VA awards $4.47M for physical security system replacement, with Intertech Security LLC selected

Contract Overview

Contract Amount: $4,467,493 ($4.5M)

Contractor: Intertech Security, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-01

End Date: 2025-02-08

Contract Duration: 618 days

Daily Burn Rate: $7.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHYSICAL SECURITY AND ACCESS CONTROL SYSTEM REPLACEMENT

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15233

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.5 million to INTERTECH SECURITY, LLC for work described as: PHYSICAL SECURITY AND ACCESS CONTROL SYSTEM REPLACEMENT Key points: 1. The contract value of $4.47M for a security system replacement appears reasonable given the scope. 2. Competition was limited under the Simplified Acquisition Procedures (SAP), suggesting potential for better pricing. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is expected over 618 days, indicating a substantial project timeline. 5. This contract falls within the Security Systems Services sector, a critical area for government facilities. 6. The award to Intertech Security, LLC requires careful monitoring of performance and delivery.

Value Assessment

Rating: good

The $4.47M award for a physical security and access control system replacement is within a typical range for such projects. Benchmarking against similar VA or other federal agency procurements for access control and security system upgrades would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps control costs, but the absence of detailed cost breakdowns makes a granular price assessment challenging. The contract duration of 618 days suggests a comprehensive scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for streamlined procurement for purchases below the simplified acquisition threshold. While the specific number of bidders is not detailed, SAP competition is generally less robust than full and open competition. This limited competition may have an impact on the final price achieved, potentially leading to a higher cost than if a broader range of vendors had been solicited.

Taxpayer Impact: Limited competition under SAP means taxpayers may not have benefited from the most aggressive pricing that could have been achieved through a wider bidding process.

Public Impact

Federal employees and visitors at VA facilities will benefit from enhanced physical security and access control. The contract will deliver a modernized physical security and access control system, improving safety and operational efficiency. The geographic impact is likely concentrated at the VA facilities where the system is being replaced, primarily in Pennsylvania. The project may have implications for the security services workforce, potentially involving installation, maintenance, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could result in suboptimal pricing for taxpayers.
The specific scope of 'replacement' needs clear definition to avoid scope creep and ensure all necessary components are included.
Intertech Security, LLC's track record with similar large-scale federal security system implementations should be thoroughly reviewed.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The contract addresses a critical need for physical security and access control modernization.
The award is to a single vendor, potentially simplifying project management and integration.

Sector Analysis

The physical security and access control systems market is a significant segment within the broader security services industry. This contract fits within the 'Security Systems Services (except Locksmiths)' NAICS code (561621). Spending in this sector is driven by increasing security threats, regulatory compliance, and the need for advanced surveillance and access management technologies. Comparable spending benchmarks would involve looking at other federal agencies' investments in similar security infrastructure upgrades.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, Intertech Security, LLC, will be responsible for fulfilling the contract requirements, and their own subcontracting practices will determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight will primarily be managed by the Department of Veterans Affairs contracting officers and program managers responsible for this procurement. Accountability measures will be tied to the contract's performance work statement and delivery schedule. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Physical Security Upgrades
Access Control Systems
Electronic Security Systems
Department of Veterans Affairs IT and Facilities Management

Risk Flags

Limited Competition
Potential for Suboptimal Pricing
Cybersecurity Risk
Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.5 million to INTERTECH SECURITY, LLC. PHYSICAL SECURITY AND ACCESS CONTROL SYSTEM REPLACEMENT

Who is the contractor on this award?

The obligated recipient is INTERTECH SECURITY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2023-06-01. End: 2025-02-08.

What is Intertech Security, LLC's past performance record with the federal government, particularly on similar physical security system replacement contracts?

A thorough review of Intertech Security, LLC's past performance is crucial. This would involve examining their contract history within the Federal Procurement Data System (FPDS) and other relevant databases to identify previous awards for physical security and access control systems. Key aspects to assess include on-time delivery, adherence to budget, quality of work, and any past performance issues or disputes. Specifically, looking for experience with projects of similar scale and complexity for agencies like the Department of Veterans Affairs would provide strong indicators of their capability to successfully execute this $4.47M contract.

How does the awarded price of $4.47M compare to market rates for similar physical security and access control system replacements?

Benchmarking the $4.47M award against market rates requires detailed analysis of the contract's scope of work, including the specific technologies, number of access points, and geographic coverage. Without this granular detail, a precise comparison is difficult. However, general market intelligence suggests that comprehensive security system overhauls for large organizations can range from hundreds of thousands to several million dollars, depending on scale and sophistication. The firm fixed-price nature of this contract implies the price was negotiated, but the limited competition under SAP might mean it's not the absolute lowest achievable price. Further analysis would involve comparing unit costs for components like card readers, cameras, and software licenses against industry averages.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential delays in installation and integration, cybersecurity vulnerabilities introduced by new systems, and the possibility of the system not meeting the VA's specific operational needs. Given the limited competition, there's also a risk of suboptimal pricing. Mitigation strategies likely include robust project management by the VA, clear performance metrics in the contract, phased implementation to allow for testing and adjustments, and stringent cybersecurity protocols during installation and operation. The firm fixed-price contract helps mitigate financial risk for the government, but performance risk remains.

How effective is the current physical security and access control system at VA facilities, and what are the expected improvements from this replacement?

The effectiveness of the current system is not detailed in the provided data, but the need for a 'replacement' implies it is outdated, inefficient, or no longer meets current security standards. Expected improvements from this $4.47M contract likely include enhanced threat detection, more granular access control, improved audit trails for security events, better integration with other security platforms, and potentially reduced maintenance costs associated with aging technology. The new system aims to bolster the overall security posture of the VA facilities involved.

What has been the historical spending trend for physical security and access control systems by the Department of Veterans Affairs?

Analyzing historical spending trends for the VA in this category would reveal patterns of investment in security infrastructure. This contract, valued at $4.47M, represents a significant but potentially isolated investment for a specific replacement project. To understand the broader trend, one would need to examine VA's spending over the past 5-10 years on similar systems, looking at the frequency of such procurements, average contract values, and whether spending has been increasing, decreasing, or remaining stable. This context helps determine if this award is part of a larger modernization initiative or a response to specific facility needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25723Q0317

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1501 PREBLE AVENUE, PITTSBURGH, PA, 15233

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,467,493

Exercised Options: $4,467,493

Current Obligation: $4,467,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline