Department of Defense awards $14.76M contract for security services, with IDS INTERNATIONAL, LLC as the primary contractor

Contract Overview

Contract Amount: $14,759,367 ($14.8M)

Contractor: IDS International, LLC

Awarding Agency: Department of Defense

Start Date: 2005-11-10

End Date: 2008-09-30

Contract Duration: 1,055 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH (CITY) County, VIRGINIA, 23709

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to IDS INTERNATIONAL, LLC for work described as: Key points: 1. The contract value of $14.76 million over approximately 3 years suggests a significant investment in security services. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though the exclusion of some sources warrants further examination. 3. The fixed-price contract type generally transfers risk to the contractor, potentially leading to cost efficiencies if managed well. 4. The award to IDS INTERNATIONAL, LLC, a single entity, highlights the concentration of this specific service provision. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized market for security guards and patrol services. 6. The contract duration of 1055 days (approx. 3 years) allows for sustained service delivery but also requires ongoing performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this $14.76 million contract requires more granular data on the specific services rendered and the geographic scope. However, for a multi-year security guard contract of this magnitude, the pricing appears within a reasonable range, assuming standard service levels. Without comparable contract data for identical services and locations, a precise value-for-money assessment is challenging. The fixed-price nature suggests the government sought cost certainty, but the ultimate value depends on the contractor's efficiency and the effectiveness of the security provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were excluded. This suggests a potentially limited pool of bidders compared to a truly open competition. The number of bidders (9) is a positive sign of some level of interest, but the exclusion clause raises questions about whether the most competitive offers were fully considered. This approach can sometimes be used to ensure specific capabilities are met, but it can also restrict price discovery.

Taxpayer Impact: The limited competition, due to the exclusion of certain sources, may have resulted in a higher price for taxpayers than a fully open and unrestricted competition would have yielded. While 9 bidders participated, the exclusion could have prevented the most cost-effective solution from emerging.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive enhanced security for facilities and operations. The services delivered include security guards and patrol services, crucial for maintaining order and protecting assets. The geographic impact is likely concentrated around the specific Department of the Navy installations where the services are deployed. Workforce implications include the direct employment of security personnel by IDS INTERNATIONAL, LLC, contributing to the private security sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to source exclusion impacting price.
Reliance on a single contractor for critical security functions.
Need for robust oversight to ensure service quality and prevent complacency.

Positive Signals

Award to a single entity suggests a streamlined management approach.
Fixed-price contract aligns incentives for cost control.
A significant number of bidders (9) indicates market interest and potential for performance.

Sector Analysis

The security services sector is a substantial part of the broader professional, scientific, and technical services industry. This contract falls under the security guards and patrol services sub-sector, which is characterized by a mix of large established firms and smaller specialized providers. The market size for government security contracts is significant, driven by national security needs and the protection of federal assets. This specific contract represents a portion of the Department of Defense's overall spending on physical security, a critical component of its operational readiness.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests that the primary award was made without specific targets for small business involvement. However, the prime contractor, IDS INTERNATIONAL, LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, though this is not explicitly detailed. The absence of set-aside provisions means that the direct impact on the small business ecosystem for this specific award is likely minimal, with opportunities primarily arising from subcontracting possibilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are embedded in the contract's performance standards and the fixed-price structure, which incentivizes the contractor to meet requirements efficiently. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Security Services
Federal Protective Service Contracts
Naval Base Security Operations
Private Security Guard Services
Government Contracted Patrols

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns if contractor mismanages fixed-price contract.
Need for robust performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to IDS INTERNATIONAL, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is IDS INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2005-11-10. End: 2008-09-30.

What is the track record of IDS INTERNATIONAL, LLC with federal contracts, particularly in security services?

IDS INTERNATIONAL, LLC has a history of federal contracting, with this specific award representing a significant portion of their federal work. Analyzing their past performance on similar security contracts would involve reviewing contract close-out reports, any documented performance issues or commendations, and their history of compliance with federal regulations. A deeper dive would assess their ability to manage large-scale security operations, their safety records, and their responsiveness to agency needs across previous engagements. Understanding their financial stability and capacity to handle a contract of this value is also crucial for evaluating their reliability.

How does the per-hour or per-guard cost of this contract compare to industry benchmarks for similar security services?

Determining the precise per-unit cost requires breaking down the total contract value ($14.76 million) by the number of guard hours or the number of guards deployed over the contract period (1055 days). Without this granular data, a direct comparison to industry benchmarks is difficult. However, general industry rates for security guards can vary widely based on location, required skill level (e.g., armed vs. unarmed, specialized training), and the specific duties performed. If this contract involves standard unarmed guard services in a moderate-cost area, the implied hourly rate should be benchmarked against prevailing wage data and private sector service provider quotes for comparable services. Significant deviations could indicate either exceptional value or potential overpricing.

What are the specific risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award structure?

The primary risk of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition, which can lead to higher prices for the government and taxpayers. By excluding certain potential bidders, the agency may inadvertently limit the pool of innovative solutions or cost-effective offers. This structure can also raise concerns about fairness and transparency if the rationale for exclusion is not clearly documented and justifiable. While it can be used to ensure specific technical requirements are met or to avoid known performance issues with certain contractors, it carries the inherent risk of not achieving the best possible value through a truly open market.

How effective has IDS INTERNATIONAL, LLC been in delivering security services in previous government contracts?

Assessing the effectiveness of IDS INTERNATIONAL, LLC requires examining past performance evaluations and contract administration records. Key indicators include on-time delivery of services, adherence to security protocols, incident response effectiveness, and client satisfaction ratings from previous government agencies. Any history of contract modifications, disputes, or termination for default would be critical red flags. Conversely, a track record of successful contract completions, positive feedback, and minimal performance issues would signal a higher likelihood of effective service delivery on this current contract. Without access to specific performance data, this assessment remains speculative.

What is the historical spending trend for security guard and patrol services by the Department of the Navy?

Analyzing historical spending trends for security guard and patrol services by the Department of the Navy would involve examining budget allocations and contract awards over several fiscal years. This would reveal whether spending in this category has been increasing, decreasing, or remaining relatively stable. Understanding these trends can provide context for the $14.76 million award, indicating if it represents a typical investment or a significant deviation. Factors influencing these trends could include changes in security requirements, geopolitical events, base consolidation or closures, and shifts in contracting strategies (e.g., moving towards more in-house services or different types of security solutions).

What are the implications of the fixed-price contract type on cost control and contractor performance?

A Firm Fixed Price (FFP) contract type, like the one awarded here, places the primary responsibility for cost control on the contractor. This means IDS INTERNATIONAL, LLC is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to be efficient and manage resources effectively to maximize profit. For the government, it offers cost certainty, as the total price is known upfront. However, it also means the government may not benefit from cost savings if the contractor performs more efficiently than anticipated. The risk of contractor underperformance or failure to meet quality standards is higher, as they may cut corners to stay within budget.

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: 14275 GOLF COURSE DRIVE NO, BAXTER, MN, 08

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247003D2083

IDV Type: IDC

Timeline