Interior Department awards $22.4M security guard contract to ISS Action Inc. over 5 years

Contract Overview

Contract Amount: $22,397,055 ($22.4M)

Contractor: ISS Action Inc

Awarding Agency: Department of the Interior

Start Date: 2019-10-01

End Date: 2025-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USGS NATIONAL CENTER SECURITY GUARD SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20192

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $22.4 million to ISS ACTION INC for work described as: USGS NATIONAL CENTER SECURITY GUARD SERVICES Key points: 1. Contract value represents a significant investment in physical security for USGS facilities. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts cost risk to the contractor. 4. Contract duration of over 5 years allows for stable service provision. 5. The award falls within the Security Guards and Patrol Services NAICS code. 6. The contractor, ISS Action Inc., has a track record with federal contracts.

Value Assessment

Rating: good

The contract value of $22.4 million over approximately five years for security guard services appears reasonable given the scope of protecting federal facilities. Benchmarking against similar contracts for security services at federal installations of comparable size and complexity would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government, as it caps costs.

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 offers. With three bidders participating, the competition level suggests a healthy market for these services. This level of competition is generally expected to drive competitive pricing and encourage efficient service delivery.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market that encourages lower prices and better service quality through the bidding process.

Public Impact

Federal facilities managed by the U.S. Geological Survey (USGS) will receive enhanced security. Protection of sensitive research, equipment, and personnel at USGS sites is a primary benefit. The services ensure the physical integrity and operational continuity of critical government infrastructure. The contract supports jobs within the security services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for extended periods.
Ensuring consistent service quality across all locations throughout the contract term.
Monitoring contractor performance to ensure adherence to security protocols and standards.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Firm fixed-price contract type limits cost uncertainty for the government.
Contract duration allows for stable and predictable security coverage.
Contractor has prior experience with federal contracts.

Sector Analysis

The security guard services sector is a mature and competitive market within the broader facilities management industry. Federal agencies are significant consumers of these services, requiring robust security solutions for a wide range of installations. Spending in this sector is driven by national security needs, protection of government assets, and regulatory requirements. Comparable contracts often involve significant dollar values due to the critical nature of the services and the scale of federal operations.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the primary awardee is ISS Action Inc., there is no explicit information provided regarding subcontracting plans or opportunities for small businesses within this specific award. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Geological Survey contracting officer and their representatives, who are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

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

Risk Flags

Contract duration may exceed optimal performance review cycles.
Potential for service degradation if contractor prioritizes cost-cutting over quality.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $22.4 million to ISS ACTION INC. USGS NATIONAL CENTER SECURITY GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is ISS ACTION INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2019-10-01. End: 2025-03-31.

What is the track record of ISS Action Inc. with federal contracts, particularly in security services?

ISS Action Inc. has a history of securing and performing federal contracts. While specific details on past performance metrics for this particular contract are not provided in the summary data, the company's ability to win this award suggests it has met the qualifications and demonstrated capability required by the Department of the Interior. Federal procurement databases often contain performance evaluations for past contracts, which would offer a more in-depth view of their track record, including on-time delivery, quality of service, and adherence to budget. Reviewing these past performance records would be crucial for a comprehensive assessment.

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

The provided data does not include specific per-unit costs or detailed service descriptions necessary for a direct market rate comparison. However, the contract's total value of $22.4 million over approximately five years for security guard services at USGS facilities suggests a significant investment. To benchmark effectively, one would need to compare the hourly rates for different security guard levels (e.g., armed vs. unarmed, supervisory vs. entry-level) and the number of personnel required against prevailing rates in the Washington D.C. metropolitan area and other relevant geographic locations where USGS facilities are situated. The firm fixed-price nature implies that the contractor is responsible for managing costs to meet the agreed-upon price.

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

Key risks include potential fluctuations in labor costs impacting the contractor's profitability under a fixed-price contract, ensuring consistent service quality across potentially diverse locations, and the risk of security breaches if guard performance is subpar. Mitigation strategies include the firm fixed-price structure, which shifts cost overrun risk to the contractor. The government's mitigation involves rigorous performance monitoring by contracting officers' representatives, clear performance standards outlined in the contract, and potentially penalties for non-compliance. The contractor's own risk management processes, including training and supervision, are also critical.

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

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 unlikely to change significantly. For security guard services, where the requirements are often standardized (e.g., hours of coverage, post orders), FFP shifts the risk of cost overruns to the contractor. This incentivizes the contractor to manage their resources efficiently to maintain profitability. For the government, it provides cost certainty. However, if unforeseen circumstances necessitate changes to the scope, contract modifications can become complex and potentially increase costs, diminishing some of the FFP benefits.

What is the historical spending pattern for security guard services by the U.S. Geological Survey?

The provided data indicates a contract duration of over 5 years (Oct 2019 - Mar 2025) with a total value of $22.4 million. This suggests an average annual spending of approximately $4.48 million for these specific security guard services. To understand the broader historical spending pattern, one would need to examine previous contracts awarded by the USGS for similar services, looking at both the number of contracts and their total values over several fiscal years. This would reveal trends in spending, potential increases or decreases, and the typical contract vehicles used (e.g., IDIQs, specific task orders).

What does the number of bidders (3) imply about the competition and potential for price discovery?

Having three bidders in a full and open competition generally suggests a moderate level of competition. While more bidders could potentially lead to even more aggressive pricing, three offers typically provide enough market signal for reasonable price discovery. It indicates that the market is not so concentrated that only one or two firms can compete, nor so saturated that the administrative burden of evaluating numerous bids becomes excessive. This number allows the government to compare offers and select the best value, likely at a competitive price point, without the extreme price pressures that might arise from a larger pool of bidders.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 204 E MCKENZIE ST, PUNTA GORDA, FL, 33950

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,649,471

Exercised Options: $22,397,055

Current Obligation: $22,397,055

Actual Outlays: $22,380,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F072GA

IDV Type: FSS

Timeline