Spectrum Security Services awarded $12.4M contract for ICE detention escort services in Los Angeles

Contract Overview

Contract Amount: $12,376,824 ($12.4M)

Contractor: Spectrum Security Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-14

End Date: 2010-09-30

Contract Duration: 1,112 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION ESCORT OFFICER SERVICE FOR ICE/DRO LOS ANGELES, CA

Place of Performance

Location: JAMUL, SAN DIEGO County, CALIFORNIA, 91935

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.4 million to SPECTRUM SECURITY SERVICES, INC. for work described as: DETENTION ESCORT OFFICER SERVICE FOR ICE/DRO LOS ANGELES, CA Key points: 1. Contract awarded to Spectrum Security Services, Inc. for detention escort services. 2. Service area covers Los Angeles, California. 3. Contract duration spans over three years. 4. Firm Fixed Price contract type indicates predictable costs. 5. Awarded under Full and Open Competition after Exclusion of Sources. 6. The contract is for Security Guards and Patrol Services. 7. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

The contract value of $12.4 million over approximately three years for detention escort services in a major metropolitan area appears to be within a reasonable range for such specialized security operations. Benchmarking against similar contracts for ICE detention escort services across different regions would provide a more precise assessment of value for money. The firm fixed-price structure suggests that the government has negotiated a set cost, which can be advantageous if services are delivered efficiently by the contractor. However, without detailed performance metrics and cost breakdowns, it is difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. Three bids were received, suggesting a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The exclusion of sources, even if justified, could potentially limit the pool of qualified offerors and impact price discovery.

Taxpayer Impact: The moderate competition level means taxpayers likely benefited from some price negotiation, but the exclusion of sources might have prevented even more competitive pricing. This could mean slightly higher costs than if all potential qualified vendors had participated.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security, receiving essential services for managing detainees. The services delivered include the escort of detainees within the Los Angeles area, ensuring secure transportation and supervision. The geographic impact is focused on Los Angeles, California, supporting federal law enforcement operations in this region. The contract supports jobs within the security services sector, specifically for security guards and patrol personnel in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'Exclusion of Sources' clause, which could impact long-term cost-effectiveness.
Reliance on a single contractor for critical detention escort services necessitates robust oversight to ensure service quality and compliance.
The firm fixed-price nature might disincentivize contractor innovation in service delivery if not paired with strong performance standards.

Positive Signals

Awarded through a full and open competition process, indicating an effort to solicit a broad range of qualified vendors.
The firm fixed-price contract type provides cost certainty for the government, simplifying budget management.
The contract duration of over three years allows for stable service provision and potential for contractor efficiency gains through experience.

Sector Analysis

The security services industry is a significant sector within the broader government contracting landscape. This contract falls under the 'Security Guards and Patrol Services' category, which is a mature market with numerous established providers. Federal spending in this area is substantial, driven by the need for physical security at government facilities, transportation security, and personnel escort services. Comparable contracts often involve significant dollar values, especially in high-demand areas like major metropolitan centers. The market is characterized by varying levels of specialization, from general security to highly specific services like detention escort.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This means that the primary contract value did not directly flow to small businesses through a set-aside mechanism. The absence of explicit subcontracting goals suggests that the impact on the small business ecosystem for this specific award is likely indirect, primarily through potential employment opportunities created by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security. Accountability measures would be defined by the contract's performance work statement, service level agreements, and the firm fixed-price terms. Transparency is generally facilitated through contract award databases, but detailed operational oversight mechanisms are typically internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

ICE Detention Management Contracts
Federal Law Enforcement Support Services
Department of Homeland Security Security Contracts
Detention Services Contracts
Security Guard Services

Risk Flags

Potential for reduced competition due to source exclusion.
Risk of service quality degradation if contractor faces cost pressures under FFP.
Need for strong performance monitoring to ensure contractor compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.4 million to SPECTRUM SECURITY SERVICES, INC.. DETENTION ESCORT OFFICER SERVICE FOR ICE/DRO LOS ANGELES, CA

Who is the contractor on this award?

The obligated recipient is SPECTRUM SECURITY SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2007-09-14. End: 2010-09-30.

What is the track record of Spectrum Security Services, Inc. with federal contracts, particularly with ICE or DHS?

Spectrum Security Services, Inc. has a history of federal contracting, primarily with agencies like the Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE). Their contract portfolio often includes security guard services, physical security, and escort services. Analyzing their past performance on similar contracts is crucial. This involves reviewing past performance evaluations, any documented instances of contract disputes, overruns, or successful contract completions. A review of their federal award history indicates they have secured multiple contracts over the years, suggesting a capacity to meet federal requirements. However, the specific quality of their past performance, including adherence to schedules, budget, and service standards, would require a deeper dive into contract performance reports and agency feedback.

How does the awarded amount compare to similar detention escort service contracts in other major metropolitan areas?

Comparing the $12.4 million contract value for Spectrum Security Services in Los Angeles to similar detention escort contracts requires access to a broader dataset of federal awards. Generally, contracts for detention escort services in high-cost-of-living areas like Los Angeles tend to be higher due to increased labor, operational, and logistical expenses. Contracts in less expensive regions might show lower total values. Factors such as the number of detainees served daily, the scope of services (e.g., medical escort, court transport), and the contract duration significantly influence pricing. Without specific comparable contract data, it's challenging to definitively state if this award represents a premium or a standard rate. However, the duration of over three years for this value suggests a consistent, ongoing need for these services in the region.

What are the specific risks associated with relying on a firm fixed-price contract for detention escort services?

A primary risk with firm fixed-price (FFP) contracts for services like detention escort is that the contractor may face unforeseen cost increases (e.g., fuel, labor, insurance) that erode their profit margin, potentially leading to reduced service quality or attempts to cut corners to maintain profitability. Conversely, if the contractor significantly overestimates costs, the government may end up paying a premium. For FFP contracts, the government bears less risk of cost overruns compared to cost-reimbursement contracts, but it places a greater burden on the contractor to manage their expenses effectively. Robust performance monitoring and clear contract terms are essential to mitigate risks related to service quality and contractor performance under an FFP structure.

What is the typical duration and value range for federal contracts of this nature (detention escort services)?

Federal contracts for detention escort services can vary significantly in duration and value, influenced by agency needs, geographic scope, and the number of individuals requiring escort. Typical durations often range from one to five years, including option periods, allowing for continuity of essential services. Contract values can span from hundreds of thousands to tens of millions of dollars annually, depending on the scale of operations. For instance, contracts covering large metropolitan areas or high-volume detention centers will naturally command higher values. The $12.4 million awarded to Spectrum Security Services over approximately three years for Los Angeles falls within a moderate to significant range for such services, reflecting the demands of a major urban center.

How does the 'Full and Open Competition after Exclusion of Sources' clause impact the competitive landscape and potential pricing?

The 'Full and Open Competition after Exclusion of Sources' clause indicates that while the solicitation was intended to be open to all responsible sources, certain specific sources were excluded from consideration. The reasons for exclusion are typically documented and must meet regulatory requirements (e.g., national security, proprietary information). This clause can impact the competitive landscape by reducing the number of potential bidders, which could, in turn, lessen the downward pressure on pricing that a larger pool of bidders might exert. While it aims to ensure fairness and broad opportunity, the exclusion aspect means the government might not receive bids from all technically capable vendors, potentially leading to less competitive pricing than a purely 'full and open' competition without exclusions.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13967 HWY 94, SUITE 101, JAMUL, CA, 48

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $12,376,824

Exercised Options: $12,376,824

Current Obligation: $12,376,824

Parent Contract

Parent Award PIID: HSCEOP06C00012

IDV Type: IDC

Timeline