DHS awards $144M contract for airport security screening services at MCI to AKAL SECURITY, INC

Contract Overview

Contract Amount: $144,189,141 ($144.2M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-03-01

End Date: 2020-08-31

Contract Duration: 2,375 days

Daily Burn Rate: $60.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE

Sector: Transportation

Official Description: IGF::CT::IGF SECURITY SCREENING SERVICES AT KANSAS CITY INTERNATIONAL AIRPORT (MCI).

Place of Performance

Location: KANSAS CITY, PLATTE County, MISSOURI, 64153

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $144.2 million to AKAL SECURITY, INC. for work described as: IGF::CT::IGF SECURITY SCREENING SERVICES AT KANSAS CITY INTERNATIONAL AIRPORT (MCI). Key points: 1. The contract value of $144.19 million over six years represents a significant investment in airport security. 2. AKAL SECURITY, INC. secured this contract through full and open competition, indicating a competitive bidding process. 3. The fixed-price award fee contract type suggests a focus on performance-based incentives. 4. The sector is Transportation, specifically security services, which is critical for public safety and operational efficiency.

Value Assessment

Rating: good

The contract's total award value of $144.19 million over approximately six years averages to about $24 million annually. This seems reasonable for comprehensive security screening services at a major airport, though a direct comparison to similar contracts would provide a more precise benchmark.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method typically fosters competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for essential security services.

Public Impact

Ensures the safety and security of passengers and staff at Kansas City International Airport. Supports the operational continuity of air travel by providing essential screening services. Creates and sustains jobs within the security services industry. Contributes to the Department of Homeland Security's broader mission of preventing terrorism and enhancing security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (6 years), potentially leading to price increases over time.
Award fee structure could lead to higher costs if performance targets are easily met.
Lack of specific performance metrics makes it hard to assess true value for money.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price award fee structure incentivizes performance.
Contract supports a critical national security function.

Sector Analysis

This contract falls within the Transportation sector, specifically focusing on security services. Spending benchmarks for security guard and patrol services (NAICS 561612) can vary widely based on location, scope, and contract type. The $144 million awarded over six years for a major airport suggests a substantial operation.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the prime contractor is AKAL SECURITY, INC. Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

The Department of Homeland Security, through the Transportation Security Administration, is responsible for overseeing this contract. The contract's fixed-price award fee structure implies performance monitoring, but specific oversight mechanisms and reporting requirements are not detailed in the provided data.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Long contract duration may lead to price escalation.
Award fee structure could inflate costs if not tightly managed.
Lack of detailed performance metrics hinders value assessment.
Potential for high per-unit cost if not benchmarked against similar services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $144.2 million to AKAL SECURITY, INC.. IGF::CT::IGF SECURITY SCREENING SERVICES AT KANSAS CITY INTERNATIONAL AIRPORT (MCI).

Who is the contractor on this award?

The obligated recipient is AKAL 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 $144.2 million.

What is the period of performance?

Start: 2014-03-01. End: 2020-08-31.

What was the average annual cost per security screener, and how does it compare to industry benchmarks?

The total award value is $144,189,141.18 over approximately 72 months (March 2014 - August 2020). This averages to about $2 million per month. Without knowing the number of screeners or hours worked, calculating a precise per-screener cost is impossible. However, if we assume an average of 200 screeners working 160 hours/month, the average hourly rate would be around $52, which appears high compared to typical security guard wages, suggesting potential inefficiencies or inclusion of overhead/profit.

What are the key performance indicators (KPIs) tied to the award fee, and how were they measured?

The provided data does not specify the key performance indicators (KPIs) used for the award fee component of this contract. Understanding these metrics, such as wait times, incident response, or compliance rates, is crucial for assessing whether the government received optimal value and if the contractor was appropriately incentivized for high performance.

How did the final cost compare to the initial estimated cost, and were there significant cost overruns?

The data provided shows the total award amount ($144,189,141.18) and the contract type (Fixed Price Award Fee). It does not include initial estimates or details on the final cost relative to those estimates. Therefore, it's not possible to determine if there were cost overruns based solely on this information.

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

Solicitation ID: HSTS05-12-R-SPP011

Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 7 INFINITY LOOP, ESPANOLA, NM, 87532

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $170,192,100

Exercised Options: $144,189,141

Current Obligation: $144,189,141

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline