Interior's $10.8M security contract for BLM training awarded to American Global Security, Inc

Contract Overview

Contract Amount: $10,841 ($10.8K)

Contractor: American Global Security, Inc.

Awarding Agency: Department of the Interior

Start Date: 2026-04-09

End Date: 2026-05-02

Contract Duration: 23 days

Daily Burn Rate: $471/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY SERVICES FOR BLM PLACER EXAMINATION TECHNIQUES TRAINING

Place of Performance

Location: GRASS VALLEY, NEVADA County, CALIFORNIA, 95945

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $10,840.61 to AMERICAN GLOBAL SECURITY, INC. for work described as: SECURITY SERVICES FOR BLM PLACER EXAMINATION TECHNIQUES TRAINING Key points: 1. The contract value of $10.8 million for a short duration suggests a high per-diem rate for security services. 2. Competition was full and open, indicating a potentially competitive bidding process for this service. 3. The fixed-price contract type aims to control costs, but the final cost will depend on the actual services rendered. 4. The services are for specialized training, implying a need for security personnel with specific knowledge or experience. 5. The contract duration is very short (23 days), which may indicate a pilot program or a specific, time-bound event. 6. The North American Industry Classification System (NAICS) code 561612 points to standard security guard services.

Value Assessment

Rating: fair

The contract value of $10.8 million for a 23-day period is exceptionally high. This translates to an average daily cost of approximately $471,000. Without detailed service requirements, it is difficult to benchmark this against similar contracts. However, this daily rate appears significantly elevated for standard security guard services, even for specialized training environments. Further justification for this cost would be necessary to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with two bids received. This suggests that multiple vendors were aware of and had the opportunity to bid on the requirement. The presence of two bidders indicates some level of competition, but the limited number of responses could suggest potential barriers to entry or a niche market for these specific security services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open competition, though the high overall value warrants scrutiny of the final cost.

Public Impact

The Bureau of Land Management (BLM) will benefit from enhanced security during its Placer Examination Techniques training. The services provided will ensure a secure environment for training personnel and potentially protect sensitive training materials or locations. The geographic impact is localized to the training site in California. The contract supports the operational needs of a federal agency by ensuring the safety and security of its training programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extremely high daily cost raises concerns about potential overspending.
Limited number of bidders (2) despite full and open competition could indicate market concentration or high barriers to entry.
Short contract duration makes it difficult to assess long-term performance or value.
Lack of detailed service description makes it hard to benchmark the necessity of the high cost.

Positive Signals

Awarded under full and open competition, which generally promotes fair pricing.
Fixed-price contract type helps to cap costs, assuming the scope is well-defined.
Contract supports a specific, necessary training function for the BLM.

Sector Analysis

The security services sector is vast, encompassing a wide range of offerings from physical guarding to cybersecurity. NAICS code 561612 specifically covers Security Guards and Patrol Services. While the market is competitive, specialized training security can be a niche. The contract value of $10.8 million for a short duration is notably high for this specific sub-sector, suggesting unique requirements or a premium service level is expected.

Small Business Impact

The contract was awarded to American Global Security, Inc., and there is no indication of a small business set-aside. The contract value is substantial, and it is unclear if subcontracting opportunities for small businesses will be available or encouraged. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle, implying that the parent contract likely underwent some form of oversight. The fixed-price nature of the contract provides some cost control. However, the specific oversight mechanisms for this particular delivery order, especially concerning the justification for the high cost, are not detailed. Transparency regarding the detailed service requirements and performance metrics would enhance accountability.

Related Government Programs

Bureau of Land Management Training Programs
Federal Law Enforcement Training
Department of the Interior Security Contracts
Security Services for Government Training

Risk Flags

High Cost Per Day
Limited Number of Bidders
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10,840.61 to AMERICAN GLOBAL SECURITY, INC.. SECURITY SERVICES FOR BLM PLACER EXAMINATION TECHNIQUES TRAINING

Who is the contractor on this award?

The obligated recipient is AMERICAN GLOBAL SECURITY, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $10,840.61.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-02.

What specific security risks or requirements necessitate such a high daily cost for this training?

The provided data does not detail the specific security risks or requirements that justify the exceptionally high daily cost of approximately $471,000 for this training. Typically, security guard services are priced per hour or per guard, and even for specialized roles, this daily rate is significantly above market norms. Potential factors could include the need for highly specialized personnel with unique clearances or expertise, the remote or high-risk nature of the training location, the requirement for advanced security technology, or the protection of extremely sensitive information or individuals. Without a detailed statement of work or justification from the agency, it is difficult to ascertain the precise drivers for this elevated cost.

How does the cost of this contract compare to similar security services for federal training programs?

Benchmarking this contract's cost against similar federal training security programs is challenging without more specific details on the services rendered. However, the calculated daily rate of approximately $471,000 is extraordinarily high for security guard services. Standard security contracts for training events, even those requiring specialized personnel, typically fall within a much lower range. For instance, contracts for security personnel at federal facilities or events often range from a few hundred to a few thousand dollars per day, depending on the number of guards, their qualifications, and the hours worked. The magnitude of the difference suggests that this contract may involve unique, high-value services or that the pricing structure needs further justification.

What is the track record of American Global Security, Inc. in providing similar specialized security services?

Information regarding the specific track record of American Global Security, Inc. in providing highly specialized security services for federal training programs, particularly at this cost level, is not detailed in the provided data. A comprehensive assessment would require reviewing the company's past performance on similar contracts, including client feedback, any past performance issues or awards, and their experience with the specific techniques or environments relevant to the BLM's Placer Examination Techniques training. Without this context, it's difficult to evaluate their suitability and past success in meeting such demanding requirements.

What are the potential risks associated with a short-duration, high-value contract like this?

Short-duration, high-value contracts present several potential risks. Firstly, there's a risk of inflated pricing due to the compressed timeline and the perceived urgency or specialized nature of the requirement, as potentially seen here. Secondly, a short duration may not provide sufficient time to adequately assess contractor performance, identify issues, or implement corrective actions if problems arise. This can lead to suboptimal service delivery or unexpected cost overruns if the initial scope was not perfectly defined. Finally, for the government, there's a risk of not achieving the full intended value if the services are rushed or if the contractor prioritizes speed over thoroughness due to the limited timeframe.

How does the 'full and open competition' with only two bidders impact price discovery and value for taxpayers?

While 'full and open competition' is the preferred method for ensuring broad market access, receiving only two bids can limit the effectiveness of price discovery. Ideally, a larger number of bidders would create a more robust competitive environment, driving prices down through market forces. With only two offers, the price may be influenced more by the specific cost structures and profit margins of those two particular companies, rather than a broader market assessment. This could potentially lead to a higher price than if five or ten companies were competing. For taxpayers, this means the potential for savings might be reduced, and careful evaluation of the submitted proposals is crucial to ensure the chosen bid represents fair value, despite the limited competition.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9410 TOPANGA CANYON BLVD STE 202, CHATSWORTH, CA, 91311

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,841

Exercised Options: $10,841

Current Obligation: $10,841

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMS25D00AS

IDV Type: FSS

Timeline