DoD's $34M Security Services Contract with ARES GROUP INC. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $33,961,877 ($34.0M)
Contractor: Ares Group Incorporated
Awarding Agency: Department of Defense
Start Date: 2006-09-25
End Date: 2011-09-24
Contract Duration: 1,825 days
Daily Burn Rate: $18.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SECURITY SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.0 million to ARES GROUP INCORPORATED for work described as: SECURITY SERVICES Key points: 1. Total contract value of $33.96M over 5 years. 2. Competition type: Full and Open, indicating broad market access. 3. Risk: Long contract duration (5 years) may limit flexibility. 4. Sector: Security Services, a critical area for defense operations.
Value Assessment
Rating: good
The contract value of $33.96M over 5 years averages $6.79M annually. Benchmarking against similar contracts for security systems services is difficult without more specific service details, but the value appears reasonable for a large-scale defense contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition aims to secure competitive pricing, maximizing taxpayer value by ensuring services are procured at market rates.
Public Impact
Ensures critical security infrastructure and services for the Department of Defense. Supports national security by protecting sensitive defense information systems. Provides employment opportunities within the security services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term commitment (5 years) may not adapt to evolving security needs.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Clear contract type (Firm Fixed Price) for cost certainty.
Sector Analysis
The security services sector is vital for government operations, particularly defense. Spending benchmarks vary widely based on the specific services and scale, but this contract represents a significant investment in protecting defense information systems.
Small Business Impact
The data indicates this contract did not involve small business participation (ss=false, sb=false). This suggests the prime contractor is likely a large business, and opportunities for small businesses may have been limited to subcontracting roles.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA) under the Department of Defense. Oversight would typically involve contract management teams ensuring performance and adherence to terms.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long contract duration potentially leading to outdated technology.
- No explicit small business participation noted.
- Potential for cost inefficiencies if technology evolves rapidly.
- Dependence on a single large contractor for critical security services.
Tags
security-systems-services-except-locksmi, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.0 million to ARES GROUP INCORPORATED. SECURITY SERVICES
Who is the contractor on this award?
The obligated recipient is ARES GROUP INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $34.0 million.
What is the period of performance?
Start: 2006-09-25. End: 2011-09-24.
What specific security systems and services are covered under this contract, and how do they align with current defense needs?
The contract falls under NAICS code 561621 (Security Systems Services except Locksmiths). Specific services could range from alarm monitoring and installation to physical security system maintenance and integration. Understanding the precise scope is crucial to assess its current relevance and effectiveness in meeting evolving defense information system security requirements.
Given the 5-year duration, what mechanisms are in place to ensure the security services remain technologically relevant and cost-effective?
A Firm Fixed Price contract provides cost certainty but can become less cost-effective if technology rapidly advances. Mechanisms like contract modifications for upgrades, regular performance reviews, and potentially incorporating service-level agreements with price adjustments for new technologies would be essential for maintaining relevance and value over the contract's lifespan.
How does the Department of Defense measure the effectiveness and performance of ARES GROUP INCORPORATED under this contract?
Effectiveness is typically measured through performance metrics outlined in the contract's Performance Work Statement (PWS). This could include response times for security alerts, system uptime, successful prevention of security breaches, and adherence to security protocols. Regular reporting and government acceptance of services rendered are key indicators.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8625C ENGLESIDE OFFICE PAR, ALEXANDRIA, VA, 08
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $33,966,748
Exercised Options: $33,966,748
Current Obligation: $33,961,877
Parent Contract
Parent Award PIID: GS07F0363M
IDV Type: FSS
Timeline
Start Date: 2006-09-25
Current End Date: 2011-09-24
Potential End Date: 2011-09-24 00:00:00
Last Modified: 2012-08-20
More Contracts from Ares Group Incorporated
- 200608!700417!9700!hq0034!whs A&PO !HQ003406C1014 !A!N! !Y! ! !20060407!20061130!006437144!006437144!006437144!n!ares Group Inc !8625C Engleside Office PA !alexandria !va!22309!01000!510!51!alexandria !alexandria (city) !virginia !+000003174468!n!n!000023940068!s206!guard Services !S1 !services !000 !NOT Discernable !561612!A!A!3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!017!k! !C!N!Z! ! !y!a!n!n!c!a! ! !b!a!000!a!b!n! ! ! ! ! ! !0001! ! — $28.3M (Department of Defense)
- Security Guard Services for Northern Virginia Area — $19.3M (Department of Homeland Security)
- Security Guard Service — $15.9M (Department of the Treasury)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)