DHS spent over $46M on guard services in California, with 10 bids received

Contract Overview

Contract Amount: $46,164,570 ($46.2M)

Contractor: Security Consultants Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2007-02-15

End Date: 2012-01-31

Contract Duration: 1,811 days

Daily Burn Rate: $25.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GUARD SERVICES FOR CENTRAL CALIFORNIA

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94102

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.2 million to SECURITY CONSULTANTS GROUP INC for work described as: GUARD SERVICES FOR CENTRAL CALIFORNIA Key points: 1. The contract value of $46.2 million over five years suggests a significant investment in security infrastructure. 2. With 10 bids, the competition level indicates a healthy market for security guard services. 3. The use of Time and Materials pricing may introduce cost variability, requiring diligent oversight. 4. The contract duration of 1811 days (approx. 5 years) provides stability but also necessitates performance monitoring. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized service sector. 6. The contract was awarded to Security Consultants Group Inc., a key player in this service domain.

Value Assessment

Rating: good

The total contract value of $46.2 million over approximately five years averages to about $9.2 million annually. Benchmarking against similar large-scale federal guard service contracts, this annual spend appears within a reasonable range, considering the geographic scope and duration. The Time and Materials (T&M) pricing structure, while common for services where scope can fluctuate, warrants close monitoring to ensure costs remain aligned with the value delivered and to prevent potential overruns compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order process, indicating that multiple vendors were solicited and evaluated. The receipt of 10 bids suggests a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors compete to win the award.

Taxpayer Impact: The strong competition for this contract likely resulted in a more cost-effective outcome for taxpayers, as vendors were incentivized to offer competitive pricing to secure the award.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its facilities within central California, ensuring secure operations. The services delivered include essential security guard and patrol functions, crucial for maintaining safety and order. The geographic impact is concentrated in California, specifically within the areas served by the Office of Procurement Operations. The contract supports jobs within the security services industry, contributing to the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure if not closely managed.
Ensuring consistent service quality across all locations and shifts over the contract's multi-year duration.
Dependence on a single contractor for critical security functions requires robust contingency planning.

Positive Signals

Awarded through a full and open competition, indicating a fair and transparent procurement process.
The receipt of 10 bids suggests a competitive market and potentially good value for the government.
The contract's duration provides stability for both the agency and the contractor, allowing for efficient service delivery.

Sector Analysis

The security guard and patrol services sector is a significant component of the broader private security industry. Federal agencies are major consumers of these services, contracting for protection of facilities, personnel, and assets. Spending in this sector is influenced by threat levels, agency mandates, and the availability of qualified service providers. Comparable federal spending benchmarks for similar guard services can vary widely based on location, security requirements, and contract duration.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded to a prime contractor, there is no explicit information on subcontracting plans with small businesses. The absence of set-aside provisions means that opportunities for small businesses to directly compete for this prime contract were limited, though they may still participate as subcontractors if the prime contractor engages them.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The contract's duration and value suggest that regular performance reviews and audits would be standard. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

Federal Protective Service Contracts
Department of Defense Security Services
General Services Administration (GSA) Schedule Contracts for Security Services
Department of Justice Security Guard Contracts

Risk Flags

Potential for cost overruns due to T&M pricing
Ensuring consistent quality across multiple sites
Contractor performance stability over a long duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.2 million to SECURITY CONSULTANTS GROUP INC. GUARD SERVICES FOR CENTRAL CALIFORNIA

Who is the contractor on this award?

The obligated recipient is SECURITY CONSULTANTS GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $46.2 million.

What is the period of performance?

Start: 2007-02-15. End: 2012-01-31.

What is the historical spending trend for security guard services by the Department of Homeland Security?

Analyzing historical spending for DHS security guard services reveals a consistent and substantial investment in this area. Over the past decade, DHS has consistently allocated significant portions of its budget towards securing its vast array of facilities and operations across the nation. While specific figures fluctuate year-to-year based on evolving security needs, threat assessments, and operational changes, the overall trend indicates a sustained demand for these services. Factors such as increased border security measures, protection of critical infrastructure, and response to national security events have likely influenced spending patterns. Benchmarking this $46.2 million contract against previous DHS expenditures on similar services would provide context on whether this represents an increase, decrease, or stable level of investment for the covered period and region.

How does the pricing structure (Time and Materials) compare to other federal guard service contracts?

Time and Materials (T&M) pricing is a common contract type used by the federal government, particularly for services where the exact scope of work or duration of effort is difficult to define upfront, such as guard services. Compared to fixed-price contracts, T&M offers flexibility but can introduce higher cost uncertainty for the government. Many federal guard service contracts utilize a hybrid approach or opt for firm-fixed-price contracts for well-defined requirements. The key difference lies in how risk is allocated: with T&M, the government bears more risk of cost overruns, necessitating robust oversight to manage labor hours and material costs. Conversely, fixed-price contracts place more risk on the contractor to deliver the defined scope within budget. The choice of T&M here suggests that DHS anticipated potential variability in guard hours or specific service needs over the contract's lifespan.

What is the typical performance evaluation process for federal security guard contracts?

Federal security guard contracts typically involve a rigorous performance evaluation process managed by the Contracting Officer's Representative (COR) or a designated government official. This process usually includes regular performance monitoring, site inspections, and review of contractor performance metrics against the requirements outlined in the Performance Work Statement (PWS). Key performance indicators (KPIs) often include response times, adherence to post orders, incident reporting accuracy, personnel qualifications, and overall site security. Contractors are usually required to submit regular performance reports. The COR is responsible for providing formal feedback, identifying deficiencies, and approving payments based on satisfactory performance. For contracts like this one, with a significant value and duration, formal performance reviews are likely conducted quarterly or semi-annually, with ongoing informal oversight.

What are the potential risks associated with a sole-source or limited competition award for security services?

While this contract was competitively awarded, understanding the risks of non-competitive awards is crucial for context. Sole-source or limited competition awards for security services can pose several risks to the government. Primarily, the lack of robust competition can lead to higher prices than might be achieved in an open market, reducing overall value for taxpayers. It can also limit the government's access to innovative solutions or specialized expertise that might be offered by a broader range of vendors. Furthermore, a sole-source award might indicate a lack of market research or an over-reliance on a single provider, potentially creating vulnerabilities if that provider fails to perform or faces financial instability. Effective justification and documentation are critical for sole-source procurements to ensure they are truly necessary and in the government's best interest.

How does the geographic concentration of this contract in California impact service delivery and oversight?

The geographic concentration of this contract in California means that DHS has consolidated its security guard needs for a specific region under one award. This can streamline management and oversight for the agency, allowing for more focused attention on a defined operational area. However, it also concentrates risk; any disruption affecting service delivery across California, whether due to natural disasters, labor disputes, or contractor performance issues, could have a widespread impact on DHS operations in the state. Oversight efforts would need to account for the scale and diversity of facilities within California, potentially requiring regional points of contact or dedicated oversight teams to ensure consistent service quality and compliance across all contracted sites.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: SRS Critical Infrastructure Security LLC (UEI: 355790924)

Address: 102 MITCHELL RD STE 100, OAK RIDGE, TN, 03

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,164,570

Exercised Options: $46,164,570

Current Obligation: $46,164,570

Parent Contract

Parent Award PIID: GS07F0267L

IDV Type: FSS

Timeline