Inter-con Security Systems awarded $26.3M for guard services, with a significant portion allocated to the DC metro area
Contract Overview
Contract Amount: $26,263,053 ($26.3M)
Contractor: Inter-Con Security Systems, Inc.
Awarding Agency: Department of State
Start Date: 2008-03-15
End Date: 2008-12-14
Contract Duration: 274 days
Daily Burn Rate: $95.9K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GUARD SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of State obligated $26.3 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: GUARD SERVICES Key points: 1. The contract value of $26.3 million for guard services indicates a substantial need for security personnel. 2. Inter-con Security Systems, Inc. is the sole awardee, raising questions about the extent of competition. 3. The contract duration of 274 days suggests a short-term or interim need for these services. 4. The fixed-price contract type aims to control costs, but the final price is fixed regardless of actual costs incurred. 5. The award to a single entity may limit opportunities for other security providers to compete for this business. 6. The primary service area is the District of Columbia, highlighting a concentration of federal security needs in the capital. 7. The NAICS code 561612 points to a specific market segment for security guards and patrol services.
Value Assessment
Rating: fair
The total award of $26.3 million for guard services over a period of 274 days appears to be a significant expenditure. Benchmarking this against similar contracts for guard services would be necessary to determine if the pricing is competitive. The fixed-price nature of the contract means the government pays a set amount, which can be advantageous if the contractor's costs are lower than anticipated, but carries risk if costs exceed estimates. Without more granular data on the scope of services and personnel hours, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded as a sole-source contract, meaning that only one contractor was solicited and considered. This approach is typically used when there is a compelling justification, such as a lack of competition or a unique capability possessed by a single vendor. The absence of a competitive bidding process means that the government did not benefit from the price discovery that typically occurs in a multi-bidder scenario. This could potentially lead to a higher price than if multiple firms had competed.
Taxpayer Impact: A sole-source award limits taxpayer benefit by potentially foregoing cost savings that could arise from a competitive bidding process. It also reduces transparency in pricing as there is no market comparison derived from multiple offers.
Public Impact
Federal facilities and personnel within the District of Columbia are the primary beneficiaries of these guard services. The contract ensures the provision of security guards and patrol services, contributing to the safety and security of government operations. The geographic impact is concentrated in Washington D.C., indicating a focus on protecting federal assets in the nation's capital. The contract supports employment for security personnel employed by Inter-con Security Systems, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Lack of transparency in the bidding process makes it difficult to assess true market value.
- Fixed-price contract could lead to overpayment if contractor's costs are significantly lower than anticipated.
Positive Signals
- Contract ensures continuous security coverage for critical federal facilities.
- Fixed-price contract provides cost certainty for the government once awarded.
- Award to an established security provider may indicate reliability and proven performance.
Sector Analysis
The security services sector is a significant component of the federal contracting landscape, encompassing a wide range of protective services. This contract falls under the security guards and patrol services category (NAICS 561612). The federal government is a major consumer of these services, particularly in high-security areas like Washington D.C. The market for security services is generally competitive, with numerous providers ranging from large corporations to smaller specialized firms. However, sole-source awards, like this one, can occur for specific strategic or urgent needs.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business subcontracting) is also false. This suggests that opportunities for small businesses to participate as subcontractors on this specific contract may be limited, and the primary awardee is not obligated to meet small business subcontracting goals. This could mean a missed opportunity to leverage the small business industrial base for specialized security services.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the contracting agency, the Department of State. As a sole-source award, there may be heightened scrutiny from oversight bodies to ensure the justification for not competing the contract was sound. Transparency regarding the specific performance metrics and any potential issues would be managed by the agency's contract officers. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Protective Service Contracts
- Department of State Security Operations
- Guard Services for Government Facilities
- Physical Security Contracts
Risk Flags
- Sole-source award may indicate limited competition, potentially impacting price.
- Lack of small business subcontracting goals could limit opportunities for small businesses.
- Short contract duration (274 days) might suggest an interim solution or specific project need.
Tags
security-guard-services, department-of-state, district-of-columbia, sole-source, firm-fixed-price, inter-con-security-systems, security-services, federal-contracting, national-capital-region
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $26.3 million to INTER-CON SECURITY SYSTEMS, INC.. GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is INTER-CON SECURITY SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $26.3 million.
What is the period of performance?
Start: 2008-03-15. End: 2008-12-14.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or a lack of adequate competition. A thorough review of the contract file or agency procurement records would be necessary to ascertain the precise rationale behind this decision. Without this information, it is difficult to fully assess the necessity of bypassing a competitive process and its potential impact on cost-effectiveness for the taxpayer.
How does the contract value compare to similar guard services contracts awarded by the Department of State or other federal agencies?
Direct comparison of the $26.3 million contract value is challenging without more specific details on the scope of services, duration, and geographic coverage. However, federal spending on guard services is substantial. For instance, the General Services Administration (GSA) manages numerous security contracts. The average cost per guard hour can vary significantly based on location, security clearance requirements, and the level of service provided. Given this contract's duration of 274 days and its concentration in the DC area, it represents a significant, albeit potentially short-term, investment. A detailed benchmark analysis would require comparing hourly rates, personnel numbers, and service levels against other contracts for similar security needs in comparable geographic regions.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being monitored?
The provided data does not specify the key performance indicators (KPIs) or the monitoring mechanisms for this contract. Typically, federal contracts for guard services include detailed performance standards related to response times, personnel conduct, incident reporting, and adherence to post orders. The Department of State's contracting officers and potentially designated technical representatives would be responsible for monitoring Inter-con Security Systems, Inc.'s performance against these standards. Regular performance evaluations, site visits, and review of incident logs are common methods used to ensure contract compliance and service quality. The effectiveness of these oversight measures is crucial for ensuring value for money.
What is the historical spending pattern for guard services by the Department of State, and does this contract represent an increase or decrease?
The provided data only pertains to this specific contract award. To understand historical spending patterns, one would need to analyze the Department of State's procurement history over several fiscal years. This would involve looking at previous contracts for guard services, their values, durations, and awarded contractors. Without this historical context, it's impossible to determine if this $26.3 million award represents a typical, increased, or decreased level of spending for such services. Analyzing past spending can reveal trends, identify potential areas for cost savings, and inform future procurement strategies for security services.
What is the track record of Inter-con Security Systems, Inc. with federal contracts, particularly for guard services?
Inter-con Security Systems, Inc. has a history of federal contracting, as evidenced by this award. To assess their track record, one would need to examine their past performance on similar contracts. This includes reviewing past contract awards, their values, durations, and any reported performance evaluations or disputes. Agencies often maintain past performance information databases that can provide insights into a contractor's reliability, quality of service, and compliance history. A positive track record with previous federal contracts would suggest a lower risk associated with this award, while a history of issues could raise concerns about performance and value.
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
Contractor Details
Address: 210 S DE LACEY AVE, PASADENA, CA, 28
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,263,053
Exercised Options: $26,263,053
Current Obligation: $26,263,053
Parent Contract
Parent Award PIID: SLMAQM01D0157
IDV Type: IDC
Timeline
Start Date: 2008-03-15
Current End Date: 2008-12-14
Potential End Date: 2009-03-14 00:00:00
Last Modified: 2010-03-13
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