Treasury's $22.5M contract for currency facility security maintenance awarded to Electronic Systems Services Inc

Contract Overview

Contract Amount: $22,486,788 ($22.5M)

Contractor: Electronic Systems Services Inc

Awarding Agency: Department of the Treasury

Start Date: 2018-11-01

End Date: 2025-06-30

Contract Duration: 2,433 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION AND MAINTENANCE SUPPORT FOR WESTERN CURRENCY FACILITY'S SECURITY DEVICES AND COMPONENTS.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76131

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $22.5 million to ELECTRONIC SYSTEMS SERVICES INC for work described as: OPERATION AND MAINTENANCE SUPPORT FOR WESTERN CURRENCY FACILITY'S SECURITY DEVICES AND COMPONENTS. Key points: 1. Contract value of $22.5M over approximately 6.75 years suggests a moderate annual spend for specialized facility maintenance. 2. The contract type, Firm Fixed Price, indicates a defined cost structure, potentially limiting cost overruns for the government. 3. Awarded after exclusion of sources, the competition method warrants scrutiny regarding its impact on pricing and value. 4. The duration of the contract (2433 days) allows for long-term planning and consistent service delivery. 5. The primary contractor, Electronic Systems Services Inc., has secured a significant award, indicating established capabilities in this niche. 6. The services provided are critical for the operational integrity of a key national facility.

Value Assessment

Rating: fair

The total contract value of $22.5 million over approximately 81 months averages to about $277,000 per month. Benchmarking this against similar contracts for specialized security device maintenance in federal facilities is challenging without more specific service details. However, given the critical nature of currency facilities, the pricing may reflect the high security requirements and specialized expertise needed. The firm fixed-price nature provides cost certainty, but a detailed cost-benefit analysis would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'Full and Open Competition After Exclusion of Sources.' This suggests that while the initial intent might have been broader competition, specific circumstances led to limiting the pool of eligible bidders. The exact reasons for excluding certain sources are not detailed here, but this approach can sometimes lead to less competitive pricing compared to truly full and open competition. The number of bidders is not specified, making it difficult to assess the degree of price discovery achieved.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a wider range of qualified vendors had been able to bid. This method requires careful justification to ensure the government is still obtaining fair and reasonable pricing.

Public Impact

The Bureau of Engraving and Printing (BEP) benefits from uninterrupted operation of its Western Currency Facility's security systems. Essential maintenance and support for critical security devices and components ensure the facility's physical and operational integrity. The contract supports the ongoing production and security of U.S. currency. The workforce implications are likely focused on specialized technicians and engineers employed by the contractor, Electronic Systems Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of innovative solutions.
The specific reasons for excluding sources are not transparent, hindering a full assessment of fairness.
Lack of detailed performance metrics makes it difficult to gauge the effectiveness of the maintenance provided.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Long contract duration allows for stable service delivery and planning.
Award to an established contractor suggests a level of confidence in their capabilities.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically focusing on the maintenance of security systems for a critical government infrastructure. The North American Industry Classification System (NAICS) code 561210, Facilities Support Services, encompasses a broad range of services. The market for specialized security maintenance in high-security government facilities is often niche, with a limited number of highly qualified providers. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the security devices and the scope of maintenance required.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this contract, as it was not set aside for small businesses and there is no indication of subcontracting requirements aimed at small businesses. This suggests that the primary contractor, Electronic Systems Services Inc., is likely a larger entity, and the specialized nature of the work may not lend itself easily to subcontracting opportunities for small businesses in this specific domain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Engraving and Printing (BEP) within the Department of the Treasury. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm fixed-price nature simplifies some aspects of financial oversight, focusing on deliverables rather than cost accumulation. Transparency regarding the 'exclusion of sources' would be a key area for oversight to ensure fairness and prevent potential impropriety. Inspector General jurisdiction would likely reside with the Treasury Inspector General.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Facilities Maintenance
Bureau of Engraving and Printing Operations
Critical Infrastructure Security Contracts

Risk Flags

Limited competition method ('Full and Open Competition After Exclusion of Sources') requires further justification.
Lack of transparency regarding excluded sources.
Potential for higher costs due to restricted bidder pool.
Criticality of services necessitates robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22.5 million to ELECTRONIC SYSTEMS SERVICES INC. OPERATION AND MAINTENANCE SUPPORT FOR WESTERN CURRENCY FACILITY'S SECURITY DEVICES AND COMPONENTS.

Who is the contractor on this award?

The obligated recipient is ELECTRONIC SYSTEMS SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $22.5 million.

What is the period of performance?

Start: 2018-11-01. End: 2025-06-30.

What specific security devices and components are covered under this maintenance contract, and what is the criticality of each?

The contract specifies 'security devices and components' for the Western Currency Facility. While the exact list is not provided in the summary data, such facilities typically employ advanced systems including physical barriers, access control systems (biometric scanners, card readers), surveillance cameras (CCTV), intrusion detection systems (motion sensors, seismic sensors), alarm systems, and potentially specialized vault security mechanisms. The criticality of each component is extremely high, as failure could compromise the physical security of the facility, the safety of personnel, and the integrity of the currency printing process. Maintenance ensures these systems function optimally to prevent unauthorized access, theft, or damage.

How does the $22.5 million contract value compare to historical spending on security maintenance at the Western Currency Facility?

To accurately compare the $22.5 million contract value to historical spending, we would need access to historical contract data for the Western Currency Facility's security maintenance. The current contract spans from November 1, 2018, to June 30, 2025, a period of approximately 81 months (6.75 years). The total value divided by the duration suggests an average annual spend of roughly $3.33 million ($22.5M / 6.75 years). Without prior contract details, it's impossible to determine if this represents an increase, decrease, or stable spending trend. Analysis of past contracts would reveal if this award is consistent with previous investments in maintaining the facility's security infrastructure.

What are the specific risks associated with Electronic Systems Services Inc. as the contractor for this critical security function?

Potential risks associated with Electronic Systems Services Inc. (ESS) primarily stem from the limited competition aspect and the critical nature of the services. If ESS has limited prior experience with the specific security devices at the Western Currency Facility, there could be a learning curve impacting service quality or response times. Financial stability of the contractor is also a risk; a company facing financial distress might struggle to maintain adequate staffing or parts inventory. Furthermore, any security breaches or failures in maintenance attributable to ESS could have severe national security and economic implications. The 'exclusion of sources' also introduces a risk that a potentially more capable or cost-effective vendor was overlooked.

What performance metrics are likely used to evaluate the effectiveness of the maintenance provided by Electronic Systems Services Inc.?

Given the critical nature of security devices, performance metrics likely focus on response times for service calls, Mean Time Between Failures (MTBF) for key components, Mean Time To Repair (MTTR), and successful completion rates for preventative maintenance schedules. Uptime percentages for critical systems (e.g., access control, surveillance) would be paramount. Additionally, metrics related to the accuracy and reliability of system diagnostics, the availability of spare parts, and the qualifications/certifications of the technicians performing the work would be important. Customer satisfaction surveys from the Bureau of Engraving and Printing facility managers might also be incorporated.

How does the NAICS code 561210 (Facilities Support Services) inform the understanding of this contract's scope and market?

The NAICS code 561210, Facilities Support Services, indicates that this contract falls under a broad category encompassing a wide range of services necessary for the operation of buildings and other facilities. This includes services like building maintenance, cleaning, security systems operation, and groundskeeping. For this specific contract, it highlights that the focus is on the operational upkeep and support of the Western Currency Facility's infrastructure, with a specialization in security devices. The market under this code can range from large, diversified facility management companies to smaller, specialized service providers. However, the 'security devices and components' aspect suggests a niche within this broader category, likely requiring specialized technical expertise beyond general facility maintenance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2031ZA18R00026

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 368 CNTY RD 4886, SPRINGTOWN, TX, 76082

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

Financial Breakdown

Contract Ceiling: $22,486,788

Exercised Options: $22,486,788

Current Obligation: $22,486,788

Actual Outlays: $19,134,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline