Smithsonian Institution awards $3.7M contract for guard services, with competition indicating potential value

Contract Overview

Contract Amount: $3,716,812 ($3.7M)

Contractor: Seguridad Permanente Y Proteccion S.A.

Awarding Agency: Smithsonian Institution

Start Date: 2022-11-08

End Date: 2027-10-31

Contract Duration: 1,818 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD FORCE AND CONTROL ROOM OPERATOR SERVICES FOR THE SECURITY OF THE VARIOUS FACILITIES AT SMITHSONIAN TROPICAL RESEARCH INSTITUTE (STRI)

Plain-Language Summary

Smithsonian Institution obligated $3.7 million to SEGURIDAD PERMANENTE Y PROTECCION S.A. for work described as: GUARD FORCE AND CONTROL ROOM OPERATOR SERVICES FOR THE SECURITY OF THE VARIOUS FACILITIES AT SMITHSONIAN TROPICAL RESEARCH INSTITUTE (STRI) Key points: 1. The contract value of $3.7 million over its period of performance suggests a significant need for security services. 2. Full and open competition was utilized, which typically fosters competitive pricing and better value for the government. 3. The definitive contract type implies a straightforward service delivery with a fixed price, reducing cost uncertainty. 4. The contractor, SEGURIDAD PERMANENTE Y PROTECCION S.A., is providing essential security operations for research facilities. 5. The duration of the contract (over 5 years) indicates a stable, long-term requirement for these security services.

Value Assessment

Rating: good

The contract's total value of $3.7 million over approximately five years averages to about $743,000 annually. Benchmarking this against similar contracts for security guard services at federal facilities of comparable size and scope would be necessary for a precise value-for-money assessment. However, the use of a firm-fixed-price contract suggests that the pricing is set and should be predictable, which is generally favorable for the government. The number of bidders (3) in a full and open competition provides some indication of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Three offers were received, indicating a moderate level of competition for this specific requirement. While three bidders suggest some market interest, a higher number of bids could potentially lead to even more aggressive pricing and a wider range of innovative solutions. The agency's decision to use full and open competition is a positive sign for price discovery and ensuring fair market value.

Taxpayer Impact: The use of full and open competition with three bidders suggests that taxpayers likely benefited from competitive pricing, preventing potential overcharges that could occur with less competitive solicitations. This approach helps ensure that government funds are used efficiently for essential security services.

Public Impact

The Smithsonian Tropical Research Institute (STRI) facilities and assets are protected, ensuring the continuity of vital scientific research. Personnel at STRI are provided with a secure working environment, safeguarding their safety and well-being. The contract supports the operational integrity of a key scientific institution, enabling its mission to advance understanding of the tropics. The geographic impact is localized to the facilities managed by STRI, likely in Panama given the institute's primary locations. The contract provides employment opportunities for security personnel through the awarded contractor, SEGURIDAD PERMANENTE Y PROTECCION S.A.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor over-reliance on a single contract, impacting flexibility if other opportunities arise.
Ensuring consistent quality and performance across all shifts and locations covered by the contract.
Managing the transition of services if contract performance issues arise or if a new contractor is selected in the future.

Positive Signals

The use of full and open competition suggests a commitment to achieving best value and fair pricing.
A firm-fixed-price contract provides cost certainty for the duration of the agreement.
The long contract duration (over 5 years) indicates a stable and predictable security solution for the STRI.
The contract directly supports the critical mission of a renowned scientific research institution.

Sector Analysis

The security services sector is a large and diverse market, encompassing a wide range of protective services for government and private entities. This contract falls within the 'Security Guards and Patrol Services' category (NAICS 561612). Federal spending in this sector is substantial, driven by the need to protect sensitive government facilities, personnel, and assets. The market is characterized by both large, established security firms and smaller, specialized providers. Competition levels can vary significantly based on contract size, scope, and geographic location, with full and open competition generally encouraging a more robust marketplace.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The solicitation details do not mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis of the contractor's subcontracting plan, if available, would be needed to fully assess the implications for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the designated contract administration office within the Smithsonian Institution. Performance monitoring is crucial to ensure the contractor meets all security requirements and service level agreements. Transparency is facilitated through the contract award data available in public databases. While specific Inspector General (IG) jurisdiction for this particular contract isn't explicitly stated, the Smithsonian's Office of Inspector General typically has oversight over the institution's operations and expenditures, including contract compliance.

Related Government Programs

Federal Protective Service Contracts
Security Services for Research Facilities
Smithsonian Institution Operations Support
Government Facility Security Management

Risk Flags

Performance Risk
Contractor Reliability
Security Coverage Gaps

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $3.7 million to SEGURIDAD PERMANENTE Y PROTECCION S.A.. GUARD FORCE AND CONTROL ROOM OPERATOR SERVICES FOR THE SECURITY OF THE VARIOUS FACILITIES AT SMITHSONIAN TROPICAL RESEARCH INSTITUTE (STRI)

Who is the contractor on this award?

The obligated recipient is SEGURIDAD PERMANENTE Y PROTECCION S.A..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2022-11-08. End: 2027-10-31.

What is the track record of SEGURIDAD PERMANENTE Y PROTECCION S.A. with the Smithsonian Institution or other federal agencies?

Information regarding the specific track record of SEGURIDAD PERMANENTE Y PROTECCION S.A. with the Smithsonian Institution or other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any documented disputes or contract terminations, and the contractor's history of delivering similar services. Federal procurement databases and past performance questionnaires (PPQs) are typically used to gather this information during the source selection process. Without access to these specific performance records, it is difficult to definitively assess the contractor's reliability and past success in fulfilling government contracts.

How does the annual cost of this contract compare to similar security services at other research institutions?

The annual cost for this contract is approximately $743,000 ($3.7 million / 5 years). To benchmark this value, one would need to compare it against contracts for security guard and patrol services at similarly sized research institutions or federal facilities, considering factors like geographic location, the number of personnel required, the scope of services (e.g., access control, patrol, monitoring), and the specific security threats present. Without access to a database of comparable federal contract pricing for security services tailored to research environments, a precise comparison is challenging. However, the use of full and open competition with three bidders suggests an effort to achieve competitive market rates.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential lapses in security coverage, inadequate performance by the contractor's personnel, and cost overruns if the firm-fixed-price structure is not managed effectively. Mitigation strategies likely involve robust performance standards outlined in the contract, regular site visits and performance evaluations by the Smithsonian, clear communication channels for reporting issues, and potentially penalties for non-compliance. The long-term nature of the contract also presents a risk of complacency, which can be managed through periodic performance reviews and maintaining open lines of communication regarding evolving security needs.

How effective is the current security service in meeting the needs of the Smithsonian Tropical Research Institute?

The effectiveness of the current security service can be assessed through several metrics, including incident reports (or lack thereof), feedback from STRI staff, successful prevention of unauthorized access or incidents, and compliance with contractually defined service level agreements. Since this is a new award (or relatively recent, based on the start date), its long-term effectiveness is yet to be fully determined. Ongoing monitoring by the Smithsonian's contracting officer and COR (Contracting Officer's Representative) will be crucial in evaluating performance and ensuring the services adequately protect the facilities, personnel, and research assets.

What are the historical spending patterns for security services at the Smithsonian Tropical Research Institute?

Historical spending data for security services specifically at the Smithsonian Tropical Research Institute (STRI) is not provided in the current dataset. To analyze historical patterns, one would need to examine previous contracts awarded for similar services at STRI, noting their values, durations, and the contractors involved. This would reveal trends in spending, potential increases or decreases in security needs over time, and the consistency of service providers. Understanding these patterns is essential for budgeting, forecasting future requirements, and assessing whether current spending aligns with historical investment in security.

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: TWO STEP

Solicitation ID: 33330222RF0010025

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CALLE 70, PANAMA CITY

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,716,812

Exercised Options: $3,716,812

Current Obligation: $3,716,812

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline