State Department spent over $30.6M on domestic guard services, awarded via full and open competition

Contract Overview

Contract Amount: $30,609,086 ($30.6M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2009-06-14

End Date: 2014-09-30

Contract Duration: 1,934 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: US DEPARTMENT OF STATE FUNDING FOR DOMESTIC GUARD SERVICES

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 $30.6 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: US DEPARTMENT OF STATE FUNDING FOR DOMESTIC GUARD SERVICES Key points: 1. The contract value of $30.6 million over five years represents a significant investment in domestic security. 2. Awarded through full and open competition, this contract suggests a competitive bidding process. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The duration of the contract (1934 days) indicates a long-term need for these services. 5. The geographic focus on Washington D.C. highlights the concentration of critical federal assets in the capital. 6. The North American Industry Classification System (NAICS) code 561612 points to a specialized security services market.

Value Assessment

Rating: good

The total award of $30.6 million over approximately five years averages to about $6.12 million annually. Without specific benchmarks for domestic guard services for federal agencies in Washington D.C., a direct value-for-money assessment is challenging. However, the contract was awarded through full and open competition, which typically drives more competitive pricing. The firm-fixed-price structure also indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price remains competitive.

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 a bid. The presence of 8 bids suggests a healthy level of interest and competition for this requirement. A competitive environment like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the U.S. Department of State, ensuring the physical security of its domestic facilities and personnel. The services delivered include security guards and patrol services, crucial for maintaining a safe and secure environment. The geographic impact is concentrated in Washington D.C., where the Department of State has significant operational presence. The contract supports jobs within the private security sector, contributing to employment in the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The security services industry is a substantial sector within the U.S. economy, encompassing a wide range of protective services. Federal contracts for security guards and patrol services, classified under NAICS code 561612, represent a significant portion of this market. This contract with the Department of State fits within the broader landscape of federal spending on physical security, which is often concentrated in areas with high concentrations of federal assets and personnel, such as Washington D.C. Benchmarking this $30.6 million award requires comparison to similar large-scale security contracts awarded to federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award to Inter-Con Security Systems, Inc., a large entity, suggests that the primary focus was on meeting the security requirements through a capable provider, rather than prioritizing small business participation for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of State, responsible for monitoring performance and ensuring compliance with contract terms. The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to successful service delivery. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Risk Flags

Tags

security-services, department-of-state, washington-dc, full-and-open-competition, firm-fixed-price, guard-services, domestic-security, inter-con-security-systems, large-contract, naics-561612

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $30.6 million to INTER-CON SECURITY SYSTEMS, INC.. US DEPARTMENT OF STATE FUNDING FOR DOMESTIC 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 $30.6 million.

What is the period of performance?

Start: 2009-06-14. End: 2014-09-30.

What is the historical spending pattern for domestic guard services by the Department of State?

Historical spending data for domestic guard services by the Department of State prior to this $30.6 million award is not detailed here. However, the duration of this contract (2009-2014) suggests a sustained need for such services. Agencies like the Department of State, responsible for protecting sensitive facilities and personnel domestically, typically maintain ongoing security contracts. Analyzing prior contract awards, their values, and durations would provide a clearer picture of the agency's historical investment in this area and help establish a baseline for future spending trends.

How does the per-unit cost of security services under this contract compare to similar federal contracts?

A precise per-unit cost comparison is difficult without knowing the specific services rendered (e.g., hourly rate per guard, number of guards, specific security technologies deployed). However, the total award of $30.6 million over approximately 1934 days (roughly 5.3 years) averages to about $5.74 million per year. Given that this contract was awarded through full and open competition with 8 bidders, it suggests that the pricing achieved was likely competitive within the market for similar federal security services in the Washington D.C. area. Benchmarking against other large federal security contracts would be necessary for a definitive comparison.

What are the key performance indicators (KPIs) used to evaluate the performance of Inter-Con Security Systems, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Inter-Con Security Systems, Inc. However, typical KPIs for security guard contracts include response times to incidents, adherence to post orders, guard attentiveness and professionalism, incident reporting accuracy, and overall effectiveness in preventing unauthorized access or disruptions. The Department of State's contracting officer's representative (COR) would be responsible for monitoring these metrics and ensuring the contractor meets the performance standards outlined in the contract.

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

Inter-Con Security Systems, Inc. has a history of performing federal contracts, including security services. While this specific contract with the Department of State for domestic guard services is a significant award, the company's broader track record would need to be examined through databases like FPDS or SAM.gov to assess its performance on other federal contracts, including any potential issues, past performance evaluations, or awards for similar services to other agencies. A review of their history would indicate their experience and reliability in the federal contracting space.

What are the potential risks associated with a long-term (over 5 years) contract for security services?

Long-term contracts for security services, like this one spanning over five years, carry several potential risks. These include the risk of contractor complacency leading to a decline in service quality over time, potential for price increases if not adequately managed through contract clauses, and the challenge of adapting to evolving security threats and technologies. Furthermore, a prolonged reliance on a single provider might stifle innovation or limit the agency's ability to leverage new security solutions. Effective oversight and performance management are crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE, PASADENA, CA, 28

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,609,086

Exercised Options: $30,609,086

Current Obligation: $30,609,086

Parent Contract

Parent Award PIID: SLMAQM01D0157

IDV Type: IDC

Timeline

Start Date: 2009-06-14

Current End Date: 2014-09-30

Potential End Date: 2014-09-30 00:00:00

Last Modified: 2014-09-23

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