FJC Security Services Inc. awarded $28.4M for Statue of Liberty and Ellis Island guard services

Contract Overview

Contract Amount: $28,449,723 ($28.4M)

Contractor: FJC Security Services Inc

Awarding Agency: Department of the Interior

Start Date: 2016-10-01

End Date: 2021-12-31

Contract Duration: 1,917 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF G:EPREF, SERVICE, GUARDS, DAILY, STATUE OF LIBERTY NATIONAL MONUMENT AND ELLIS ISLAND NATIONAL MONUMENT, 52.223-17, AFFIRMATIVE PROCUREMENT OF EPA-DESIGNATED ITEMS IN SERVICE AND CONSTRUCTION CONTRACTS.

Place of Performance

Location: JERSEY CITY, HUDSON County, NEW JERSEY, 07305

State: New Jersey Government Spending

Plain-Language Summary

Department of the Interior obligated $28.4 million to FJC SECURITY SERVICES INC for work described as: IGF::OT::IGF G:EPREF, SERVICE, GUARDS, DAILY, STATUE OF LIBERTY NATIONAL MONUMENT AND ELLIS ISLAND NATIONAL MONUMENT, 52.223-17, AFFIRMATIVE PROCUREMENT OF EPA-DESIGNATED ITEMS IN SERVICE AND CONSTRUCTION CONTRACTS. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1917 days (over 5 years) indicates a long-term need for these services. 3. The North American Industry Classification System (NAICS) code 561612 points to a specialized security services market. 4. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery contract vehicle. 5. The base contract value is substantial, reflecting the critical security needs of national monuments. 6. The absence of small business set-aside flags suggests the primary awardee is not a small business.

Value Assessment

Rating: fair

The contract value of $28.4 million over approximately five years for security services at high-profile national monuments appears reasonable given the scope and duration. Benchmarking against similar large-scale security contracts for federal facilities is necessary for a definitive value assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific performance metrics or comparisons to private sector security costs for comparable sites, a precise value-for-money judgment is 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 presence of 10 bidders suggests a healthy level of competition for this significant security services contract. This broad competition is generally favorable for price discovery and ensures the government can select from a range of qualified providers, potentially leading to better pricing and service quality.

Taxpayer Impact: A competitive bidding process for essential security services at iconic national landmarks helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high service standards.

Public Impact

The public benefits from the enhanced security and safety of the Statue of Liberty and Ellis Island National Monuments. Visitors and staff at these historically significant sites are protected by the contracted security services. The contract supports the preservation and operational integrity of these key national landmarks. The contract likely has workforce implications, creating jobs for security personnel in the New Jersey area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if labor hours are not closely monitored.
Ensuring consistent service quality across all shifts and personnel.
Managing contract modifications and potential scope changes effectively.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long-term contract duration suggests a stable and predictable security solution.
Specialized NAICS code indicates the contractor likely possesses relevant expertise.

Sector Analysis

The security services industry is a significant sector within the broader services market, encompassing a wide range of protective functions for government and private entities. Contracts for guarding national monuments fall into a specialized niche requiring high levels of trust, reliability, and operational capability. Spending in this area is often driven by public safety mandates and the symbolic importance of the assets being protected. Comparable spending benchmarks would involve analyzing other large federal contracts for security at high-traffic, high-value government facilities.

Small Business Impact

The contract details indicate that this was not set aside for small businesses, and the awardee, FJC Security Services Inc., is likely a larger entity given the contract value. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the primary focus was on securing the most competitive bids from all eligible sources, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Park Service, a division of the Department of the Interior. Mechanisms likely include regular performance reviews, site inspections, and monitoring of labor hours and deliverables. Accountability is ensured through contract clauses that stipulate performance standards and potential penalties for non-compliance. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.

Related Government Programs

National Park Service Security Contracts
Federal Law Enforcement Support Services
Monument and Historic Site Security
Department of the Interior Service Contracts

Risk Flags

Potential for cost overruns due to labor hour pricing model.
Ensuring consistent service quality over a long contract duration.
Need for robust oversight to manage performance effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.4 million to FJC SECURITY SERVICES INC. IGF::OT::IGF G:EPREF, SERVICE, GUARDS, DAILY, STATUE OF LIBERTY NATIONAL MONUMENT AND ELLIS ISLAND NATIONAL MONUMENT, 52.223-17, AFFIRMATIVE PROCUREMENT OF EPA-DESIGNATED ITEMS IN SERVICE AND CONSTRUCTION CONTRACTS.

Who is the contractor on this award?

The obligated recipient is FJC SECURITY SERVICES 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 $28.4 million.

What is the period of performance?

Start: 2016-10-01. End: 2021-12-31.

What is the historical spending pattern for security services at the Statue of Liberty and Ellis Island National Monuments?

Analyzing historical spending for security at the Statue of Liberty and Ellis Island National Monuments prior to this $28.4 million contract (2016-2021) would provide crucial context. Understanding previous contract values, durations, and awarded vendors can reveal trends in security needs and cost evolution. For instance, were there significant increases in spending following specific security events or policy changes? Comparing the average annual spending under this contract to previous periods could indicate whether costs have risen, fallen, or remained stable. Without access to prior contract data, it's difficult to assess if this award represents a significant shift or a continuation of established spending levels for these critical national sites.

How does the per-hour labor cost for security guards under this contract compare to market rates or other federal contracts?

Determining the per-hour labor cost for security guards under this $28.4 million contract requires access to the specific labor hour rates within the contract's pricing structure. Once identified, these rates can be benchmarked against prevailing wage data for security guards in the New Jersey area, as well as against similar labor hour contracts awarded by the federal government for security services at comparable facilities. If the rates are significantly higher than market or federal benchmarks, it could indicate potential overpricing or a need for more detailed justification of higher labor costs due to specialized requirements. Conversely, rates below market might raise concerns about the quality or experience level of the personnel being provided.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of FJC Security Services Inc. under this contract?

Effective oversight of this $28.4 million security contract necessitates clearly defined Key Performance Indicators (KPIs). These KPIs would likely include metrics such as response times to incidents, number of security breaches or incidents (and their severity), adherence to post orders, personnel punctuality and attendance, and visitor/staff satisfaction surveys. The National Park Service would monitor these KPIs to ensure FJC Security Services Inc. is meeting or exceeding the required service levels. Regular performance reports, site audits, and feedback mechanisms are essential for tracking performance against these KPIs and for making informed decisions about contract continuation or modification.

What is the track record of FJC Security Services Inc. in performing similar large-scale federal security contracts?

FJC Security Services Inc.'s track record in performing similar large-scale federal security contracts is a critical factor in assessing the risk and potential success of this $28.4 million award. Information on past performance, including contract history, client satisfaction, any past performance issues or disputes, and experience with high-security environments like national monuments, would be essential. A history of successful contract completion, positive client feedback, and adherence to federal regulations would indicate a lower risk profile. Conversely, a record of performance deficiencies, contract disputes, or safety violations would raise significant concerns about their capability to fulfill the requirements of this contract effectively.

What are the potential risks associated with the long duration (over 5 years) of this security services contract?

The long duration of this security services contract, spanning over five years, presents several potential risks. Firstly, there's the risk of escalating costs due to inflation or changes in labor market conditions that may not be fully captured in the initial pricing, especially if labor hour rates are fixed. Secondly, the long timeframe could lead to complacency in service delivery if performance is not rigorously monitored. Thirdly, technological advancements in security systems might render the current service model less efficient or effective over time, requiring costly adaptations. Finally, changes in federal security policies or budget priorities could impact the contract's relevance or funding, necessitating difficult renegotiations or modifications.

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: P16PS01100

Offers Received: 10

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gouvernement DE LA Province DE Québec

Address: 3310 QUEENS BLVD STE 300, LONG ISLAND CITY, NY, 11101

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

Financial Breakdown

Contract Ceiling: $54,432,546

Exercised Options: $54,432,546

Current Obligation: $28,449,723

Actual Outlays: $8,928,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F5323P

IDV Type: FSS

Timeline