TRIPLE CANOPY INC awarded $23.7M for security services, raising value-for-money questions

Contract Overview

Contract Amount: $23,706,362 ($23.7M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-01

End Date: 2018-06-28

Contract Duration: 665 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF

Plain-Language Summary

Department of Defense obligated $23.7 million to TRIPLE CANOPY INC for work described as: IGF::OT::IGF Key points: 1. Contract value appears reasonable given the duration and scope of security services. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risks include contractor performance and adherence to security protocols. 4. This contract falls within the broader defense sector's spending on security. 5. The firm fixed price structure shifts cost risk to the contractor. 6. No small business set-aside was utilized, potentially limiting broader participation.

Value Assessment

Rating: fair

The contract value of $23.7 million over approximately 22 months for security services appears within a reasonable range for large-scale government contracts. Benchmarking against similar contracts for security guards and patrol services is challenging without more granular data on specific service levels and geographic coverage. However, the duration and the nature of the services suggest a significant operational requirement. The firm fixed price contract type indicates that the government has a predictable cost, but the overall value depends heavily on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific contract. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, with only two bidders, the potential for significant cost savings might be limited compared to scenarios with more robust competition.

Public Impact

The Department of the Army benefits from enhanced security services. Services delivered include security guards and patrol services. Geographic impact is likely concentrated around the facilities or areas requiring security. Workforce implications include employment for security personnel employed by TRIPLE CANOPY INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for performance issues if contractor's personnel are not adequately trained or supervised.
Risk of security breaches if protocols are not strictly followed.
Dependence on a single contractor for critical security functions.

Positive Signals

Firm fixed price contract shifts cost risk to the contractor.
Full and open competition suggests an attempt to achieve best value.
Contract duration provides stability for security operations.

Sector Analysis

The security services industry is a significant component of the broader defense and government contracting sector. Companies like TRIPLE CANOPY INC provide essential services ranging from physical security to specialized protective details. Spending in this sector is often driven by geopolitical events, national security concerns, and the need to protect government assets and personnel. This contract fits within the typical spending patterns for security services required by military branches and other federal agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that the primary contract was competed broadly, and opportunities for small businesses would likely be through direct subcontracting by TRIPLE CANOPY INC, if they choose to engage them. The absence of set-aside provisions means that larger, established companies are the primary focus for this type of award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Security Contracts
Guard Services
Patrol Services
Physical Security Contracts
Army Contracting Command

Risk Flags

Contract awarded to a single vendor.
Limited number of bidders (2) for a full and open competition.
Potential for performance variability in security services.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to TRIPLE CANOPY INC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is TRIPLE CANOPY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2016-09-01. End: 2018-06-28.

What is the track record of TRIPLE CANOPY INC with the Department of Defense and other federal agencies?

TRIPLE CANOPY INC has a significant history of contracting with the U.S. government, particularly the Department of Defense, for security and protective services. They have been awarded numerous contracts over the years, often for large-scale operations in complex environments, including overseas. Their experience spans providing security guards, base support, and specialized protective services. While their extensive experience suggests a capacity to handle large contracts, past performance reviews and any documented issues or disputes would be crucial for a comprehensive assessment of their reliability and effectiveness on this specific $23.7 million award.

How does the awarded price compare to market rates for similar security guard and patrol services?

Benchmarking the $23.7 million contract value against market rates for security guard and patrol services is complex without specific details on the scope, duration, geographic location, and skill level of personnel required. However, given the firm fixed price nature and the full and open competition, the price is presumed to be competitive. Industry reports and government data on average hourly rates for security personnel, adjusted for factors like supervisory roles, specialized training, and operational overhead, would be needed for a precise comparison. The contract's duration of approximately 22 months (665 days) suggests a substantial ongoing service requirement, making the total value a reflection of sustained operational costs and profit margins.

What are the primary risks associated with this contract for the Department of the Army?

The primary risks for the Department of the Army on this contract revolve around contractor performance and potential security lapses. Ensuring that TRIPLE CANOPY INC consistently provides adequately trained, vetted, and supervised personnel is critical. Any failure to adhere to strict security protocols could lead to breaches, compromising assets or personnel safety. Furthermore, the reliance on a single contractor for essential security functions introduces operational risk; if the contractor experiences significant performance issues or financial instability, it could disrupt security operations. The firm fixed price structure, while beneficial for cost certainty, means the government might not see immediate cost reductions if service quality is subpar, necessitating robust oversight and performance management.

How effective has TRIPLE CANOPY INC been in fulfilling similar security contracts in the past?

Assessing the past effectiveness of TRIPLE CANOPY INC requires a review of their performance history on similar contracts, which typically involves examining past performance evaluations, contract modifications, and any disputes or claims filed. Generally, companies that consistently win large government contracts have a track record of successful performance. However, specific details regarding their performance on previous Department of the Army or similar security contracts would be necessary for a definitive judgment. Factors such as on-time delivery, adherence to quality standards, responsiveness to issues, and overall client satisfaction are key indicators of effectiveness.

What has been the historical spending trend for security guard and patrol services by the Department of the Army?

The Department of the Army, like other branches of the Department of Defense, has consistently allocated significant funds towards security guard and patrol services. Historical spending trends indicate a substantial and often increasing demand for these services, driven by global security requirements, base operations, and protection of critical infrastructure. Analyzing multi-year spending data would reveal fluctuations based on geopolitical events, budget allocations, and strategic priorities. This $23.7 million award to TRIPLE CANOPY INC should be viewed within the context of this broader, sustained investment in security services by the Army.

What is the potential impact of this contract on competition within the security services market?

This contract, awarded under full and open competition, contributes to the overall market dynamics for security services. While the presence of two bidders suggests some level of competition, it might indicate a market where only a few large, established firms possess the capacity and qualifications to undertake such substantial contracts. The award to TRIPLE CANOPY INC reinforces their position in the market. Future solicitations and their outcomes, particularly the number of bidders and the resulting pricing, will provide a clearer picture of the ongoing competitive landscape and whether smaller or newer entrants have opportunities to compete effectively.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Constellis Holdings, LLC

Address: 13530 DULLES TECHNOLOGY DR STE 500, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $23,706,362

Exercised Options: $23,706,362

Current Obligation: $23,706,362

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J11D0045

IDV Type: IDC

Timeline