DHS awarded $43M for airport screening services at Jackson Hole, with a significant portion spent in the final year

Contract Overview

Contract Amount: $43,018,589 ($43.0M)

Contractor: Jackson Hole Airport Board

Awarding Agency: Department of Homeland Security

Start Date: 2017-04-01

End Date: 2023-04-30

Contract Duration: 2,220 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL,CT::IGF SCREENING SERVICES AT JACKSON HOLE AIRPORT. POP: 1/1/2017 - 12/31/2017

Place of Performance

Location: JACKSON, TETON County, WYOMING, 83001

State: Wyoming Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.0 million to JACKSON HOLE AIRPORT BOARD for work described as: IGF::CL,CT::IGF SCREENING SERVICES AT JACKSON HOLE AIRPORT. POP: 1/1/2017 - 12/31/2017 Key points: 1. The contract value of $43M over its period of performance suggests a substantial need for security services. 2. The contract was awarded using full and open competition, indicating a broad market solicitation. 3. The contract's duration spans multiple years, allowing for consistent service delivery but also potential for price escalation. 4. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable budgeting. 5. The award was made by the Transportation Security Administration, a key agency within DHS focused on transportation security. 6. The contract's primary service category is security guards and patrol services, essential for airport operations. 7. The contract was not set aside for small businesses, suggesting the scale or nature of services required larger contractors.

Value Assessment

Rating: fair

The total award of $43M over approximately six years averages to about $7.17M annually. Benchmarking this against similar contracts for airport screening services at comparable airports would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure generally provides cost certainty. The contract's duration and value indicate a significant investment in security infrastructure at Jackson Hole Airport.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The presence of two bidders, as indicated, suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down prices.

Public Impact

Passengers and staff at Jackson Hole Airport benefit from enhanced security screening services. The contract ensures the continuous operation of essential security functions at the airport. Services are geographically focused on Jackson Hole Airport in Wyoming. The contract supports jobs within the security services sector, likely including guards and supervisory personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over the multi-year contract if not managed closely.
Dependence on a single contractor for critical security functions could pose a risk if performance falters.
The specific performance metrics and quality assurance processes are not detailed, making it hard to assess service quality.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm-fixed-price contract type provides budget certainty.
Long-term contract allows for consistent service delivery and planning.

Sector Analysis

The contract falls within the broader security and protective services sector, specifically focusing on airport security. This sector is critical for national infrastructure and public safety. The market for airport screening services is often characterized by a mix of large, established security firms and specialized providers. The size of this contract suggests Jackson Hole Airport is a significant facility requiring substantial security resources, comparable to other regional or mid-sized airports.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements. This suggests that the scope or nature of the security services required was likely beyond the capacity or specialization of most small businesses, or that larger prime contractors were deemed more suitable for this particular award.

Oversight & Accountability

Oversight is likely conducted by the Transportation Security Administration (TSA) through contract management personnel. Performance monitoring, quality assurance checks, and invoice reviews would be standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance reports may not be publicly accessible. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Airport Improvement Program
Department of Homeland Security grants for airport security
Transportation Security Administration contract vehicles

Risk Flags

Contract Duration
Performance Monitoring
Cost Overruns Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.0 million to JACKSON HOLE AIRPORT BOARD. IGF::CL,CT::IGF SCREENING SERVICES AT JACKSON HOLE AIRPORT. POP: 1/1/2017 - 12/31/2017

Who is the contractor on this award?

The obligated recipient is JACKSON HOLE AIRPORT BOARD.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $43.0 million.

What is the period of performance?

Start: 2017-04-01. End: 2023-04-30.

What was the contractor's track record prior to this award?

Information regarding the specific contractor's track record prior to this award is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, any documented disputes or contract terminations, and their history with similar government contracts. Without this data, it's difficult to gauge their reliability and capability for fulfilling the Jackson Hole Airport screening services contract effectively. Further investigation into the contractor's history with the TSA or other federal agencies would be necessary.

How does the annual cost compare to similar airports?

The approximate annual cost of $7.17M ($43M / 6 years) for security screening services at Jackson Hole Airport requires comparison with airports of similar size, passenger volume, and operational complexity. Without specific data on comparable airports' security contract costs, it's challenging to definitively benchmark this value. Factors such as the number of screening checkpoints, technology employed, and labor costs in the Jackson Hole region would influence the overall price. A detailed analysis would involve gathering data from airports with similar traffic and security needs to establish a relevant market rate.

What are the primary risks associated with this contract?

Key risks include potential performance deficiencies by the contractor, leading to security lapses or operational disruptions at the airport. Given the firm-fixed-price nature, there's a risk of the contractor cutting corners on service quality to maintain profitability if oversight is insufficient. Another risk is the potential for price increases in future option periods or contract modifications if not carefully managed. Furthermore, over-reliance on a single provider for critical security functions can create vulnerabilities if the contractor faces financial instability or operational challenges.

How effective has this contract been in ensuring airport security?

The provided data does not include specific metrics on the effectiveness of the security screening services delivered under this contract. Effectiveness would typically be measured by factors such as the number of security incidents, screening efficiency, compliance with TSA regulations, and passenger feedback. Assessing effectiveness would require access to performance reports, audit findings, and potentially TSA's internal evaluations of the contractor's service delivery. Without such data, a judgment on effectiveness cannot be made.

What were the historical spending patterns for airport screening at Jackson Hole prior to this contract?

Historical spending patterns for airport screening at Jackson Hole prior to this specific contract (awarded with services starting April 2017) are not detailed in the provided data. To understand historical trends, one would need to examine previous contracts for similar services at the airport, potentially from different providers or under different contracting mechanisms. Analyzing past expenditures would help identify any significant increases or decreases in spending over time and provide context for the current contract's value.

What is the breakdown of spending across the contract's performance period?

The data indicates a total award of $43,018,589.01 with a performance period from April 1, 2017, to April 30, 2023 (approximately 6 years and 1 month). While the total is provided, a detailed breakdown of spending per year or per delivery order is not available. The 'POP' field mentions '1/1/2017 - 12/31/2017', which might refer to a specific period or a previous contract, but the main contract dates are April 2017 to April 2023. Without further data, it's impossible to determine the exact spending distribution across the contract's lifespan.

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-SPP007

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1250 E AIRPORT RD, JACKSON, WY, 83001

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,859,778

Exercised Options: $43,041,011

Current Obligation: $43,018,589

Actual Outlays: $6,085,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0516DSPP908

IDV Type: IDC

Timeline