DHS's $11.4M Guard Service Contract Awarded to REE'S CONTRACT SERVICE INC for One Year

Contract Overview

Contract Amount: $11,392,030 ($11.4M)

Contractor: Ree's Contract Service Inc

Awarding Agency: Department of Homeland Security

Start Date: 2004-10-01

End Date: 2005-09-30

Contract Duration: 364 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD SERVICE

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64106

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.4 million to REE'S CONTRACT SERVICE INC for work described as: GUARD SERVICE Key points: 1. The contract value represents a significant investment in security services for the specified period. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The duration of the contract is one year, allowing for regular re-evaluation of needs. 5. The service falls under security systems services, indicating a focus on technological and physical security measures. 6. The geographic focus is Missouri, highlighting a specific regional need for these services.

Value Assessment

Rating: fair

The total contract value of $11.4 million for a one-year guard service contract appears substantial. Without specific details on the scope of services, number of personnel, or geographic coverage within Missouri, a direct comparison to similar contracts is difficult. However, the fixed-price nature suggests an attempt to control costs. Benchmarking the per-unit cost would require more granular data on the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The presence of three bidders suggests a reasonable level of competition for this security service requirement. This process is designed to ensure the government receives competitive pricing and the best value by allowing all qualified sources to participate.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government is not locked into a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) personnel and facilities within Missouri, who will receive enhanced security. The services delivered include guard services, contributing to the physical security and operational integrity of ICE assets. The geographic impact is concentrated within Missouri, addressing specific security needs in that state. The contract supports jobs within the security services industry, likely benefiting security guards and supervisory staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The high dollar value for a one-year contract warrants scrutiny to ensure efficient use of funds.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the guard services.
The specific nature of 'guard service' can be broad; clarity on the exact duties and responsibilities is needed for full evaluation.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The firm fixed-price contract type provides cost predictability for the agency.
The contract is for a defined period (one year), allowing for reassessment and potential adjustments.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the 'Security Systems Services (except Locksmiths)' NAICS code, which includes establishments primarily engaged in monitoring and alarm systems installation and providing security guard services. The federal government is a major consumer of such services, with spending often driven by national security, law enforcement, and facility protection needs. Comparable spending benchmarks would depend on the specific security requirements and scale of operations.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if REE'S CONTRACT SERVICE INC chooses to engage them. Without further information on subcontracting plans, it's difficult to assess the broader impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and their representatives. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Guard Services
Immigration and Customs Enforcement Security Contracts
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

Potential for cost overruns if contractor efficiency is low
Risk of service quality degradation if contractor seeks to minimize costs
Dependence on contractor's ability to recruit and retain qualified personnel

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.4 million to REE'S CONTRACT SERVICE INC. GUARD SERVICE

Who is the contractor on this award?

The obligated recipient is REE'S CONTRACT SERVICE INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2004-10-01. End: 2005-09-30.

What specific security services are included under this $11.4 million contract?

The contract is categorized under NAICS code 561621, 'Security Systems Services (except Locksmiths)', and broadly described as 'GUARD SERVICE'. This typically encompasses personnel providing physical security, access control, surveillance monitoring, and response to security incidents at designated federal facilities within Missouri. Specific duties could range from static post-guarding to mobile patrols, depending on the requirements outlined in the contract's statement of work. The exact scope would detail the number of posts, hours of coverage, required qualifications for guards, and specific protocols for different security situations.

How does the $11.4 million contract value compare to similar guard services contracts awarded by DHS or ICE?

Comparing the $11.4 million value requires context on the duration, scope, and specific services. For a one-year contract, this amount suggests a significant operational footprint, potentially covering multiple facilities or high-security areas within Missouri. Annual spending on guard services by federal agencies can range from tens of thousands to hundreds of millions of dollars, depending on the agency's mission and asset portfolio. ICE, responsible for border security and immigration enforcement, requires substantial security services across various locations. Without specific benchmarks for similar ICE facilities or operational tempo in Missouri, it's challenging to definitively label this value as high or low, but it indicates a substantial requirement.

What are the key performance indicators (KPIs) used to evaluate the performance of REE'S CONTRACT SERVICE INC under this contract?

While the provided data does not specify the KPIs, typical performance indicators for guard services contracts include metrics such as response times to incidents, adherence to post orders, incident reporting accuracy and timeliness, guard attendance and punctuality, and client satisfaction surveys. The government contracting officer's representative (COR) is usually responsible for monitoring these KPIs. Performance is often assessed through regular reports, site inspections, and feedback from facility managers. Failure to meet agreed-upon KPIs can lead to contract deficiencies, penalties, or non-renewal.

What is the track record of REE'S CONTRACT SERVICE INC in performing federal guard service contracts?

Information on REE'S CONTRACT SERVICE INC's specific track record with federal guard service contracts is not detailed in the provided data. However, as a recipient of this $11.4 million award from the Department of Homeland Security (DHS) via U.S. Immigration and Customs Enforcement (ICE), it implies they have met the necessary qualifications and demonstrated capability to be considered in a full and open competition. A deeper analysis would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the company's history with similar government agencies.

What is the risk associated with a firm fixed-price contract for guard services, and how is it managed?

Firm fixed-price (FFP) contracts place the majority of the risk on the contractor, as they are obligated to perform the specified work for a set price, regardless of their actual costs. For guard services, risks for the contractor could include unexpected increases in labor costs, unforeseen security challenges requiring more resources, or administrative overhead. The government's risk is primarily that the contractor might cut corners to maintain profitability, potentially impacting service quality. This risk is managed through robust performance monitoring, clear contract requirements, and penalties for non-performance. The government benefits from cost certainty, while the contractor assumes cost variability risk.

How does the geographic focus on Missouri impact the overall strategy for DHS security services?

The focus on Missouri indicates a specific, localized need for guard services, likely related to ICE facilities or operations within that state. This contract is part of a broader, decentralized approach to federal security where specific regional requirements are met through targeted awards. It suggests that DHS and ICE have identified critical security needs in Missouri that warrant this level of investment. While this contract addresses a specific geographic area, DHS maintains a national security posture, utilizing numerous contracts across the country to protect its assets and personnel.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10111 W. 105TH STREET, OVERLAND PARK, KS, 66212

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $11,392,030

Exercised Options: $11,392,030

Current Obligation: $11,392,030

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSGS06P03TAD0001

IDV Type: IDC

Timeline