Interior awards $40.6M security contract to Universal Protection Service for five years

Contract Overview

Contract Amount: $40,579,765 ($40.6M)

Contractor: Universal Protection Service, LLC

Awarding Agency: Department of the Interior

Start Date: 2021-09-08

End Date: 2026-09-07

Contract Duration: 1,825 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: LABOR HOURS

Sector: Other

Official Description: NEW FIVE YEAR SECURITY CONTRACT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

Department of the Interior obligated $40.6 million to UNIVERSAL PROTECTION SERVICE, LLC for work described as: NEW FIVE YEAR SECURITY CONTRACT Key points: 1. Contract provides essential security services for National Park Service facilities. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of five years offers long-term stability for service provision. 4. The contract is a definitive contract, indicating a firm commitment. 5. Service is concentrated in New York, impacting local workforce and economy. 6. Focus on labor hours suggests a performance-based or time-and-materials approach.

Value Assessment

Rating: good

The contract value of $40.6 million over five years averages to approximately $8.1 million annually. Benchmarking against similar federal contracts for security guard and patrol services (NAICS 561612) indicates this is within a reasonable range, though specific service levels and geographic coverage are critical for precise comparison. The use of labor hours as the primary pricing metric allows for flexibility but requires diligent oversight to ensure cost-effectiveness and prevent overruns. Without detailed performance metrics and comparison to private sector rates in New York, a definitive value assessment is challenging, but the competitive award process provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 12 bids suggests a healthy level of interest and competition for this security service requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, benefiting the government.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives fair market value for the security services provided.

Public Impact

National Park Service facilities across New York will receive enhanced security. The contract ensures the safety and protection of federal property and visitors. Employment opportunities will be generated for security personnel in New York. The contract supports the operational continuity and public access to national parks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if labor hours are not closely monitored.
Dependence on a single contractor for critical security functions over a long period.
Ensuring consistent service quality across all contracted locations and shifts.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Long-term contract provides stability and predictability for service delivery.
Clear service area in New York allows for focused resource allocation.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. NAICS code 561612, Security Guards and Patrol Services, encompasses a wide range of protective services. Federal spending in this area is substantial, driven by the need to protect government assets, facilities, and personnel nationwide. This contract represents a portion of that spending, focusing on a specific geographic region and agency requirement. Comparable contracts often involve significant dollar values due to the labor-intensive nature of security services and the critical need for reliable protection.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false), and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, Universal Protection Service, LLC. While this may limit direct opportunities for small businesses as prime contractors on this specific award, it does not preclude them from potential subcontracting roles if the prime contractor chooses to engage them. Further analysis would be needed to determine if subcontracting plans were part of the solicitation or award.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Park Service contracting officer and their representatives (CORs). The definitive contract structure and labor hour pricing necessitate close monitoring of performance, hours billed, and adherence to service level agreements. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services
National Park Service Operations and Maintenance Contracts

Risk Flags

Labor Hour Pricing Requires Close Monitoring
Long-Term Contract Duration
Potential for Service Quality Variability

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $40.6 million to UNIVERSAL PROTECTION SERVICE, LLC. NEW FIVE YEAR SECURITY CONTRACT

Who is the contractor on this award?

The obligated recipient is UNIVERSAL PROTECTION SERVICE, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2021-09-08. End: 2026-09-07.

What is the historical spending pattern for security services by the National Park Service in New York?

Analyzing historical spending by the National Park Service (NPS) for security services specifically within New York would provide crucial context for this $40.6 million award. Without access to detailed historical procurement data for NPS in that region, it's difficult to establish a precise trend. However, federal agencies typically award multi-year contracts for security due to the ongoing nature of facility protection. Spending can fluctuate based on specific park needs, increased security alerts, or changes in operational requirements. A review of past NPS contracts in New York, including their values, durations, and awarded contractors, would help determine if this new five-year contract represents an increase, decrease, or stable level of investment in security services for the region.

How does the per-hour labor rate compare to market rates for security guards in New York?

To assess the value for money, a comparison of the per-hour labor rates under this contract against prevailing market rates for security guards in New York is essential. The contract specifies 'LABOR HOURS' as the pricing metric, meaning the government pays for the time security personnel spend on duty. While the total contract value is $40.6 million over five years, the effective hourly rate is not explicitly provided in the summary data. This rate would depend on the number of hours worked and the specific labor categories (e.g., unarmed guard, armed guard, supervisor). Benchmarking against data from the Bureau of Labor Statistics (BLS) for security guards in the New York metropolitan area, or against rates charged by comparable private security firms in the region, would reveal if the government is paying a competitive price. A significantly higher rate than the market average could indicate potential overpayment or a need for closer cost oversight.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data indicates the contract is for 'Security Guards and Patrol Services' (NAICS 561612) awarded on a 'LABOR HOURS' basis. However, it does not detail the specific performance metrics or Service Level Agreements (SLAs) that Universal Protection Service, LLC must meet. For a contract of this magnitude and duration, robust performance standards are critical to ensure effective security. These typically include metrics related to response times to incidents, patrol frequency, incident reporting accuracy, personnel qualifications and training, and adherence to post orders. The National Park Service would have established these SLAs within the contract's statement of work. Effective oversight by the Contracting Officer's Representative (COR) is necessary to monitor compliance with these metrics and ensure the government receives the quality of service paid for.

What is the track record of Universal Protection Service, LLC with federal government contracts, particularly with the Department of the Interior?

Universal Protection Service, LLC (now known as Allied Universal) has a significant history of performing federal government contracts. As a large provider of security services, they have likely held numerous contracts across various agencies, including potentially the Department of the Interior (DOI) and its bureaus like the National Park Service (NPS). A review of their past performance, including any past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), would be informative. Examining their history with DOI or NPS specifically would reveal their experience with the agency's unique requirements and operational environments. Any history of contract disputes, performance issues, or successful contract completions would provide valuable insight into their reliability and capability for this new five-year award.

What is the potential impact of this contract on small business participation in federal security service contracting?

This contract was awarded under full and open competition and does not appear to have a small business set-aside component (ss: false, sb: false). This means the primary contract was awarded to Universal Protection Service, LLC, a large entity. While this specific award may not directly benefit small businesses as prime contractors, it's important to consider subcontracting opportunities. Federal regulations often encourage or mandate that large prime contractors utilize small businesses for a portion of their subcontracted work. The extent to which Universal Protection Service, LLC engages small businesses as subcontractors for services related to this National Park Service contract will determine the indirect impact on the small business ecosystem. Without specific subcontracting goals outlined in the award data, this remains an area for further investigation.

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: 140P4521R0007

Offers Received: 12

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 161 WASHINGTON ST STE 600, CONSHOHOCKEN, PA, 19428

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,844,093

Exercised Options: $41,518,775

Current Obligation: $40,579,765

Actual Outlays: $34,768,569

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline