DoD's $20M Security Guard Contract Awarded to C&S Corporation for Wide-Area Korean Services

Contract Overview

Contract Amount: $20,044,681 ($20.0M)

Contractor: C&S Corporation

Awarding Agency: Department of Defense

Start Date: 2014-08-11

End Date: 2015-09-07

Contract Duration: 392 days

Daily Burn Rate: $51.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICE KOREA WIDE

Plain-Language Summary

Department of Defense obligated $20.0 million to C&S CORPORATION for work described as: SECURITY GUARD SERVICE KOREA WIDE Key points: 1. Contract value represents a significant investment in security infrastructure for U.S. forces in Korea. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The duration of the contract (392 days) indicates a need for sustained security operations. 4. The firm-fixed-price structure aims to control costs and provide predictability for the government. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of approximately $20 million for a 392-day period for wide-area security guard services in Korea appears reasonable given the scope. Benchmarking against similar large-scale security contracts for overseas installations is challenging due to unique operational environments and geopolitical factors. However, the firm-fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The number of bids received (15) also indicates a competitive market for these services.

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 bids. The fact that 15 bids were received suggests a healthy level of competition for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government, as contractors compete to win the award.

Taxpayer Impact: The full and open competition and the substantial number of bidders indicate that taxpayers likely benefited from competitive pricing and a wide range of service offerings, ensuring value for the significant investment.

Public Impact

U.S. military personnel and assets stationed in Korea are the primary beneficiaries of enhanced security. The contract ensures the provision of essential security guard and patrol services across various locations in Korea. Geographic impact is concentrated within U.S. military installations and associated areas in South Korea. The contract supports employment for security personnel, potentially including both U.S. citizens and local nationals in the Korean theater.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'Korea Wide' is not precisely delineated.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring consistent quality and adherence to standards across all deployed personnel will require diligent oversight.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract type helps control costs and provides budget certainty.
The significant number of bidders (15) suggests a robust market and contractor capability.

Sector Analysis

The security guard services sector is a critical component of the broader security and facilities management industry. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The global market for private security services is substantial, driven by increasing security concerns and the need to protect assets and personnel. Government contracts, particularly defense-related ones, represent a significant portion of this market, often requiring specialized capabilities and adherence to stringent performance standards.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the scale and nature of the services required for wide-area security in Korea, it is likely that larger, established security firms with international capabilities were the primary bidders. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and their representatives (CORs) within the Department of the Army. Accountability measures would be enforced through performance metrics outlined in the contract, regular reporting requirements, and potential site inspections. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Security Services Contracts
Department of Defense Overseas Operations
Force Protection Contracts

Risk Flags

Potential for performance issues in a remote or high-risk environment.
Contract duration may not align with long-term strategic security needs.
Dependence on a single provider for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to C&S CORPORATION. SECURITY GUARD SERVICE KOREA WIDE

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 $20.0 million.

What is the period of performance?

Start: 2014-08-11. End: 2015-09-07.

What is the track record of C&S CORPORATION in performing similar large-scale security contracts, particularly for the Department of Defense?

Information regarding C&S CORPORATION's specific track record for large-scale Department of Defense security contracts in overseas locations is not detailed in the provided data. However, the award of a $20 million contract for wide-area security in Korea suggests a level of capability and experience deemed sufficient by the Department of the Army. To fully assess their track record, one would need to examine past performance evaluations, any documented disputes or contract terminations, and the scope and complexity of previous contracts they have successfully executed. A review of federal procurement databases and past performance information repositories would be necessary for a comprehensive understanding of their history with the DoD and similar clients.

How does the awarded price of $20 million compare to the estimated value or benchmark for similar security guard services in South Korea?

Directly comparing the $20 million award to a precise benchmark for similar security guard services in South Korea is difficult without more granular data on the specific services, hours, and security levels required. Factors such as the number of personnel, required security clearances, operational tempo, and the specific geographic coverage within Korea significantly influence pricing. However, the fact that 15 bids were received under full and open competition suggests that the market provided a competitive landscape, and the awarded price is likely reflective of prevailing market rates for such extensive services. The firm-fixed-price nature also implies that C&S Corporation assumed the cost risk, which is generally a favorable outcome for the government if the price is competitive.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks include potential performance deficiencies by the contractor, leading to security gaps; geopolitical instability in the region impacting operations; and challenges in managing a large, geographically dispersed security force. Mitigation strategies likely involve robust contract oversight by the Department of the Army, including performance monitoring, regular reporting, and site inspections. The firm-fixed-price contract shifts some financial risk to the contractor. Pre-qualification of bidders and clear performance standards in the contract also serve as risk mitigation. Contingency planning for regional security events would also be a critical component of the government's risk management approach.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific security service requirement?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risk of unforeseen costs is manageable. For security guard services, where the requirements for personnel, hours, and basic duties are relatively predictable, FFP can provide cost certainty for the government. It incentivizes the contractor to manage their costs efficiently to maximize profit. This structure shifts the risk of cost overruns to C&S Corporation. If the government accurately estimated the required services, FFP is an excellent mechanism for controlling expenditures and achieving predictable outcomes within the allocated budget.

What is the historical spending pattern for security guard services by the Department of the Army in South Korea?

The provided data only details a single contract award of $20,044,681.01. To understand historical spending patterns, one would need to analyze procurement data over multiple fiscal years for the Department of the Army (and potentially other branches operating in South Korea) for NAICS code 561612 and similar security service categories. This would involve identifying all relevant contracts, their values, durations, and the contractors awarded. Analyzing this broader dataset would reveal trends in spending levels, fluctuations based on geopolitical conditions, and the prevalence of different contract types and competition levels over time.

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: $20,044,681

Exercised Options: $20,044,681

Current Obligation: $20,044,681

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QVN12D0147

IDV Type: IDC

Timeline