HBC Management Services awarded $15.1M for guard services across three locations, covering a 322-day transition period

Contract Overview

Contract Amount: $15,076,325 ($15.1M)

Contractor: HBC Management Services, Inc.

Awarding Agency: Social Security Administration

Start Date: 2025-08-29

End Date: 2026-07-17

Contract Duration: 322 days

Daily Burn Rate: $46.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER TO FUND TRANSITION PERIOD AT THREE LOCATIONS FOR GUARD SERVICES.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $15.1 million to HBC MANAGEMENT SERVICES, INC. for work described as: TASK ORDER TO FUND TRANSITION PERIOD AT THREE LOCATIONS FOR GUARD SERVICES. Key points: 1. Contract value appears reasonable for a 322-day security services task order. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. Performance period is relatively short, focusing on a transition period. 5. The North American Industry Classification System (NAICS) code 561612 indicates a standard security services contract. 6. The awardee, HBC Management Services, Inc., is a known entity in the security sector.

Value Assessment

Rating: good

The contract value of $15.1 million for approximately 10.5 months of service across three locations seems within a reasonable range for security guard services. Benchmarking against similar contracts for guard services of comparable scope and duration would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps control costs for the government, assuming the contractor can manage their expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria. The number of bidders is not specified, but the 'full and open' designation suggests a robust competitive environment was sought, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: This competitive approach aims to ensure taxpayers receive the best possible price and service by allowing multiple qualified vendors to bid, driving down costs through market forces.

Public Impact

The Social Security Administration (SSA) benefits from continuous security coverage at three key locations. The contract ensures the provision of security guard and patrol services. The services are geographically concentrated in Maryland (MD), the state indicated by 'ST'. The contract supports jobs within the security services industry, likely benefiting local workforces in the areas where the facilities are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if the contractor faces staffing or operational challenges during the transition period.
Risk of cost overruns for the contractor under the FFP contract if not managed efficiently, potentially impacting service quality.
Dependence on the contractor's ability to seamlessly transition services, given the task order's focus on a transition period.

Positive Signals

Firm Fixed Price contract structure shifts cost risk to the contractor.
Full and open competition generally leads to better pricing and service.
The contract duration is defined, allowing for clear performance expectations and a defined end-point.
Awardee has experience in providing security services.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) sub-sector. Spending in this area is driven by the need for physical security across government facilities, critical infrastructure, and private enterprises. Comparable spending benchmarks would typically be assessed based on the number of posts, hours of coverage, and specific security requirements (e.g., armed vs. unarmed guards, specialized equipment).

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on full and open competition. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would be neutral unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Social Security Administration. Performance standards and deliverables are expected to be outlined in the task order. Transparency is facilitated through contract award databases. 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 limited competition due to 'exclusion of sources' clause.
Short duration focused on transition may require heightened oversight for service continuity.
Firm Fixed Price contract places cost management burden on contractor.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $15.1 million to HBC MANAGEMENT SERVICES, INC.. TASK ORDER TO FUND TRANSITION PERIOD AT THREE LOCATIONS FOR GUARD SERVICES.

Who is the contractor on this award?

The obligated recipient is HBC MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2025-08-29. End: 2026-07-17.

What is the historical spending pattern of the Social Security Administration on security guard services?

Analyzing historical spending by the Social Security Administration (SSA) on security guard services requires accessing historical contract databases. Typically, agencies like the SSA procure these services through various contract vehicles, including GSA schedules, task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts, and direct procurements. Spending can fluctuate based on facility needs, security threat levels, and budget allocations. For instance, if the SSA is consolidating facilities or upgrading security infrastructure, spending might increase. Conversely, budget constraints or outsourcing decisions could lead to decreases. Without specific historical data for the SSA's security services procurement, it's difficult to provide precise figures, but it's reasonable to assume consistent annual spending in the millions, varying with specific project needs and contract renewals.

How does the awarded price compare to market rates for similar security guard services?

To assess the awarded price of $15.1 million for approximately 322 days of service against market rates, one would need to benchmark against similar contracts. Key factors include the number of guard hours, the skill level required (e.g., armed vs. unarmed, specialized training), the geographic location (labor costs vary significantly by region), and the specific security requirements of the Social Security Administration's facilities. The North American Industry Classification System (NAICS) code 561612, 'Security Guards and Patrol Services,' provides a general category. A firm fixed-price contract suggests the contractor bears the risk of cost overruns. If the contract was competed 'full and open,' it implies market forces were engaged to achieve a competitive price. However, without detailed service level agreements and specific hourly rates or total hours, a precise market comparison is challenging. Generally, government contracts aim for fair and reasonable pricing, and the competitive nature of this award suggests this was a primary consideration.

What is HBC Management Services, Inc.'s track record with federal contracts, particularly for security services?

HBC Management Services, Inc. has a track record of performing federal contracts, including those related to security services. Examining their past performance with agencies like the Social Security Administration or other federal entities would reveal their reliability, quality of service, and adherence to contract terms. Federal procurement data often includes past performance evaluations, which can highlight successes and any areas of concern. Companies that consistently win and successfully execute security contracts typically demonstrate robust operational capabilities, effective personnel management, and a strong understanding of government security requirements. A review of their contract history would indicate the types and values of contracts they have previously managed, providing insight into their capacity and experience relevant to this $15.1 million task order.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' award?

The 'Full and Open Competition After Exclusion of Sources' (FOCAES) award type presents a nuanced risk profile. While it aims for broad competition, the 'exclusion of sources' clause implies that certain potential bidders were deemed ineligible or were not solicited, potentially based on specific requirements or prior determinations. This could limit the pool of qualified offerors, potentially reducing the intensity of competition compared to a truly unrestricted full and open competition. Risks include the possibility that a more innovative or cost-effective solution might have been available from an excluded source. However, if the exclusions were justified by specific technical requirements or security needs, FOCAES can ensure that only highly qualified and appropriate vendors participate, mitigating risks related to contractor capability or suitability. The contracting agency must clearly document the rationale for excluding sources to ensure fairness and maximize value.

How does the duration of this task order (322 days) impact the overall security service strategy for the SSA?

The 322-day duration of this task order, specifically designated for a 'transition period,' suggests it is a short-term measure rather than a long-term security solution. This implies that the Social Security Administration (SSA) is likely in the process of changing its security service provider, consolidating security operations, or implementing a new security framework. Such short-term contracts carry inherent risks related to service continuity and the potential for disruption during the transition. The SSA must ensure robust oversight to maintain consistent security levels. The success of this task order hinges on the contractor's ability to seamlessly integrate and provide reliable services during this critical phase, paving the way for the subsequent, potentially longer-term, security arrangements.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 841 BISHOP ST STE 1050, HONOLULU, HI, 96813

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,095,792

Exercised Options: $15,076,325

Current Obligation: $15,076,325

Actual Outlays: $7,558,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321324D00060002

IDV Type: IDC

Timeline