DoD Awards $20.7M for Security Guards and Patrol Services Under Full and Open Competition
Contract Overview
Contract Amount: $20,728,828 ($20.7M)
Contractor: C&S Corporation
Awarding Agency: Department of Defense
Start Date: 2013-09-08
End Date: 2014-09-07
Contract Duration: 364 days
Daily Burn Rate: $56.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER 0003
Plain-Language Summary
Department of Defense obligated $20.7 million to C&S CORPORATION for work described as: DELIVERY ORDER 0003 Key points: 1. Significant contract value of $20.7M for security services. 2. Awarded under full and open competition, indicating a competitive market. 3. Potential risk related to the duration and fixed-price nature of the contract. 4. Sector is primarily services, specifically security and protective measures.
Value Assessment
Rating: good
The contract value of $20.7M for a one-year period appears reasonable given the scope of security guard and patrol services. Benchmarking against similar contracts would provide a more precise assessment, but the amount is not immediately indicative of overpricing.
Cost Per Unit: $56,947 (based on 15 orders, likely average per order value)
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure services at a favorable cost.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on essential security services.
Public Impact
Ensures security for Department of the Army facilities and personnel. Supports national defense by maintaining operational security. Provides employment opportunities within the security services industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed-price contract may not account for unforeseen cost increases.
- Contract duration of one year could lead to frequent re-competition costs.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Clear service requirements likely established.
- Awarded by a major federal agency (DoD).
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on security and protective services. Spending in this area is consistent with the operational needs of large government agencies, particularly defense.
Small Business Impact
The data does not indicate if small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense, which has established procurement oversight processes. The use of full and open competition suggests adherence to standard acquisition regulations.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if contractor's fixed price is too low.
- Risk of service quality degradation if contractor faces profitability challenges.
- Administrative burden and potential transition issues with annual re-competition.
- Lack of transparency regarding small business participation.
Tags
security-guards-and-patrol-services, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.7 million to C&S CORPORATION. DELIVERY ORDER 0003
Who is the contractor on this award?
The obligated recipient is C&S CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2013-09-08. End: 2014-09-07.
What is the typical cost range for similar security guard services across different federal agencies?
The typical cost range for federal security guard services can vary significantly based on location, hours of operation, required security clearances, and the specific services provided (e.g., armed vs. unarmed guards, specialized surveillance). Benchmarking against similar contracts, particularly those awarded under full and open competition, is crucial for assessing value. Factors like the number of personnel, their skill levels, and the complexity of the security environment all influence per-unit costs.
What are the potential risks associated with a firm fixed-price contract for security services over a one-year term?
A firm fixed-price contract for security services carries the risk that the contractor may incur unexpected cost increases (e.g., labor rate hikes, increased fuel costs for patrols) that are not passed on to the government, potentially impacting service quality or contractor profitability. Conversely, if costs are lower than anticipated, the contractor may realize higher profits. The one-year term necessitates regular re-competition, which can be administratively burdensome and may lead to temporary disruptions if a new contractor is not seamlessly onboarded.
How effectively does full and open competition ensure optimal value for taxpayer money in the security services sector?
Full and open competition is designed to maximize value by encouraging a wide range of qualified vendors to submit bids, driving down prices through market forces. This process increases transparency and reduces the likelihood of inflated costs. For security services, it allows the government to compare diverse offerings and select the best combination of price, quality, and performance, thereby ensuring taxpayer funds are used efficiently for essential protective measures.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91QVN12R0143
Offers Received: 15
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 80 JEOKSEON-DONG, JONGNO-GU, SEOUL
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $20,728,828
Exercised Options: $20,728,828
Current Obligation: $20,728,828
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QVN12D0147
IDV Type: IDC
Timeline
Start Date: 2013-09-08
Current End Date: 2014-09-07
Potential End Date: 2014-09-07 00:00:00
Last Modified: 2015-11-19
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