State Department's $34M Guard Services Contract Awarded to Inter-Con Security Systems, Inc

Contract Overview

Contract Amount: $33,982,079 ($34.0M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2008-10-23

End Date: 2013-05-06

Contract Duration: 1,656 days

Daily Burn Rate: $20.5K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOMESTIC UNIFORMED GUARD SERVICES FOR DOS NATIONWIDE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $34.0 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: DOMESTIC UNIFORMED GUARD SERVICES FOR DOS NATIONWIDE Key points: 1. The contract value of $33.98 million over its period of performance suggests a significant investment in security services. 2. Inter-Con Security Systems, Inc. secured this contract, indicating their competitive positioning within the security services sector. 3. The contract duration of approximately 5.5 years (1656 days) implies a long-term need for these services. 4. The award was made by the Department of State, highlighting the critical nature of security for diplomatic and governmental operations. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard and patrol services. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The total contract value of approximately $34 million over roughly 5.5 years averages to about $6.18 million annually. Benchmarking this against similar large-scale, nationwide security contracts for federal agencies is challenging without more specific service details (e.g., number of posts, hours, threat levels). However, the firm-fixed-price nature suggests that the government sought predictable costs. Without data on the number of guards or specific service requirements, a precise value-for-money assessment is difficult, but the duration and scope indicate a substantial, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. It is unknown if it was competed under full and open competition, a limited competition, or awarded sole-source. The number of bidders and the specific solicitation process would determine the extent of competition. A more competitive process typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally results in more favorable pricing and a wider range of service options, ensuring taxpayer funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of State and its personnel, who receive essential security services at domestic facilities nationwide. The contract ensures the continuous operation and protection of government assets and personnel. Geographic impact is nationwide, covering various Department of State facilities across the United States. The contract supports a workforce of security guards and related personnel employed by Inter-Con Security Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition process makes it difficult to assess if the government received the best possible value.
Without detailed performance metrics, it's hard to gauge the effectiveness and efficiency of the security services provided.
The firm-fixed-price contract, while predictable, could lead to contractor complacency if not managed with robust oversight.

Positive Signals

The firm-fixed-price contract structure transfers some cost risk to the contractor, potentially leading to cost savings if managed efficiently.
The long contract duration suggests a stable and reliable security solution for the Department of State.
Awarding to a single entity for nationwide services may indicate an effort to streamline security operations and ensure consistent standards.

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 guards and patrol services sub-sector. The market is characterized by a mix of large, established providers and smaller, specialized firms. Federal contracts for security services are substantial due to the government's extensive infrastructure and personnel protection needs. This specific contract represents a notable portion of spending within this niche, focusing on uniformed guard services for a major federal agency.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (sb: false) and did not have a specific small business subcontracting goal indicated (ss: false). This suggests that the primary award went to a large business, and there may not be a mandated focus on subcontracting opportunities for small businesses within this specific contract. The impact on the small business ecosystem would depend on whether Inter-Con Security Systems, Inc. voluntarily engages small businesses for subcontracting or if other federal contracts in this category are more favorable to small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. The firm-fixed-price nature requires diligent oversight to ensure services meet the required standards without scope creep. Transparency regarding performance reviews and any issued task orders would be key indicators of accountability.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for security services
Department of Homeland Security (DHS) security contracts
Department of Defense (DoD) security guard contracts
Other agency-specific security service procurements

Risk Flags

Lack of competition details
Absence of performance metrics
Potential for service quality degradation under FFP

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $34.0 million to INTER-CON SECURITY SYSTEMS, INC.. DOMESTIC UNIFORMED GUARD SERVICES FOR DOS NATIONWIDE

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 $34.0 million.

What is the period of performance?

Start: 2008-10-23. End: 2013-05-06.

What specific security services were included under this contract?

The provided data indicates the contract is for 'DOMESTIC UNIFORMED GUARD SERVICES FOR DOS NATIONWIDE' and falls under NAICS code 561612 (Security Guards and Patrol Services). This typically includes services such as physical security presence, access control, patrolling, alarm monitoring, and response to incidents at Department of State facilities within the United States. However, the exact scope, number of posts, hours of coverage, and specific security protocols would be detailed in the contract's Statement of Work (SOW), which is not provided here. Without the SOW, a precise understanding of the services rendered is limited.

How does the contract value compare to similar nationwide security contracts for federal agencies?

Comparing the $33.98 million contract value directly to similar nationwide contracts is challenging without more granular data on service scope, duration, and specific agency needs. However, for a contract spanning approximately 5.5 years and covering nationwide facilities for a major agency like the Department of State, this value appears substantial but not necessarily outside the expected range for comprehensive security services. Larger agencies often award multi-year, high-value contracts for security due to the scale of their operations. Benchmarking would ideally involve comparing annual costs per post or per facility, adjusted for threat levels and service intensity, which requires access to more detailed contract information.

What is the track record of Inter-Con Security Systems, Inc. with federal contracts?

Inter-Con Security Systems, Inc. has a history of securing federal contracts, particularly in the security services domain. While this specific contract with the Department of State is a significant award, their broader federal portfolio would need to be examined for a comprehensive track record assessment. This would involve reviewing past performance evaluations, any contract disputes or terminations, and the types and values of other federal contracts they have held. A positive track record with similar agencies or for comparable services would indicate reliability, while a history of issues might raise concerns about performance and value.

What are the potential risks associated with this firm-fixed-price contract?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may cut corners on service quality to maximize profit if oversight is insufficient. While FFP shifts cost risk to the contractor, it doesn't guarantee performance. If the contractor underestimates costs or faces unforeseen challenges, they might struggle to deliver the contracted services adequately. Conversely, if the government's requirements change significantly, change orders could increase the contract's total cost. Robust performance monitoring and clear communication channels are crucial to mitigate these risks and ensure the government receives the expected value.

How has spending on security guards and patrol services evolved for the Department of State?

To assess the evolution of spending on security guards and patrol services for the Department of State, one would need to analyze historical contract data over several years. This would involve looking at the total amount obligated annually for NAICS code 561612 and similar security services, identifying the primary contractors, and noting any significant shifts in contract values or award types. This specific contract, awarded in late 2008 and ending in mid-2013, represents a portion of that spending during its period. Understanding historical patterns can reveal trends in security needs, budget allocations, and contractor relationships.

What does the contract's duration imply about the stability of security needs?

The contract's duration of approximately 1656 days (around 5.5 years) suggests that the Department of State anticipates a stable and ongoing need for uniformed guard services at its domestic facilities. Such long-term contracts are typically awarded when requirements are well-defined and expected to persist, allowing for economies of scale and consistent service delivery. It implies that security is viewed as a continuous operational necessity rather than a temporary measure. This stability can also benefit the contractor by providing predictable revenue, potentially leading to more efficient resource planning and staffing.

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: $33,982,079

Exercised Options: $33,982,079

Current Obligation: $33,982,079

Parent Contract

Parent Award PIID: SLMAQM01D0157

IDV Type: IDC

Timeline