HHS awarded $11.4M for armed security, with Tarheel Specialties Inc. securing the contract

Contract Overview

Contract Amount: $11,420,507 ($11.4M)

Contractor: Tarheel Specialties, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-02-01

End Date: 2014-03-10

Contract Duration: 2,594 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED SECURITY PROTECTION AND PATROL SERVICES 6164

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709, UNITED STATES OF AMERICA

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.4 million to TARHEEL SPECIALTIES, INC. for work described as: ARMED SECURITY PROTECTION AND PATROL SERVICES 6164 Key points: 1. Contract value of $11.4M over 7 years. 2. Tarheel Specialties, Inc. is the sole awardee. 3. Risk of limited competition due to exclusion of sources. 4. Sector: Security Guards and Patrol Services (NAICS 561612).

Value Assessment

Rating: fair

The contract value of $11.4M over approximately 7 years suggests a significant investment in security services. Benchmarking against similar contracts for armed security and patrol services would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value.

Taxpayer Impact: The limited competition approach could lead to higher costs for taxpayers if a more competitive process would have yielded lower prices.

Public Impact

Ensures security for National Institutes of Health facilities. Provides armed protection and patrol services. Contract duration spans over 7 years, indicating long-term need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs.
Long contract duration could lead to price escalation.
No small business participation noted.

Positive Signals

Essential security services for a major government agency.
Contract awarded to a single, presumably capable, provider.

Sector Analysis

The security services sector, particularly armed guards and patrol, is critical for government facilities. Spending benchmarks vary widely based on location, service level, and contract duration, but $11.4M over 7 years for NIH facilities appears substantial.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed or if the nature of the requirement favored larger, specialized firms.

Oversight & Accountability

The contract was awarded under a specific competitive procedure ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'), suggesting a deliberate decision by the agency. Oversight would focus on performance monitoring and ensuring adherence to contract terms.

Related Government Programs

Security Guards and Patrol Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Limited competition.
Potential for price inflation.
Lack of small business participation.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.4 million to TARHEEL SPECIALTIES, INC.. ARMED SECURITY PROTECTION AND PATROL SERVICES 6164

Who is the contractor on this award?

The obligated recipient is TARHEEL SPECIALTIES, 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 $11.4 million.

What is the period of performance?

Start: 2007-02-01. End: 2014-03-10.

What was the justification for excluding other sources in the competition?

The justification for excluding other sources would typically involve specific technical requirements, unique capabilities, or prior performance that only a particular vendor could meet. Without the detailed justification document, it's difficult to assess if this exclusion was appropriate or if it unnecessarily limited competition, potentially impacting the final price paid by taxpayers.

How does the per-unit cost of these security services compare to industry benchmarks?

Benchmarking the per-unit cost of these security services against industry standards is crucial for assessing value. Factors like hourly rates for guards, patrol frequency, and specialized equipment costs would need to be compared. Without specific performance metrics and detailed pricing breakdowns, it's challenging to determine if the $11.4M award represents a fair market price or if it's inflated due to limited competition.

What is the potential impact of a sole awardee on service quality and innovation over the contract's duration?

A sole awardee, especially under a limited competition, might face less pressure to innovate or maintain the highest service quality compared to a market with robust competition. Over a 7-year period, this could lead to service stagnation or a decline in responsiveness if not actively managed through strong contract oversight and performance incentives.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10335 RAMSEY ST, LINDEN, NC, 28356

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $20,691,739

Exercised Options: $18,317,501

Current Obligation: $11,420,507

Timeline