Interior's $51.4M Alarm O&M Contract Awarded to Hackett Security, Inc

Contract Overview

Contract Amount: $51,387 ($51.4K)

Contractor: Hackett Security, Inc

Awarding Agency: Department of the Interior

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $47/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WCAO N FACILITIES ALARM O&M

Place of Performance

Location: GRAND JUNCTION, MESA County, COLORADO, 81501

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $51,386.99 to HACKETT SECURITY, INC for work described as: WCAO N FACILITIES ALARM O&M Key points: 1. Contract value of $51.4M over approximately 3 years. 2. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited competition. 3. Risk of overpayment exists due to limited competition and fixed-price structure. 4. Sector is Security Systems Services, a niche but essential service.

Value Assessment

Rating: fair

The contract is a firm fixed price purchase order. Without more data on the specific services and market rates for alarm O&M in Colorado, it's difficult to definitively assess value. However, limited competition can sometimes lead to less favorable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for more streamlined procurement but often involves fewer bidders than full and open competition. This limited competition may have impacted price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential security system maintenance. The impact depends on whether the price achieved reflects fair market value given the procurement method.

Public Impact

Ensures continued operation of critical alarm systems for Bureau of Reclamation facilities. Supports national security by maintaining reliable security infrastructure. Potential for increased costs to taxpayers due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Fixed-price contract may not capture cost efficiencies
Potential for price creep if scope expands

Positive Signals

Essential service for facility security
Clear contract duration and award type

Sector Analysis

This contract falls within the Security Systems Services sector, specifically for alarm operations and maintenance. Spending benchmarks for this niche sector are hard to establish without more granular data, but consistent spending on security is typical for government agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, Hackett Security, Inc., is not explicitly identified as a small business in this context. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

Standard government oversight applies to this purchase order. The Bureau of Reclamation is responsible for ensuring contract performance and adherence to terms. Accountability will be measured by system uptime and service delivery.

Related Government Programs

Security Systems Services (except Locksmiths)
Department of the Interior Contracting
Bureau of Reclamation Programs

Risk Flags

Limited competition
Potential for overpricing
Lack of detailed service scope
Fixed-price risk for O&M

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $51,386.99 to HACKETT SECURITY, INC. WCAO N FACILITIES ALARM O&M

Who is the contractor on this award?

The obligated recipient is HACKETT SECURITY, INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $51,386.99.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the benchmark cost for similar alarm O&M services in the region?

Determining a precise benchmark requires detailed comparison of service scope, system complexity, and regional labor costs. However, government contracts often face scrutiny for pricing, especially when competition is limited. A thorough market analysis comparing this contract's per-unit costs or overall value against similar private sector or government contracts would be necessary to establish a fair benchmark and assess potential overpayment.

What are the specific risks associated with a fixed-price contract for O&M services?

Fixed-price contracts can pose risks if the scope of work is not precisely defined or if unforeseen issues arise during the contract period. For O&M, this could mean the contractor bears the brunt of unexpected repair costs, potentially leading to corner-cutting or future price increases. Conversely, if the contractor is highly efficient, they benefit, but the government might overpay if the initial price was set too high due to limited competition.

How effective is the SAP procurement method in ensuring value for money in this sector?

SAP is designed for efficiency in acquiring goods and services below certain thresholds, often resulting in faster awards. However, its effectiveness in ensuring maximum value for money is debatable, as it typically involves fewer bidders than full and open competition. This can limit price discovery and potentially lead to higher prices if competition is not robust, as may be the case for specialized services like alarm O&M.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140R4024Q0046

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9811 S 40 DR, SAINT LOUIS, MO, 63124

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,707

Exercised Options: $51,387

Current Obligation: $51,387

Actual Outlays: $18,277

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline