Transportation awards $2.46M for SSDI & BRIDGE PSEMS maintenance, a sole-source contract for security systems services

Contract Overview

Contract Amount: $2,456,000 ($2.5M)

Contractor: Versar Security Systems, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-03-15

End Date: 2026-09-30

Contract Duration: 929 days

Daily Burn Rate: $2.6K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SSDI & BRIDGE PSEMS MAINTENANCE SUPPORT LABOR FY25 & FY26

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22151

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.5 million to VERSAR SECURITY SYSTEMS, LLC for work described as: SSDI & BRIDGE PSEMS MAINTENANCE SUPPORT LABOR FY25 & FY26 Key points: 1. The contract value of $2.46 million over approximately 2.5 years suggests a moderate annual spend. 2. As a sole-source award, there's a heightened need to scrutinize pricing and performance against industry benchmarks. 3. The 'NOT COMPETED' status indicates potential risks related to price discovery and limited market engagement. 4. Performance is tied to security systems services, a critical area for infrastructure protection. 5. The contract's duration of 929 days provides a substantial period for evaluating contractor performance. 6. The use of a Time and Materials contract type warrants close monitoring of labor hours and rates.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparable sole-source awards. The annual value of approximately $982,400 is moderate for specialized security systems maintenance. However, the lack of competition means the government may not be achieving the best possible price. Further analysis would require comparing the specific services and labor rates to similar contracts, if available, or to industry standards for security system maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor is deemed uniquely qualified or when circumstances prevent a competitive process. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure the most innovative solutions are considered. It also raises questions about the justification for not seeking bids from other qualified providers.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of benefiting from competitive pricing. The government may be paying a premium compared to what could be achieved in a competitive environment, potentially leading to less efficient use of public funds.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by ensuring the maintenance of its Security Systems (SSDI) and BRIDGE Physical Security Equipment Management System (PSEMS). This contract delivers essential maintenance and support services for critical security infrastructure. The services are likely concentrated in Virginia, where the contractor (VERSAR SECURITY SYSTEMS, LLC) is located or where the FAA facilities requiring maintenance are situated. The contract supports specialized labor in the security systems services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of transparency in the procurement process due to sole-source justification.
Potential for vendor lock-in if no competitive alternatives are explored.
Limited opportunity for small businesses to participate in this specific award.

Positive Signals

Ensures continuity of essential security system maintenance for critical FAA infrastructure.
Contract is awarded to a company with a presence in the security systems services sector.
Clear performance period (FY25 & FY26) allows for defined service delivery.
Specific NAICS code (561621) indicates a focus on specialized security services.

Sector Analysis

The security systems services industry is a niche but vital sector within the broader professional services market. It encompasses the installation, maintenance, and monitoring of security equipment, including access control, surveillance, and alarm systems. Federal spending in this area is driven by the need to protect government facilities, personnel, and sensitive information. While specific market size data for federal security systems maintenance is not readily available, it is a component of the larger government contracting landscape, often characterized by specialized expertise and stringent security requirements. This contract fits within the government's ongoing efforts to maintain and upgrade its physical security infrastructure.

Small Business Impact

This contract was not competed and does not appear to have a small business set-aside. Consequently, there are no direct subcontracting opportunities for small businesses mandated by this specific award. The sole-source nature limits the potential for small businesses specializing in security systems maintenance to compete for this particular contract, potentially impacting their ability to secure federal work in this area.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA) contracting officers and program managers. As a sole-source award, the justification for the procurement method and the contractor's performance would be subject to internal FAA review and potentially audits by the Department of Transportation's Office of Inspector General. Transparency is limited due to the non-competitive nature, but contract performance metrics and expenditures should be tracked and reported through federal procurement data systems.

Related Government Programs

Federal Aviation Administration Security Systems Maintenance
Department of Transportation Infrastructure Protection
Security Systems Services Contracts
Sole Source IT and Security Contracts

Risk Flags

Sole Source Procurement
Time and Materials Contract Type
Lack of Competition
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.5 million to VERSAR SECURITY SYSTEMS, LLC. SSDI & BRIDGE PSEMS MAINTENANCE SUPPORT LABOR FY25 & FY26

Who is the contractor on this award?

The obligated recipient is VERSAR SECURITY SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2024-03-15. End: 2026-09-30.

What is the track record of VERSAR SECURITY SYSTEMS, LLC with the Federal Aviation Administration or other federal agencies?

Information regarding VERSAR SECURITY SYSTEMS, LLC's specific track record with the Federal Aviation Administration (FAA) or other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal contracts. This would involve searching federal procurement databases like SAM.gov and potentially agency-specific performance management systems. Understanding their history is crucial for evaluating the justification of a sole-source award and predicting future performance, especially in a critical area like security systems maintenance.

How does the pricing structure of this Time and Materials contract compare to industry benchmarks for security systems maintenance?

The provided data does not include specific pricing details (labor rates, material markups) necessary to benchmark against industry standards. Time and Materials (T&M) contracts are inherently variable, and their cost-effectiveness depends heavily on the efficiency of the contractor and the oversight provided by the government. To assess value, one would need to compare the proposed labor categories, hourly rates, and any overhead/ G&A rates against established industry benchmarks for similar security system maintenance services. Without this granular data, it's difficult to determine if the pricing is competitive or excessive, especially given the sole-source nature of the award.

What are the specific risks associated with a sole-source award for critical security systems maintenance?

The primary risks associated with a sole-source award for critical security systems maintenance include a lack of price competition, potentially leading to higher costs for the government and taxpayers. There's also a risk of reduced innovation, as the government doesn't benefit from the competitive drive for better solutions. Vendor lock-in is another concern, where the government becomes dependent on a single provider, making it difficult to switch even if performance or pricing becomes unsatisfactory. Furthermore, the justification for a sole-source award needs rigorous scrutiny to ensure it's truly warranted and not a result of poor planning or an unwillingness to engage in a competitive process.

What is the historical spending pattern for SSDI & BRIDGE PSEMS maintenance support labor by the FAA?

The provided data only pertains to a specific contract for FY25 & FY26. Historical spending patterns for SSDI & BRIDGE PSEMS maintenance support labor by the FAA cannot be determined from this single data point. To analyze historical spending, one would need access to multi-year contract data for this specific service category, ideally from the FAA or the Department of Transportation. This would involve identifying all previous contracts related to PSEMS and SSDI maintenance, their values, durations, and procurement methods, to identify trends, fluctuations, and the overall investment in this area over time.

How will the performance of VERSAR SECURITY SYSTEMS, LLC be monitored under this contract?

Performance monitoring for this contract will likely be managed by the FAA's Contracting Officer's Representative (COR) or a designated technical point of contact. Given it's a Time and Materials contract for security systems maintenance, monitoring would focus on the accurate reporting of labor hours, adherence to agreed-upon labor rates, efficient use of materials, and the quality and timeliness of the maintenance services provided. The COR would be responsible for verifying that the work performed meets the contract's technical requirements and objectives, ensuring that the security systems remain operational and effective. Regular progress reports and site inspections may also be part of the oversight process.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6850 VERSAR CENTER STE 201, SPRINGFIELD, VA, 22151

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

Financial Breakdown

Contract Ceiling: $3,990,063

Exercised Options: $2,456,000

Current Obligation: $2,456,000

Actual Outlays: $1,608,692

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA818D00017

IDV Type: IDC

Timeline