DoD's $37.3M PSS Contract Awarded to Serco Inc. Amidst Full and Open Competition
Contract Overview
Contract Amount: $37,287,771 ($37.3M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2023-05-02
End Date: 2023-12-01
Contract Duration: 213 days
Daily Burn Rate: $175.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GLOBAL SUSTAINMENT OF PSS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $37.3 million to SERCO INC for work described as: GLOBAL SUSTAINMENT OF PSS Key points: 1. Contract Value: $37.3 million for security systems services. 2. Competition: Awarded under full and open competition, suggesting market availability. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Security Systems Services (except Locksmiths) falls under a specialized service sector.
Value Assessment
Rating: good
The contract value of $37.3 million for security systems services appears reasonable given the scope and duration. Benchmarking against similar contracts for comprehensive security system maintenance and support would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, with pricing driven by market forces rather than sole-source limitations.
Public Impact
Ensures continuity of critical security systems for the Department of the Navy. Supports national security infrastructure through reliable security services. Provides employment opportunities within the security services industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if performance is exceptional.
- Dependence on Serco Inc. for critical security functions.
Positive Signals
- Full and open competition promotes fair pricing.
- Firm Fixed Price contract limits cost escalation.
- Clear contract duration and delivery order structure.
Sector Analysis
The security systems services sector involves the provision of integrated security solutions, including surveillance, access control, and alarm systems. Spending in this sector can vary significantly based on agency needs and threat levels.
Small Business Impact
While awarded under full and open competition, the data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award is a delivery order against an existing contract, suggesting that oversight mechanisms are in place. Monitoring performance and adherence to the firm fixed price terms are key accountability measures.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep if not managed tightly.
- Reliance on a single vendor for critical security infrastructure.
- Need to verify if small business participation was considered.
- Ensuring service continuity and quality throughout the contract period.
Tags
security-systems-services-except-locksmi, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.3 million to SERCO INC. GLOBAL SUSTAINMENT OF PSS
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $37.3 million.
What is the period of performance?
Start: 2023-05-02. End: 2023-12-01.
What specific security systems are covered under this contract, and how do they align with current technological standards?
The contract covers 'Security Systems Services (except Locksmiths)' under NAICS code 561621. This broad category likely includes installation, maintenance, and monitoring of various electronic security systems such as CCTV, access control, intrusion detection, and potentially integrated command and control platforms. Alignment with current standards would depend on the specific technical requirements and performance work statement within the contract, which are not detailed in the provided data.
What is the historical performance of Serco Inc. in similar security system contracts with the government?
Serco Inc. has a history of performing various government contracts, including those related to logistics, IT, and defense support services. Assessing their specific performance on prior security system contracts, including on-time delivery, quality of service, and adherence to budget, would be crucial for evaluating the risk associated with this current award. Past performance reviews and contract databases would provide this insight.
How does the $37.3 million contract value compare to the estimated market size for similar security system services for naval installations?
Benchmarking the $37.3 million contract value against the estimated market size for similar security system services for naval installations is essential for assessing value. Without specific market data or comparable contract awards, it's difficult to definitively state if this represents optimal value. However, the full and open competition suggests the government sought competitive bids to ensure a fair market price.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3943020R2245
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $37,513,786
Exercised Options: $37,287,771
Current Obligation: $37,287,771
Actual Outlays: $15,980,473
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $17,062,243
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3943021D2230
IDV Type: IDC
Timeline
Start Date: 2023-05-02
Current End Date: 2023-12-01
Potential End Date: 2023-12-01 00:00:00
Last Modified: 2023-08-18
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