Treasury's IRS awarded $16.2M for security services to ISF Security Group, Inc. over 4 years

Contract Overview

Contract Amount: $16,222,950 ($16.2M)

Contractor: ISF Security Group, Incorporated

Awarding Agency: Department of the Treasury

Start Date: 2004-01-30

End Date: 2008-09-30

Contract Duration: 1,705 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CONTRACT TO PROVIDE GUARD SERVICE

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $16.2 million to ISF SECURITY GROUP, INCORPORATED for work described as: CONTRACT TO PROVIDE GUARD SERVICE Key points: 1. Value for money appears fair given the fixed-price structure with economic adjustments, though specific performance metrics are not detailed. 2. The contract was awarded through full and open competition, suggesting a competitive market for these services. 3. Risk indicators are moderate, with a long contract duration potentially increasing exposure to changing security needs. 4. Performance context is limited, as details on service delivery and effectiveness are not publicly available. 5. The contract falls within the security and protective services sector, a common area for federal procurement. 6. No small business set-aside was utilized, indicating the primary awardee was not a small business.

Value Assessment

Rating: fair

The contract value of $16.2 million over approximately four years averages to $4.05 million annually. Benchmarking against similar federal contracts for guard services is challenging without specific service level agreements or geographic scope. However, the fixed-price structure with economic price adjustments aims to control costs while accounting for inflation. The absence of detailed performance data makes a definitive value assessment difficult, but the competitive award process suggests a reasonable market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The record indicates five bids were received, suggesting a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and services to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process as it typically drives down costs and ensures the government receives services at a fair market price. The presence of multiple bidders reduces the risk of overpayment and encourages efficiency from the awarded contractor.

Public Impact

The primary beneficiaries are the Internal Revenue Service (IRS) facilities and personnel, who receive security and protection. Services delivered include security guards and patrol services, crucial for maintaining a safe and secure environment. The contract has a geographic impact primarily in Texas, where the contractor is based and services are likely performed. Workforce implications include the employment of security personnel by ISF Security Group, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 4 years) may lead to price increases due to economic adjustments that outpace inflation.
Lack of detailed performance metrics makes it difficult to assess the true effectiveness and value of the services provided.
Potential for contractor complacency over the extended period if oversight is not rigorous.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type helps to establish a baseline cost, with adjustments for economic factors.
Contractor is based in Texas, potentially supporting local employment.

Sector Analysis

The security and protective services industry is a significant component of the federal procurement landscape, encompassing a wide range of services from physical guarding to cybersecurity. Federal spending in this sector is consistently high due to the need to protect government assets, personnel, and sensitive information. This contract for guard services fits within the broader market for physical security solutions, where numerous private companies compete to provide essential protective functions for government agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, and the awardee, ISF Security Group, Inc., is not indicated as a small business. Therefore, there are no direct subcontracting implications or benefits specifically for small businesses stemming from this particular award. The focus was on securing the best offer through full and open competition rather than targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and contract specialists within the Department of the Treasury's Internal Revenue Service. Accountability measures would be tied to the contract's performance standards and delivery requirements. Transparency is facilitated by the public availability of contract award data, though specific operational details and performance reviews are generally not disclosed.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services

Risk Flags

Long contract duration
Limited performance data available
Economic price adjustment clause

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $16.2 million to ISF SECURITY GROUP, INCORPORATED. CONTRACT TO PROVIDE GUARD SERVICE

Who is the contractor on this award?

The obligated recipient is ISF SECURITY GROUP, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $16.2 million.

What is the period of performance?

Start: 2004-01-30. End: 2008-09-30.

What is the track record of ISF Security Group, Inc. with federal contracts?

Information on ISF Security Group, Inc.'s specific track record with federal contracts is limited in the provided data. However, the award of this $16.2 million contract by the Department of the Treasury's IRS indicates a level of capability and experience deemed sufficient to compete and win a significant government service requirement. Further investigation into their contract history, past performance reviews, and any reported issues or successes on other federal awards would be necessary for a comprehensive assessment of their track record. This includes examining their performance on other security service contracts, their financial stability, and their compliance history.

How does the per-unit cost of this contract compare to market rates for security guards?

The provided data does not include specific details on the number of guards, hours of service, or specific duties, making a direct per-unit cost comparison impossible. The contract value of $16.2 million over approximately 1705 days (roughly 4.67 years) averages to about $3.47 million per year. Without knowing the exact scope of services (e.g., number of posts, hours per post, level of security clearance required), it's difficult to benchmark against market rates. Typical hourly rates for unarmed security guards can range widely based on location and service level, from $20 to $50+ per hour. If this contract covers numerous posts operating 24/7, the total cost could be in line with market expectations, but a precise comparison requires more granular data on service delivery.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns due to the economic price adjustment clause, especially if inflation exceeds projections. The long duration of the contract (over four years) also presents a risk of service obsolescence or the need for evolving security protocols that may not be adequately addressed by the current contract terms. Furthermore, a lack of detailed performance metrics in the public record makes it challenging to assess the contractor's effectiveness and identify potential service failures or underperformance early on. Ensuring consistent quality of service and contractor responsiveness over the contract's lifespan requires diligent oversight.

How effective has the IRS been in securing competitive pricing for security services historically?

The provided data indicates this specific contract was awarded under 'full and open competition' with five bids received, suggesting a competitive pricing environment for this particular award. To assess historical effectiveness, one would need to analyze a broader range of IRS security service contracts over time. This would involve examining trends in award types (e.g., sole-source vs. competitive), the number of bids received per solicitation, and the relationship between estimated costs and final award prices. A consistent pattern of competitive awards with multiple bidders would indicate historical effectiveness in achieving competitive pricing for such services.

What is the typical duration for federal contracts providing guard services?

Federal contracts for guard services can vary significantly in duration, often depending on the scope of services, the agency's needs, and budget cycles. Many contracts include options for extensions, allowing for periods longer than the initial base term. Contracts can range from one year with multiple option years (totaling up to five years) to longer-term agreements for specific facilities or programs. This particular contract's duration of approximately 1705 days (around 4.67 years) is within the common range for substantial service contracts, balancing the need for continuity with the desire to periodically re-evaluate market conditions and contractor performance.

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

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Address: 811 S CENTRAL EXPY STE 235, RICHARDSON, TX, 90

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $16,222,950

Exercised Options: $16,222,950

Current Obligation: $16,222,950

Timeline