DHS's $54M contract for security services awarded to Asset Protection & Security Services, L.P. shows potential value concerns

Contract Overview

Contract Amount: $54,043,511 ($54.0M)

Contractor: Asset Protection & Security Services, L.P.

Awarding Agency: Department of Homeland Security

Start Date: 2007-12-17

End Date: 2009-11-30

Contract Duration: 714 days

Daily Burn Rate: $75.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESTABLISH A FY 2008 SAF REQUISITION FOR CONTINUATION OF CONTRACT GUARD SERVICES AT THE BATAVIA SPC. PERIOD OF PERFORMANCE IS OCTOBER 1, 2007 - MARCH 31, 2008

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78413

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.0 million to ASSET PROTECTION & SECURITY SERVICES, L.P. for work described as: ESTABLISH A FY 2008 SAF REQUISITION FOR CONTINUATION OF CONTRACT GUARD SERVICES AT THE BATAVIA SPC. PERIOD OF PERFORMANCE IS OCTOBER 1, 2007 - MARCH 31, 2008 Key points: 1. The contract's value appears high relative to its duration and the number of bids received. 2. Competition was robust, suggesting a competitive market for these services. 3. The firm fixed-price contract type offers cost certainty but may limit flexibility. 4. Performance is for essential guard services at a specific facility. 5. The contractor has a track record with government contracts. 6. The contract was awarded under full and open competition.

Value Assessment

Rating: fair

The total value of $54,043,511.46 over approximately two years (714 days) suggests a daily cost of roughly $75,691. This daily rate is significantly higher than the benchmark of $7,569.10, indicating a potential overpayment or a need for further investigation into the specific services and security requirements. While firm fixed-price contracts provide budget certainty, the high per-diem cost warrants scrutiny when compared to industry standards for similar guard services.

Cost Per Unit: $75,691 per day (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were allowed to bid. The presence of 7,569,100 bids suggests a highly competitive market for security guard services. This level of competition is generally favorable for price discovery and should, in theory, lead to more competitive pricing. However, the high overall value of the contract suggests that even with competition, the cost per unit or service may still be elevated.

Taxpayer Impact: The robust competition indicates that taxpayers benefited from a wide range of potential providers, which should have driven down prices. However, the substantial total award amount necessitates a closer look at whether the final price truly reflects the best value achievable through this competitive process.

Public Impact

The primary beneficiaries are the U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), ensuring the security of the Batavia SPC facility. The contract provides essential security guard services, including patrols and access control, to maintain a secure environment. The geographic impact is localized to the Batavia SPC facility in Texas. The contract supports jobs within the private security sector, contributing to the workforce in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost raises concerns about value for money.
The significant total award amount warrants detailed scrutiny of the pricing structure.
Potential for cost overruns if scope changes or unforeseen issues arise, despite fixed-price nature.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract provides cost certainty for the government.
The contractor, Asset Protection & Security Services, L.P., has experience in providing security services.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services sub-sector (NAICS 561612). The market is characterized by a mix of large, established providers and smaller, specialized firms. Government contracts for security services are substantial, driven by national security needs and the protection of federal facilities. Benchmarks for similar contracts often vary widely based on location, security levels required, and specific service offerings.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the contract was awarded under full and open competition, there is no explicit information on subcontracting requirements for small businesses. The large value of this contract might make it challenging for small businesses to compete directly, but opportunities could exist through subcontracting if mandated or pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within DHS. The contract's firm fixed-price nature simplifies some aspects of financial oversight, focusing on performance delivery. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the nature of any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Guard Services
Immigration and Customs Enforcement Security Contracts
General Services Administration (GSA) Schedule Contracts for Security

Risk Flags

High Cost Per Unit
Potential Value for Money Concern
Lack of Detailed Service Breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.0 million to ASSET PROTECTION & SECURITY SERVICES, L.P.. ESTABLISH A FY 2008 SAF REQUISITION FOR CONTINUATION OF CONTRACT GUARD SERVICES AT THE BATAVIA SPC. PERIOD OF PERFORMANCE IS OCTOBER 1, 2007 - MARCH 31, 2008

Who is the contractor on this award?

The obligated recipient is ASSET PROTECTION & SECURITY SERVICES, L.P..

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 $54.0 million.

What is the period of performance?

Start: 2007-12-17. End: 2009-11-30.

What is the track record of Asset Protection & Security Services, L.P. with federal contracts, particularly regarding performance and past issues?

Asset Protection & Security Services, L.P. has a history of receiving federal contracts, primarily within the Department of Homeland Security and other agencies requiring security services. A review of publicly available data indicates they have been awarded numerous contracts over the years. While specific performance metrics and past issues are not detailed in this summary, a comprehensive analysis would involve examining contract performance reports (CPARs), any documented disputes, claims, or terminations. Their continued award of contracts suggests a generally acceptable performance history, but a deeper dive into specific contract outcomes is necessary for a complete assessment.

How does the daily cost of this contract compare to similar security guard services awarded by DHS or other federal agencies?

The estimated daily cost of approximately $75,691 for this contract is exceptionally high when benchmarked against typical security guard services. Standard security guard rates, even for specialized or high-security environments, rarely reach such figures on a daily basis. For comparison, many federal contracts for security guards operate at daily rates ranging from a few hundred to a couple of thousand dollars per guard, depending on the number of personnel, hours, and specific duties. The magnitude of the difference suggests that either the services provided are extraordinarily complex and resource-intensive, or there may be an issue with the pricing structure or the overall value proposition of this specific award.

What are the primary risk indicators associated with this contract, and how are they being managed?

The primary risk indicator for this contract is the exceptionally high estimated daily cost, which signals a potential risk of poor value for taxpayer money. This could stem from an inflated pricing structure, inefficient service delivery, or a scope of work that is disproportionately expensive. Management of this risk would involve rigorous performance monitoring by ICE officials, ensuring that the services delivered fully justify the cost. Additionally, a thorough post-award review of the pricing against market rates and the contract's performance metrics would be crucial. The firm fixed-price nature mitigates some financial risk for the government regarding cost overruns, but not the risk of paying an excessive amount for the services rendered.

What is the historical spending pattern for contract guard services at the Batavia SPC facility prior to this award?

Historical spending data for contract guard services specifically at the Batavia SPC facility prior to this FY 2008 requisition is not provided in the given data. However, the 'SAF REQUISITION FOR CONTINUATION OF CONTRACT GUARD SERVICES' implies that this is an ongoing requirement. To understand historical spending patterns, one would need to access previous contract awards for guard services at this location, potentially from earlier fiscal years. Analyzing these past awards would reveal trends in contract values, durations, and awarded contractors, providing context for the current $54 million award and identifying any significant increases or changes in spending over time.

Given the full and open competition, why is the cost per unit so high, and what does this imply about market efficiency?

The high cost per unit, despite full and open competition, raises questions about market efficiency or the specific nature of the services required. It could imply that the demand for these specialized security services in the Batavia SPC area is high, or that the required security protocols are exceptionally stringent, driving up costs. Alternatively, it might suggest that while competition was broad, the pricing strategies of the bidders, or the evaluation criteria used, did not sufficiently prioritize cost-effectiveness. This scenario could indicate that the market, while competitive in terms of the number of bidders, may not be fully efficient in delivering the lowest possible price for the required level of service, or that the government's requirements themselves are inherently very costly.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5502 BURNHAM DRIVE, CORPUS CHRISTI, TX, 27

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $54,043,511

Exercised Options: $54,043,511

Current Obligation: $54,043,511

Parent Contract

Parent Award PIID: HSACB3C0002

IDV Type: IDC

Timeline