Treasury's $29.8M security guard contract awarded to SECTEK, INC. over 9 years

Contract Overview

Contract Amount: $29,868,621 ($29.9M)

Contractor: Sectek, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2004-02-01

End Date: 2013-07-26

Contract Duration: 3,463 days

Daily Burn Rate: $8.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY04 SECURITY GUARD SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $29.9 million to SECTEK, INC. for work described as: FY04 SECURITY GUARD SERVICES Key points: 1. Contract value represents a significant investment in physical security for IRS facilities. 2. Long duration suggests a stable, ongoing need for security services. 3. Awarded via competitive delivery order, indicating multiple bids were considered. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Focus on security guard services aligns with critical infrastructure protection needs. 6. Geographic concentration in Virginia may indicate specific IRS operational hubs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service level agreements and performance metrics. The total value over nine years averages approximately $3.3 million annually, which appears reasonable for comprehensive security guard services across multiple IRS locations. However, a detailed comparison to similar contracts for security services of comparable scope and duration would be necessary to definitively assess value for money. The fixed-price nature of the contract suggests an attempt to manage cost overruns, but the total expenditure warrants scrutiny over its lifespan.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded as a competitive delivery order, implying that multiple vendors had the opportunity to bid. The presence of 12 bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring that the government receives competitive pricing for the services rendered. The delivery order mechanism within a larger contract vehicle allows for flexibility while maintaining a competitive baseline.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

IRS facilities and personnel are protected by professional security guards. Ensures a secure environment for tax administration and taxpayer data. Supports the operational continuity of critical IRS functions. Provides employment opportunities for security personnel in Virginia. Enhances the overall safety and security posture of federal buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (9 years) could lead to complacency or reduced incentive for innovation if not actively managed.
Fixed-price contracts can sometimes lead to reduced service quality if contractors cut corners to maintain profitability.
Reliance on a single contractor for an extended period may limit flexibility in adapting to changing security needs.

Positive Signals

Competitive award process indicates multiple vendors were considered, likely leading to better pricing.
Fixed-price contract provides cost certainty for the government.
Awarding to SECTEK, INC. suggests they met performance and capability requirements.
The contract's long duration implies a consistent and reliable service delivery over time.

Sector Analysis

The security guard services industry is a significant component of the broader private security sector, which provides essential protective services to government agencies, businesses, and individuals. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The federal government is a major consumer of these services, with spending often concentrated in areas requiring physical security for federal buildings and sensitive operations. Benchmarks for this sector vary widely based on location, service level, and contract duration, but consistent, long-term contracts like this represent a substantial portion of the market.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While SECTEK, INC. may be a small business itself, the award mechanism did not prioritize small business participation. This means that larger contracting vehicles or direct awards were likely utilized. There is no explicit information on subcontracting plans for small businesses within this award, which could represent missed opportunities for small business engagement in providing specialized security services.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer's representative (COR) within the IRS or the Department of the Treasury. Performance reviews, site inspections, and adherence to the contract's terms and conditions would be key oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

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

Risk Flags

Long contract duration
Fixed-price contract risk
Potential for service degradation over time

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $29.9 million to SECTEK, INC.. FY04 SECURITY GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is SECTEK, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2004-02-01. End: 2013-07-26.

What is the historical spending trend for security guard services by the IRS?

Analyzing historical spending trends for security guard services by the IRS requires accessing detailed procurement data over multiple fiscal years. While this specific contract spans from FY04 to FY13, it represents only one component of the IRS's overall security expenditure. To understand the broader trend, one would need to aggregate spending across all similar contracts, including those awarded to different vendors and for different types of security services (e.g., electronic surveillance, security system maintenance). Factors influencing these trends include changes in threat levels, legislative mandates, budget allocations, and shifts in IRS operational priorities. A comprehensive analysis would likely reveal fluctuations tied to economic conditions and national security concerns, with a general upward trend in security spending over the long term.

How does SECTEK, INC.'s performance on this contract compare to industry benchmarks for security guard services?

Assessing SECTEK, INC.'s performance against industry benchmarks requires access to contractor performance evaluations (CPEs) and quality assurance surveillance plans (QASPs) associated with this specific contract. These documents, often not publicly available in detail, would provide ratings on factors such as guard reliability, response times, incident reporting accuracy, and overall client satisfaction. Without this granular data, comparisons are limited. However, the fact that the contract was awarded competitively and potentially renewed or extended (given its long duration) suggests a baseline level of satisfactory performance. Industry benchmarks typically focus on metrics like guard-to-area ratios, incident resolution rates, and adherence to post orders. A definitive comparison would necessitate reviewing the government's formal assessments of SECTEK's service delivery.

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

A nine-year fixed-price contract for security guard services presents several potential risks. Firstly, the fixed price may not adequately account for inflation or increases in labor costs (wages, benefits) over such a long period, potentially leading to contractor dissatisfaction or reduced service quality if profit margins erode. Conversely, if initial cost estimates were too high, the government might overpay. Secondly, the extended duration could reduce the contractor's incentive to innovate or improve service delivery, as the contract is secured for a long term. Thirdly, unforeseen changes in security requirements or technology might render the contracted services less effective or obsolete, requiring costly modifications or new procurements. Finally, the long-term commitment limits the government's flexibility to switch providers if a better option emerges or if performance issues arise that are difficult to rectify within the existing contract.

What is the total amount spent by the government on security guard services across all agencies in the last five fiscal years?

Determining the total government spending on security guard services across all agencies requires aggregating data from various federal procurement databases, such as the Federal Procurement Data System (FPDS). This involves filtering for contracts categorized under relevant NAICS codes (e.g., 561612 - Security Guards and Patrol Services) and potentially related service codes. The total expenditure would likely be in the billions of dollars annually, reflecting the widespread need for physical security at federal facilities nationwide. Factors influencing this spending include national security directives, the number of federal buildings, and the specific security requirements of different agencies like the Department of Defense, Department of Homeland Security, and the General Services Administration. A precise figure necessitates a comprehensive data query across multiple years and agencies.

How many competitive delivery orders were issued under the contract vehicle that awarded this DO?

To determine the number of competitive delivery orders issued under the contract vehicle that facilitated this specific award, one would need to identify the parent contract or Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle. This information is typically available in the detailed contract record. Once the parent contract is identified, a query of the procurement database (like FPDS) can be performed to count all delivery orders issued against it, specifying whether each was competed. The number can vary significantly depending on the nature and duration of the parent contract. A high number of competed delivery orders suggests the vehicle is actively used and effectively leverages competition for task-specific requirements, which is generally beneficial for the government.

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: COMPETITIVE DELIVERY ORDER

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1930 ISAAC NEWTON SQ. SUITE 100, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $29,868,621

Exercised Options: $29,868,621

Current Obligation: $29,868,621

Parent Contract

Parent Award PIID: GS07F0279M

IDV Type: FSS

Timeline