DHS awarded $23.5M for screening services, with Trinity Technology Group Inc. securing a firm-fixed-price delivery order

Contract Overview

Contract Amount: $23,543,487 ($23.5M)

Contractor: Trinity Technology Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-12-01

End Date: 2019-12-31

Contract Duration: 1,125 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL,CT::IGF TASK ORDER 4 - MT-WEST SCREENING SERVICES UNDER THE SCREENING PARTNERSHIP PROGRAM (SPP)

Place of Performance

Location: BELGRADE, GALLATIN County, MONTANA, 59714

State: Montana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.5 million to TRINITY TECHNOLOGY GROUP, INC. for work described as: IGF::CL,CT::IGF TASK ORDER 4 - MT-WEST SCREENING SERVICES UNDER THE SCREENING PARTNERSHIP PROGRAM (SPP) Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type helps manage cost certainty for the government. 3. The duration of the order (1125 days) indicates a medium-term need for these services. 4. The services are categorized under Security Guards and Patrol Services, aligning with TSA's mission. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract's scope and pricing. However, the total award of $23.5 million over approximately three years for screening services suggests a significant investment. Without comparable data on per-screening costs or the volume of services provided, a precise value-for-money assessment is difficult. The firm-fixed-price structure offers some cost control, but the overall efficiency depends on the negotiated rates within the parent contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This 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 approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the government sought the best value through a broad market solicitation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider range of bids and encourages contractors to offer competitive pricing.

Public Impact

The primary beneficiaries are the Department of Homeland Security (Transportation Security Administration) through enhanced screening capabilities. The services delivered are related to security screening, crucial for maintaining public safety at transportation hubs. The geographic impact is focused on Montana (MT), where the screening services are deployed. While not explicitly stated, the contract likely supports a workforce involved in security screening operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the screening services.
The total award amount is substantial, raising questions about cost efficiency without detailed performance data.
The duration of the contract could lead to vendor lock-in if not managed effectively.
Dependence on a single delivery order under a potentially larger IDIQ could concentrate risk if the parent contract has issues.

Positive Signals

Awarded under full and open competition, indicating a potentially competitive pricing structure.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports a critical national security function for the TSA.
The services are delivered in a specific geographic region (Montana), potentially addressing localized needs.

Sector Analysis

The security and guard services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls within the niche of specialized security screening, often associated with government contracts for transportation security. The market for such services is competitive, with numerous providers vying for government contracts. Benchmarking this specific award against broader industry spending requires detailed analysis of contract scope and service levels.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor, Trinity Technology Group, Inc., may not be obligated to engage small businesses for a significant portion of this contract, potentially limiting opportunities for the small business ecosystem in this specific instance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and program management offices. The Transportation Security Administration (TSA) would be responsible for monitoring performance and ensuring compliance. As a delivery order under a larger contract, oversight might also be tied to the parent IDIQ's management structure. Transparency is generally facilitated through contract award databases, but detailed performance reports are often internal.

Related Government Programs

Transportation Security Administration Contracts
Department of Homeland Security Procurement
Security Services Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Federal Security Guard Services

Risk Flags

Contract Duration
Lack of Performance Metrics
Potential Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.5 million to TRINITY TECHNOLOGY GROUP, INC.. IGF::CL,CT::IGF TASK ORDER 4 - MT-WEST SCREENING SERVICES UNDER THE SCREENING PARTNERSHIP PROGRAM (SPP)

Who is the contractor on this award?

The obligated recipient is TRINITY TECHNOLOGY GROUP, 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 $23.5 million.

What is the period of performance?

Start: 2016-12-01. End: 2019-12-31.

What is the specific nature of the screening services provided under this contract, and how do they align with TSA's broader security mission?

This contract, specifically IGF TASK ORDER 4, falls under the Screening Partnership Program (SPP) and involves screening services provided by Trinity Technology Group, Inc. for the Transportation Security Administration (TSA). While the specific 'na' code (561612) points to 'Security Guards and Patrol Services,' the context of the SPP suggests these services are likely related to passenger and baggage screening at transportation facilities, potentially airports or other critical infrastructure. The SPP aims to leverage private sector expertise to enhance security screening operations. Therefore, these services directly support TSA's core mission of ensuring the security of travelers and the nation's transportation systems by augmenting or providing screening personnel and potentially related security functions.

How does the firm-fixed-price contract type impact the risk and reward for both the government and the contractor in this scenario?

A firm-fixed-price (FFP) contract type establishes a ceiling price that the contractor must not exceed, regardless of the actual costs incurred. For the government, this offers significant cost certainty and predictability, as the total expenditure is known upfront, assuming no contract modifications. This shifts the cost risk entirely to the contractor. For Trinity Technology Group, Inc., this means they bear the responsibility for managing their costs efficiently to maintain profitability. If their costs are lower than anticipated, their profit margin increases; conversely, if costs escalate due to unforeseen circumstances, their profit decreases, or they could incur a loss. This structure incentivizes the contractor to be highly efficient and control expenses.

What does the 'full and open competition' designation imply about the bidding process and potential pricing outcomes for this contract?

The 'full and open competition' designation signifies that the Transportation Security Administration (TSA) allowed all eligible and responsible companies to submit proposals for this contract. This is the preferred method of procurement under federal acquisition regulations, designed to maximize competition. It implies that the TSA did not impose any restrictive barriers to entry, such as requiring specific pre-qualifications beyond general responsibility or limiting the pool of potential bidders. The expectation is that this broad competition would drive down prices and encourage innovative solutions as contractors vie to win the award. While the number of bidders isn't specified, the process itself suggests a robust effort to obtain the best value through market forces.

Given the contract duration of 1125 days (approximately 3 years), what are the potential long-term implications for TSA's screening operations and vendor relationships?

A contract duration of approximately three years, as indicated by the 1125-day term, suggests a significant commitment by the TSA to the services provided by Trinity Technology Group, Inc. under this delivery order. For TSA's screening operations, this provides a period of stability and continuity, allowing for consistent service delivery and potentially deeper integration of the contractor's processes. For the vendor relationship, it offers Trinity Technology Group, Inc. a substantial revenue stream and the opportunity to build expertise and a strong track record within the TSA. However, such extended durations can also lead to potential complacency or vendor lock-in if not actively managed with performance reviews and contingency planning. It also means TSA has less flexibility to switch providers or adapt to rapidly changing security needs during the contract term without incurring modification costs or penalties.

How does the specific North American Industry Classification System (NAICS) code '561612' (Security Guards and Patrol Services) relate to the broader context of federal security spending?

The NAICS code 561612, 'Security Guards and Patrol Services,' is a common classification for a significant portion of federal spending related to physical security and personnel-based protection. This includes a wide range of services, from guarding federal buildings and assets to providing security screening personnel, as is likely the case here with the TSA. Federal agencies frequently contract for these services to supplement their organic security forces or to meet specific operational requirements. Spending under this code can fluctuate based on national security priorities, infrastructure protection needs, and specific agency missions like border security or transportation safety. It represents a consistent area of federal expenditure aimed at maintaining safety and security across various government operations.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSTS05-16-R-SPP105

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10687 GASKINS WAY STE 200, MANASSAS, VA, 20109

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $38,888,341

Exercised Options: $23,543,487

Current Obligation: $23,543,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0516DSPP912

IDV Type: IDC

Timeline