Homeland Security spent $86.3M on armed guard services for Hurricane Katrina relief, awarded to Academi Training Center LLC

Contract Overview

Contract Amount: $86,261,700 ($86.3M)

Contractor: Academi Training Center LLC

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-08

End Date: 2006-11-30

Contract Duration: 448 days

Daily Burn Rate: $192.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: ARMED GUARD SERVICES FOR HURRIANE KATRINA RELIEF EFFORTS

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $86.3 million to ACADEMI TRAINING CENTER LLC for work described as: ARMED GUARD SERVICES FOR HURRIANE KATRINA RELIEF EFFORTS Key points: 1. The contract value of $86.3 million represents a significant investment in disaster response security. 2. Competition dynamics for this contract are not detailed, but the award was made via a competitive delivery order. 3. Risk indicators are moderate, given the emergency nature of the procurement and the critical need for security. 4. Performance context involves providing armed guard services during a major natural disaster, requiring rapid deployment and sustained presence. 5. Sector positioning is within government contracting for emergency response and security services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific emergency response context during Hurricane Katrina. The raw dollar amount of $86.3 million is substantial for armed guard services. Without comparable contracts for similar large-scale disaster relief operations, assessing precise value-for-money is difficult. However, the urgency of the situation may have necessitated higher costs than standard security contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded as a competitive delivery order, suggesting that multiple vendors were considered. The specific number of bidders is not provided, but the 'full-and-open' competition level implies a broad solicitation. This approach aims to leverage market competition to secure the best possible pricing and service for the government.

Taxpayer Impact: A competitive award process, even in emergency situations, is intended to ensure taxpayer funds are used efficiently by fostering price discovery among potential providers.

Public Impact

The primary beneficiaries were the residents and infrastructure in Louisiana affected by Hurricane Katrina, who received enhanced security. Services delivered included armed guard protection, crucial for maintaining order and safety in a disaster-stricken area. The geographic impact was concentrated in Louisiana, specifically areas affected by the hurricane. Workforce implications involved the deployment of security personnel, potentially creating temporary employment opportunities in the affected region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in emergency procurements.
Ensuring consistent service quality during a prolonged disaster response.
Logistical challenges in deploying and managing armed guards in a devastated area.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Contract duration aligned with the extended needs of disaster recovery.
Focus on critical security services during a national emergency.

Sector Analysis

This contract falls within the government contracting sector for security services, particularly in the context of emergency response and disaster relief. The market for armed guard services is competitive, with numerous private security firms capable of providing such support. The size of this contract suggests a significant, large-scale operation, likely involving specialized capabilities for deployment in challenging environments.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific contract, as the award was made to Academi Training Center LLC. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the scale and nature of the services required may have favored larger, established security providers.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures would include performance monitoring, adherence to contract terms, and reporting requirements. Transparency in emergency procurements can be challenging, but standard government contracting regulations would apply.

Related Government Programs

Hurricane Katrina Relief Efforts
Department of Homeland Security Security Contracts
Emergency Response Services
Armed Guard Services

Risk Flags

Emergency Procurement
Contractor Reputation
High-Value Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $86.3 million to ACADEMI TRAINING CENTER LLC. ARMED GUARD SERVICES FOR HURRIANE KATRINA RELIEF EFFORTS

Who is the contractor on this award?

The obligated recipient is ACADEMI TRAINING CENTER LLC.

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 $86.3 million.

What is the period of performance?

Start: 2005-09-08. End: 2006-11-30.

What was the contractor's track record prior to this award?

Academi Training Center LLC, formerly known as Blackwater, had a significant and often controversial track record in providing security services, including armed personnel, to government agencies, particularly in conflict zones and high-risk environments. Their experience prior to this contract would have included extensive military and private security operations, which likely positioned them to respond effectively to the demands of Hurricane Katrina relief. However, their history also involved scrutiny regarding operational conduct and contract management in other contexts, which may have been a consideration during the evaluation process for this specific award.

How does the cost per day for armed guards compare to market rates during the contract period?

Determining an exact cost per day for armed guards under this contract is complex without detailed breakdowns of service hours and personnel deployed. The contract was a Fixed Price Level of Effort (FPLE) type, with a total award of $86.3 million over approximately 14 months. If we were to estimate a daily cost based on the total award and duration (448 days), it would be roughly $192,637 per day. However, this figure represents the total contract value and not necessarily daily operational spending. Benchmarking this against market rates for armed guard services during a major disaster response is difficult, as emergency situations typically command premium pricing due to logistical challenges, risk, and demand. Standard rates for armed guards can range from $50-$150 per hour per guard, but the scale and specialized nature of disaster relief would likely push these costs higher.

What were the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract included the potential for mission creep, ensuring the safety and accountability of armed personnel in a chaotic environment, logistical challenges in a disaster zone, and the risk of contractor misconduct. Mitigation strategies would have involved clear task orders defining the scope of armed guard duties, rigorous vetting and training of personnel, established rules of engagement, and robust oversight mechanisms by ICE. The emergency nature of the procurement also presented risks related to potentially less thorough vetting or competitive analysis compared to non-emergency contracts. The FPLE contract type aimed to control costs by defining a level of effort, but managing performance and ensuring effectiveness in a rapidly evolving disaster scenario remained critical.

How effective was the contractor in providing security during the Hurricane Katrina relief efforts?

Assessing the specific effectiveness of Academi Training Center LLC's armed guard services during Hurricane Katrina relief is challenging based solely on the contract data. The contract was awarded to provide essential security in a period of extreme civil disruption. The presence of armed guards would have been critical for maintaining order, protecting critical infrastructure, and supporting relief operations. While the contract data confirms the provision of these services, detailed performance evaluations or independent assessments of their effectiveness in contributing to overall relief efforts are not readily available in this dataset. Success would be measured by the absence of major security incidents attributable to contractor failure and the smooth functioning of protected areas.

What is the historical spending pattern for armed guard services for disaster relief by DHS?

Historical spending patterns for armed guard services specifically for disaster relief by the Department of Homeland Security (DHS) are not detailed in this dataset. However, it is understood that DHS, through its various components like FEMA and ICE, frequently procures security services during and after major natural disasters. The scale of spending, like the $86.3 million for Hurricane Katrina, indicates that such procurements can be substantial, especially when large geographic areas are affected and require sustained security presence. Post-disaster environments often necessitate significant security investments to prevent looting, ensure the safety of personnel, and maintain public order, making these contracts a recurring, albeit variable, expenditure for the department.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Sporting and Athletic Goods Manufacturing

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 850 PUDDIN RIDGE RD, MOYOCK, NC, 01

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $86,261,700

Exercised Options: $86,261,700

Current Obligation: $86,261,700

Parent Contract

Parent Award PIID: GS07F0149K

IDV Type: FSS

Timeline