DHS awarded $215.8M for security services, with Firstline Transportation Security Inc. holding the contract

Contract Overview

Contract Amount: $215,849,366 ($215.8M)

Contractor: Firstline Transportation Security, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-04-10

End Date: 2012-11-30

Contract Duration: 2,426 days

Daily Burn Rate: $89.0K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: Other

Place of Performance

Location: KANSAS CITY, PLATTE County, MISSOURI, 64195

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $215.8 million to FIRSTLINE TRANSPORTATION SECURITY, INC for work described as: Key points: 1. Contract value indicates significant investment in security services over its duration. 2. The full and open competition suggests a potentially competitive bidding process. 3. Long contract duration of over 2000 days may present risks related to evolving security needs. 4. The specific NAICS code points to a focus on guard and patrol services. 5. Award type as BPA CALL suggests a flexible ordering mechanism within a broader agreement. 6. The contract's geographic focus on Missouri is noted.

Value Assessment

Rating: fair

The total award amount of $215.8 million over approximately 6.7 years suggests an average annual spend of roughly $32 million. Benchmarking this against similar large-scale security contracts would be necessary for a precise value-for-money assessment. Without specific performance metrics or comparisons to market rates for comparable security services, it is difficult to definitively assess if this represents excellent value. The absence of detailed cost breakdowns makes a granular pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The open competition is a positive indicator for achieving competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which aims to drive down costs for government services.

Public Impact

The primary beneficiaries are likely federal agencies requiring security guard and patrol services, particularly within the Department of Homeland Security. The services delivered are security guards and patrol, crucial for protecting federal assets and personnel. The contract has a geographic impact focused on Missouri. Workforce implications include the potential for significant employment opportunities for security personnel in the specified region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to price inflexibility if market rates change significantly.
Lack of specific performance metrics makes it difficult to assess effectiveness and value.
Geographic concentration in Missouri might limit broader applicability or scalability of services.
Award type (BPA CALL) can sometimes lead to less stringent oversight compared to a standalone contract if not managed carefully.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract addresses a critical government function: security services.
The substantial award amount indicates a significant need and commitment to security.
The contractor has secured a large federal contract, implying a level of established capability.

Sector Analysis

This contract falls within the security and protective services sector, a critical component of government operations. The market for security services is substantial, encompassing a wide range of offerings from personnel to technology. This specific award, focused on guard and patrol, represents a segment of the broader security industry. Comparable spending benchmarks would involve looking at other large federal contracts for similar security guard services across various agencies.

Small Business Impact

The data indicates that small business participation (sb) was false and the contract was not set aside for small businesses (ss). This suggests that the primary award was likely made to a larger entity capable of handling the scale of services required. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight mechanisms would typically involve the contracting officer's representative (COR) at the Transportation Security Administration (TSA) monitoring performance against the contract's statement of work. Accountability measures are usually tied to performance reviews and payment schedules. Transparency is facilitated by contract databases, but detailed operational oversight information is often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Contracts
Transportation Security Administration Services
Security Guard Services
Patrol Services Contracts

Risk Flags

Long contract duration may lead to price escalation or obsolescence.
Lack of detailed performance metrics in summary data hinders effectiveness assessment.
Geographic concentration could limit flexibility for broader deployment.
Potential for reduced competition if market dynamics shift unfavorably over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $215.8 million to FIRSTLINE TRANSPORTATION SECURITY, INC. See the official description on USAspending.

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 $215.8 million.

What is the period of performance?

Start: 2006-04-10. End: 2012-11-30.

What is the track record of Firstline Transportation Security, Inc. with federal contracts, particularly within DHS?

Information on Firstline Transportation Security, Inc.'s specific track record with federal contracts, especially within DHS, is not detailed in the provided data. However, securing a contract of this magnitude ($215.8 million) suggests a demonstrated capability to meet the requirements of a large federal agency. Further investigation into their past performance, any awards or penalties, and their history with similar service contracts would be necessary for a comprehensive assessment. Reviewing contract databases for other awards to this entity could reveal patterns in their federal contracting activities and their performance history.

How does the per-unit cost of security personnel under this contract compare to market rates or similar federal contracts?

The provided data does not include per-unit cost details, such as hourly rates for security guards or patrol officers. Therefore, a direct comparison to market rates or similar federal contracts is not possible with the given information. To perform this analysis, one would need access to the contract's detailed pricing structure and compare it against industry benchmarks for security personnel in the Missouri region, as well as against pricing from other federal contracts for comparable services. Without this granular data, assessing the value for money on a per-unit basis remains speculative.

What are the key performance indicators (KPIs) used to measure the success of this security services contract?

The provided data summary does not specify the Key Performance Indicators (KPIs) established for this contract. Typically, for security guard and patrol services, KPIs might include response times to incidents, adherence to post orders, incident reporting accuracy, personnel punctuality, and client satisfaction surveys. The effectiveness of the contract's success hinges on these metrics being clearly defined in the contract's statement of work and rigorously monitored by the contracting agency. Without this information, it's challenging to objectively evaluate the contractor's performance and the overall effectiveness of the security services provided.

What is the historical spending trend for security services by the Transportation Security Administration (TSA) over the past decade?

The provided data only pertains to a single contract award. To analyze historical spending trends for security services by the TSA, one would need to access aggregated spending data across multiple contracts over several fiscal years. This would involve querying federal procurement databases for all TSA contracts related to security guards and patrol services, summing their values annually, and analyzing the trend. Such an analysis could reveal whether spending has increased, decreased, or remained stable, and identify any significant shifts in procurement strategies or service needs over time.

Are there any identified risks associated with the long duration (2426 days) of this contract?

A contract duration of 2426 days (approximately 6.7 years) presents several potential risks. Firstly, it can lead to price inflexibility; the rates negotiated at the outset may become uncompetitive if market conditions change significantly over the contract period. Secondly, evolving security threats and technological advancements might render the initially specified services or equipment outdated, requiring costly modifications or contract renegotiations. Thirdly, long-term contracts can sometimes reduce the agency's agility in adapting to new requirements or adopting more innovative solutions that may emerge. Finally, maintaining consistent oversight and performance management over such an extended period can be challenging for the contracting agency.

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

Evaluated Preference: NONE

Contractor Details

Parent Company: SMS Holdings Corporation (UEI: 122312288)

Address: 35350 CURTIS BOULEVARD, EASTLAKE, OH, 44095

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $776,210,520

Exercised Options: $215,849,366

Current Obligation: $215,849,366

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0105ASPP819

IDV Type: BPA

Timeline