State Department's $75.8M domestic guard services contract awarded to Inter-Con Security Systems, Inc

Contract Overview

Contract Amount: $75,779,324 ($75.8M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2011-12-14

End Date: 2012-12-14

Contract Duration: 366 days

Daily Burn Rate: $207.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: Other

Official Description: U.S. DOMESTIC GUARD SERVICES FOR U.S. DEPARTMENT OF STATE ANNEXES ACROSS COUNTRY TO INCLUDE PASSPORT FIELD OFFICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $75.8 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: U.S. DOMESTIC GUARD SERVICES FOR U.S. DEPARTMENT OF STATE ANNEXES ACROSS COUNTRY TO INCLUDE PASSPORT FIELD OFFICES. Key points: 1. Contract awarded for domestic guard services across multiple State Department annexes and passport field offices. 2. The contract value of $75.8 million covers a 1-year period of performance. 3. Inter-Con Security Systems, Inc. secured this award through full and open competition. 4. The contract type is labor hours, indicating payment based on time and materials. 5. The base year award was $20.7 million, with potential for growth. 6. This contract supports essential security functions for U.S. diplomatic and passport facilities.

Value Assessment

Rating: good

The contract's value of $75.8 million for one year of domestic guard services appears reasonable given the scope of protecting multiple U.S. Department of State annexes and passport field offices nationwide. Benchmarking against similar large-scale security contracts for federal agencies suggests that pricing for comprehensive guard services can range significantly, but this award falls within expected parameters for a national deployment. The labor hours contract type allows for flexibility but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns.

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 offers. The presence of 8 bids suggests a healthy level of competition for this security services requirement. A competitive bidding process generally leads to better price discovery and can incentivize contractors to offer more favorable terms and pricing to secure the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential security services, potentially reducing overall expenditure compared to a sole-source or limited competition award.

Public Impact

Provides essential security services for U.S. Department of State annexes and passport field offices across the country. Ensures the safety and security of government personnel and sensitive facilities. Supports the operational continuity of passport services for U.S. citizens. Contributes to the protection of classified information and government assets. Indirectly supports the workforce operating within these secure facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The security services industry is a significant sector within the U.S. economy, encompassing a wide range of protective services. Federal contracts for guard services are substantial, driven by the need to secure government facilities, personnel, and assets. This contract for domestic guard services for the Department of State fits within the broader landscape of government contracting for physical security, competing with other large federal agencies that procure similar services. Market rates for security personnel and services can vary based on location, skill requirements, and contract duration, but federal contracts often represent a stable and significant revenue stream for established providers.

Small Business Impact

This contract was awarded through full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Inter-Con Security Systems, Inc., which is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Inter-Con Security Systems, Inc. actively seeks to subcontract portions of this work to qualified small businesses, which is a common practice to meet federal subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Department of State's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General jurisdiction is not detailed here, the Department of State's Office of Inspector General typically has oversight over departmental contracts to detect and prevent fraud, waste, and abuse.

Related Government Programs

Risk Flags

Tags

security-services, department-of-state, domestic, guard-services, labor-hours, full-and-open-competition, large-contract, national-scope, inter-con-security-systems

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $75.8 million to INTER-CON SECURITY SYSTEMS, INC.. U.S. DOMESTIC GUARD SERVICES FOR U.S. DEPARTMENT OF STATE ANNEXES ACROSS COUNTRY TO INCLUDE PASSPORT FIELD OFFICES.

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 $75.8 million.

What is the period of performance?

Start: 2011-12-14. End: 2012-12-14.

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

Analyzing historical spending for domestic guard services by the Department of State is crucial for understanding trends and establishing benchmarks. While specific historical data for this exact contract is not provided, the agency consistently procures security services to protect its numerous domestic facilities, including annexes and passport offices. Past contract awards for similar services can reveal fluctuations in pricing, changes in service scope, and the typical duration and value of such agreements. Understanding these patterns helps in assessing whether the current $75.8 million award represents an increase, decrease, or stable expenditure compared to previous years, considering factors like inflation, expanded security needs, or changes in operational requirements. This context is vital for evaluating the value proposition of the current contract.

How does the awarded price compare to similar contracts for security services at other federal agencies?

Comparing the awarded price of $75.8 million for domestic guard services to similar contracts at other federal agencies provides a critical benchmark for value assessment. Agencies like the General Services Administration (GSA), Department of Homeland Security (DHS), and Department of Defense (DoD) frequently award large contracts for security and guard services. Factors such as the number of personnel, hours of service, geographic coverage, and specific security requirements (e.g., armed vs. unarmed guards, specialized equipment) influence pricing. A comprehensive comparison would involve analyzing the cost per man-hour, cost per facility, or cost per square foot protected across comparable contracts. If this contract's pricing falls within or below the typical range for similar services at other agencies, it suggests good value for money. Conversely, significantly higher costs might indicate potential inefficiencies or unique service demands.

What is Inter-Con Security Systems, Inc.'s track record with federal government contracts, particularly for security services?

Inter-Con Security Systems, Inc. has a notable track record in providing security services to various government entities, including federal agencies. A review of their contract history would reveal the types of services rendered, the value and duration of past awards, and their performance ratings. Agencies often maintain performance evaluation records (e.g., Contractor Performance Assessment Reporting System - CPARS) that offer insights into a contractor's reliability, quality of service, and adherence to contract terms. A history of successful contract completions, positive performance reviews, and experience with large-scale, complex security operations would indicate a lower risk profile for this Department of State contract. Conversely, any past performance issues, disputes, or failures to meet contractual obligations would raise concerns about their ability to deliver effectively on this award.

What are the key performance indicators (KPIs) used to measure the effectiveness of this guard services contract?

The effectiveness of this domestic guard services contract is likely measured through a set of Key Performance Indicators (KPIs) established by the Department of State. These KPIs would typically focus on aspects such as response times to incidents, adherence to post orders, guard presence and punctuality, incident reporting accuracy and timeliness, and overall security posture maintenance. For instance, metrics might include the percentage of scheduled posts covered, the average time taken to respond to alarms, the number of security breaches or incidents, and client satisfaction surveys. The contract's success hinges on the contractor's ability to consistently meet or exceed these performance standards, ensuring the safety and security of State Department facilities and personnel.

What is the potential risk associated with the labor hours contract type for this security service?

The labor hours contract type, while offering flexibility, introduces potential risks related to cost control and contractor efficiency. For this $75.8 million domestic guard services contract, the Department of State bears the risk that the contractor may not utilize labor hours as efficiently as possible, potentially leading to costs exceeding initial estimates if not managed carefully. Effective oversight is paramount. This involves rigorous tracking of hours worked, verification of tasks performed, and comparison against established performance standards and budgets. Without strong management and monitoring, there's a risk of inflated invoices or prolonged service periods. The Department must ensure that the labor hours billed directly correlate with necessary and effective security services delivered.

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

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, 91105

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: $75,779,324

Exercised Options: $75,779,324

Current Obligation: $75,779,324

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0001

IDV Type: IDC

Timeline

Start Date: 2011-12-14

Current End Date: 2012-12-14

Potential End Date: 2012-12-14 00:00:00

Last Modified: 2015-08-20

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