DoD's $15.3M contract for security services awarded to Knight Protective Service, Inc. shows potential value concerns

Contract Overview

Contract Amount: $15,326,153 ($15.3M)

Contractor: Knight Protective Service, Inc.

Awarding Agency: Department of Defense

Start Date: 2001-06-14

End Date: 2006-04-30

Contract Duration: 1,781 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200112!000312!9700!ZD46 !WHS RE&F DIRECTORATE !GS07F0266K !C!N!*!N!MDA94601F0101 !20010614!20010930!627592843!627592843!627592843!N!KNIGHT PROTECTIVE SERVICE, INC!8507 EDGEWORTH DRIVE !CAPITOL HEIGHT !MD!20743!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000801940!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561612!*!*!6! ! ! !*!*!*!B!*!*! ! !A ! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001!

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to KNIGHT PROTECTIVE SERVICE, INC. for work described as: 200112!000312!9700!ZD46 !WHS RE&F DIRECTORATE !GS07F0266K !C!N!*!N!MDA94601F0101 !20010614!20010930!627592843!627592843!627592843!N!KNIGHT PROTECTIVE SERVICE, INC!8507 EDGEWORTH DRIVE !CAPITOL HEIGHT !MD!20743!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000801940!N!N!0000000… Key points: 1. The contract's value appears high relative to the duration and scope of services. 2. Limited public data makes a direct comparison of value-for-money challenging. 3. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 4. Performance context is limited, making it difficult to assess the contractor's effectiveness. 5. The service falls under the broader category of security and protective services within the federal market. 6. The contract duration of over 4 years warrants scrutiny for potential cost efficiencies. 7. The fixed-price nature of the contract shifts some risk to the contractor.

Value Assessment

Rating: fair

The total award amount of $15,326,153.28 over approximately 4.8 years (1781 days) for security guard services suggests an average annual cost of roughly $3.2 million. Without specific details on the number of guards, hours, or specific security requirements, it's difficult to benchmark precisely. However, for a service contract of this nature, the cost per day is approximately $8,605. This figure needs to be compared against similar contracts for guard services in the Washington D.C. metropolitan area to determine if it represents good value. The lack of detailed performance metrics or service level agreements in the provided data makes a definitive value assessment challenging.

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 data does not specify the number of bidders that participated in the competition. A robust competition typically leads to better pricing and service offerings for the government. However, the absence of the number of bids prevents a full assessment of the competitive intensity and its impact on price discovery.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries of this contract are the Department of Defense personnel and facilities requiring security services at the Washington Headquarters Services. The contract delivers essential security guard services, ensuring the protection of government assets and personnel. The geographic impact is concentrated in Arlington, Virginia, and the surrounding Washington D.C. metropolitan area. The contract supports jobs within the private security sector, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The total award amount of over $15 million for a 4.8-year contract raises questions about cost-effectiveness without detailed service metrics.
The lack of specific performance data makes it difficult to assess the quality and effectiveness of the security services provided.
The contract's duration could potentially lead to complacency or reduced incentive for innovation if not managed tightly.
Benchmarking the per-day cost against similar contracts is necessary to confirm value for money.
The specific security threats or requirements necessitating this level of expenditure are not detailed.

Positive Signals

The contract was awarded through full and open competition, suggesting a fair and transparent procurement process.
The use of a Firm Fixed Price contract shifts performance risk to the contractor.
The contract is managed by the Washington Headquarters Services, a significant entity within the DoD, implying a structured oversight environment.
The service category (Security Guards and Patrol Services) is a standard federal requirement, indicating a mature market.

Sector Analysis

The federal market for security guard and protective services is substantial, with agencies like the Department of Defense being major consumers. This contract fits within the broader security services sector, which includes physical security, guard services, and related protective measures. Comparable spending benchmarks would involve analyzing other large-scale guard service contracts awarded by federal agencies, particularly those in high-security environments or major metropolitan areas. The market is characterized by numerous private security firms, ranging from small businesses to large corporations, competing for government contracts.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false. Knight Protective Service, Inc. is likely a larger entity. There is no information provided regarding subcontracting plans or goals for small businesses. This means that the direct economic benefit to the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is managed under the Department of Defense, specifically through the Washington Headquarters Services. Oversight mechanisms would typically involve contract officers, program managers, and potentially Inspector General investigations if performance issues or fraud were suspected. Transparency is limited by the available public data; while the award is public, detailed performance reports, service level agreements, and specific oversight activities are not readily accessible. The existence of an Inspector General within the DoD provides a layer of accountability for federal contracts.

Related Government Programs

Department of Defense Security Contracts
Federal Protective Services
General Services Administration (GSA) Schedule Contracts for Security Services
Washington Headquarters Services Contracts
Security Guard Services

Risk Flags

Potential for high cost relative to service scope
Lack of detailed performance metrics for value assessment
Long contract duration may reduce flexibility
Need for benchmarking against similar contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to KNIGHT PROTECTIVE SERVICE, INC.. 200112!000312!9700!ZD46 !WHS RE&F DIRECTORATE !GS07F0266K !C!N!*!N!MDA94601F0101 !20010614!20010930!627592843!627592843!627592843!N!KNIGHT PROTECTIVE SERVICE, INC!8507 EDGEWORTH DRIVE !CAPITOL HEIGHT !MD!20743!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000801940!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561612!*!*!6! ! ! !*!*!*!B!*!*! ! !A ! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001!

Who is the contractor on this award?

The obligated recipient is KNIGHT PROTECTIVE SERVICE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2001-06-14. End: 2006-04-30.

What is the track record of Knight Protective Service, Inc. in performing federal contracts, particularly for security services?

Knight Protective Service, Inc. has been awarded federal contracts, including this significant one with the Department of Defense. A deeper dive into their contract history would reveal the types of services they have provided, their performance ratings on past contracts (if available through sources like the Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Without access to these detailed performance records, it's difficult to fully assess their reliability and past success in fulfilling similar security service requirements for the government. Their ability to secure a large contract like this suggests they have met certain baseline requirements, but past performance is a critical indicator of future success.

How does the cost of this contract compare to similar security guard services procured by the federal government in the same geographic region?

Benchmarking the cost of this $15.3 million contract against similar federal security guard services in the Washington D.C. metropolitan area is crucial for assessing value. Key comparison points would include the number of guards, hours of service, specific security duties (e.g., armed vs. unarmed, access control, patrol), and the level of security clearance required. For instance, if similar contracts for a comparable number of guards and service hours are awarded at a significantly lower daily or hourly rate, it would indicate that this contract may be overpriced or that the service requirements are more extensive. Conversely, if the requirements are more demanding, the higher cost might be justified. Without detailed service scope and competitor pricing data, a definitive comparison is challenging.

What are the specific risks associated with this contract, and how are they being managed?

Potential risks for this contract include performance failures (e.g., inadequate guard presence, lack of vigilance, security breaches), cost overruns if the fixed-price structure is not well-defined against scope, and contractor personnel issues (e.g., high turnover, inadequate training, background check failures). The Department of Defense, through the Washington Headquarters Services, likely manages these risks through contract surveillance, performance monitoring, and adherence to security protocols. The fixed-price nature of the contract shifts some financial risk to Knight Protective Service, Inc. However, the government retains risk related to the quality and effectiveness of the security provided. Clear performance standards and regular reporting are essential for risk mitigation.

What is the historical spending pattern for security guard services by the Washington Headquarters Services or the Department of Defense?

Analyzing historical spending on security guard services by the Washington Headquarters Services (WHS) and the broader Department of Defense (DoD) provides context for the $15.3 million award. Understanding trends in annual spending, the number of contracts awarded, and the average contract value can reveal whether this particular contract represents a significant increase or decrease in expenditure. For example, if WHS has consistently spent similar amounts on security over the years, this contract might be in line with historical needs. However, if spending has recently surged, it could indicate new security requirements or a shift in procurement strategy. Examining spending patterns also helps identify potential consolidation or fragmentation of security services across the agency.

What are the implications of the contract's duration (over 4 years) on cost-effectiveness and contractor performance?

A contract duration of over four years (1781 days) for security guard services can have mixed implications for cost-effectiveness and contractor performance. On one hand, a longer contract can provide stability for the contractor, potentially leading to lower overhead costs and more consistent service delivery due to experienced personnel. It can also reduce the administrative burden and cost associated with frequent re-procurement for the government. On the other hand, a lengthy contract might reduce the government's flexibility to adapt to changing security needs or to capitalize on new, potentially more cost-effective solutions that emerge over time. It could also lead to contractor complacency if performance incentives are weak or oversight is lax, potentially impacting service quality.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6411 IVY LN STE 320, GREENBELT, MD, 20770

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F0266K

IDV Type: FSS

Timeline