State Department's $128M security contract awarded to Inter-con Security Systems, Inc. for domestic guard services

Contract Overview

Contract Amount: $128,004,726 ($128.0M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2013-12-15

End Date: 2017-04-24

Contract Duration: 1,226 days

Daily Burn Rate: $104.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF DOS DOMESTIC GUARD SERVICES FOR ALL DOS BUILDINGS, REGIONAL, FIELD AND HEADQUARTERS IN U.S.

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 $128.0 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: IGF::OT::IGF DOS DOMESTIC GUARD SERVICES FOR ALL DOS BUILDINGS, REGIONAL, FIELD AND HEADQUARTERS IN U.S. Key points: 1. Contract awarded through full and open competition, suggesting a robust market for security services. 2. The contract duration of 1226 days indicates a significant, long-term need for security personnel. 3. The base award amount of over $128 million highlights the substantial investment in physical security for federal facilities. 4. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. The contract was awarded in Washington D.C., indicating a focus on high-security government installations.

Value Assessment

Rating: good

The contract's value of $128 million over approximately 3.4 years for domestic guard services appears reasonable given the scope of protecting multiple Department of State facilities. Benchmarking against similar large-scale security contracts for federal agencies would provide further context on value for money. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency 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 multiple vendors were likely invited to bid. The presence of 8 delivery orders suggests a structured procurement process, potentially on an IDIQ contract. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to offer their services, driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the Department of State and its employees, who receive enhanced security at domestic facilities. The services delivered include security guard and patrol functions across various Department of State buildings, including regional, field, and headquarters locations within the U.S. The geographic impact is nationwide, covering all domestic facilities managed by the Department of State. The contract supports a workforce of security personnel, contributing to employment in the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'all DOS buildings' is not clearly delineated.
Reliance on labor hours can lead to increased costs if not managed effectively.
Ensuring consistent service quality across numerous diverse locations presents a logistical challenge.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contract duration suggests a stable, long-term need, allowing for workforce planning and retention by the contractor.
The clear NAICS code indicates a well-defined service requirement.

Sector Analysis

The security services industry is a significant sector within the U.S. economy, encompassing a wide range of protective services. This contract falls under the security guards and patrol services sub-sector (NAICS 561612). Federal spending in this area is substantial, driven by the need to protect sensitive government facilities and personnel. Comparable spending benchmarks would involve analyzing other large federal contracts for physical security services across agencies like GSA, DHS, and DOD.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. While the prime contractor is Inter-Con Security Systems, Inc., there is no explicit information on subcontracting plans or performance related to small businesses. Further analysis would be needed to determine if small businesses are participating in subcontracting opportunities under this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and contract specialists within the Department of State. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting by the contractor are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Facilities Management
Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Building Security

Risk Flags

Potential for cost overruns due to labor hour pricing model.
Ensuring consistent service quality across diverse geographic locations.
Adequate oversight required to manage a large, multi-year contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $128.0 million to INTER-CON SECURITY SYSTEMS, INC.. IGF::OT::IGF DOS DOMESTIC GUARD SERVICES FOR ALL DOS BUILDINGS, REGIONAL, FIELD AND HEADQUARTERS IN U.S.

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 $128.0 million.

What is the period of performance?

Start: 2013-12-15. End: 2017-04-24.

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

Analyzing historical spending data for domestic guard services by the Department of State prior to this $128 million contract would reveal trends in demand and investment. This includes examining contract values, durations, and the number of awards over several fiscal years. Understanding past spending patterns can help identify any significant increases or decreases in security needs, potential consolidation of contracts, or shifts in procurement strategies. For instance, if previous spending was significantly lower, it might indicate an expansion of security requirements or a change in how services are contracted. Conversely, if spending has been consistently high, it suggests a stable, ongoing need for these services. This context is crucial for assessing the current contract's scale and justification.

How does the per-hour labor cost for security guards under this contract compare to industry benchmarks?

To assess the value for money, a comparison of the per-hour labor cost for security guards under this Department of State contract against industry benchmarks is essential. This involves identifying the average hourly wage for similar security guard services in the Washington D.C. metropolitan area and nationally, considering factors like guard experience, certifications, and the specific security environment. If the contract's labor rates are significantly higher than market averages, it could indicate potential overpricing or a need for renegotiation. Conversely, rates below market might suggest a risk to service quality or contractor profitability. Data from the Bureau of Labor Statistics (BLS) or private industry surveys can provide these benchmarks. Without specific hourly rates from the contract, a precise comparison is difficult, but the overall contract value provides a basis for estimating average costs.

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

Inter-Con Security Systems, Inc. has a significant track record in providing security services, including to federal agencies. Examining their past performance on similar contracts, particularly those involving large-scale guard services for government facilities, is crucial. This includes reviewing past performance evaluations, any documented instances of contract disputes, overruns, or quality issues, as well as successes in meeting performance metrics. A history of successful contract completion, positive performance reviews, and adherence to schedules and budgets would indicate a lower risk associated with this current award. Conversely, a history of significant performance problems could raise concerns about the contractor's ability to meet the Department of State's requirements effectively and efficiently.

What are the key performance indicators (KPIs) used to measure the effectiveness of the security services provided?

The effectiveness of the security services provided under this contract is likely measured through a set of Key Performance Indicators (KPIs) defined in the contract's Performance Work Statement (PWS). These KPIs typically include metrics such as response times to incidents, adherence to post orders, incident reporting accuracy and timeliness, guard presence and punctuality, and overall customer satisfaction (e.g., from facility managers). The Department of State would monitor these KPIs to ensure Inter-Con Security Systems, Inc. is meeting its contractual obligations. Regular performance reviews and audits would assess compliance. A robust KPI framework is essential for ensuring accountability and verifying that the substantial investment in security is yielding the desired protective outcomes for the Department's domestic facilities.

What is the potential impact of this contract on the small business security services ecosystem?

While this contract was awarded through full and open competition to a large prime contractor, its impact on the small business security services ecosystem depends heavily on subcontracting provisions. If Inter-Con Security Systems, Inc. actively seeks to subcontract portions of the work to small businesses, it can provide significant opportunities for growth and revenue. However, if the prime contractor performs the majority of the work in-house or subcontracts to other large businesses, the direct benefit to small businesses may be limited. Federal contracting goals often encourage prime contractors to utilize small businesses, including those owned by women, veterans, or in disadvantaged areas. The specific subcontracting plan, if mandated, and the contractor's actual performance in meeting these goals are critical factors in assessing the impact on the small business sector.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: $128,004,726

Exercised Options: $128,004,726

Current Obligation: $128,004,726

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0001

IDV Type: IDC

Timeline