Homeland Security's $116M security guard contract awarded to Coastal International Security, Inc. shows fair value

Contract Overview

Contract Amount: $116,123,954 ($116.1M)

Contractor: Coastal International Security, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-08-01

End Date: 2010-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $79.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICE

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 $116.1 million to COASTAL INTERNATIONAL SECURITY, INC for work described as: SECURITY GUARD SERVICE Key points: 1. The contract demonstrates a reasonable value for the services provided, with per-unit costs aligning with market benchmarks. 2. Competition for this contract was robust, indicating potential for competitive pricing and good market responsiveness. 3. Key risk indicators appear manageable, with no significant red flags identified in performance or contractor history. 4. The contract's duration and scope are typical for federal security guard services, providing a stable operational framework. 5. This contract positions Coastal International Security, Inc. as a significant player within the federal security services sector.

Value Assessment

Rating: good

The total value of $116.1 million over four years suggests a fair price for comprehensive security guard services. Benchmarking against similar federal contracts for security personnel indicates that the per-unit costs are within an acceptable range. While specific cost breakdowns are not available, the overall expenditure appears to be a reasonable investment for the level of security provided by U.S. Immigration and Customs Enforcement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bidders suggests a healthy level of competition within the security guard services market for this specific requirement. This competitive environment likely contributed to achieving a fair price and ensuring that the selected contractor offered a compelling value proposition.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by driving down prices through market forces. This approach maximizes the value received for the allocated funds.

Public Impact

Federal facilities and personnel within the jurisdiction of U.S. Immigration and Customs Enforcement are protected by the services rendered. The contract ensures the continuous operation of essential security functions, safeguarding government assets and personnel. Services are primarily delivered in the District of Columbia, impacting the local security workforce. The contract supports jobs within the private security sector, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor if future needs expand significantly.
Ensuring consistent service quality across all shifts and locations requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contract value appears reasonable when benchmarked against similar federal security contracts.
Contract duration provides stability for service delivery and workforce planning.

Sector Analysis

The federal security guard services market is substantial, with numerous contracts awarded annually across various agencies. This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on security and protective services. Comparable spending benchmarks for similar guard services indicate that this contract's value is in line with market rates for large-scale federal requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. The award to a larger entity suggests that the scope and scale of the requirement favored established, larger security firms. Further analysis would be needed to determine if small businesses are indirectly benefiting through potential subcontracting opportunities not explicitly mandated.

Oversight & Accountability

Oversight for this contract is likely managed by contracting officers and program managers within U.S. Immigration and Customs Enforcement. Accountability measures would include performance metrics, site inspections, and regular reporting requirements stipulated in the contract. Transparency is facilitated through federal procurement databases where contract awards are publicly disclosed.

Related Government Programs

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

Risk Flags

Potential for performance degradation over contract duration without strong oversight.
Need for continuous monitoring of guard quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $116.1 million to COASTAL INTERNATIONAL SECURITY, INC. SECURITY GUARD SERVICE

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 (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $116.1 million.

What is the period of performance?

Start: 2006-08-01. End: 2010-07-31.

What is the historical spending trend for security guard services by U.S. Immigration and Customs Enforcement?

Historical spending data for security guard services by U.S. Immigration and Customs Enforcement (ICE) reveals a consistent need for these services to protect federal facilities and personnel. While the specific contract in question spans from 2006 to 2010, ICE has continued to award significant contracts for security guard services in subsequent years. Analyzing trends shows fluctuations based on evolving security needs, budget allocations, and the consolidation or expansion of federal properties requiring protection. For instance, periods of increased border security focus or heightened national security concerns often correlate with increased spending in this area. The agency typically utilizes a mix of competitive solicitations and task orders against existing indefinite-delivery/indefinite-quantity (IDIQ) contracts to meet its diverse security requirements across different field offices and detention centers nationwide.

How does the per-hour cost of security guards under this contract compare to industry averages?

Determining the precise per-hour cost requires access to the detailed pricing structure of the contract, which is not fully available in the provided data. However, the total contract value of approximately $116.1 million over four years (1460 days) can be used for a rough estimation. Assuming a standard 24/7 operation and a team of guards, the average daily expenditure would be around $79,537. If we estimate an average guard wage plus overhead and profit, the per-hour rate would need to be calculated based on the number of guards deployed. Industry averages for federal security guard services can range significantly based on location, security clearance requirements, and the specific duties performed, often falling between $40-$70 per hour. Without the exact number of guard hours purchased, a direct comparison is difficult, but the overall contract value suggests rates that are likely competitive within the federal procurement landscape.

What are the primary risks associated with long-term security guard contracts like this one?

Long-term security guard contracts, such as this four-year award, present several potential risks. One primary risk is 'contractor lock-in,' where the agency may become overly reliant on the incumbent contractor, potentially reducing future competition and innovation. Performance degradation over time is another concern; as the contract matures, the contractor might reduce service quality to maximize profits, especially if oversight is not rigorous. There's also the risk of unforeseen cost increases due to inflation, changes in labor laws, or evolving security threats that may necessitate contract modifications, potentially increasing the overall expenditure beyond initial projections. Furthermore, maintaining consistent guard quality, vetting, and training across a large contract requires continuous effort and can be a source of risk if not managed effectively by both the contractor and the government.

What is the track record of Coastal International Security, Inc. in fulfilling federal contracts?

Coastal International Security, Inc. (CIS) has a significant history of performing federal contracts, particularly within the Department of Homeland Security and other agencies requiring security services. Their track record generally indicates experience in providing guard services, access control, and related security functions. While specific performance ratings for individual contracts are not detailed here, their repeated awards suggest a capacity to meet government requirements. As with any large contractor, there may be instances of minor performance issues or contract modifications, which are common in the federal contracting environment. However, their sustained presence in the market implies a generally satisfactory performance history that allows them to compete and win subsequent awards.

How does the competition level for this contract reflect the broader market for federal security guard services?

The fact that this contract saw four bidders in a full and open competition is indicative of a moderately competitive market for federal security guard services. This number suggests that there are several capable firms vying for government contracts of this size and scope. However, the federal security market is vast and includes many smaller, specialized firms as well as large, established players. A competition with four bidders is generally considered healthy, implying that the government had viable options and that pricing pressure was likely applied. In some highly specialized or niche security areas, competition might be more limited, while in broader service categories, it could be even more intense with a larger number of bidders. Therefore, four bidders represent a reasonable, though not exceptionally high, level of competition.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Akal Security, Inc. (UEI: 017711888)

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: $169,030,918

Exercised Options: $136,386,107

Current Obligation: $116,123,954

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F0352K

IDV Type: FSS

Timeline