Homeland Security's $16.3M guard services contract awarded to AKAL SECURITY, INC. for Minnesota

Contract Overview

Contract Amount: $16,304,915 ($16.3M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2004-10-01

End Date: 2006-03-03

Contract Duration: 518 days

Daily Burn Rate: $31.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD SERVICES

Place of Performance

Location: ONAMIA, MILLE LACS County, MINNESOTA, 56359

State: Minnesota Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.3 million to AKAL SECURITY, INC. for work described as: GUARD SERVICES Key points: 1. Value for money assessed through comparison to similar contracts and market rates. 2. Competition dynamics indicate a competitive delivery order, potentially driving better pricing. 3. Risk indicators include contract duration and specific service type. 4. Performance context is within security guard and patrol services for immigration enforcement. 5. Sector positioning is within government contracting for essential security services.

Value Assessment

Rating: fair

The total award of $16.3 million over approximately 1.7 years for security guard services appears to be within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for guard services, especially those with firm-fixed-price structures, is crucial for a definitive value assessment. The per-unit cost, if derivable, would offer further insight into whether the pricing is competitive. Without more granular data on the scope of services and specific security requirements, a precise value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract that underwent full and open competition. The presence of 6 bidders indicates a healthy level of competition for this specific order. This competitive environment generally leads to more favorable pricing and service offerings for the government, as contractors vie for the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by providing essential security personnel. Services delivered include security guards and patrol services. Geographic impact is focused on Minnesota (MN). Workforce implications include the creation of jobs for security guards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 518 days (approx. 1.7 years) may require careful management to ensure continued service quality.
Firm Fixed Price contract type can lead to cost overruns for the contractor if not managed efficiently, potentially impacting service delivery if the contractor faces financial strain.

Positive Signals

Awarded as a competitive delivery order, indicating multiple bidders participated.
The contract is for essential security services, a critical function for the agency.
The contract was awarded to AKAL SECURITY, INC., a known entity in the security services sector.

Sector Analysis

The security guard and patrol services sector is a significant component of the broader government contracting landscape, particularly for agencies like Homeland Security that require physical security. This contract falls within the North American Industry Classification System (NAICS) code 561612. Spending in this sector is often driven by the need for personnel to protect federal facilities, assets, and personnel. Benchmarks for this type of service vary widely based on location, security clearance requirements, and the specific duties performed.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As this was a competitive delivery order with 6 bidders, it's possible that small businesses participated in the bidding process. However, without specific data on set-aside goals or actual subcontracting awards, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Transparency is generally maintained through contract award databases and reporting requirements. The specific Inspector General for the Department of Homeland Security would have jurisdiction over investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Contract duration
Potential for price escalation over contract term
Dependence on contractor performance for critical security functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.3 million to AKAL SECURITY, INC.. GUARD 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 $16.3 million.

What is the period of performance?

Start: 2004-10-01. End: 2006-03-03.

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

Analyzing historical spending patterns for ICE's security guard services in Minnesota requires access to detailed federal procurement data beyond this single contract. Typically, agencies like ICE procure guard services through various contract vehicles, including IDIQ contracts, task orders, and direct awards. Spending can fluctuate based on evolving security needs, facility changes, and budget allocations. To understand the pattern, one would examine contract awards over several fiscal years, noting the total obligated amounts, contract types (e.g., firm-fixed-price, cost-plus), and the primary contractors. Comparing this specific $16.3 million award to previous spending levels would reveal whether this represents an increase, decrease, or consistent level of investment in security personnel for the region.

How does the per-unit cost of this contract compare to industry benchmarks for security guards in Minnesota?

Determining the precise per-unit cost for this contract requires breaking down the total award value by the number of guard hours or equivalent units of service provided. For instance, if the contract specified 100,000 guard hours at a total value of $16.3 million, the average hourly rate would be $163. This figure would then be compared against industry benchmarks for security guard services in Minnesota. These benchmarks are influenced by factors such as the level of security clearance required, the specific duties (e.g., armed vs. unarmed, access control, patrol), the time of day or week services are rendered, and the prevailing wage rates in the local labor market. A higher per-unit cost might be justified by specialized skills or high-risk environments, while a lower cost could indicate efficient service delivery or a less demanding scope.

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

AKAL SECURITY, INC. has a documented history of receiving federal contracts, including those awarded by the Department of Homeland Security (DHS) and its component agencies like U.S. Immigration and Customs Enforcement (ICE). Examining their past performance involves reviewing contract databases for awards, contract values, and performance ratings, if available. A positive track record would include successful completion of similar security service contracts, adherence to contract terms, and compliance with federal regulations. Conversely, any past performance issues, such as contract disputes, quality deficiencies, or late deliveries, would be red flags. Understanding their experience with DHS/ICE specifically provides insight into their familiarity with the agency's unique operational requirements and security protocols.

What are the key performance indicators (KPIs) used to measure the success of this guard services contract?

Key Performance Indicators (KPIs) for a federal guard services contract typically focus on ensuring the effectiveness and reliability of the security personnel. Common KPIs include: post orders compliance (adherence to specific instructions for each post), response times to incidents, incident reporting accuracy and timeliness, personnel attendance and punctuality, uniform and appearance standards, and overall customer satisfaction surveys from the contracting agency. For ICE, KPIs might also include metrics related to access control effectiveness, prevention of unauthorized entries, and the successful de-escalation of situations. Performance is often evaluated through a Quality Assurance Surveillance Plan (QASP) managed by the government, which systematically monitors the contractor's performance against these defined metrics.

How does the duration of this contract (518 days) impact the overall risk profile for the government?

A contract duration of 518 days (approximately 1.7 years) presents a moderate risk profile. Shorter durations can increase the frequency of re-competition, leading to potential disruptions and administrative overhead, but also allow for quicker adjustments to changing needs or contractor performance issues. Longer durations, while offering stability and potentially better pricing through economies of scale, increase the risk of contractor complacency, price escalation if not locked in, and the potential for the contract scope to become misaligned with evolving requirements. For this specific contract, the moderate duration suggests a balance, allowing for service continuity while still providing opportunities for review and potential renegotiation or re-competition within a reasonable timeframe.

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: 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: $16,304,915

Exercised Options: $16,304,915

Current Obligation: $16,304,915

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSACD03C0007

IDV Type: IDC

Timeline