Interior's $18.7M security guard contract awarded to SECTEK, INC. with 17 delivery orders

Contract Overview

Contract Amount: $18,670,493 ($18.7M)

Contractor: Sectek, Inc.

Awarding Agency: Department of the Interior

Start Date: 2010-08-02

End Date: 2016-09-30

Contract Duration: 2,251 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICE CONTRACT INDE

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

Department of the Interior obligated $18.7 million to SECTEK, INC. for work described as: SECURITY GUARD SERVICE CONTRACT INDE Key points: 1. Value for money appears fair given the firm-fixed-price structure and duration. 2. Full and open competition suggests a competitive bidding process. 3. Risk indicators are moderate, with a long contract duration potentially increasing exposure. 4. Performance context is within security guard services, a common federal need. 5. Sector positioning is within government services, specifically facility security. 6. The contract was awarded under a Delivery Order mechanism, indicating it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The total award amount of $18.7 million over approximately six years for security guard services suggests a moderate annual spend. Benchmarking against similar contracts is challenging without more specific service details (e.g., number of guards, hours, specific locations). However, the firm-fixed-price contract type generally provides cost certainty for the government, implying a degree of value if services were delivered as expected. The number of delivery orders (17) indicates a potentially fragmented or phased approach to service delivery under this award.

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 a bid. This suggests a robust bidding environment. The presence of 17 delivery orders implies that the initial award may have been for a base contract with subsequent task orders issued, or it could represent multiple separate awards under a broader contract vehicle. The level of competition for each delivery order is not specified but the initial award mechanism suggests a competitive process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality through market forces.

Public Impact

The National Park Service benefits from enhanced security for its facilities and assets. Services delivered include security guard and patrol functions, crucial for maintaining order and safety. The contract's geographic impact is primarily in Pennsylvania, where the services were likely performed. Workforce implications include the creation of jobs for security guards and related personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) could lead to price escalation or reduced flexibility if needs change.
Lack of specific performance metrics makes it difficult to assess the quality of services rendered.
The 'PA' (Pennsylvania) designation might indicate a concentration of services, potentially limiting broader geographic applicability or oversight.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a potentially competitive pricing environment.
Awarded by the National Park Service, indicating a focus on protecting federal resources.

Sector Analysis

The security guard services sector is a significant component of the broader professional, scientific, and technical services industry. Federal spending in this area is driven by the need to protect government facilities, personnel, and assets across various agencies. Market size for federal security services is substantial, with numerous private companies competing for these contracts. This contract fits within the government's ongoing need for physical security solutions, often procured through competitive bidding processes to ensure cost-effectiveness.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The data also does not specify any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though SECTEK, INC. may engage small businesses as subcontractors if it aligns with their operational needs.

Oversight & Accountability

Oversight for this contract would typically fall under the National Park Service's contracting and program management offices. Accountability measures are usually embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services
National Park Service Facility Management Contracts

Risk Flags

Long contract duration
Potential for scope creep
Lack of detailed performance metrics in award data

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.7 million to SECTEK, INC.. SECURITY GUARD SERVICE CONTRACT INDE

Who is the contractor on this award?

The obligated recipient is SECTEK, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2010-08-02. End: 2016-09-30.

What is the track record of SECTEK, INC. in performing federal security contracts?

SECTEK, INC. has a history of performing federal contracts, including security guard services. Analyzing their past performance on similar contracts, including any past performance evaluations or awards/debarments, would provide a clearer picture of their reliability and capability. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) could offer insights into their execution of previous government obligations. Without specific CPARS data or a detailed review of their contract history, it's difficult to definitively assess their track record beyond the fact they were awarded this significant contract.

How does the per-guard cost of this contract compare to industry benchmarks?

Determining the precise per-guard cost requires knowing the number of guards, hours worked, and specific service levels, which are not detailed in the provided data. The total award of $18.7 million over approximately 2251 days (roughly 6.16 years) averages to about $3.04 million per year. If we assume an average of, for example, 50 guards working full-time, the annual cost per guard would be around $60,800. This figure needs to be compared against prevailing wage rates, benefits, overhead, and profit margins for security personnel in Pennsylvania. Industry benchmarks vary widely based on location, security clearance requirements, and the complexity of the security mission. A detailed analysis would require comparing this contract's specific labor rates and overhead allocations to market data for similar security services in the relevant geographic area.

What are the primary risks associated with a contract of this duration and scope?

A primary risk with a contract spanning over six years is the potential for scope creep or changes in the government's requirements that may not be adequately addressed by the original firm-fixed-price terms, potentially leading to cost overruns or disputes. Inflationary pressures over such a long period could also erode the value of the fixed price if not properly accounted for. Furthermore, the long duration might reduce the agency's flexibility to adopt newer, potentially more cost-effective security technologies or approaches that emerge during the contract period. Contractor performance degradation over time is another risk, making ongoing monitoring and performance management crucial.

How effective has the National Park Service been in managing its security contracts?

The effectiveness of the National Park Service (NPS) in managing its security contracts can be assessed through various lenses, including contract compliance, cost efficiency, and the achievement of security objectives. The award of this $18.7 million contract through full and open competition suggests an adherence to procurement best practices. However, the true measure of effectiveness lies in the day-to-day performance of the contracted services, the NPS's oversight mechanisms, and its ability to adapt to evolving security needs. Analyzing past performance reviews (e.g., CPARS) for NPS security contracts and comparing spending trends against outcomes would provide a more concrete evaluation of their management effectiveness.

What is the historical spending trend for security guard services by the Department of the Interior?

Historical spending data for security guard services by the Department of the Interior (DOI) would reveal patterns and trends in their procurement of these essential services. Analyzing this data over several fiscal years would indicate whether spending has been increasing, decreasing, or remaining stable. It would also highlight which bureaus or agencies within the DOI are the largest consumers of these services and whether there's a trend towards consolidating contracts or utilizing different contract vehicles. Understanding these historical patterns is crucial for budget forecasting, identifying potential efficiencies, and assessing the overall federal commitment to physical security across DOI assets.

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

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1930 ISAAC NEWTON SQ. SUITE 100, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $32,981,403

Exercised Options: $18,670,493

Current Obligation: $18,670,493

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F0279M

IDV Type: FSS

Timeline