAL SECURITY, INC. for California district

Contract Overview

Contract Amount: $13,099,702 ($13.1M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Justice

Start Date: 2007-10-01

End Date: 2008-09-30

Contract Duration: 365 days

Daily Burn Rate: $35.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: 1580930 - GUARD SERVICES FOR THE CENTRAL DISTRICT OF CALIFORNIA.

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $13.1 million to AKAL SECURITY, INC. for work described as: 1580930 - GUARD SERVICES FOR THE CENTRAL DISTRICT OF CALIFORNIA. Key points: 1. Value for money appears fair given the lack of competition and the nature of guard services. 2. Competition dynamics were limited, with the contract being 'NOT COMPETED'. 3. Risk indicators are moderate, primarily due to the sole-source nature of the award. 4. Performance context is for essential security services for the Central District of California. 5. Sector positioning is within the security and protective services industry.

Value Assessment

Rating: fair

The contract value of $13.1 million for one year of guard services is difficult to benchmark without more detailed service requirements and performance data. Given it was not competed, there's less direct evidence of competitive pricing. However, the base contract value of $35,890 suggests a significant portion of the total award was for options or task orders, which could indicate flexibility or scope changes. Without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly listed as 'NOT COMPETED,' indicating a sole-source award. This means that the U.S. Marshals Service did not solicit offers from multiple potential contractors. The lack of competition limits the government's ability to explore different pricing structures and service approaches that might be offered by a wider pool of vendors. It also suggests that AKAL SECURITY, INC. was likely the only or the most appropriate vendor identified for this specific requirement at the time of award.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price through competitive bidding. While there may be justifications for sole-sourcing, it generally removes the downward pressure on prices that competition provides.

Public Impact

The primary beneficiaries are the U.S. Marshals Service and the Department of Justice, receiving essential security services for the Central District of California. The services delivered include guard and patrol functions, ensuring the safety and security of federal facilities and personnel. The geographic impact is concentrated within the Central District of California. Workforce implications involve the employment of security personnel by AKAL SECURITY, INC. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source awards can indicate potential single points of failure if the contractor underperforms.
Limited transparency into the justification for sole-sourcing could obscure potential inefficiencies.

Positive Signals

Contract awarded to a known entity (AKAL SECURITY, INC.) may imply prior satisfactory performance.
The contract duration (1 year base) allows for periodic reassessment of needs.
Focus on essential guard services suggests a clear and defined requirement.

Sector Analysis

The security and protective services industry is a significant sector within the broader services economy. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. Spending in this area is driven by the need for physical security across various government agencies and facilities. Benchmarking this specific contract's value is challenging without detailed service scope, but federal spending on guard services is substantial, often involving long-term agreements to ensure continuous protection.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of small business subcontracting requirements (sb: false). Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The primary contractor, AKAL SECURITY, INC., is likely a larger entity, and the absence of small business provisions means opportunities for smaller firms within this specific contract are not guaranteed.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is limited due to the sole-source nature of the award; the justification for not competing the contract would be the primary document for understanding the decision-making process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive justification.
Potential for higher costs due to lack of competition.
Limited transparency on the necessity of sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $13.1 million to AKAL SECURITY, INC.. 1580930 - GUARD SERVICES FOR THE CENTRAL DISTRICT OF CALIFORNIA.

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 $13.1 million.

What is the period of performance?

Start: 2007-10-01. End: 2008-09-30.

What is the track record of AKAL SECURITY, INC. with the federal government?

AKAL SECURITY, INC. has a history of federal contracts, primarily providing guard and security services. While this specific contract was sole-sourced, their broader federal contracting history would reveal the volume and types of awards they have received from various agencies. Analyzing past performance reviews, any contract disputes, or awards for similar services can provide insight into their reliability and capability. A review of their federal award data would indicate if they are a frequent provider of security solutions to the government, which could suggest a level of established expertise and capacity. However, the sole-source nature of this particular DOJ contract limits direct comparison to competitively won awards.

How does the cost of this contract compare to similar guard services contracts?

Direct cost comparison is difficult due to the sole-source nature of this award and the lack of detailed service scope. Typically, guard services contracts vary significantly based on the number of guards, hours of coverage, required security clearances, geographic location, and specific security duties (e.g., access control, patrol, response). Without knowing these specifics for the Central District of California contract, comparing it to other contracts is speculative. If AKAL SECURITY, INC. has other similar contracts, those could serve as a benchmark, but the absence of competition here means we cannot assume this represents the best market price. The base value of $35,890 for a 365-day contract is extremely low, suggesting the bulk of the $13.1M was for options or task orders, making a simple per-day or per-guard cost analysis misleading without further data.

What are the primary risks associated with a sole-source award for guard services?

The primary risks associated with a sole-source award for guard services include potential overpayment due to the lack of competitive pricing pressure, reduced incentive for the contractor to innovate or improve efficiency, and a potential lack of vendor diversity. Taxpayers may not be receiving the best value for their money compared to what could be achieved through a competitive bidding process. Furthermore, reliance on a single provider can create risks if that provider experiences financial difficulties, operational failures, or security breaches. The government may also have fewer options if the contractor's performance is unsatisfactory, potentially leading to lengthy and costly contract renegotiations or termination processes.

What is the expected effectiveness of guard services provided under this contract?

The effectiveness of guard services under this contract is contingent on the specific requirements outlined in the statement of work, the qualifications and training of the security personnel provided by AKAL SECURITY, INC., and the oversight exercised by the U.S. Marshals Service. Essential guard services typically aim to deter unauthorized access, monitor premises, respond to incidents, and maintain a secure environment. The contract's duration and value suggest a significant operational requirement. Effectiveness would be measured against performance metrics, such as response times, incident reporting accuracy, and adherence to post orders. Without specific performance data or post-award evaluations, assessing the actual effectiveness is not possible from the award data alone.

How has federal spending on security guard services evolved over time?

Federal spending on security guard services has generally trended upwards over the past two decades, influenced by heightened security concerns following events such as 9/11, increased federal facility construction, and the expansion of government operations. Agencies like the Department of Homeland Security, Department of Defense, and Department of Justice are major consumers of these services. Spending patterns often reflect shifts in threat assessments and budget allocations. While specific data on the evolution of spending for NAICS 561612 is needed for a precise analysis, the overall demand for physical security personnel remains robust, with contracts often being long-term and substantial in value, reflecting the critical nature of these services.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: MS04R0001

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7 INFINITY LOOP, ESPANOLA, NM, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,099,702

Exercised Options: $13,099,702

Current Obligation: $13,099,702

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: DJMS05D0002

IDV Type: IDC

Timeline