HHS awarded $148M contract for security services, with 3 bidders competing for firm-fixed-price delivery orders

Contract Overview

Contract Amount: $148,441,281 ($148.4M)

Contractor: MVM, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-04-09

End Date: 2020-11-30

Contract Duration: 2,062 days

Daily Burn Rate: $72.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $148.4 million to MVM, INC. for work described as: IGF::CT::IGF Key points: 1. The contract utilized a firm-fixed-price structure, which shifts cost risk to the contractor. 2. With three bidders, the competition level suggests a reasonable degree of market interest. 3. The contract duration of 2062 days (over 5 years) indicates a long-term need for these services. 4. The award was made to MVM, INC., a contractor with a significant federal presence. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized security services market. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

Benchmarking the value of this $148 million contract requires comparison to similar security guard and patrol service contracts awarded by federal agencies. The firm-fixed-price nature is generally favorable for the government when scope is well-defined, as it caps potential cost overruns. However, without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. The number of bidders (3) suggests a competitive environment that likely contributed to a fair price, but further analysis of unit costs against market rates would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a healthy level of competition within the market for these specialized security services. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value. This process helps prevent inflated pricing that can occur in less competitive or sole-source situations.

Public Impact

The primary beneficiaries are the facilities and personnel managed by the National Institutes of Health (NIH), which receive enhanced security. The services delivered include security guards and patrol services, crucial for maintaining a safe and secure environment. The geographic impact is concentrated in Maryland, where the contract was awarded and likely performed. Workforce implications include the direct employment of security personnel by the contractor, MVM, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if contract scope is not tightly managed, despite fixed-price nature.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring consistent service quality across all delivery orders under this contract requires robust oversight.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
Full and open competition suggests a competitive market and potentially fair pricing.
The contract duration indicates a stable, long-term security solution for the agency.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal spending on security guards and patrol services (NAICS 561612) is substantial, driven by the need to protect government facilities, personnel, and assets. This contract fits within that landscape, representing a portion of the overall federal expenditure on physical security. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded by agencies like the Department of Defense or Department of Homeland Security.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made to MVM, INC., a company that may or may not qualify as a small business depending on its size standards. Without specific subcontracting plans or set-aside provisions, the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes lead to subcontracting opportunities for smaller firms.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program officials within the National Institutes of Health. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Defense Security Contracts
General Services Administration (GSA) Schedule Contracts for Security Services
National Institutes of Health (NIH) Facility Support Contracts

Risk Flags

Contract Duration
Potential for Scope Creep
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $148.4 million to MVM, INC.. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is MVM, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $148.4 million.

What is the period of performance?

Start: 2015-04-09. End: 2020-11-30.

What is the track record of MVM, INC. with federal contracts, particularly in security services?

MVM, INC. has a history of securing federal contracts, primarily within the security and protective services domain. Analysis of federal procurement data reveals numerous awards to MVM, INC. across various agencies, including significant contracts with the Department of Homeland Security (DHS) and the Department of Justice. These contracts often involve providing security personnel, physical security systems, and related services. While specific performance details for each contract are not publicly available in aggregate, the consistent awarding of substantial contracts suggests a perceived capability to meet federal requirements. However, a deeper dive into past performance reviews, any documented disputes, or contract terminations would be necessary for a comprehensive assessment of their track record.

How does the awarded price compare to market rates for similar security guard and patrol services?

A precise comparison of the awarded price to market rates for similar security guard and patrol services is challenging without detailed cost breakdowns and specific service level agreements. The total award of $148 million over approximately 2062 days averages to roughly $71,800 per day, or about $17,950 per month. This figure encompasses all services rendered. To benchmark effectively, one would need to analyze the hourly rates for different security guard classifications (e.g., armed vs. unarmed, supervisory vs. entry-level) and compare them against prevailing wages and industry standards in the Maryland region, adjusted for the specific requirements and scope outlined in the contract. Data from the Bureau of Labor Statistics for security guards and similar industry reports could provide a basis for comparison.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance deficiencies by the contractor (MVM, INC.), leading to security lapses; cost overruns if the firm-fixed-price structure is not adequately managed or if scope creep occurs; and potential disruptions if key personnel are lost. Mitigation strategies typically involve robust contract oversight by the agency, clear performance standards and metrics defined in the contract, regular performance reviews, and contingency planning. The firm-fixed-price nature itself mitigates financial risk for the government by capping costs. Furthermore, the competitive award process helps ensure the selection of a capable contractor, and contract clauses may address remedies for non-performance.

How effective has MVM, INC. been in fulfilling similar federal security contracts in the past?

Assessing the past effectiveness of MVM, INC. in fulfilling similar federal security contracts requires access to contractor performance evaluation reports (CPARS). These reports, often not fully public, provide ratings on aspects like technical performance, cost control, schedule adherence, and management. Anecdotal evidence from contract awards suggests MVM, INC. has been successful in securing and managing large federal security contracts. However, without specific CPARS data or documented instances of significant performance issues or commendations, a definitive statement on their effectiveness is speculative. Agencies typically use CPARS data in source selection, implying that MVM, INC.'s past performance was deemed acceptable or better for this award.

What are the historical spending patterns for security services at the National Institutes of Health?

Historical spending patterns for security services at the National Institutes of Health (NIH) would likely show a consistent and significant allocation of funds to ensure the safety and security of its extensive research facilities and personnel. Over the years, NIH, like other large federal research institutions, would have required ongoing security services, potentially through multiple contract vehicles and awards. Spending would fluctuate based on evolving security needs, facility expansions or renovations, and changes in threat assessments. Analyzing NIH's budget appropriations and contract databases over several fiscal years would reveal trends in security spending, including the types of services procured (e.g., guard services, access control, surveillance) and the primary contractors utilized.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1593 SPRING HILL RD STE 700, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $148,441,281

Exercised Options: $148,441,281

Current Obligation: $148,441,281

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F0366K

IDV Type: FSS

Timeline