DOT awards $9M+ for security services, with SHIELDS POINT LLC securing a significant portion

Contract Overview

Contract Amount: $9,056,238 ($9.1M)

Contractor: Shields Point LLC

Awarding Agency: Department of Transportation

Start Date: 2025-12-01

End Date: 2026-09-30

Contract Duration: 303 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW GUARD CONTRACT FY2024-FY2028

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $9.1 million to SHIELDS POINT LLC for work described as: NEW GUARD CONTRACT FY2024-FY2028 Key points: 1. Contract value exceeds $9 million over its period of performance. 2. The contract is a firm-fixed-price award, indicating predictable costs. 3. Competition was full and open, suggesting a competitive bidding process. 4. The award is a delivery order against a larger contract. 5. Performance is concentrated in the District of Columbia. 6. The contract duration is approximately 303 days.

Value Assessment

Rating: good

The total award amount of over $9 million for security services appears reasonable given the contract duration and scope. Benchmarking against similar contracts for security guard services in the District of Columbia would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost certainty for the government.

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 bids. The presence of four bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings and better value.

Public Impact

The Department of Transportation benefits from enhanced security services. Services include security guards and patrol, ensuring facility safety. The primary geographic impact is within the District of Columbia. The contract supports jobs within the security services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (approx. 10 months), which may necessitate future re-competition and potential transition costs.
Concentration of services in a single geographic area (DC) might limit broader application or scalability.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust market response.
Award is a delivery order, implying it's part of a pre-established framework, potentially streamlining acquisition.

Sector Analysis

The security services sector is a significant component of government contracting, encompassing a wide range of protective services. This contract for security guards and patrol services fits within the broader professional, scientific, and technical services category. Government spending in this area is consistently high due to the need for physical security across numerous federal facilities nationwide.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, the direct impact on small businesses as a prime contractor is not evident from this award alone. However, the prime contractor, SHIELDS POINT LLC, may utilize small businesses for subcontracting opportunities, which would need to be tracked separately.

Oversight & Accountability

As a delivery order under a larger contract, oversight mechanisms are likely established within the parent contract's framework. The firm-fixed-price nature of the award simplifies financial oversight. Transparency is generally maintained through federal procurement databases. Specific oversight details would depend on the parent contract and agency-specific policies.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts

Risk Flags

Short contract duration may lead to frequent re-competition.
Concentration of services in one geographic area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.1 million to SHIELDS POINT LLC. NEW GUARD CONTRACT FY2024-FY2028

Who is the contractor on this award?

The obligated recipient is SHIELDS POINT LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $9.1 million.

What is the period of performance?

Start: 2025-12-01. End: 2026-09-30.

What is the track record of SHIELDS POINT LLC in performing similar government contracts?

SHIELDS POINT LLC has a history of performing government contracts, primarily within the security and facilities support sectors. Analysis of their past performance, particularly on contracts of similar size and scope for agencies like the Department of Transportation or other federal entities, would be crucial. This includes examining past performance reviews, any contract disputes or terminations, and their ability to meet delivery schedules and quality standards. A review of their contract history on federal procurement databases can reveal the types of services they have provided, the value of those contracts, and the agencies they have served, offering insights into their reliability and expertise in fulfilling federal requirements.

How does the awarded price compare to market rates for security guard services in the DC area?

To assess the value for money, the awarded price needs to be benchmarked against prevailing market rates for comparable security guard services in the District of Columbia. This involves analyzing the specific services required (e.g., number of guards, hours, specialized skills) and comparing the contract's estimated hourly or daily rates to those offered by other private security firms in the region. Factors such as the firm-fixed-price nature of the contract, the level of competition, and the specific security requirements (e.g., armed vs. unarmed guards, surveillance technology integration) will influence the comparison. Without specific rate data from the contract, a precise comparison is difficult, but the full and open competition suggests the price is likely competitive.

What are the primary risks associated with this contract award?

Key risks for this contract include potential service disruptions if the contractor faces staffing shortages or operational issues, especially given the concentration in a single geographic area. The relatively short duration (approx. 10 months) poses a risk of discontinuity and potential increased costs associated with future re-procurement processes. There's also a risk related to the quality and reliability of the security personnel provided, which directly impacts the safety and security of DOT facilities. Ensuring consistent adherence to security protocols and maintaining adequate guard performance throughout the contract period are critical risk mitigation areas.

How effective is the firm-fixed-price contract type in managing costs for this security service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services like security guards where the scope of work is well-defined and predictable. Under an FFP contract, the contractor assumes the majority of the risk for cost overruns, providing the government with cost certainty. This means the price is set at the outset and does not change unless there are modifications to the contract scope. For routine security services, this structure helps prevent unexpected increases in spending and simplifies budget management for the Department of Transportation. It incentivizes the contractor to perform efficiently to maximize their profit margin.

What is the historical spending trend for security services by the Department of Transportation?

Historical spending data for security services by the Department of Transportation (DOT) would provide context for this $9M+ award. Analyzing past years' expenditures on similar security guard and patrol services can reveal trends in contract values, the number of awards, and the primary contractors utilized. Understanding whether this award represents an increase, decrease, or stable level of spending compared to previous periods is important. It also helps identify if there's a pattern of reliance on specific contract vehicles or types of competition. Such analysis can inform future budgeting and procurement strategies for the DOT's security needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3909 ARCTIC BLVD, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $124,128,914

Exercised Options: $19,681,185

Current Obligation: $9,056,238

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $204,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA22D001Q

IDV Type: FSS

Timeline