DOJ's $71.5M Guard Services Contract Awarded to Undisclosed Domestic Firm for FY25

Contract Overview

Contract Amount: $71,526 ($71.5K)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $197/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FY2025 DISTRICT GUARD SUPPORT SERVICES - D44

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $71,526 to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: FY2025 DISTRICT GUARD SUPPORT SERVICES - D44 Key points: 1. Contract aims to secure federal facilities and personnel through guard services. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The contract duration is one year, aligning with typical annual budgeting cycles. 4. Awardee information is undisclosed, limiting transparency on contractor selection. 5. The North American Industry Classification System (NAICS) code 561612 points to a standard security services market. 6. The contract is a purchase order, a common instrument for acquiring goods and services. 7. The primary performance location is Washington D.C., indicating a concentration of federal assets. 8. No small business set-aside was utilized, suggesting the primary competition pool was not restricted.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of specific performance metrics and the undisclosed nature of the awardee. However, the total award amount of $71.5 million for a one-year security guard contract in Washington D.C. appears to be within a reasonable range for such services, considering the high cost of labor and security requirements in the capital. Without comparable contract data or detailed cost breakdowns, a precise value-for-money assessment is difficult. The use of purchase orders for this amount suggests a need for rapid acquisition, which may sometimes come at a premium compared to longer-term, more extensively competed contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for procurements valued at or below the simplified acquisition threshold (currently $250,000, though specific agency thresholds may vary). However, the award amount of $71.5 million significantly exceeds this threshold. This suggests that either the reported 'CT' value of 'COMPETED UNDER SAP' is inaccurate or refers to a specific sub-component or initial phase of a larger procurement strategy. If the full $71.5 million was indeed procured under SAP, it would indicate a deviation from standard procurement regulations. Assuming the competition was limited to a smaller pool of vendors due to SAP or other unspecified restrictions, price discovery may have been less robust than in a full and open competition.

Taxpayer Impact: The limited competition indicated by the SAP designation, if accurate for the full value, could mean taxpayers did not benefit from the most competitive pricing achievable through broader market engagement. This may result in a higher overall cost for the required security services.

Public Impact

Federal facilities and government personnel within Washington D.C. will benefit from enhanced security measures. The contract ensures the provision of essential security guard services to protect federal assets. The geographic impact is concentrated in the District of Columbia. The contract will likely support a workforce of security guards and related personnel, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the awardee raises concerns about potential conflicts of interest or undue influence in the selection process.
The discrepancy between the award value and the 'COMPETED UNDER SAP' designation requires clarification to ensure regulatory compliance and fair competition.
The absence of small business set-aside could limit opportunities for smaller, specialized security firms.
Undisclosed domestic awardee makes it difficult to assess contractor past performance and reliability.

Positive Signals

The contract addresses a critical need for security services for federal operations.
The one-year duration allows for flexibility and reassessment of needs in the following fiscal year.
The award is for a standard service (security guards) with a clear objective.
The contract is awarded to a domestic entity, supporting the U.S. economy.

Sector Analysis

The security services industry is a significant component of the broader professional, scientific, and technical services sector. This contract falls under the security guards and patrol services sub-sector, which is characterized by a mix of large, established providers and numerous smaller, regional companies. Spending in this sector is driven by government needs for physical security, facility protection, and personnel safety. Comparable spending benchmarks for federal security contracts can vary widely based on location, scope of services, and security clearance requirements. The market size for security services in the D.C. metropolitan area is substantial due to the high concentration of federal agencies and sensitive installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). This means the competition was open to all eligible offerors, including large businesses. While this approach maximizes the pool of potential contractors, it may limit direct opportunities for small businesses to secure prime contracts of this magnitude. However, it is possible that the prime contractor will engage small businesses as subcontractors to fulfill specific aspects of the contract, which would still provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely fall under the purview of the U.S. Marshals Service, the contracting agency, and the Department of Justice's internal oversight mechanisms. Transparency is limited by the undisclosed awardee. Accountability measures would typically be defined within the contract's terms and conditions, including performance standards and remedies for non-compliance. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts for Security
Department of Defense Guard Services

Risk Flags

Potential deviation from standard procurement regulations due to award value and 'COMPETED UNDER SAP' designation.
Lack of transparency regarding the identity of the awardee.
High contract value for a single-year service contract.
Use of a Purchase Order for a significant contract value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $71,526 to DOMESTIC AWARDEES (UNDISCLOSED). FY2025 DISTRICT GUARD SUPPORT SERVICES - D44

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $71,526.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the specific rationale for the awardee being undisclosed, and what are the implications for transparency and accountability?

The specific rationale for the awardee being undisclosed is not provided in the available data. Typically, awardee information is made public through contract databases like SAM.gov. Undisclosed awardees can stem from various reasons, such as national security concerns, proprietary information, or administrative errors in reporting. However, for a contract of this value ($71.5 million) for standard security services, a lack of disclosure raises significant transparency concerns. It hinders the public's ability to track federal spending, assess contractor performance, and ensure fair competition. Accountability may be compromised as it becomes more difficult for oversight bodies and the public to scrutinize the chosen contractor's track record and ensure compliance with contract terms. This lack of transparency necessitates further inquiry to understand the justification and ensure no regulations were circumvented.

How does the $71.5 million award amount compare to similar federal security guard contracts in the Washington D.C. area?

Benchmarking the $71.5 million award for federal security guard services in Washington D.C. requires access to detailed contract data for comparable procurements. However, based on general market knowledge, this figure represents a substantial investment for a one-year contract. Security guard services in high-cost-of-living areas like D.C., especially for federal facilities requiring specific clearances and robust security protocols, can command significant prices. Contracts for similar services can range from tens of millions to over a hundred million dollars annually, depending on the number of personnel, hours, specialized skills, and the specific security requirements of the facilities. Without specific details on the number of guards, hours, and service levels, a precise comparison is difficult, but the amount suggests a large-scale operation covering multiple federal sites or extensive coverage hours.

What are the potential risks associated with competing a $71.5 million contract under Simplified Acquisition Procedures (SAP)?

Competing a $71.5 million contract under Simplified Acquisition Procedures (SAP) presents significant risks, as this value far exceeds the standard SAP thresholds (typically $250,000). If the 'COMPETED UNDER SAP' designation is accurate for the full value, it suggests a potential deviation from standard procurement regulations designed to ensure robust competition and best value for taxpayers. Risks include: 1) Limited Competition: SAP procedures often involve fewer vendors and less stringent documentation, potentially excluding highly capable contractors and leading to suboptimal pricing. 2) Lack of Transparency: The simplified nature of SAP can reduce transparency in the evaluation and award process. 3) Protest Vulnerability: Such a large deviation from SAP could be a basis for bid protests from excluded vendors. 4) Potential for Overpricing: Without the full competitive rigor of larger procurement vehicles, there's a risk of paying a premium for the services. It is crucial to verify the procurement method used for this substantial award.

What is the historical spending pattern for security guard services by the U.S. Marshals Service or the Department of Justice?

Analyzing historical spending patterns for security guard services by the U.S. Marshals Service (USMS) and the broader Department of Justice (DOJ) is essential for context. While specific historical data for this exact contract is not provided, federal agencies like the USMS consistently require significant security services to protect personnel, facilities, and sensitive information. Spending in this category can fluctuate based on evolving security threats, changes in facility needs, and budget allocations. Historically, federal agencies have awarded multi-million dollar contracts for guard services annually. Examining past contracts awarded by the USMS and DOJ for similar services, including their values, durations, and competition levels, would reveal trends in their procurement strategies and spending levels, helping to assess whether the current $71.5 million award is an anomaly or a continuation of established spending patterns.

What are the implications of the contract being a 'Purchase Order' for a $71.5 million value?

The classification of this $71.5 million award as a 'Purchase Order' (PO) is unusual for such a substantial value. Purchase orders are typically used for simpler, lower-value acquisitions of commercial items or services, often with streamlined documentation and less formal competition. For a contract of this magnitude, one would typically expect a more formal instrument like a Definitive Contract, Task Order under a larger IDIQ (Indefinite Delivery, Indefinite Quantity) contract, or a Fixed-Price Contract. Using a PO for $71.5 million could indicate: 1) A potential administrative simplification that bypasses more rigorous contractual requirements, which might raise oversight concerns. 2) It could be an initial funding action or a series of consolidated POs that, in aggregate, reach this value, rather than a single PO. 3) It might reflect a specific agency's internal procedures for certain types of services. Regardless, the PO designation for this value warrants scrutiny regarding the appropriate contractual vehicle and its implications for risk management and oversight.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15M10222QA4700055

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $71,526

Exercised Options: $71,526

Current Obligation: $71,526

Actual Outlays: $76,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline