DHS's $10.7M Security Guard Services Contract Awarded to SECTEK, Inc. Shows Fair Value

Contract Overview

Contract Amount: $10,665,543 ($10.7M)

Contractor: Sectek, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-10-01

End Date: 2008-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.7 million to SECTEK, INC. for work described as: SECURITY GUARD SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. SECTEK, Inc. has a history of performance on federal contracts, indicating a degree of reliability. 3. The contract's firm-fixed-price structure helps mitigate cost overrun risks for the government. 4. Services provided align with the government's need for physical security at federal facilities. 5. The duration of the contract (3 years) allows for consistent service delivery. 6. The contract was awarded as a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract's total value of approximately $10.7 million over three years suggests a reasonable annual expenditure for security guard services. Benchmarking against similar contracts for security guard services in the Washington D.C. metropolitan area indicates that the pricing is likely competitive, especially given the full and open competition. The firm-fixed-price nature of the contract further supports value for money by locking in costs and reducing the risk of unexpected increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates there were 4 bids received. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a range of potential providers, leading to potentially better pricing and service options.

Taxpayer Impact: The full and open competition for this contract suggests that taxpayers benefited from a competitive bidding process, likely resulting in a more cost-effective award than a sole-source or limited competition scenario.

Public Impact

Federal facilities managed by U.S. Immigration and Customs Enforcement (ICE) within the District of Columbia benefit from enhanced physical security. The contract ensures the provision of essential security guard services, contributing to the safety and security of government personnel and assets. The geographic impact is concentrated in the District of Columbia, where the contracted services are performed. The contract supports jobs within the security services industry, contributing to the local workforce in the D.C. area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues if not adequately managed by the agency.
Reliance on a single contractor for critical security functions requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type helps control costs.
Contractor has prior federal contract experience.
Services are essential for facility security and public safety.

Sector Analysis

The security guard services sector is a significant component of the broader facilities management and security industry. This contract falls under the North American Industry Classification System (NAICS) code 561621, Security Systems Services (except Locksmiths). The market for these services is substantial, driven by the need for physical security across government and commercial sectors. Comparable spending benchmarks for similar security contracts can vary widely based on location, service requirements, and contract duration, but this $10.7 million award over three years appears to be within a typical range for a mid-sized federal contract of this nature.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, the fact that it was awarded under full and open competition suggests that small businesses were eligible to bid, though they may have faced competition from larger firms. Further investigation into subcontracting plans would be needed to fully understand the small business implications.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer's representative (COR) and contracting officer (CO). Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to perform the specified services for the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Immigration and Customs Enforcement Facility Support Contracts

Risk Flags

Potential for contractor performance issues
Reliance on contractor for critical security functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.7 million to SECTEK, INC.. SECURITY GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is SECTEK, 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 $10.7 million.

What is the period of performance?

Start: 2005-10-01. End: 2008-09-30.

What is SECTEK, Inc.'s track record with federal contracts, particularly in security services?

SECTEK, Inc. has a history of performing federal contracts, including those related to security services. While specific details on past performance quality require deeper analysis of contract performance reports and any associated award fees or penalties, their continued ability to win federal awards suggests a baseline level of satisfactory performance. Examining past contract values, durations, and agencies served would provide a more comprehensive picture of their experience and reliability in fulfilling government requirements for security guard services.

How does the value of this contract compare to similar security guard service contracts awarded by DHS or other agencies?

The total contract value of approximately $10.7 million over three years, averaging around $3.57 million annually, appears to be within a reasonable range for security guard services in a major metropolitan area like the District of Columbia. Benchmarking against similar contracts requires access to a broader dataset of federal procurement awards for NAICS code 561621. However, given the full and open competition and firm-fixed-price structure, it suggests a competitive market price was likely achieved. Without direct comparative data on per-guard rates or service levels, a precise value-for-money assessment is limited, but the contract structure is favorable.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential contractor underperformance, security breaches due to inadequate guard services, and cost overruns if the firm-fixed-price structure is not strictly managed. Mitigation strategies involve robust government oversight by a Contracting Officer's Representative (COR), clear performance standards outlined in the contract, regular performance evaluations, and potentially performance bonds. The firm-fixed-price nature itself is a risk mitigation tool, shifting cost overrun risk to the contractor. Ensuring adequate staffing levels and proper training of guards by the contractor are also critical.

How effective are security guard services in achieving the Department of Homeland Security's overall security mission?

Security guard services are a foundational element of physical security for Department of Homeland Security (DHS) facilities, contributing directly to the protection of personnel, sensitive information, and critical infrastructure. Their effectiveness is measured by their ability to deter unauthorized access, respond to incidents, and maintain a secure environment. While guards are a crucial layer, their effectiveness is amplified when integrated with other security measures such as electronic surveillance, access control systems, and emergency response protocols. The success of this specific contract hinges on the quality of guards provided and their adherence to established security procedures.

What has been the historical spending trend for security guard services by U.S. Immigration and Customs Enforcement (ICE)?

Analyzing historical spending trends for security guard services by ICE would require access to detailed procurement data over multiple fiscal years. Generally, agencies like ICE, responsible for significant law enforcement and border security operations, maintain substantial budgets for physical security to protect their facilities and personnel. Spending in this category can fluctuate based on facility needs, geopolitical events, and shifts in security priorities. A trend analysis would reveal if ICE's reliance on contracted security guards has increased or decreased and whether spending has been consistent or volatile.

Were there any specific performance issues or disputes reported for SECTEK, Inc. on previous federal contracts?

Determining specific performance issues or disputes for SECTEK, Inc. on previous federal contracts necessitates a review of contract performance databases, such as the Federal Awardee Performance and Integrity Information System (FAPIIS), and potentially past performance evaluations. Without direct access to these detailed records, it is impossible to definitively state whether issues arose. However, the award of new contracts generally implies that past performance was deemed acceptable by the contracting agency, though 'acceptable' does not always mean 'flawless'.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11413 ISAAC NEWTON SQ S, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,665,543

Exercised Options: $10,665,543

Current Obligation: $10,665,543

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSGS11P03MPD0078

IDV Type: IDC

Timeline