Homeland Security's $19.9M security contract with AKAL SECURITY, INC. awarded for Florida services

Contract Overview

Contract Amount: $19,948,822 ($19.9M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-12-21

End Date: 2008-04-30

Contract Duration: 496 days

Daily Burn Rate: $40.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE NEW TASK ORDER IS A CONTINUATION OF TASK ORDER NO. HSCEOP-06-J-00221/ACB-03-C-0004. THE THIRD OPTION PERIOD OF PERFORMANCE IS JULY 31, 2006 THROUGH AUGUST 1, 2007.

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.9 million to AKAL SECURITY, INC. for work described as: THE NEW TASK ORDER IS A CONTINUATION OF TASK ORDER NO. HSCEOP-06-J-00221/ACB-03-C-0004. THE THIRD OPTION PERIOD OF PERFORMANCE IS JULY 31, 2006 THROUGH AUGUST 1, 2007. Key points: 1. Contract value of $19.9M for a 496-day period indicates significant investment in security services. 2. The contract is a continuation, suggesting established performance and ongoing need. 3. Awarded to AKAL SECURITY, INC., a single contractor, raising questions about competition. 4. The firm fixed-price contract type shifts cost risk to the contractor. 5. Services are concentrated in Florida, indicating a specific geographic focus for security needs. 6. The NAICS code 561612 points to specialized security guard and patrol services.

Value Assessment

Rating: fair

The contract value of $19.9M over approximately 16 months for security services appears substantial. Benchmarking against similar contracts for security guards and patrol services would be necessary to determine if this represents good value for money. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this is a 'COMPETITIVE DELIVERY ORDER' but does not specify the number of bidders or the nature of the competition. If it was a broad competition, it suggests a healthy market for these services. However, if the competition was limited or if this is a follow-on to a previous sole-source award, the price discovery mechanism might be less effective.

Taxpayer Impact: A competitive award process, if robust, should lead to better pricing for taxpayers. Limited competition could result in higher costs.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and potentially other Department of Homeland Security (DHS) components requiring security services. The services delivered include security guards and patrol, crucial for protecting federal facilities and personnel. The geographic impact is focused on Florida, where the services are being rendered. The contract supports jobs within the private security sector, specifically for AKAL SECURITY, INC. employees operating in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information raises concerns about potential price inflation.
The continuation of a task order might indicate a lack of proactive market research for alternative solutions.
Concentration of services in one state could limit broader market engagement.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Continuation of a task order suggests a stable and potentially reliable service provider.
The contract is for essential security services, indicating a critical government need.

Sector Analysis

The security services industry is a significant component of the broader professional, scientific, and technical services sector. This contract falls under the Security Guards and Patrol Services category (NAICS 561612). The market for these services is generally competitive, with numerous providers ranging from small local firms to large national corporations. Federal contracts for security services are common across many agencies, reflecting the government's ongoing need to protect its assets and personnel.

Small Business Impact

The data indicates that small business participation (sb) is false, meaning this contract was not set aside for small businesses. There is no information provided regarding subcontracting plans. This suggests that the primary award went to a large business, and opportunities for small businesses would likely depend on AKAL SECURITY, INC.'s subcontracting decisions, which are not detailed here.

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. The effectiveness of oversight depends on regular performance reviews, site visits, and adherence to the contract's terms and conditions. Transparency is generally facilitated through contract award databases, but detailed performance metrics and specific oversight activities are often internal.

Related Government Programs

Department of Homeland Security Contracts
Immigration and Customs Enforcement Contracts
Security Services Contracts
Federal Law Enforcement Support Contracts

Risk Flags

Potential for limited competition due to continuation of task order.
Lack of detailed information on competition level.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.9 million to AKAL SECURITY, INC.. THE NEW TASK ORDER IS A CONTINUATION OF TASK ORDER NO. HSCEOP-06-J-00221/ACB-03-C-0004. THE THIRD OPTION PERIOD OF PERFORMANCE IS JULY 31, 2006 THROUGH AUGUST 1, 2007.

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 $19.9 million.

What is the period of performance?

Start: 2006-12-21. End: 2008-04-30.

What is the historical spending pattern for security services by U.S. Immigration and Customs Enforcement (ICE) in Florida?

Analyzing historical spending patterns for ICE security services in Florida requires access to detailed contract databases beyond the scope of this single award. However, federal agencies like ICE typically award numerous contracts for security services annually, often through competitive processes. Spending can fluctuate based on evolving security needs, facility expansions or closures, and changes in threat assessments. The $19.9M for this specific task order represents a significant portion of potential annual spending for a particular operational area within Florida, but a comprehensive view would necessitate aggregating data across multiple contracts and fiscal years to identify trends, peak spending periods, and the average cost per service.

How does the performance of AKAL SECURITY, INC. on previous contracts compare to industry benchmarks?

Assessing AKAL SECURITY, INC.'s performance requires a review of their past contract performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data. Without access to this specific data, a direct comparison to industry benchmarks is not possible. Generally, industry benchmarks for security services focus on metrics like response times, incident reporting accuracy, personnel reliability, and adherence to post orders. Positive CPARS ratings would indicate good performance, while negative ratings or a history of disputes would raise concerns. Agencies typically consider past performance heavily in future award decisions.

What are the specific risks associated with a firm fixed-price contract for security services?

While firm fixed-price (FFP) contracts are generally favored for shifting cost risk to the contractor, they can present specific risks. For security services, if the scope of work is not precisely defined or if unforeseen circumstances arise (e.g., increased security threats requiring more personnel or hours), the contractor might seek change orders, potentially increasing costs. Conversely, if the contractor underperforms to cut costs, it could compromise service quality. The government must ensure the SOW is comprehensive and that robust performance monitoring is in place to mitigate risks of both cost escalation and service degradation under an FFP arrangement.

What is the typical duration and value range for similar federal security guard contracts?

Federal contracts for security guard and patrol services vary widely in duration and value, depending on the agency, location, and scope of services. Task orders can range from a few months to several years, often with option periods. Values can range from tens of thousands to tens of millions of dollars. A 496-day (approximately 16-month) duration with a value of $19.9M, as seen in this case, suggests a substantial requirement, likely covering multiple facilities or a high-security area. Benchmarking against similar contracts awarded by DHS or other agencies for comparable services and geographic scope would provide a clearer picture of whether this contract's value and duration are within the typical range.

What is the market size and competitive landscape for security guard services in Florida?

The market for security guard and patrol services in Florida is substantial, driven by a large population, extensive tourism industry, numerous commercial properties, and significant federal and state government presence. Numerous companies, from small local providers to large national firms, operate within the state. The competitive landscape is generally considered robust, with many entities vying for contracts. However, specific contract types, such as those requiring specialized clearances or extensive geographic coverage, might see a more limited pool of qualified bidders. Understanding the specific requirements of this DHS contract would be key to assessing the true level of competition experienced.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $19,948,822

Exercised Options: $19,948,822

Current Obligation: $19,948,822

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSACB03C0004

IDV Type: IDC

Timeline