GSA awards $35.8M for security services, with 6 bidders competing for a 5-year contract

Contract Overview

Contract Amount: $35,852,125 ($35.9M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: General Services Administration

Start Date: 2019-09-01

End Date: 2025-02-28

Contract Duration: 2,007 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ORDER ID07190051, PIID ON FORM 300 IS 47QFWA19A0013

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90001

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $35.9 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: ORDER ID07190051, PIID ON FORM 300 IS 47QFWA19A0013 Key points: 1. Contract value appears reasonable given the 5-year duration and scope of security services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include performance variations across multiple locations and contractor personnel turnover. 4. This contract supports essential security functions for federal facilities. 5. The award falls within the broader federal spending on security and protective services. 6. The use of Time and Materials pricing requires careful monitoring to control costs.

Value Assessment

Rating: good

The contract value of $35.8 million over approximately five years for security guard services is within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for security services across various federal agencies indicates that the per-year cost is competitive. The Time and Materials pricing structure, while flexible, necessitates diligent oversight to ensure costs remain aligned with the value delivered and to prevent potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Six bidders participated in the competition, suggesting a robust market and a good level of interest from potential contractors. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received a fair market value for the security services procured.

Public Impact

Federal facilities across California will benefit from enhanced security measures. The contract ensures the provision of security guards and patrol services to protect government assets and personnel. The geographic impact is concentrated within California, where the services are to be performed. The contract will likely support employment for security personnel within the state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality across different sites.
Risk of increased costs due to Time and Materials pricing if not managed effectively.
Dependence on contractor's ability to maintain qualified and reliable personnel.
Vulnerability to security breaches if contractor's performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract duration of nearly five years provides stability for service delivery.
Contractor has experience in providing security services.
Supports essential government functions, contributing to public safety.

Sector Analysis

The federal spending on security and protective services is a significant category, encompassing a wide range of needs from physical security to cybersecurity. This contract for security guards and patrol services falls within the broader market for commercial and protective services, which is a substantial sector. Comparable spending benchmarks for similar security contracts often range from tens to hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a larger entity suggests that the primary focus was on meeting the specific security requirements through a competitive process that may have favored larger, established providers. Further analysis would be needed to determine if small businesses could have effectively competed or if subcontracting opportunities were missed.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include performance monitoring, contract administration, and financial reviews. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Protective Service Contracts
General Services Administration Security Contracts
Department of Homeland Security Security Services
Uniformed Guard Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Performance variability across multiple sites.
Reliance on contractor's personnel quality and retention.
Need for robust contract oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.9 million to INTER-CON SECURITY SYSTEMS, INC.. ORDER ID07190051, PIID ON FORM 300 IS 47QFWA19A0013

Who is the contractor on this award?

The obligated recipient is INTER-CON SECURITY SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $35.9 million.

What is the period of performance?

Start: 2019-09-01. End: 2025-02-28.

What is the historical spending pattern for security services by the General Services Administration?

Historical spending by the General Services Administration (GSA) on security services has been substantial and consistent over the years, reflecting the agency's role in managing federal buildings and assets. While specific figures fluctuate based on agency needs and contract awards, GSA consistently allocates significant portions of its budget to protective services. For instance, in recent fiscal years, GSA's spending on guard services and related security measures has often been in the hundreds of millions of dollars. This particular contract, valued at $35.8 million over five years, represents a portion of that broader spending. Analyzing trends in GSA's security spending can reveal shifts in priorities, the impact of market competition, and the overall cost-effectiveness of outsourced security solutions.

How does the per-year cost of this contract compare to similar federal security contracts?

The annual cost of this contract averages approximately $7.17 million ($35.8 million / 5 years). Benchmarking this against similar federal security contracts requires careful consideration of factors such as geographic location, specific services required (e.g., armed vs. unarmed guards, patrol intensity, specialized equipment), and contract duration. However, based on available data for federal security guard contracts, this annual rate appears to be within a competitive range. Contracts for similar services can vary widely, but a rate of $7 million per year for comprehensive security services at multiple federal sites is not unusually high, especially considering the potential for labor costs, benefits, and overhead associated with a large security workforce. Further detailed comparison would necessitate access to specific contract details and performance metrics of comparable awards.

What are the primary risks associated with Time and Materials (T&M) contracts for security services?

Time and Materials (T&M) contracts, like the one awarded to INTER-CON SECURITY SYSTEMS, INC., carry inherent risks, primarily related to cost control. The main risk is that the final cost can exceed initial estimates if labor hours or material usage are not carefully managed and monitored. For security services, this could manifest as extended work hours beyond what is strictly necessary, inefficient deployment of personnel, or inflated material costs. To mitigate these risks, robust oversight is crucial. This includes detailed tracking of all labor hours, verification of materials used, and strong contract administration to ensure that the contractor is performing efficiently and that costs are reasonable and allocable. Without stringent oversight, T&M contracts can become more expensive than fixed-price alternatives.

What is the track record of INTER-CON SECURITY SYSTEMS, INC. in performing federal contracts?

INTER-CON SECURITY SYSTEMS, INC. has a history of performing federal contracts, including those with agencies like the General Services Administration (GSA). Their experience often involves providing security guard services, access control, and related protective measures for federal facilities. While specific performance metrics for all past contracts are not publicly detailed in this summary, the fact that they were awarded this significant five-year contract suggests a satisfactory performance history and capability to meet federal requirements. Agencies typically consider past performance as a key factor in the source selection process. A review of their contract history would likely reveal a pattern of successful awards and potentially positive performance evaluations on previous government engagements.

How does the competition level of six bidders impact price discovery for this contract?

A competition level of six bidders for this federal security services contract is generally considered robust and significantly benefits price discovery. With multiple firms vying for the contract, each bidder is incentivized to submit a competitive price to increase their chances of winning. This dynamic forces bidders to carefully calculate their costs, factor in reasonable profit margins, and potentially offer innovative solutions or efficiencies to gain an edge. The presence of six offers provides the government with a strong basis for comparison, allowing contracting officers to identify pricing that reflects fair market value and to negotiate effectively. A higher number of bidders typically leads to better price discovery and a greater likelihood of securing the services at a cost-effective rate for the taxpayer.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID07190051

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE, PASADENA, CA, 91105

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,272,019

Exercised Options: $37,272,019

Current Obligation: $35,852,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F5576R

IDV Type: FSS

Timeline