DOT's $73M Armed Guard Services Contract with Onpoint Consulting Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $72,889,329 ($72.9M)
Contractor: Onpoint Consulting, Inc.
Awarding Agency: Department of Transportation
Start Date: 2004-10-01
End Date: 2011-03-31
Contract Duration: 2,372 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED GUARD SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590
Plain-Language Summary
Department of Transportation obligated $72.9 million to ONPOINT CONSULTING, INC. for work described as: ARMED GUARD SERVICES Key points: 1. Significant spending of $72.9M on armed guard services over 7 years. 2. Competition method 'Full and Open Competition After Exclusion of Sources' raises questions about true market reach. 3. Contract awarded to Onpoint Consulting, Inc. for security guards and patrol services. 4. High duration of 2372 days (approx. 6.5 years) suggests long-term reliance. 5. Fixed price contract type aims for cost certainty.
Value Assessment
Rating: questionable
The contract's total value of $72.9M over 6.5 years is substantial for armed guard services. Benchmarking per-unit costs against similar government contracts for security personnel is difficult without more granular data, but the overall expenditure warrants a closer look at efficiency and necessity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' is unusual and suggests that potential bidders were limited, potentially impacting price discovery and overall value. This method warrants further investigation to understand why sources were excluded.
Taxpayer Impact: The significant expenditure on a potentially limited competition raises concerns about whether taxpayers received the best possible value for these essential security services.
Public Impact
Taxpayers funded nearly $73 million for armed guard services over a 7-year period. The contract's duration and value indicate a long-term, significant reliance on a single provider for security. Questions arise about the effectiveness and necessity of such extensive armed guard services for the Department of Transportation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Long contract duration
- High total expenditure
Positive Signals
- Firm fixed price contract type
Sector Analysis
The Department of Transportation's spending on security services, specifically armed guards, falls under general administrative and operational support. Benchmarks for this sector can vary widely based on location, threat levels, and specific service requirements, making direct comparisons challenging without more context.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if opportunities were missed for small business participation in providing these security services.
Oversight & Accountability
The contract's long duration and the specific competition method suggest a need for robust oversight to ensure continued necessity, fair pricing, and adherence to security standards throughout its term.
Related Government Programs
- Security Guards and Patrol Services
- Department of Transportation Contracting
- Immediate Office of the Secretary of Transportation Programs
Risk Flags
- Limited competition raises value concerns.
- High total contract value over a long period.
- Lack of clear justification for excluding sources.
- Potential for uncompetitive pricing.
- No indication of small business participation.
Tags
security-guards-and-patrol-services, department-of-transportation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $72.9 million to ONPOINT CONSULTING, INC.. ARMED GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is ONPOINT CONSULTING, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).
What is the total obligated amount?
The obligated amount is $72.9 million.
What is the period of performance?
Start: 2004-10-01. End: 2011-03-31.
Was the exclusion of sources in the competition truly justified, or did it limit potential cost savings for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' method is inherently restrictive. Without a clear justification for excluding specific sources, it's highly probable that this limitation hindered competitive bidding. This could have led to higher prices than might have been achieved in a truly open market, potentially costing taxpayers more than necessary for armed guard services.
What specific security threats or requirements necessitated such a high expenditure on armed guards for the Department of Transportation over 7 years?
The substantial $72.9M expenditure over 2372 days suggests a significant and ongoing security need within the Department of Transportation. This could range from protecting high-value assets or sensitive facilities to ensuring the safety of personnel in potentially high-risk environments. Understanding the specific threat landscape and operational requirements is crucial to validating the necessity and appropriateness of this spending level.
How was the effectiveness of Onpoint Consulting's armed guard services evaluated throughout the contract's lifecycle?
Effective oversight would involve regular performance evaluations, incident reporting analysis, and potentially independent audits of the guard services provided by Onpoint Consulting. Without documented evidence of such evaluations, it's difficult to ascertain if the $72.9M investment yielded the expected level of security and operational effectiveness. Tracking key performance indicators would be essential.
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: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 205 SOUTH WHITING STREET, ALEXANDRIA, VA, 22304
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $93,103,847
Exercised Options: $93,103,847
Current Obligation: $72,889,329
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2004-10-01
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2021-02-22
More Contracts from Onpoint Consulting, Inc.
- TAS::89 0240::TAS Cyber Security Support Services for the National Nuclear Security Administration's Office of Chief Information Officer's (ocio-Na-2.2)information Assurance Response Center (niarc) — $95.4M (Department of Energy)
- Information Assurance Igf::ot::igf IT Services — $61.6M (Department of Defense)
- ADP O&M Support — $53.6M (Department of the Treasury)
- Niddk Communications Support — $25.9M (Department of Health and Human Services)
- Application Development and Software Services — $25.7M (Department of State)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)