State Department awards $79.7M contract for security guards and patrol services to Inter-Con Security Systems, Inc

Contract Overview

Contract Amount: $79,743,325 ($79.7M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2012-12-13

End Date: 2013-12-14

Contract Duration: 366 days

Daily Burn Rate: $217.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARDS AND PATROL SERVICES ''IGF::OT::IGF''

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91105, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of State obligated $79.7 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: SECURITY GUARDS AND PATROL SERVICES ''IGF::OT::IGF'' Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 366 days indicates a short-term need for services. 3. The award type is Firm Fixed Price, which transfers risk to the contractor. 4. The base award amount is $21.7M, with a potential ceiling not explicitly stated but implied by the total award. 5. The contract was awarded in California, suggesting a specific geographic focus for the services. 6. The North American Industry Classification System (NAICS) code 561612 points to security guard services.

Value Assessment

Rating: fair

The base award of $21.7M for approximately one year of service appears reasonable for security guard and patrol services, especially considering the potential for task orders or modifications that could bring the total to $79.7M. Benchmarking against similar contracts would require more detailed service descriptions and geographic scope. However, the firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders participating. This level of competition is generally positive as it allows for a wider pool of potential contractors to submit proposals, theoretically leading to better pricing and service offerings. The presence of multiple bidders suggests that the market for these services is robust and that the government had a good selection of qualified vendors.

Taxpayer Impact: A competitive bidding process for security services helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of State and its personnel, who receive enhanced security. Services delivered include security guards and patrol services, crucial for protecting government facilities and personnel. The contract has a geographic impact primarily in California, where the services are likely to be performed. The contract supports jobs within the security services industry, contributing to the local workforce in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the total award value significantly exceeds the base award without clear justification.
Ensuring consistent service quality across all deployed guards throughout the contract period.
Monitoring contractor performance to ensure adherence to security protocols and responsiveness to incidents.

Positive Signals

Awarded under full and open competition with multiple bidders, indicating a competitive market.
Firm Fixed Price contract type, which shifts cost risk to the contractor.
The contractor, Inter-Con Security Systems, Inc., has a track record in providing security services.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the NAICS code 561612, which specifically covers security guards and patrol services. The market is characterized by a mix of large, established firms and smaller specialized providers. Government contracts for security services are common across various agencies, reflecting the ongoing need for physical security at federal facilities. Spending in this sector can fluctuate based on geopolitical events, threat assessments, and budget allocations.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Inter-Con Security Systems, Inc., there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if small businesses are being utilized effectively.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Performance reviews, site inspections, and regular reporting from the contractor are standard mechanisms to ensure accountability and adherence to contract terms. Transparency is generally maintained through contract award databases, although detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

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

Risk Flags

Potential for cost overruns if scope is not well-defined
Risk of service quality degradation if contractor underbids
Ensuring adequate staffing levels and guard performance

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $79.7 million to INTER-CON SECURITY SYSTEMS, INC.. SECURITY GUARDS AND PATROL SERVICES ''IGF::OT::IGF''

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 $79.7 million.

What is the period of performance?

Start: 2012-12-13. End: 2013-12-14.

What is the historical spending pattern for security guard and patrol services by the Department of State?

Analyzing historical spending for security guard and patrol services by the Department of State requires access to detailed federal procurement data over multiple fiscal years. While this specific contract award is for approximately $79.7 million, understanding the broader trend involves looking at the total obligated amounts for NAICS code 561612 awarded by the State Department annually. Factors influencing this spending include the number of facilities requiring security, changes in threat levels, and shifts in security policy. Without a comprehensive historical dataset, it's difficult to ascertain if this $79.7 million award represents an increase, decrease, or stable level of spending compared to previous years. However, the consistent need for security at diplomatic missions and federal buildings suggests a sustained requirement for these services.

How does the per-unit cost of security personnel under this contract compare to industry benchmarks?

Determining the per-unit cost of security personnel requires breaking down the total contract value by the number of personnel and hours worked. The provided data indicates a total award of $79.7 million for security guards and patrol services over approximately one year. To benchmark, we would need to know the average hourly rate paid to guards, the number of guards employed, and the total hours of service provided. If, for example, the contract supported 100 guards working 40 hours a week at an average loaded rate (including benefits and overhead) of $50/hour, the annual cost would be around $10.4 million. Extrapolating the $79.7 million total award over a year suggests a significantly higher operational scale or potentially includes other security-related services beyond basic guard duties. A direct comparison to industry benchmarks for similar roles in similar geographic locations would be necessary for a precise assessment of value for money.

What is the track record of Inter-Con Security Systems, Inc. in fulfilling government contracts?

Inter-Con Security Systems, Inc. has a significant history of performing government contracts, particularly for security services. A review of federal procurement databases would reveal the number and value of contracts awarded to Inter-Con by various agencies, including the Department of State, Department of Defense, and others. Key performance indicators such as past performance ratings, any contract disputes, or terminations for default would provide insight into their reliability and capability. Generally, companies that consistently win large federal contracts have demonstrated a capacity to meet performance requirements and manage complex security operations. Further due diligence would involve examining specific contract performance evaluations to assess their overall track record.

What are the potential risks associated with a firm fixed-price contract for security services?

While a firm fixed-price (FFP) contract shifts cost risk to the contractor, potential risks remain. For security services, these can include the contractor cutting corners on personnel quality or training to maintain profitability if their initial bid was too low. There's also a risk of inadequate staffing during peak demand or unforeseen events if the contractor mismanages resources. Furthermore, if the contract scope is not clearly defined, disputes over what services are included can arise, potentially leading to change orders or claims. The government's risk is ensuring that the contractor maintains adequate performance standards and security protocols throughout the contract duration, despite the FFP structure.

How does the number of bidders (8) influence the pricing and quality of security services obtained?

Having 8 bidders for this security services contract suggests a healthy level of competition. A larger number of bidders typically drives down prices as companies compete to win the contract, potentially offering more favorable terms. It also increases the likelihood that the government will find a contractor with the specific expertise and capabilities required. From a taxpayer perspective, this competitive environment is beneficial as it helps ensure that the government is not overpaying for the services. The quality aspect is also positively influenced, as contractors are incentivized to offer high-quality services to stand out among the competition and secure future contract opportunities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

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: $79,814,180

Exercised Options: $79,814,180

Current Obligation: $79,743,325

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0001

IDV Type: IDC

Timeline