State Department awards $57M for security guard services, with Inter-Con Security Systems Inc. winning the contract

Contract Overview

Contract Amount: $57,169,091 ($57.2M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2009-12-11

End Date: 2013-05-06

Contract Duration: 1,242 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SECURITY GUARD SERVICES IN DC METROPOLITAN AREA AND OTHER NATIONWIDE LOCATIONS

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 $57.2 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: SECURITY GUARD SERVICES IN DC METROPOLITAN AREA AND OTHER NATIONWIDE LOCATIONS Key points: 1. The contract value of $57.2 million over its period of performance suggests a significant investment in security services. 2. The full and open competition indicates a broad market solicitation, potentially leading to competitive pricing. 3. The contract duration of approximately 3.4 years (1242 days) allows for sustained service delivery. 4. The primary service area is the DC metropolitan area, with additional nationwide locations, suggesting a broad operational scope. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard and patrol services. 6. The contract was awarded under 'Other' award type, which may require further clarification on its specific meaning.

Value Assessment

Rating: good

The contract value of $57.2 million for security guard services over roughly 3.4 years appears reasonable given the scope of nationwide locations and the DC metropolitan area focus. Benchmarking against similar large-scale security contracts would provide a more precise value-for-money assessment. The absence of specific performance metrics in the provided data makes a detailed performance evaluation challenging, but the duration suggests a stable, ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The presence of 8 bids (indicated by 'no': 8) suggests a healthy level of interest and competition for this requirement, which is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by driving down costs through competitive pressure, ensuring the government receives services at a more favorable price point.

Public Impact

The primary beneficiaries are the Department of State and potentially other federal agencies requiring security services at various nationwide locations. The services delivered include security guard and patrol functions, crucial for protecting government personnel, facilities, and assets. The geographic impact spans the DC metropolitan area and other nationwide locations, ensuring security coverage across key federal operational areas. The contract supports jobs within the security services industry, contributing to employment in the private sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations across numerous nationwide locations.
Ensuring consistent adherence to security protocols across all sites may be challenging.
The 'Other' award type warrants further investigation to understand any unique contractual stipulations or limitations.

Positive Signals

Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration indicates a stable and ongoing need, allowing for service optimization.
The award to a single contractor (Inter-Con Security Systems, Inc.) can lead to streamlined management and consistent service delivery.

Sector Analysis

The security guard and patrol services sector is a significant component of the broader private security industry. This contract falls under the NAICS code 561612, which encompasses establishments primarily engaged in providing security guards and patrol services. The market for federal security contracts is substantial, driven by the need to protect sensitive government facilities and personnel. This specific contract, valued at over $57 million, represents a notable portion of spending within this niche, likely benchmarked against other large federal security contracts for similar scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Inter-Con Security Systems, Inc., would be responsible for fulfilling the contract requirements. Any subcontracting opportunities would be at the discretion of the prime contractor, and there is no explicit requirement for small business subcontracting mentioned in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of State. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract award databases and public reporting, although specific details of ongoing performance monitoring are not provided. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts for Security
Department of Defense Security Services

Risk Flags

Potential for inconsistent service quality across diverse nationwide locations.
Reliance on a single contractor for critical security functions.
Need for detailed performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $57.2 million to INTER-CON SECURITY SYSTEMS, INC.. SECURITY GUARD SERVICES IN DC METROPOLITAN AREA AND OTHER NATIONWIDE LOCATIONS

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 $57.2 million.

What is the period of performance?

Start: 2009-12-11. End: 2013-05-06.

What is the track record of Inter-Con Security Systems, Inc. with federal contracts, particularly for security guard services?

Inter-Con Security Systems, Inc. has a history of securing and performing federal contracts, including those for security guard and related services. A comprehensive review of their past performance with agencies like the Department of State, Department of Defense, and others would reveal their experience in managing large-scale security operations, their compliance record, and their ability to meet performance requirements. Analyzing their contract history can provide insights into their reliability, responsiveness, and overall capability to deliver services effectively. Specific data on past contract values, durations, and any performance issues or awards would be crucial for a thorough assessment of their track record.

How does the awarded price of $57.2 million compare to similar security guard service contracts awarded by the Department of State or other federal agencies?

To benchmark the $57.2 million award, one would compare it against contracts for security guard services of similar scope, duration, and geographic coverage awarded by the Department of State and other federal agencies. Factors such as the number of personnel required, the level of security clearance, the types of facilities protected, and the specific services (e.g., armed vs. unarmed guards, access control, patrol) are critical for a fair comparison. If this contract's price per guard hour or per facility is significantly lower or higher than comparable contracts, it would indicate potential overpayment or exceptional value. Without access to detailed pricing structures and specific service level agreements for comparable contracts, a precise value-for-money assessment is limited.

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. under this contract. Typically, for security guard services, KPIs might include metrics such as response times to incidents, guard punctuality and attendance rates, incident reporting accuracy and timeliness, adherence to post orders, customer satisfaction surveys, and the number of security breaches or incidents that occur. The Department of State would have established specific performance standards and metrics within the contract's Performance Work Statement (PWS) to ensure the contractor meets the required level of service and security.

What is the historical spending pattern for security guard services by the Department of State over the last five years?

Analyzing the historical spending patterns of the Department of State for security guard services over the last five years would involve examining contract award data from sources like the Federal Procurement Data System (FPDS) or USAspending.gov. This would reveal the total annual expenditure on such services, the primary contractors utilized, the types of contracts awarded (e.g., labor hours, fixed-price), and the geographic distribution of spending. Understanding these patterns can help identify trends, assess the consistency of spending, and determine if the current $57.2 million award aligns with or deviates from historical norms, potentially indicating changes in security needs or procurement strategies.

What is the potential risk associated with a single contractor, Inter-Con Security Systems, Inc., providing security services across multiple nationwide locations?

The primary risk associated with a single contractor providing security services across multiple nationwide locations is the potential for inconsistent service quality and management challenges. Ensuring uniform adherence to protocols, training standards, and performance expectations across diverse sites can be difficult. Furthermore, a single point of failure could arise if the contractor experiences significant operational issues, financial instability, or labor disputes, potentially disrupting security operations at numerous federal facilities simultaneously. Effective oversight and robust performance management by the contracting agency are crucial to mitigate these risks.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE # 200, PASADENA, CA, 28

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,169,091

Exercised Options: $57,169,091

Current Obligation: $57,169,091

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: SAQMMA10D0001

IDV Type: IDC

Timeline