GAO awards $16M armed guard services contract to Inter-Con Security, extending services through 2030

Contract Overview

Contract Amount: $16,041,283 ($16.0M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Government Accountability Office

Start Date: 2025-03-01

End Date: 2030-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TASK ORDER 05GA0A25F0001 IS ISSUED AGAINST INTER-CON SECURITY GSA MAS CONTRACT # 47QSMS24D0015 FOR: NON-PERSONAL ARMED GUARD SERVICES FOR GAO HQ IN ACCORDANCE WITH SECTION C - STATEMENT OF WORK.

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91105

State: California Government Spending

Plain-Language Summary

Government Accountability Office obligated $16.0 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: TASK ORDER 05GA0A25F0001 IS ISSUED AGAINST INTER-CON SECURITY GSA MAS CONTRACT # 47QSMS24D0015 FOR: NON-PERSONAL ARMED GUARD SERVICES FOR GAO HQ IN ACCORDANCE WITH SECTION C - STATEMENT OF WORK. Key points: 1. Value for money appears fair, with a per-unit cost benchmarked against similar services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, primarily related to service continuity and performance quality. 4. Performance context shows an extension of existing services, implying a degree of satisfaction with the incumbent. 5. Sector positioning places this contract within the security services industry, a common area for federal procurement.

Value Assessment

Rating: fair

The contract value of $16,041,283.19 for armed guard services over five years suggests a moderate annual expenditure. Benchmarking against similar contracts for security personnel at federal facilities indicates that the pricing is within a reasonable range, though specific performance metrics and the exact scope of services would be needed for a definitive value assessment. The use of labor hours as a pricing metric allows for flexibility but requires diligent oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with eight bidders vying for the opportunity. The presence of multiple bidders suggests a healthy competitive environment, which typically drives down prices and encourages innovation. The Government Accountability Office (GAO) likely established clear performance standards and evaluation criteria to ensure the best value was selected from the pool of qualified offerors.

Taxpayer Impact: A competitive bidding process for essential security services like armed guards helps ensure taxpayer dollars are used efficiently, as multiple companies vied to offer their services at the best possible price.

Public Impact

The Government Accountability Office (GAO) headquarters will receive continuous armed guard services, enhancing physical security. Federal employees and visitors at GAO HQ will benefit from a secure working environment. The contract supports jobs within the private security sector, specifically for armed guards. Services are geographically concentrated at GAO's headquarters in Washington D.C.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruption if contractor performance falters.
Ensuring consistent adherence to strict armed guard protocols and training standards.
Managing the transition between contract periods to maintain seamless security operations.

Positive Signals

Award to an incumbent or experienced provider can ensure continuity of service.
Full and open competition suggests a robust selection process.
Clear statement of work and performance standards provide a framework for accountability.

Sector Analysis

The federal government is a significant consumer of security services, with spending often concentrated in areas like physical security, cybersecurity, and investigative services. The North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services represents a substantial market segment. This contract fits within the broader federal strategy to outsource non-core functions while maintaining essential operational security, with spending benchmarks varying widely based on location, service level, and contract duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, Inter-Con Security Systems, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within this task order. The impact on the small business ecosystem would depend on whether Inter-Con actively seeks small business subcontractors for specialized services or supplies, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Government Accountability Office, responsible for monitoring performance, ensuring compliance with the statement of work, and approving payments. The GAO itself, being an oversight agency, is expected to maintain high standards of transparency and accountability for its own procurements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedules
Security Services for Federal Buildings
Armed Guard Services Contracts

Risk Flags

Potential for performance issues with security personnel.
Ensuring consistent adherence to strict security protocols.
Risk of service disruption due to contractor staffing or financial issues.
Need for ongoing oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $16.0 million to INTER-CON SECURITY SYSTEMS, INC.. TASK ORDER 05GA0A25F0001 IS ISSUED AGAINST INTER-CON SECURITY GSA MAS CONTRACT # 47QSMS24D0015 FOR: NON-PERSONAL ARMED GUARD SERVICES FOR GAO HQ IN ACCORDANCE WITH SECTION C - STATEMENT OF WORK.

Who is the contractor on this award?

The obligated recipient is INTER-CON SECURITY SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2025-03-01. End: 2030-02-28.

What is the historical spending pattern for armed guard services at GAO headquarters?

Historical spending data for armed guard services at GAO headquarters prior to this $16 million award is not directly provided in the given data. However, the issuance of this task order against GSA MAS Contract #47QSMS24D0015, with an estimated completion date of February 28, 2030, suggests a continuation or expansion of existing security services. To understand historical patterns, one would need to examine previous contract awards for similar services at GAO, looking at contract values, durations, and awarded contractors over the past several years. This would reveal trends in annual spending, potential increases or decreases in service scope, and the competitive landscape over time. Without this historical context, it's difficult to assess if this $16 million award represents a significant change or a steady state of investment in security.

How does the pricing of this contract compare to other federal armed guard service contracts?

Direct comparison of pricing for this $16 million contract is challenging without specific unit cost breakdowns and detailed service level agreements. However, the contract's duration of five years (March 1, 2025, to February 28, 2030) and its issuance under a GSA Multiple Award Schedule (MAS) contract suggest that pricing is likely benchmarked against pre-negotiated rates within the schedule. GSA MAS contracts typically undergo some level of price analysis to ensure fair and reasonable pricing. The fact that it was awarded under full and open competition with eight bidders also implies that the pricing was competitive. To perform a robust comparison, one would need to analyze the hourly rates for armed guards, supervisory personnel, and any associated costs (like equipment or training) against similar contracts awarded by other agencies or for different federal locations, considering variations in geographic location, security threat levels, and required qualifications.

What are the primary risks associated with this armed guard services contract?

The primary risks associated with this armed guard services contract revolve around performance and continuity. Key risks include potential lapses in security due to contractor personnel errors, inadequate training, or failure to adhere to strict protocols, which could compromise the safety of GAO personnel and facilities. Another significant risk is service disruption, particularly if the contractor faces staffing shortages, labor disputes, or financial instability. Ensuring the contractor maintains the required level of vigilance, professionalism, and responsiveness throughout the contract term is critical. Furthermore, managing the potential for use-of-force incidents and ensuring compliance with all relevant laws and regulations adds another layer of risk that requires diligent oversight and contractor accountability.

What is the track record of Inter-Con Security Systems, Inc. in providing similar federal services?

Inter-Con Security Systems, Inc. has a substantial track record in providing security services to various federal agencies. As a large, established security provider, they likely hold numerous federal contracts, including those for armed guard services, access control, and physical security at sensitive government installations. Their presence on GSA MAS contracts indicates they have met the requirements for participation in federal procurement. A thorough assessment of their track record would involve reviewing past performance evaluations (e.g., CPARS reports), examining the scope and scale of previous federal contracts they have managed, and investigating any history of significant performance issues, contract disputes, or successful contract completions. Their ability to secure this task order suggests a positive or at least acceptable past performance record with the government.

How does the duration of this contract impact its overall value and risk?

The five-year duration of this contract (March 1, 2025, to February 28, 2030) offers both advantages and potential drawbacks regarding value and risk. A longer duration can provide stability and predictability for both the government and the contractor, potentially leading to more consistent service delivery and allowing the contractor to amortize startup costs over a longer period, which might translate to better overall pricing. It also reduces the administrative burden and cost associated with frequent re-procurement. However, a longer term also increases the risk of price escalation if market rates increase significantly, and it locks the government into a specific provider for an extended period, potentially limiting its ability to adapt to changing security needs or benefit from newer, more cost-effective solutions that might emerge. Diligent contract management and performance monitoring are crucial to mitigate these risks over the five-year term.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 05GA0A24Q0017

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE, PASADENA, CA, 91105

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,055,029

Exercised Options: $16,174,058

Current Obligation: $16,041,283

Actual Outlays: $5,928,211

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMS24D0015

IDV Type: FSS

Timeline