Treasury's IRS spent $17.5M on security guard services over 6 years, awarded via full and open competition

Contract Overview

Contract Amount: $17,533,999 ($17.5M)

Contractor: C & D Security Mgmt Inc

Awarding Agency: Department of the Treasury

Start Date: 2005-01-19

End Date: 2011-03-31

Contract Duration: 2,262 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED SECURITY GUARD SERVICES, CANINES

Place of Performance

Location: OGDEN, WEBER County, UTAH, 84201

State: Utah Government Spending

Plain-Language Summary

Department of the Treasury obligated $17.5 million to C & D SECURITY MGMT INC for work described as: ARMED SECURITY GUARD SERVICES, CANINES Key points: 1. The contract provided essential security services for IRS facilities, ensuring operational continuity and asset protection. 2. Competition was robust, with 18 bids received, suggesting a healthy market and potential for competitive pricing. 3. The contract's duration of over six years indicates a long-term need for these security services. 4. The fixed-price contract type likely provided cost certainty for the government. 5. The services were delivered in Utah, impacting the local economy and workforce. 6. The absence of small business set-asides means opportunities for smaller firms were not specifically prioritized.

Value Assessment

Rating: good

The total award amount of $17.5 million over approximately six years averages to about $2.9 million annually. Benchmarking this against similar federal contracts for security guard services requires detailed analysis of scope, location, and specific security requirements. However, the presence of 18 bids suggests that the pricing was likely competitive and aligned with market rates, as multiple firms would have had to find the contract profitable to bid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The receipt of 18 bids demonstrates a high level of interest and a competitive marketplace for these security services. This level of competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive process with numerous bidders typically leads to better pricing for taxpayers, as companies vie to win the contract by offering the most attractive terms and prices.

Public Impact

Federal facilities managed by the IRS benefited from enhanced security and protection of government assets. The contract supported the operational continuity of IRS functions by ensuring a secure environment. The services were delivered in Utah, providing employment opportunities for security personnel in that region. Taxpayer information and government property were safeguarded through the provision of professional security services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract's long duration (over 6 years) could potentially lead to complacency or reduced vigilance if not actively managed.
While competition was high initially, ongoing performance monitoring is crucial to ensure sustained quality and value.
The exclusion of small business set-asides means that specific opportunities for smaller, specialized security firms were not created through this procurement.

Positive Signals

The high number of bids (18) indicates a robust and competitive market for security services, suggesting good potential for value.
The firm-fixed-price contract type provides cost certainty for the government, minimizing the risk of cost overruns.
The contract was awarded through full and open competition, maximizing the pool of potential offerors and promoting fair pricing.

Sector Analysis

The security guard services sector is a significant component of the broader facilities management and professional services industry. Federal spending in this area is driven by the need to protect government assets, personnel, and sensitive information across various agencies and locations. This contract, valued at $17.5 million over six years, represents a moderate investment within this sector. Comparable federal spending benchmarks would depend on the specific security requirements, geographic location, and the scale of facilities being protected.

Small Business Impact

This contract did not include specific small business set-asides, meaning that opportunities were not exclusively reserved for small businesses. While the high number of bidders suggests a competitive market, it does not guarantee that small businesses were among the offerors or that they were successful. The absence of set-asides means that the subcontracting landscape for small businesses is not directly influenced by this specific contract's structure, though the prime contractor may still engage small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program managers within the IRS. Performance standards and service level agreements would be monitored to ensure compliance. Transparency is generally maintained through contract award databases and public reporting mechanisms. While specific Inspector General jurisdiction can vary, the Treasury Inspector General for Tax Administration (TIGTA) would likely have oversight responsibilities related to IRS operations and spending.

Related Government Programs

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

Risk Flags

Long contract duration may require active performance management.
Potential for vendor lock-in if competition is not maintained in future procurements.
Dependence on contractor personnel for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.5 million to C & D SECURITY MGMT INC. ARMED SECURITY GUARD SERVICES, CANINES

Who is the contractor on this award?

The obligated recipient is C & D SECURITY MGMT 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 $17.5 million.

What is the period of performance?

Start: 2005-01-19. End: 2011-03-31.

What was the contractor's track record prior to this award?

Information regarding C & D SECURITY MGMT INC's specific track record prior to this award is not detailed in the provided data. However, the fact that they were awarded a significant federal contract valued at over $17.5 million suggests they had demonstrated capabilities and met the requirements set forth in the solicitation. Federal agencies typically conduct pre-award assessments of contractor performance on previous contracts, including past performance evaluations, to inform their source selection decisions. Without access to those specific evaluations or further details on the company's history, it's difficult to provide a comprehensive assessment of their prior performance.

How does the average annual cost compare to similar federal security contracts?

The average annual cost for this contract was approximately $2.9 million ($17.5M / 6 years). To compare this effectively, one would need to benchmark against contracts with similar scopes of work, geographic locations, security levels (e.g., armed guards, canine units), and contract durations. Federal security contracts can vary widely in price based on these factors. For instance, contracts in high-cost-of-living areas or those requiring highly specialized security personnel might command higher prices. The presence of 18 bids suggests the pricing was competitive within its specific market context, but a precise comparison would require access to a database of comparable federal security contract awards with detailed specifications.

What were the primary risks associated with this contract, and how were they mitigated?

Primary risks for a security guard services contract include performance failures (e.g., inadequate guard presence, lack of vigilance), personnel issues (e.g., high turnover, inadequate vetting), and potential security breaches. Mitigation strategies typically involve robust performance monitoring by the government, clearly defined service level agreements, requirements for contractor background checks and training, and the use of a firm-fixed-price contract to incentivize contractor performance. The competitive nature of the award also acts as a mitigating factor, as contractors are motivated to perform well to secure future work. The contract's duration, while indicating a long-term need, also presents a risk of complacency, which would need to be managed through ongoing government oversight and performance reviews.

How effective was the competition in driving down costs for taxpayers?

The competition for this contract appears to have been highly effective. With 18 bids received under a full and open competition, the government likely benefited from a wide range of pricing proposals. This level of competition generally forces bidders to offer their most competitive prices to win the contract. While the specific price savings cannot be quantified without a baseline or sole-source comparison, the sheer number of bidders strongly suggests that the government secured a fair market price and avoided the potential for inflated costs that might occur in a less competitive environment. The firm-fixed-price structure further ensures cost certainty for taxpayers.

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

The provided data only details one specific contract ($17.5M from 2005-2011). To understand the historical spending trend for security guard services at the IRS, a broader analysis of multiple contracts over a longer period would be necessary. This would involve examining spending patterns across different IRS facilities, contract types, and award mechanisms. It would also be beneficial to compare this spending against the IRS's overall budget and its evolving security needs. Without this broader dataset, it's impossible to determine if spending on security guards has increased, decreased, or remained stable over time.

Were there any performance issues or contract modifications during the contract period?

The provided data does not contain information on performance issues or contract modifications for this specific contract (Award ID: DCA, Contract Number: 7752). Typically, such details would be found in contract modification logs, performance reports, or contract close-out documentation. Contract modifications can occur for various reasons, including changes in scope, adjustments to pricing, or extensions in period of performance. Performance issues, if significant, might lead to corrective action plans or even termination. Without access to these specific contract management records, it is not possible to assess whether any modifications or performance issues arose during the contract's lifecycle.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 306 N. DELAWARE DRIVE, COLORADO SPRINGS, CO, 05

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,533,999

Exercised Options: $17,533,999

Current Obligation: $17,533,999

Timeline