DHS awarded $38.3M for security services in Arizona, with a significant per-unit cost

Contract Overview

Contract Amount: $38,274,289 ($38.3M)

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

Awarding Agency: Department of Homeland Security

Start Date: 2011-11-01

End Date: 2012-10-31

Contract Duration: 365 days

Daily Burn Rate: $104.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INCREMENTAL FUNDING FOR THE FLORENCE SPC. POP: 11/01/2011 THROUGH 10/31/2012

Place of Performance

Location: FLORENCE, PINAL County, ARIZONA, 85132

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.3 million to ASSET PROTECTION & SECURITY SERVICES, L.P. for work described as: INCREMENTAL FUNDING FOR THE FLORENCE SPC. POP: 11/01/2011 THROUGH 10/31/2012 Key points: 1. The contract focused on asset protection and security services, indicating a need for physical security measures. 2. Awarded under full and open competition, suggesting a broad market search for qualified vendors. 3. The contract duration was one year, with incremental funding provided. 4. The fixed-price contract type aims to control costs for the government. 5. The geographic focus was Arizona, specifically the Phoenix area. 6. The contractor, ASSET PROTECTION & SECURITY SERVICES, L.P., received this award.

Value Assessment

Rating: questionable

The contract's value of $38.3 million for a one-year period appears high for facilities support services in Arizona. Benchmarking against similar contracts for security services in the region is crucial to determine if the pricing reflects fair market value. The provided data does not offer enough detail to definitively assess value for money, but the per-unit cost raises concerns.

Cost Per Unit: $104,861 per day. This daily rate is significantly higher than typical benchmarks for security guard services, suggesting potential overpricing or the inclusion of specialized services not detailed in the provided data.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bids indicates a moderate level of competition for this requirement. While competition existed, the number of bidders is not exceptionally high, which could still allow for some price negotiation advantages for the contractor.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to bid, potentially driving down prices and ensuring the government receives competitive offers. However, the high per-unit cost in this instance suggests that even with competition, the final price may not have been optimal.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) operations within Arizona. The services delivered are asset protection and security, likely safeguarding federal facilities and personnel. The geographic impact is concentrated in Arizona, supporting federal law enforcement and immigration functions in the state. The contract supports the workforce of ASSET PROTECTION & SECURITY SERVICES, L.P., providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost raises concerns about potential overspending.
Limited competition (3 bidders) may have impacted price negotiation.
Lack of detailed service scope makes it difficult to fully assess value.
Contract duration of one year with incremental funding could indicate evolving needs or budget constraints.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Fixed-price contract type helps to control costs.
Contract addresses critical security needs for a federal agency.

Sector Analysis

The contract falls within the Facilities Support Services sector, specifically focusing on asset protection and security. This sector is vital for government operations, ensuring the safety and integrity of federal assets and personnel. Spending in this area can fluctuate based on security threats and agency needs. Comparable spending benchmarks for security services vary widely based on location, scope, and level of security required.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem mandated by this award. The primary contractor is responsible for its own supply chain and workforce.

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. Accountability measures are inherent in the fixed-price contract, requiring the contractor to deliver specified services. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may not be readily accessible.

Related Government Programs

Federal Protective Service Contracts
Immigration and Customs Enforcement Security Operations
Department of Homeland Security Facilities Management

Risk Flags

High per-unit cost
Limited number of bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.3 million to ASSET PROTECTION & SECURITY SERVICES, L.P.. INCREMENTAL FUNDING FOR THE FLORENCE SPC. POP: 11/01/2011 THROUGH 10/31/2012

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 $38.3 million.

What is the period of performance?

Start: 2011-11-01. End: 2012-10-31.

What specific security services were included under this $38.3 million contract?

The provided data categorizes the contract under 'Asset Protection & Security Services, L.P.' and 'Facilities Support Services.' However, it does not detail the specific types of security services rendered. These could range from uniformed guard services, access control, surveillance monitoring, alarm response, to specialized security consulting. Without a detailed statement of work, it is difficult to ascertain the exact nature of the services and thus fully evaluate the value proposition relative to the cost.

How does the per-unit cost of $104,861 per day compare to industry benchmarks for similar security contracts?

The per-unit cost of approximately $104,861 per day is exceptionally high for standard security guard services. Industry benchmarks for security guard services can range from $30 to $100 per hour per guard, depending on factors like location, skill level, and security clearance requirements. Even with multiple guards or specialized equipment, this daily rate suggests either a very high number of personnel, highly specialized security functions (e.g., executive protection, tactical response), or potentially inflated pricing. A thorough benchmark analysis against comparable government or commercial contracts for similar scope and duration in Arizona would be necessary to confirm if this rate is justified.

What was the track record of ASSET PROTECTION & SECURITY SERVICES, L.P. prior to this award?

Information regarding the specific track record of ASSET PROTECTION & SECURITY SERVICES, L.P. prior to this November 2011 award is not detailed in the provided data. To assess their performance history, one would typically review past federal contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contract awards, and any reported issues or successes. A contractor's past performance is a critical factor in evaluating the risk associated with a new award and assessing the likelihood of successful service delivery.

Given the fixed-price contract type, what mechanisms were in place to ensure the contractor met performance standards?

For a firm fixed-price contract, the government's primary mechanism for ensuring performance standards is through clearly defined requirements in the contract's Statement of Work (SOW) and the subsequent monitoring and acceptance of deliverables by the Contracting Officer's Representative (COR). The COR is responsible for overseeing the contractor's day-to-day performance and ensuring compliance with the SOW. While the fixed-price nature places the cost risk on the contractor, the government retains the right to inspect services and reject non-conforming work, potentially leading to contract remedies if performance issues are persistent.

What is the historical spending trend for similar security services by U.S. Immigration and Customs Enforcement?

The provided data only includes details for this specific contract award. To understand historical spending trends for similar security services by U.S. Immigration and Customs Enforcement (ICE), one would need to analyze federal procurement databases (like USASpending.gov) for previous years. This analysis would involve identifying contracts with similar Product Service Codes (PSCs) and keywords related to security and asset protection awarded by ICE. Examining these trends would reveal whether spending has increased, decreased, or remained stable, and identify any significant shifts in contract values or types.

Were there any specific risk indicators associated with this contract or contractor?

The provided data does not explicitly list risk indicators associated with this contract or ASSET PROTECTION & SECURITY SERVICES, L.P. However, potential risk indicators could be inferred from factors such as a lack of extensive past performance data, a high number of bids suggesting potential contractor uncertainty, or the specialized nature of the services required. The high per-unit cost could also be considered a financial risk indicator, suggesting potential inefficiencies or overpricing that might impact future budget allocations or require closer financial oversight.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,575,422

Exercised Options: $40,575,422

Current Obligation: $38,274,289

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM09D00003

IDV Type: IDC

Timeline