DHS awarded $14.6M for armed guard services across multiple DC and MD locations over five years

Contract Overview

Contract Amount: $14,614,041 ($14.6M)

Contractor: Coastal International Security, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2009-10-01

End Date: 2014-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Sector: Other

Official Description: ARMED GUARD SERVICES FOR 555 NEW JERSEY AVENUE, 300 9TH STREET SW, 1250-80 MARYLAND AVENUE SW, 1990 K STREET NW, 1800 M STREET NW IN WASHINGTON DC, AND 10903 NEW HAMPSHIRE AVENUE (WHITE OAK CAMPUS), SILVER SPRING, MD

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.6 million to COASTAL INTERNATIONAL SECURITY, INC for work described as: ARMED GUARD SERVICES FOR 555 NEW JERSEY AVENUE, 300 9TH STREET SW, 1250-80 MARYLAND AVENUE SW, 1990 K STREET NW, 1800 M STREET NW IN WASHINGTON DC, AND 10903 NEW HAMPSHIRE AVENUE (WHITE OAK CAMPUS), SILVER SPRING, MD Key points: 1. The contract value represents a significant investment in physical security for key federal facilities. 2. Competition dynamics suggest a potentially competitive bidding environment, though the specific award type warrants further review. 3. The duration of the contract (five years) indicates a need for sustained security presence. 4. Performance context is crucial to assess if the awarded price aligns with the quality and scope of services delivered. 5. The sector positioning highlights the critical role of private security firms in supporting government operations.

Value Assessment

Rating: fair

The total award of $14.6 million over five years averages to approximately $2.92 million annually. Benchmarking this against similar large-scale federal security contracts is challenging without more granular data on guard hours, post requirements, and specific security protocols. However, the annual average suggests a substantial but not necessarily excessive expenditure for comprehensive security across multiple high-profile federal sites. Further analysis would require comparing the per-guard hourly rates and overall service costs to industry standards for armed security personnel in the Washington D.C. metropolitan area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing than true full and open competition. Without knowing the number of bidders or the rationale for exclusions, it's difficult to definitively assess the impact on price discovery.

Taxpayer Impact: The exclusion of sources may have limited the number of competitive bids, potentially resulting in a higher price for taxpayers than if all qualified vendors had been allowed to compete.

Public Impact

Federal agencies, including the Department of Homeland Security, benefit from secure facilities. The services delivered include armed guard presence to deter threats and respond to incidents. The geographic impact is concentrated in Washington D.C. and Silver Spring, MD, covering critical federal infrastructure. Workforce implications include employment opportunities for security personnel within the private sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could lead to higher costs.
Lack of detailed performance metrics makes it difficult to assess value for money.
The five-year duration may not be optimal if security needs change significantly.

Positive Signals

Award to a single contractor ensures consistent service delivery across multiple sites.
The contract covers essential security functions for sensitive federal locations.
The agency has secured necessary security services for a prolonged period.

Sector Analysis

The federal security services market is substantial, with agencies like DHS being major consumers. This contract falls within the broader security and protective services sector, which includes guard services, alarm systems, and investigative services. The market is characterized by a mix of large, established security firms and smaller, specialized providers. Spending benchmarks for similar contracts are highly variable, depending on the specific requirements, location, and duration. This contract represents a significant portion of spending within the niche of armed guard services for federal facilities in the D.C. area.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract is likely minimal. Opportunities for small businesses would typically arise if subcontracting plans were mandated or if the contract were broken down into smaller, set-aside portions.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's Office of Procurement Operations, which awarded the contract. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to specific security protocols and response times. Transparency is facilitated through contract award databases, though detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Washington D.C. Area Federal Security Contracts
Armed Guard Services
Physical Security for Government Facilities

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns if performance is not rigorously managed.
Dependence on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.6 million to COASTAL INTERNATIONAL SECURITY, INC. ARMED GUARD SERVICES FOR 555 NEW JERSEY AVENUE, 300 9TH STREET SW, 1250-80 MARYLAND AVENUE SW, 1990 K STREET NW, 1800 M STREET NW IN WASHINGTON DC, AND 10903 NEW HAMPSHIRE AVENUE (WHITE OAK CAMPUS), SILVER SPRING, MD

Who is the contractor on this award?

The obligated recipient is COASTAL INTERNATIONAL SECURITY, 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 $14.6 million.

What is the period of performance?

Start: 2009-10-01. End: 2014-09-30.

What was the specific rationale for excluding certain sources from the competition?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' Unfortunately, the specific rationale for excluding certain sources is not detailed in the available information. Typically, such exclusions might be based on factors like past performance issues, inability to meet specific technical requirements, or pre-existing contractual relationships that necessitate a specific procurement path. Without further documentation from the agency, the precise reasons remain unknown. This lack of transparency regarding source exclusion can raise concerns about the extent of competition achieved and whether the government secured the best possible value by limiting the bidder pool.

How does the awarded price compare to market rates for similar armed guard services in the Washington D.C. area?

Directly comparing the total contract value of $14.6 million over five years ($2.92 million annually) to precise market rates is challenging without detailed breakdowns of labor hours, guard levels (e.g., armed vs. unarmed, supervisory), and specific site security requirements. However, the Washington D.C. metropolitan area generally commands higher security service rates due to the cost of living and the high demand for security personnel in government and corporate sectors. Industry reports suggest that fully burdened hourly rates for armed guards in major metropolitan areas can range significantly, often from $40 to $70 or more, depending on the provider and service level. The average annual cost per site ($14.6M / 5 sites / 5 years = ~$584,000 per site per year) needs to be evaluated against the number of posts, hours per post, and specific security technology integrated into the service.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Coastal International Security, Inc.'s performance under this contract. However, for armed guard services contracts, typical KPIs often include response times to incidents, adherence to post orders, incident reporting accuracy and timeliness, guard presence and punctuality, and overall effectiveness in deterring unauthorized access or activity. Performance evaluations would likely involve regular site visits, review of incident logs, and feedback from facility managers. The effectiveness of these KPIs in ensuring value for money would depend on their clarity, measurability, and the consequences tied to failing to meet them.

What is the track record of Coastal International Security, Inc. with federal contracts of this nature?

Coastal International Security, Inc. has a history of securing federal contracts, including those involving security guard services. While this specific $14.6 million contract with DHS is a significant award, the company has likely performed similar roles for various federal agencies. A comprehensive review of their track record would involve examining past performance evaluations on federal contracts, any documented instances of contract disputes or terminations, and their overall experience in providing armed guard services across multiple, potentially high-security locations. Information available through federal procurement databases often provides ratings and past performance details, which would be crucial for a full assessment.

How has federal spending on security guards evolved over the past decade, and where does this contract fit in?

Federal spending on security guards has generally trended upwards over the past decade, driven by increased security concerns and the outsourcing of non-core functions to private contractors. Agencies like DHS, GSA, and DoD are consistently among the largest purchasers of security services. This $14.6 million contract awarded in 2009 for services through 2014 fits within this trend of substantial federal investment in physical security. It represents a significant, multi-year commitment for essential services at key government facilities. While specific year-over-year spending figures fluctuate based on agency budgets and evolving threat landscapes, contracts of this magnitude are typical for ensuring comprehensive security coverage across multiple high-value federal assets.

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

Evaluated Preference: NONE

Contractor Details

Parent Company: Akal Security, Inc.

Address: 6101 FALLARD DR, UPPER MARLBORO, MD, 20772

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,614,041

Exercised Options: $14,614,041

Current Obligation: $14,614,041

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSCEEC10A00001

IDV Type: BPA

Timeline