DHS awards $53.9M contract for airport security screening to Firstline Transportation Security, Inc
Contract Overview
Contract Amount: $53,938,011 ($53.9M)
Contractor: Firstline Transportation Security, Inc
Awarding Agency: Department of Homeland Security
Start Date: 2004-11-19
End Date: 2006-05-16
Contract Duration: 543 days
Daily Burn Rate: $99.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Transportation
Official Description: SECURITY SCREENING SERVICES FOR MCI AIRPORT
Place of Performance
Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37209
Plain-Language Summary
Department of Homeland Security obligated $53.9 million to FIRSTLINE TRANSPORTATION SECURITY, INC for work described as: SECURITY SCREENING SERVICES FOR MCI AIRPORT Key points: 1. The contract value is substantial at $53.9 million. 2. Firstline Transportation Security, Inc. is the sole awardee. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Transportation Security, a critical government function.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs if not managed tightly. Without a competitive bidding process, it's difficult to assess if the pricing is optimal compared to market rates for similar security services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these security screening services.
Public Impact
Ensures security at a major airport, impacting traveler safety and confidence. Potential for increased costs due to non-competitive award affects taxpayer funds. Reliability of security screening is paramount for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Sole-source award
Positive Signals
- Essential service provision
- Established contract duration
Sector Analysis
This contract falls within the Transportation Security Administration's domain, focusing on airport security screening. Spending in this sector is critical for national safety and can be subject to significant government investment, often with long-term contracts.
Small Business Impact
The awardee is Firstline Transportation Security, Inc. Information regarding its size or status as a small business is not provided, but the contract's scale suggests it may be a larger entity or a subcontractor to one.
Oversight & Accountability
The non-competed nature of this award warrants scrutiny to ensure the government received fair value and that the contracting process was justified. Oversight is needed to monitor costs and performance under the Cost Plus Award Fee structure.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
Tags
security-guards-and-patrol-services, department-of-homeland-security, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $53.9 million to FIRSTLINE TRANSPORTATION SECURITY, INC. SECURITY SCREENING SERVICES FOR MCI AIRPORT
Who is the contractor on this award?
The obligated recipient is FIRSTLINE TRANSPORTATION SECURITY, INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $53.9 million.
What is the period of performance?
Start: 2004-11-19. End: 2006-05-16.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further documentation, it's impossible to determine the specific rationale. However, such awards require rigorous justification to ensure they serve the government's best interest and do not circumvent competitive processes.
How does the Cost Plus Award Fee structure impact the overall cost-effectiveness of this contract?
Cost Plus Award Fee contracts allow the contractor to recover allowable costs plus a fee that is adjusted based on performance against pre-defined metrics. While intended to incentivize performance, this structure can lead to higher costs if the award fee criteria are not stringent or if costs are not closely monitored. It shifts some cost risk to the government.
What is the potential risk to security effectiveness given the lack of competition?
While the lack of competition primarily impacts cost-effectiveness, it could indirectly pose a risk if it discourages innovation or leads to complacency in service delivery. A competitive environment often drives service providers to continuously improve their offerings and efficiency. However, the primary risk here is financial, not necessarily a direct compromise of security effectiveness if the incumbent performs adequately.
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: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: SMS Holdings Corporation (UEI: 122312288)
Address: 7135 CHARLOTTE PIKE, NASHVILLE, TN, 37209
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $187,963,019
Exercised Options: $55,124,775
Current Obligation: $53,938,011
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2004-11-19
Current End Date: 2006-05-16
Potential End Date: 2006-05-16 00:00:00
Last Modified: 2018-12-04
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