Homeland Security's $23.9M armed guard services contract awarded to Security Consultants Group Inc. shows high competition

Contract Overview

Contract Amount: $23,940,287 ($23.9M)

Contractor: Security Consultants Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2008-04-08

End Date: 2013-03-31

Contract Duration: 1,818 days

Daily Burn Rate: $13.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEVADA ARMED GUARD SERVICES

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89101

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.9 million to SECURITY CONSULTANTS GROUP INC for work described as: NEVADA ARMED GUARD SERVICES Key points: 1. The contract represents a significant investment in physical security services for federal facilities. 2. Analysis indicates a competitive bidding process, suggesting potential for good value. 3. The duration of the contract suggests a need for sustained security presence. 4. The use of Time and Materials pricing may introduce cost variability. 5. The specific services procured are critical for maintaining operational security. 6. Geographic concentration in Nevada highlights regional security needs.

Value Assessment

Rating: good

The contract's value of approximately $23.9 million over its period of performance appears reasonable given the scope of armed guard services. Benchmarking against similar contracts for security personnel in federal agencies suggests that the pricing is within an expected range, especially considering the specialized nature of armed guards. The competitive nature of the award further supports the likelihood of achieving fair market value. However, the Time and Materials pricing model warrants close monitoring to ensure costs remain controlled and do not escalate beyond initial projections.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors were invited to submit proposals. The data shows 15 bids were received, demonstrating a robust level of interest and competition within the security services market. A high number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, suggesting that the government likely secured favorable terms. This level of competition is a positive indicator for price discovery and overall value for the taxpayer.

Taxpayer Impact: The strong competition for this contract suggests that taxpayers benefited from a more efficient allocation of resources, as multiple companies vied to offer their services at the best possible price. This process helps prevent overpayment and ensures that the selected contractor is highly motivated to perform efficiently.

Public Impact

Federal facilities in Nevada receive enhanced security through the provision of armed guards. The contract ensures the safety and security of government personnel and assets. The services delivered contribute to the overall mission readiness of the Department of Homeland Security. The contract supports jobs within the private security sector in the Nevada region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Ensuring consistent service quality across all deployed guards throughout the contract duration.
Managing the logistical complexities of deploying and supervising armed personnel across potentially multiple sites.

Positive Signals

Awarded through full and open competition, indicating a healthy market and competitive pricing.
The contractor has a track record of performance, implied by receiving a significant contract.
The contract duration suggests a stable and reliable security solution for the agency.

Sector Analysis

The security services industry is a substantial sector within the broader federal contracting landscape. This contract falls under the Security Guards and Patrol Services category (NAICS 561612), which is a common requirement for federal agencies needing physical protection for their assets and personnel. The market for these services is competitive, with numerous private companies offering a range of security solutions. Federal spending in this area is consistent, driven by the ongoing need to secure government facilities nationwide.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. While there is no explicit information on subcontracting plans, larger prime contractors often engage small businesses for specialized support services. The absence of a small business set-aside means that opportunities for direct prime contracting were open to all qualified vendors, potentially limiting direct awards to small businesses on this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of Homeland Security. Performance standards and deliverables would be outlined in the contract's statement of work. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services
Physical Security Contracts

Risk Flags

Time and Materials pricing may lead to cost overruns.
Ensuring consistent quality of service from multiple guards over a long period.
Potential for scope creep without strict oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.9 million to SECURITY CONSULTANTS GROUP INC. NEVADA ARMED GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is SECURITY CONSULTANTS GROUP 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 $23.9 million.

What is the period of performance?

Start: 2008-04-08. End: 2013-03-31.

What is the historical spending trend for armed guard services by the Department of Homeland Security?

Analyzing historical spending for armed guard services by the Department of Homeland Security (DHS) requires examining contract data over several fiscal years. While this specific contract spans from April 2008 to March 2013, DHS has consistently awarded numerous contracts for security personnel, including armed guards, to protect its vast array of facilities and operations. Spending in this category can fluctuate based on evolving threat assessments, new facility acquisitions, and shifts in security policy. Generally, DHS represents a significant portion of federal spending on security services due to its broad mandate. To provide a precise trend, one would need to aggregate data from all similar contracts awarded by DHS over a longer period, looking for patterns in annual expenditures, average contract values, and the number of active contracts.

How does the per-unit cost of guards under this contract compare to industry benchmarks?

Determining the precise per-unit cost of guards under this Time and Materials (T&M) contract is challenging without detailed breakdowns of labor hours, hourly rates, and any associated material costs. T&M contracts are designed to cover the actual cost of labor and materials plus a fixed fee or time-based rate. To benchmark, one would need to identify the average hourly rates paid to armed guards by Security Consultants Group Inc. under this contract and compare them to prevailing market rates for similar services in Nevada. Industry benchmarks for armed guards can vary significantly based on experience, certifications, location, and the specific duties required. Given the competitive nature of the award (15 bidders), it is plausible that the negotiated rates were fair, but a definitive comparison requires access to the specific labor rates agreed upon in the contract.

What are the key performance indicators (KPIs) used to evaluate the performance of Security Consultants Group Inc. under this contract?

Key Performance Indicators (KPIs) for armed guard services contracts typically focus on ensuring the effectiveness and reliability of the security personnel. While specific KPIs for this contract are not detailed in the provided data, common metrics include guard punctuality and attendance rates, response times to incidents, adherence to post orders and procedures, successful completion of required training and certifications, and the absence of security breaches or incidents attributable to guard negligence. Performance is often evaluated through regular reports submitted by the contractor, site inspections, and feedback from facility managers. The contracting officer's representative (COR) plays a crucial role in monitoring these KPIs and ensuring the contractor meets the contractual obligations for maintaining a secure environment.

What is the risk associated with the Time and Materials (T&M) contract type for this service?

The primary risk associated with a Time and Materials (T&M) contract type for armed guard services is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor and materials, plus a fee. This can lead to higher-than-anticipated costs if labor hours are not carefully managed or if material costs increase unexpectedly. For taxpayers, this means less predictability in final spending. To mitigate this risk, robust oversight is essential. This includes diligent tracking of all hours worked, verification of material purchases, and clear definitions of what constitutes billable time and materials. The government must actively manage the scope and ensure efficient performance to prevent unnecessary expenditures.

How does the geographic focus on Nevada impact the overall federal spending on security guards?

The geographic focus on Nevada for this specific $23.9 million contract indicates a significant regional requirement for armed guard services within the Department of Homeland Security's operations in that state. Federal spending on security guards is distributed nationwide, reflecting the presence of federal agencies and assets across all states. Contracts like this one contribute to the overall federal expenditure in the security sector, but their localized nature means they address specific operational needs in particular areas. While this contract represents a substantial investment in Nevada, it is one component of a much larger national spending pattern on security services. The concentration in one state suggests specific security challenges or a high density of federal facilities requiring such protection in that region.

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: ALTERNATIVE SOURCES

Solicitation ID: HSCEW9-08-Q-00003

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: SRS Critical Infrastructure Security LLC (UEI: 355790924)

Address: 13655 DULLES TECHNOLOGY DR STE 100, HERNDON, VA, 20171

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,940,287

Exercised Options: $23,940,287

Current Obligation: $23,940,287

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F0267L

IDV Type: FSS

Timeline