Homeland Security's $20.4M security contract awarded to Coastal International Security, Inc. for PSO services

Contract Overview

Contract Amount: $20,438,601 ($20.4M)

Contractor: Coastal International Security, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-09

End Date: 2011-07-31

Contract Duration: 325 days

Daily Burn Rate: $62.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESTABLISH PSO SERVICES AT RRB FOR THE PERIOD OF OCTOBER 1, 2010 THROUGH JULY 31, 2011

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.4 million to COASTAL INTERNATIONAL SECURITY, INC for work described as: ESTABLISH PSO SERVICES AT RRB FOR THE PERIOD OF OCTOBER 1, 2010 THROUGH JULY 31, 2011 Key points: 1. The contract value of $20.4M for a 325-day period suggests a significant investment in security services. 2. Awarded under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework for services. 3. The firm-fixed-price contract type aims to control costs by establishing a set price for services. 4. Competition was full and open, suggesting a robust bidding process. 5. The contract was awarded to a single vendor, Coastal International Security, Inc. 6. Services were delivered in the District of Columbia, a high-security environment. 7. The North American Industry Classification System (NAICS) code 561612 points to security guards and patrol services.

Value Assessment

Rating: fair

The contract value of approximately $20.4 million for a period of 325 days translates to a daily rate of roughly $62,888. This daily rate appears high when compared to typical security guard services, suggesting the scope may include specialized personnel or extensive operational requirements. Without more detailed service descriptions or benchmarks for similar large-scale security operations in high-security areas, a definitive value-for-money assessment is challenging. The firm-fixed-price structure, however, provides cost certainty for the government.

Cost Per Unit: Approximately $62,888 per day.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit a bid. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The award was made via a BPA Call, suggesting that the underlying BPA itself was likely competed previously, and this call represents a specific task order.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and services, potentially leading to cost savings and higher quality outcomes compared to less competitive procurement methods.

Public Impact

The primary beneficiary is the Department of Homeland Security, which receives essential protective security officer (PSO) services. The services delivered are security guard and patrol functions, crucial for maintaining safety and security at federal facilities. The geographic impact is concentrated in the District of Columbia, a critical hub for federal operations. The contract supports jobs within the security services industry, likely benefiting security personnel and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost warrants scrutiny for efficiency and necessity of services.
Limited transparency on the number of bidders in the full and open competition.
Short contract duration (325 days) may indicate a temporary need or a precursor to a larger, longer-term contract.

Positive Signals

Awarded through a full and open competition, suggesting a fair and transparent process.
Firm-fixed-price contract type provides cost predictability for the government.
Services provided by a specialized security firm, implying expertise in the field.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. Federal spending in this area is substantial, driven by the need to protect government assets, personnel, and facilities. Comparable spending benchmarks would typically involve analyzing other large-scale security contracts awarded by federal agencies, particularly those in high-security locations like Washington D.C., to assess the reasonableness of the daily rate and overall contract value.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify any subcontracting goals for small businesses. As a full and open competition, it's possible that small businesses could have participated, but without specific set-aside requirements, larger companies are often better positioned to compete for contracts of this magnitude. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency regarding performance metrics and adherence to contract terms would be managed through regular reporting and potentially site visits. Specific Inspector General (IG) jurisdiction would depend on the DHS component agency managing the contract and any specific audit triggers.

Related Government Programs

Protective Security Services
Federal Law Enforcement Support
Government Facility Security
Security Guard Contracts
Homeland Security Contracts

Risk Flags

High daily cost warrants further investigation into service scope and necessity.
Lack of specific bidder count limits assessment of competitive intensity.
Contract duration is relatively short, raising questions about long-term strategy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.4 million to COASTAL INTERNATIONAL SECURITY, INC. ESTABLISH PSO SERVICES AT RRB FOR THE PERIOD OF OCTOBER 1, 2010 THROUGH JULY 31, 2011

Who is the contractor on this award?

The obligated recipient is COASTAL INTERNATIONAL SECURITY, 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 $20.4 million.

What is the period of performance?

Start: 2010-09-09. End: 2011-07-31.

What was the specific scope of work for Coastal International Security, Inc. under this contract?

The contract specifies 'ESTABLISH PSO SERVICES AT RRB FOR THE PERIOD OF OCTOBER 1, 2010 THROUGH JULY 31, 2011'. PSO stands for Protective Security Officer. RRB likely refers to a specific facility or location managed by the Department of Homeland Security. The services would encompass providing trained security personnel to perform duties such as access control, patrolling, surveillance, and responding to security incidents within the designated area. The exact nature of these duties and the number of personnel required would be detailed in the Performance Work Statement (PWS) which is not provided in the summary data.

How does the daily cost of $62,888 compare to similar federal security contracts?

The daily cost of approximately $62,888 is exceptionally high for standard security guard services. Typical federal contracts for unarmed security guards can range from a few hundred to a couple of thousand dollars per day, depending on the number of guards, their skill level, and the location. A daily rate of this magnitude suggests that the contract likely involved a very large number of highly specialized personnel, advanced security technology, or extensive operational support beyond basic guard duties. Benchmarking this rate would require comparing it against contracts for high-threat protection details, specialized security assessments, or large-scale event security in high-cost urban areas, which are not common.

What is the significance of the contract being awarded via a BPA Call?

A Blanket Purchase Agreement (BPA) is a simplified way to fill anticipated repetitive needs for supplies or services. A BPA Call (or Task Order) is issued against an existing BPA. This means that the underlying terms and conditions, and potentially pricing, were likely established during a prior competitive process for the BPA itself. Awarding this specific service requirement via a BPA Call suggests that Coastal International Security, Inc. was an incumbent or pre-qualified vendor under a broader DHS security services BPA. This method can expedite the procurement process for recurring needs.

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

While firm-fixed-price (FFP) contracts are generally preferred for cost control, risks can still exist. For a contract of this magnitude ($20.4M), the primary risk is that the contractor may overcharge if the government did not adequately define the scope or if market conditions change unfavorably for the contractor, leading them to seek scope adjustments or claims. Conversely, if the scope is too narrowly defined, the contractor might cut corners on service quality to maintain profitability, impacting security effectiveness. Effective government oversight is crucial to ensure the contractor meets all performance requirements within the fixed price.

What does the NAICS code 561612 indicate about the services provided?

The North American Industry Classification System (NAICS) code 561612 specifically identifies 'Security Guards and Patrol Services'. This classification covers establishments primarily engaged in providing guard and patrol services, such as armed or unarmed guard services, bodyguard services, and security system monitoring services (when combined with installation or maintenance). It implies that the core function of the contract was the deployment of personnel to provide physical security and surveillance, rather than the provision of security technology or consulting services alone.

What is the historical spending pattern for security services by the Department of Homeland Security?

The Department of Homeland Security (DHS) is a major consumer of security services due to its broad mandate to protect the nation. Historical spending patterns show consistent and significant investment in protective security, cybersecurity, and border security technologies and services. Within protective services, DHS frequently utilizes contracts for security guards and physical security systems across its various components (e.g., FEMA, TSA, ICE, Coast Guard). Spending in this category often fluctuates based on threat levels, facility needs, and specific operational requirements, with large contracts like this one being relatively common for major facilities or events.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Akal Security, Inc.

Address: 6101 FALLARD DR, UPPER MARLBORO, MD, 20772

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $39,683,986

Exercised Options: $20,438,601

Current Obligation: $20,438,601

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSHQEC10A00001

IDV Type: BPA

Timeline