FEMA's $20.9M armed guard contract awarded to APSI-CENTERRA JV, LLC, spanning nearly 2,000 days

Contract Overview

Contract Amount: $20,941,508 ($20.9M)

Contractor: Apsi-Centerra JV, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-25

End Date: 2023-02-19

Contract Duration: 1,973 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CDP ARMED SECURITY GUARD SERVICES CONTRACT

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.9 million to APSI-CENTERRA JV, LLC for work described as: IGF::OT::IGF CDP ARMED SECURITY GUARD SERVICES CONTRACT Key points: 1. The contract's duration of 1973 days suggests a long-term need for security services. 2. A firm-fixed-price contract type indicates predictable costs for the government. 3. The award value of over $20 million over its term requires careful performance monitoring. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a unique procurement path. 6. The geographic scope is limited to Alabama, as indicated by the state code 'AL'.

Value Assessment

Rating: fair

The contract's total award of $20,941,508.05 over 1973 days averages approximately $10,614 per day. Without specific details on the number of guards, hours, or locations, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty. Benchmarking against similar large-scale armed guard contracts would be necessary for a more precise evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially due to specific requirements or circumstances. The number of bidders (10) suggests a moderate level of interest, but the exclusion of sources might limit the full spectrum of competitive pricing.

Taxpayer Impact: The exclusion of sources in the competition may have led to a less competitive environment than a truly full and open process, potentially impacting the final price paid by taxpayers.

Public Impact

The primary beneficiaries are the facilities and personnel requiring armed security services within Alabama. The contract ensures the provision of security guard services, likely for critical infrastructure or sensitive government sites. The geographic impact is concentrated within the state of Alabama. The contract supports jobs within the private security sector, including potentially armed guards and supervisory staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method warrants scrutiny to understand the rationale behind source exclusion and its impact on competition.
The long contract duration (1973 days) necessitates robust performance management to ensure continued service quality and cost-effectiveness.
Lack of detailed performance metrics or service level agreements in the provided data makes it difficult to assess the effectiveness of the security services provided.

Positive Signals

The use of a firm-fixed-price contract provides budget certainty for the Federal Emergency Management Agency.
Awarding to a joint venture (APSI-CENTERRA JV, LLC) may indicate a strategy to leverage diverse capabilities or meet specific socio-economic goals.
The contract was competed, indicating an effort to solicit multiple offers, even with the exclusion of sources.

Sector Analysis

The security services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under NAICS code 561612 (Security Guards and Patrol Services). The market for government security contracts is substantial, driven by the need to protect federal assets, personnel, and facilities. Spending in this sector is often influenced by threat levels, regulatory requirements, and the specific needs of various agencies like FEMA.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct small business set-aside benefits. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and any flow-down requirements, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The Inspector General of the Department of Homeland Security (DHS) would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Department of Homeland Security Security Contracts
Federal Emergency Management Agency Support Services
Armed Guard Services Contracts
Security Services for Government Facilities
Definitive Contracts

Risk Flags

Procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' requires further investigation into the reasons for exclusion.
Long contract duration necessitates robust performance monitoring to ensure sustained quality and value.
Lack of detailed service requirements and performance metrics makes independent value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.9 million to APSI-CENTERRA JV, LLC. IGF::OT::IGF CDP ARMED SECURITY GUARD SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is APSI-CENTERRA JV, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2017-09-25. End: 2023-02-19.

What is the specific rationale behind the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method used for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) method is a specialized procurement approach. It typically means that the agency intended to conduct a full and open competition but had to exclude certain potential sources. This exclusion is usually based on specific, documented reasons, such as unique capabilities required, national security concerns, or the need to satisfy specific statutory or regulatory requirements that only a limited number of sources can meet. Without further documentation from the solicitation or award details, the precise reason for excluding sources in this FEMA contract remains unclear. However, it suggests that the agency identified a need that could not be met by all potential offerors in the market, leading to a narrowed field of competition.

How does the average daily cost of this contract compare to industry benchmarks for armed security guard services?

The contract's total award of $20,941,508.05 over 1973 days results in an average daily cost of approximately $10,614. To benchmark this against industry standards, one would need to consider the number of guards deployed, their hours of service, the level of armament, the specific security protocols required, and the geographic location. For instance, if this contract covers 24/7 security at multiple high-risk facilities, the daily cost might be reasonable. Conversely, if it involves fewer guards or shorter hours, it could be higher than average. A comprehensive comparison would require access to detailed service requirements and market data for similar government or private sector contracts in Alabama.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

A firm-fixed-price (FFP) contract, while offering cost certainty, carries inherent risks, especially for long-duration contracts like this one (1973 days). The primary risk for the government is that the contractor may not be incentivized to control costs beyond what is necessary to meet the contract's minimum requirements. If the contractor's actual costs are significantly lower than anticipated, the government may overpay. Conversely, if unforeseen circumstances drastically increase the contractor's costs (e.g., labor shortages, increased insurance premiums), the contractor might face financial strain, potentially impacting service delivery or leading to requests for equitable adjustments. Effective oversight is crucial to ensure the contractor maintains efficiency and quality throughout the contract term.

What does the number of bidders (10) indicate about the competitiveness of this contract, given the procurement method?

Receiving 10 bids suggests a moderate level of interest in this contract. However, the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method complicates the interpretation of competitiveness. If the excluded sources were significant players in the market, then 10 bidders might represent a less competitive pool than initially intended. If the exclusions were minor or based on highly specialized requirements, then 10 bidders could indicate robust competition among qualified firms. The joint venture awardee, APSI-CENTERRA JV, LLC, implies that the competition likely involved both established companies and potentially newer or specialized entities forming partnerships to bid.

How has FEMA's spending on security guard services evolved over time, and does this contract represent a significant shift?

Analyzing FEMA's historical spending on security guard services would require examining contract data over multiple fiscal years. This specific contract, awarded in 2017 with an end date in 2023, represents a substantial single award. Without broader historical data, it's difficult to determine if this contract signifies a shift. However, FEMA's mission, particularly in disaster response and recovery, often necessitates significant security deployments. Spending patterns can fluctuate based on the scale and frequency of emergencies, as well as changes in federal security policies and budget allocations. This contract's duration and value suggest a sustained need for security support within FEMA's operational framework.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE20-17-R-0007

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 W 38TH AVE STE 200F, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,941,508

Exercised Options: $20,941,508

Current Obligation: $20,941,508

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline