Homeland Security's $21.4M security contract awarded to Coastal International Security, Inc. for guard services

Contract Overview

Contract Amount: $21,391,611 ($21.4M)

Contractor: Coastal International Security, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2012-10-01

End Date: 2013-07-31

Contract Duration: 303 days

Daily Burn Rate: $70.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTION

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 $21.4 million to COASTAL INTERNATIONAL SECURITY, INC for work described as: IGF::CT::IGF CRITICAL FUNCTION Key points: 1. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 2. The duration of the contract was 303 days, indicating a relatively short-term service requirement. 3. The contract was a BPA Call, which is a type of task order under an existing Blanket Purchase Agreement. 4. The contract was awarded on a labor hours basis, which can introduce cost uncertainty if not managed carefully. 5. The contractor, Coastal International Security, Inc., has a track record with federal agencies. 6. The service was for security guards and patrol services, a common requirement across federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this specific BPA Call is challenging without more detailed cost breakdowns and comparison to similar guard services contracts. The labor hours pricing structure necessitates close monitoring to ensure cost-effectiveness. Given the relatively short duration and the nature of the service, the total award amount of $21.4 million appears within a plausible range for comprehensive security coverage in a high-demand area like Washington D.C., but a detailed cost-per-hour analysis against market rates would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this method generally promotes price discovery and allows the government to select the best value offer. The use of a BPA Call suggests this was likely one of many orders placed under a pre-established agreement, which itself would have undergone a competitive process.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive rates for services.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its facilities, which receive security guard and patrol services. The services delivered include physical security, access control, and potentially emergency response support. The geographic impact is concentrated in the District of Columbia, where the services were rendered. The contract supports jobs in the security services sector, likely employing guards and supervisory personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contracts can lead to cost overruns if not closely monitored for efficiency and necessity of hours worked.
The specific details of the security services provided and their effectiveness are not detailed in the provided data.
The short contract duration might indicate a need for flexibility or a specific, time-bound requirement, but could also suggest a lack of long-term strategic planning.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contractor, Coastal International Security, Inc., is an established entity in the security services industry.
The contract addresses a critical function: security for a federal agency.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal agencies are major consumers of these services, including guard, patrol, and investigative activities. This contract falls under NAICS code 561612 (Security Guards and Patrol Services). Spending in this category is substantial across government, driven by the need to protect federal assets, personnel, and facilities. Benchmarking would involve comparing the per-hour rate or total contract value against similar services procured by other agencies or within the private sector for comparable security needs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and was not awarded to a small business (ss: false). Therefore, there are no direct subcontracting implications or benefits for small businesses stemming from this specific award. The primary contractor is likely a larger entity capable of fulfilling the security requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, where basic information is publicly available. Performance reviews and audits would be key accountability measures.

Related Government Programs

Department of Homeland Security - Facilities Management
Federal Protective Service Contracts
Security Guard Services
Law Enforcement Support Services

Risk Flags

Labor Hours Pricing
Short Contract Duration
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.4 million to COASTAL INTERNATIONAL SECURITY, INC. IGF::CT::IGF CRITICAL FUNCTION

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 $21.4 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-07-31.

What was the specific hourly rate or range of hourly rates paid under this labor hours contract?

The provided data does not specify the exact hourly rates or range of rates paid under this labor hours contract. Labor hours contracts typically involve an agreed-upon rate for different labor categories (e.g., guard, supervisor) multiplied by the actual hours worked. To determine the specific rates, one would need to access the detailed contract award documents or task order details. Without this information, it's impossible to benchmark the cost-effectiveness on a per-hour basis against market standards or similar federal contracts. The total award amount of $21.4 million represents the ceiling value, not necessarily the amount actually spent.

How many bids were received for this contract, and what was the range of proposed prices?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION,' which implies that multiple bids were solicited and considered. However, the specific number of bids received and the range of proposed prices are not included in this summary data. Typically, this level of detail would be available in more comprehensive contract databases or award justifications. Knowing the number of bidders and the price range is crucial for assessing the competitiveness of the award and whether the government achieved optimal price discovery.

What is the track record of Coastal International Security, Inc. with federal contracts, particularly in security services?

Coastal International Security, Inc. (CIS) has a history of performing federal contracts, primarily in the security services domain. A review of federal procurement data would reveal numerous awards to CIS across various agencies, including the Department of Defense, Department of Justice, and others. Their experience likely encompasses a range of security guard, patrol, and potentially specialized security services. Assessing their track record would involve examining past performance evaluations, any contract disputes or terminations, and the scale and complexity of previously awarded contracts to gauge their capacity and reliability in fulfilling requirements like the one issued by DHS.

How does the total contract value of $21.4 million compare to typical federal spending on security guard services?

The total contract value of $21.4 million for approximately 10 months of service (October 2012 - July 2013) is substantial but not unusual for comprehensive security services in a high-demand area like Washington D.C. Federal agencies, particularly those with significant physical infrastructure and personnel, often award large contracts for security. To provide a precise comparison, one would need to benchmark against contracts for similar scope (number of guards, hours, specific services) and geographic location. However, this figure suggests a significant security requirement was being met.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These details are typically found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For security guard services, common KPIs might include response times to incidents, adherence to post orders, guard presence and punctuality, incident reporting accuracy, and overall effectiveness in preventing unauthorized access or disruptions. The government would monitor these metrics to ensure the contractor is meeting performance expectations.

Were there any specific risks identified during the procurement or performance of this contract?

The provided data does not explicitly list risks identified for this contract. However, common risks associated with security guard contracts include potential lapses in security coverage due to staffing shortages, inadequate training of personnel, failure to respond effectively to incidents, and potential for contractor fraud or overbilling, especially under labor hours arrangements. The 'full and open competition' suggests an effort to mitigate risks by selecting from multiple qualified bidders. Post-award, risks would be managed through performance monitoring and contract administration.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $21,391,611

Exercised Options: $21,391,611

Current Obligation: $21,391,611

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSHQEC10A00001

IDV Type: BPA

Timeline