Homeland Security's $21.3M contract for custody officers in Florence, AZ, awarded to AKAL SECURITY, INC

Contract Overview

Contract Amount: $21,279,267 ($21.3M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-01-01

End Date: 2007-12-31

Contract Duration: 729 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODY OFFICERS FLORENCE AZ

Place of Performance

Location: SANTA CRUZ, SANTA FE County, NEW MEXICO, 87567

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.3 million to AKAL SECURITY, INC. for work described as: CUSTODY OFFICERS FLORENCE AZ Key points: 1. The contract value represents a significant investment in correctional facility staffing. 2. Competition dynamics for security services can influence pricing and service quality. 3. The duration of the contract suggests a need for stable, long-term security solutions. 4. Fixed-price contracts aim to control costs but may limit flexibility. 5. The award to a single vendor warrants scrutiny of ongoing performance and value. 6. Geographic concentration in Arizona highlights specific operational needs.

Value Assessment

Rating: fair

The contract value of approximately $21.3 million over two years for custody officers in Florence, AZ, appears to be within a reasonable range for large-scale security services. Benchmarking against similar contracts for correctional facility staffing is crucial for a definitive value assessment. Without specific per-unit cost data or comparison to market rates for similar services in the region, it's difficult to definitively assess if this represents excellent value for money. The fixed-price nature suggests an attempt to manage costs upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 6 bidders suggests a reasonably competitive market for these services. A higher number of bidders generally leads to more competitive pricing and potentially better service offerings as contractors vie for the award. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of this competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings and higher quality outcomes.

Public Impact

Immigrants in federal custody in Florence, Arizona, benefit from the provision of security services. The contract ensures the safe and secure operation of detention facilities. The primary geographic impact is concentrated in Florence, Arizona, supporting federal detention operations. The contract supports employment for custody officers, contributing to the local workforce in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is satisfactory but alternatives are not actively sought.
Reliance on a single contractor for critical security functions requires robust performance monitoring.
Fixed-price contracts can sometimes lead to reduced service quality if not carefully managed and enforced.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract duration indicates a stable operational requirement met by the vendor.
Fixed-price contract type helps in budget predictability for the agency.

Sector Analysis

The provision of security guards and patrol services falls within the broader security and facilities management sector. This sector is characterized by a mix of large, established companies and smaller, specialized firms. Federal contracts for security services are substantial, driven by the need to protect government assets, facilities, and personnel. The market size for federal security contracts is significant, with agencies like DHS consistently awarding contracts for various security needs, including detention facility operations.

Small Business Impact

The data indicates that small businesses were not specifically set aside for this contract, nor is there an indication of significant subcontracting opportunities for small businesses. The award went to AKAL SECURITY, INC., which may or may not be a small business itself, but the contract structure does not appear to prioritize small business participation. Further investigation into AKAL SECURITY's size status and subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Mechanisms likely include regular performance reviews, site inspections, and adherence to contract terms and conditions. Transparency is generally maintained through contract award databases, but detailed operational oversight reports are often internal. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Prison System Security Services
Immigration Detention Center Operations
Department of Homeland Security Security Contracts
Private Security Services for Government Facilities

Risk Flags

Contract duration may indicate long-term reliance on a single vendor.
Fixed-price contracts can sometimes lead to reduced service quality if not managed.
Performance history of AKAL SECURITY, INC. needs to be reviewed for potential risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.3 million to AKAL SECURITY, INC.. CUSTODY OFFICERS FLORENCE AZ

Who is the contractor on this award?

The obligated recipient is AKAL SECURITY, 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 $21.3 million.

What is the period of performance?

Start: 2006-01-01. End: 2007-12-31.

What is the historical spending pattern for security services at the Florence, AZ facility?

Analyzing historical spending for security services at the Florence, AZ facility prior to this $21.3 million contract (2006-2007) would provide crucial context. Understanding if this award represents an increase, decrease, or stable level of spending compared to previous contracts or operational periods is essential. For instance, if previous contracts were significantly lower, it might indicate an expansion of services or increased security needs. Conversely, a higher cost could suggest inflation, changes in service scope, or potentially less competitive pricing in prior periods. Without access to historical data for this specific facility, it's challenging to establish a trend or benchmark this award effectively against past expenditures.

How does the per-guard cost in this contract compare to industry benchmarks for similar federal facilities?

To assess the value for money, a comparison of the per-guard cost is necessary. Given the contract value of $21.3 million over 729 days (approximately 2 years), and assuming a certain number of guards are required for a facility of this nature, we could estimate a daily or monthly cost per guard. This estimated cost should then be benchmarked against industry standards for similar federal detention or correctional facilities. Factors such as location (Arizona), security level, and the specific services provided (custody, patrol) influence these rates. If the per-guard cost is significantly higher than benchmarks, it could indicate potential overpricing or a less competitive award. Conversely, a lower cost might suggest efficiency or aggressive bidding.

What is AKAL SECURITY, INC.'s track record with federal contracts, particularly with DHS or ICE?

AKAL SECURITY, INC.'s performance history with federal contracts, especially those awarded by the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE), is a key indicator of reliability and value. Examining past contract awards, performance evaluations (e.g., CPARS reports if available), and any history of disputes or contract terminations would provide insight into their capabilities. A strong track record suggests a lower risk of performance issues and potentially better adherence to contract terms and pricing. Conversely, a history of subpar performance or contract issues could signal potential risks for this current contract, even if awarded competitively.

What specific security services are included under this 'Security Guards and Patrol Services' contract?

The classification 'Security Guards and Patrol Services' is broad. Understanding the specific duties encompassed within this contract is vital for assessing its scope and value. This could range from basic perimeter patrols and access control to more intensive custody duties within detention facilities, including inmate supervision, transportation, and emergency response. The level of training, equipment provided, and the specific protocols required for these custody officers directly impact the cost and the contractor's capabilities. A detailed breakdown of required services would allow for a more precise comparison with industry standards and other similar contracts.

Were there any performance issues or contract modifications during the 2006-2007 period for this contract?

Investigating potential performance issues or significant contract modifications during the 2006-2007 period for this $21.3 million contract awarded to AKAL SECURITY, INC. is important for understanding the contractor's execution and the agency's management. Modifications could indicate unforeseen challenges, scope changes, or adjustments to pricing. Frequent or substantial modifications might suggest initial underbidding, scope creep, or difficulties in meeting contract requirements. Conversely, a stable contract with few modifications could indicate effective planning and execution. Information on such events would provide a clearer picture of the contract's lifecycle and the contractor's ability to deliver as promised.

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: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7 INFINITY LOOP, ESPANOLA, NM, 87532

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,783,916

Exercised Options: $21,399,903

Current Obligation: $21,279,267

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: ACL2C0002

IDV Type: IDC

Timeline