DHS awards $12.2M for security services, extending existing contract for 543 days

Contract Overview

Contract Amount: $12,252,207 ($12.3M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-04-05

End Date: 2007-09-30

Contract Duration: 543 days

Daily Burn Rate: $22.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: Other

Official Description: PROVIDE ADDITIONAL FUNDS TO CONTINUE SERVICES.

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33194

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.3 million to AKAL SECURITY, INC. for work described as: PROVIDE ADDITIONAL FUNDS TO CONTINUE SERVICES. Key points: 1. Contract value represents a significant investment in essential security operations. 2. Competition dynamics for this delivery order need further examination to ensure optimal pricing. 3. Contract duration suggests a need for sustained service delivery, potentially indicating stable requirements. 4. Performance context is crucial to understand if the services met or exceeded expectations. 5. Sector positioning within security services highlights the government's reliance on specialized providers. 6. The award's timing and purpose indicate a focus on continuity of essential government functions.

Value Assessment

Rating: fair

The total award of $12.2 million over approximately 1.5 years for security guard services appears substantial. Benchmarking this against similar contracts for security services in Florida or for U.S. Immigration and Customs Enforcement would be necessary to assess value for money. Without comparative data on per-unit costs or overall contract efficiency, it's difficult to definitively state if this represents excellent value. The 'additional funds to continue services' note suggests this may be an extension or modification, which can sometimes lead to less competitive pricing than a fully re-competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that multiple vendors likely had an opportunity to bid. The specific number of bidders is not provided, but the competitive nature suggests that the agency sought to obtain favorable pricing and terms. The existence of competition is a positive sign for price discovery, though the extent of competition (e.g., number of bids received) would provide a clearer picture of the market's responsiveness.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a more efficient marketplace, potentially leading to lower prices and better service quality compared to sole-source procurements.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by ensuring the continuity of security services at its facilities. Delivers essential security guard and patrol services, contributing to the safety and security of government assets and personnel. Geographic impact is concentrated in Florida, where the services are being performed. Workforce implications include the employment of security personnel by the contractor, AKAL SECURITY, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess service quality.
Absence of detailed pricing breakdown hinders thorough value-for-money analysis.
Limited information on the number of bidders restricts a full understanding of competitive intensity.

Positive Signals

Awarded through a competitive process, suggesting potential for good pricing.
Contract duration indicates a stable and ongoing need for these security services.
Contractor has secured a significant federal award, implying a level of established capability.

Sector Analysis

The security services sector is a critical component of government operations, encompassing a wide range of protective functions. This contract falls under the Security Guards and Patrol Services category (NAICS 561612). The federal government is a major consumer of these services, with significant spending across various agencies to protect facilities, personnel, and sensitive information. Market size for federal security contracts is substantial, driven by national security needs and the vast inventory of government assets requiring protection. This specific award contributes to the overall federal spending within this essential service industry.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. AKAL SECURITY, INC. is listed as the contractor, and further research would be needed to determine its size classification and its utilization of small businesses in its subcontracting efforts. Without this information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security (DHS). The contract's performance would be monitored against the terms and conditions outlined in the delivery order. Transparency is generally facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

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

Risk Flags

Potential for cost creep due to 'additional funds' notation.
Lack of defined performance metrics hinders objective evaluation.
Limited transparency on the number of competitors impacts assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.3 million to AKAL SECURITY, INC.. PROVIDE ADDITIONAL FUNDS TO CONTINUE SERVICES.

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 $12.3 million.

What is the period of performance?

Start: 2006-04-05. End: 2007-09-30.

What is the specific nature of the 'additional funds to continue services' and how does it impact the original contract scope?

The notation 'PROVIDE ADDITIONAL FUNDS TO CONTINUE SERVICES' suggests that this delivery order is an action taken to extend or supplement an existing contract, likely to ensure uninterrupted service delivery. This could be due to a variety of reasons, such as the need for continued security operations while a larger recompete is processed, or to cover unforeseen increases in service requirements. The impact on the original contract scope would depend on whether this funding merely extends the existing terms or if it involves modifications to services, pricing, or duration. Without the original contract details and the specific modification language, it's difficult to ascertain the precise impact. However, such actions can sometimes lead to less favorable pricing compared to a fully re-competed contract, as the incumbent contractor may have an advantage.

How does the $12.2 million award compare to historical spending on security services by U.S. Immigration and Customs Enforcement?

To compare the $12.2 million award to historical spending by U.S. Immigration and Customs Enforcement (ICE) on security services, one would need to access historical contract data. This would involve querying databases like the Federal Procurement Data System (FPDS) for all security guard and patrol service contracts awarded by ICE over several fiscal years. The analysis would then aggregate the total spending and potentially look at average award values, contract durations, and the number of contractors utilized. A higher or lower award amount compared to historical averages could indicate changes in service needs, market pricing, or contracting strategies. For instance, a significant increase might suggest expanded security requirements or rising labor costs, while a decrease could point to efficiency gains or reduced operational scope.

What is AKAL SECURITY, INC.'s track record with federal contracts, particularly within the Department of Homeland Security?

AKAL SECURITY, INC.'s track record with federal contracts, especially within the Department of Homeland Security (DHS), can be assessed by reviewing their award history in federal procurement databases. This includes examining the types of services they have provided, the agencies they have served, the total value of contracts awarded, and the duration of their engagements. A history of successful contract performance, positive past performance reviews, and a consistent presence within DHS would indicate reliability and capability. Conversely, a record marked by contract disputes, performance issues, or frequent changes in agency assignments might raise concerns. Understanding their experience specifically with ICE would also be relevant, given this award is from that agency.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of the security services provided under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate the effectiveness of the security services under this contract. Typically, for security guard and patrol services, KPIs might include metrics such as response times to incidents, the number of security breaches or incidents, adherence to post orders, personnel punctuality and appearance, and client satisfaction surveys. Effective oversight would involve regular reporting by the contractor against these KPIs, with the agency reviewing the data to ensure service levels are met. Without explicit KPIs defined in the contract or delivery order, assessing the true effectiveness and value derived from the $12.2 million expenditure is challenging.

Are there any indications of potential risks associated with this contract, such as cost overruns or performance deficiencies?

The provided data offers limited information to definitively identify risks like cost overruns or performance deficiencies. However, the notation 'PROVIDE ADDITIONAL FUNDS TO CONTINUE SERVICES' could implicitly suggest a risk. It might indicate that the initial funding was insufficient, or that unforeseen circumstances necessitated additional expenditure. This could point towards potential issues in initial cost estimation or scope definition. Furthermore, the absence of specific performance metrics makes it harder to proactively identify potential performance deficiencies. A thorough risk assessment would require reviewing the contract's history, any modifications, performance reports, and any feedback from the contracting officer or end-users.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

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: $12,252,207

Exercised Options: $12,252,207

Current Obligation: $12,252,207

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSACB03C0004

IDV Type: IDC

Timeline