DOJ's U.S. Marshals Service awarded $4.6M for security services in FY23, with 12 bids received

Contract Overview

Contract Amount: $4,623,376 ($4.6M)

Contractor: Metropolitan Security Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: D32 FY 2023 CSO PROGRAM FUNDING CSO PROGRAM FUNDING PROVIDED

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40507

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $4.6 million to METROPOLITAN SECURITY SERVICES, INC. for work described as: D32 FY 2023 CSO PROGRAM FUNDING CSO PROGRAM FUNDING PROVIDED Key points: 1. The contract value of $4.6M for security services appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The award was a delivery order against an existing contract, indicating a streamlined procurement process. 4. Performance is measured by labor hours, which can be subject to scope creep if not managed carefully. 5. This contract falls within the Security Guards and Patrol Services industry, a common requirement for federal agencies. 6. The contract was awarded to Metropolitan Security Services, Inc., whose track record will be a key indicator of performance.

Value Assessment

Rating: good

The contract value of $4.6M for a one-year period (FY23) for security guard services seems aligned with market rates for similar federal contracts. The benchmark of 12702 suggests a significant scope of work. Without specific details on the number of guards, hours per guard, or specific security requirements, a precise value-for-money assessment is challenging. However, the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 12 bids received. This indicates a robust market for security guard services and suggests that the U.S. Marshals Service was able to solicit a wide range of potential offerors. The high number of bidders generally supports the potential for competitive pricing and a good selection of qualified contractors.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Marshals Service, receiving essential security support for their operations. The services delivered include security guards and patrol services, crucial for protecting federal facilities and personnel. The geographic impact is concentrated in Kentucky (KY), where the services are being performed. This contract supports jobs within the private security sector, contributing to the local workforce in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on labor hours without clear performance metrics could lead to cost overruns.
The effectiveness of security services can be highly dependent on the quality of personnel, requiring rigorous vetting and training.
Geographic concentration in Kentucky might limit broader application or scalability of lessons learned.

Positive Signals

Full and open competition suggests a strong market and potential for high-quality service providers.
The award of a delivery order indicates a potentially efficient procurement process and established relationship.
The contract duration of one year allows for performance evaluation before potential renewal.

Sector Analysis

The security services industry is a significant sector for federal procurement, encompassing a wide range of protective services. This contract for security guards and patrol services (NAICS 561612) fits within this broad category. Federal spending in this area is consistently high due to the need for security at government facilities, embassies, and during sensitive operations. Comparable spending benchmarks would typically involve analyzing other contracts for similar guard services across various agencies and geographic locations.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Metropolitan Security Services, Inc. may be a small business, the data does not confirm this. There is no explicit information regarding subcontracting plans for small businesses. Further analysis would be needed to determine the extent of small business participation, if any, in this contract's performance.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service contracting officer and program managers. Performance is likely monitored through regular reporting, site visits, and potentially through the use of government-furnished performance metrics tied to labor hours. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports are not always publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Potential for scope creep due to labor-hour based performance measurement.
Lack of explicit performance metrics in summary data.
Dependence on contractor's internal quality control for personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.6 million to METROPOLITAN SECURITY SERVICES, INC.. D32 FY 2023 CSO PROGRAM FUNDING CSO PROGRAM FUNDING PROVIDED

Who is the contractor on this award?

The obligated recipient is METROPOLITAN SECURITY SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is the track record of Metropolitan Security Services, Inc. with federal contracts, particularly for security guard services?

A review of federal contract databases would be necessary to fully assess the track record of Metropolitan Security Services, Inc. This would involve examining past performance on similar contracts, including their value, duration, and agency. Key indicators would include any past performance reviews, awards or penalties, and any history of contract disputes or terminations. Understanding their experience with labor-hour based contracts and their ability to meet security requirements consistently is crucial for evaluating their suitability for this award. Without specific historical data, it's difficult to definitively gauge their reliability and effectiveness.

How does the awarded price per labor hour compare to industry benchmarks for similar security services?

To benchmark the price per labor hour, we would need to know the specific rate paid to Metropolitan Security Services, Inc. This information is not directly provided in the data. Once obtained, it should be compared against publicly available data for similar security guard services procured by federal agencies, particularly those with similar security requirements and geographic locations. Factors such as the level of security clearance required for guards, the specific duties (e.g., armed vs. unarmed, surveillance, access control), and the prevailing wage rates in Kentucky would influence the benchmark. A higher-than-average rate might indicate specialized skills or higher risk, while a lower rate could suggest efficiency or potentially lower quality.

What are the specific performance metrics used to evaluate the effectiveness of the security services provided under this contract?

The provided data indicates that the contract is based on 'LABOR HOURS' (pt: LABOR HOURS), suggesting that performance evaluation might heavily rely on the number of hours worked by security personnel. However, effective oversight typically requires more granular metrics. These could include response times to incidents, adherence to post orders, incident reporting accuracy, guard attendance and punctuality, and client satisfaction surveys. The absence of explicitly stated performance standards in the summary data raises a potential risk. The U.S. Marshals Service would need to have internal performance standards and monitoring procedures in place to ensure the contractor is delivering adequate security, beyond simply logging hours.

What is the historical spending trend for security guard services by the U.S. Marshals Service in Kentucky?

Analyzing historical spending for security guard services by the U.S. Marshals Service in Kentucky would require accessing historical contract data for that specific region. This would involve querying federal procurement databases for contracts awarded by the USMS in KY for NAICS code 561612 (Security Guards and Patrol Services) over several fiscal years. By examining this trend, one could identify patterns in spending, average contract values, and the typical number of competitors. This context would help determine if the $4.6M award for FY23 represents an increase, decrease, or stable level of spending compared to previous years and if the current competition level is consistent with past procurements in the region.

Are there any known risks associated with the use of delivery orders for security services, particularly concerning price stability and scope management?

Delivery orders, like this one, are typically issued against existing indefinite-delivery, indefinite-quantity (IDIQ) contracts or other established agreements. A key risk associated with delivery orders, especially for services like security, is the potential for scope creep if the specific requirements are not clearly defined at the outset or if the ordering process lacks robust oversight. Price stability can also be a concern if the underlying IDIQ contract's pricing structure is not well-defined or if multiple delivery orders cumulatively exceed the contract's ceiling without adequate re-evaluation. However, delivery orders can also offer efficiency by streamlining the procurement process for recurring needs. The effectiveness of this mechanism depends heavily on the clarity of the base contract and the diligence of the contracting officer in managing each order.

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

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 100 E 10TH ST STE 400, CHATTANOOGA, TN, 37402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $4,623,376

Exercised Options: $4,623,376

Current Obligation: $4,623,376

Actual Outlays: $4,624,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M20019DA3200006

IDV Type: IDC

Timeline