Transportation awards $3.1M for security services to SMR Security Services, LLC

Contract Overview

Contract Amount: $3,106,871 ($3.1M)

Contractor: SMR Security Services, L.L.C.

Awarding Agency: Department of Transportation

Start Date: 2023-02-13

End Date: 2028-02-29

Contract Duration: 1,842 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BEAUMONT RESERVE FLEET AND EAST DOCKS SECURITY

Place of Performance

Location: BEAUMONT, JEFFERSON County, TEXAS, 77705

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $3.1 million to SMR SECURITY SERVICES, L.L.C. for work described as: BEAUMONT RESERVE FLEET AND EAST DOCKS SECURITY Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration extends over five years, suggesting a long-term need for these services. 3. Security guards and patrol services are essential for maintaining operational integrity and safety. 4. The award was not competed, raising questions about potential cost savings through competitive bidding. 5. The contractor, SMR Security Services, L.L.C., is the sole recipient of this award. 6. The contract value is relatively modest in the context of federal security spending.

Value Assessment

Rating: fair

The contract value of $3.1 million over approximately five years for security guard services is difficult to benchmark without more specific details on the scope of services and locations. As a purchase order, it suggests a direct procurement rather than a large-scale contract. The firm-fixed-price structure provides cost certainty. However, the lack of competition makes it challenging to assess if the pricing represents optimal value for money compared to what might be achieved through a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This approach bypasses the standard competitive bidding process, which typically leads to price discovery and potentially lower costs for the government. Without competition, it is difficult to ascertain the range of pricing options or the number of potential bidders that may have been excluded.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding among multiple vendors.

Public Impact

The primary beneficiaries are the Department of Transportation's Maritime Administration, which receives essential security services. The services provided include security guards and patrol, crucial for asset protection and operational continuity. The contract is geographically focused in Texas, impacting local security workforce employment. The contract supports the operational security of federal maritime facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in due to the extended contract duration without competitive re-evaluation.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Long-term contract ensures consistent security coverage.
Award to a single, presumably qualified, vendor for specific security needs.

Sector Analysis

The security services sector is a significant component of federal contracting, encompassing a wide range of protective services. This contract falls under the 'Security Guards and Patrol Services' (NAICS 561612) category. Federal spending in this area is substantial, driven by the need to protect government facilities, personnel, and assets. Benchmarking this specific contract's value is challenging without detailed service level agreements, but it represents a small portion of the overall federal security services expenditure.

Small Business Impact

The contract indicates that small business participation (ss: false, sb: false) was not a specific set-aside or requirement for this award. Therefore, there are no direct subcontracting implications for small businesses stemming from this particular contract's structure. The award was made to SMR Security Services, L.L.C., and its small business status is not specified in the provided data.

Oversight & Accountability

As a purchase order, oversight is typically managed through the issuing agency's procurement and contract management functions within the Department of Transportation. Specific oversight mechanisms, such as performance reviews or site inspections, would be detailed in the purchase order terms and conditions. Transparency is limited due to the sole-source nature of the award, with the justification for not competing likely residing within internal agency documentation.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Contracts
General Services Administration Schedules for Security Services

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency into contract specifics and performance metrics.
No readily available data on contractor past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.1 million to SMR SECURITY SERVICES, L.L.C.. BEAUMONT RESERVE FLEET AND EAST DOCKS SECURITY

Who is the contractor on this award?

The obligated recipient is SMR SECURITY SERVICES, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2023-02-13. End: 2028-02-29.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. The specific justification for this determination is not included in the data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the requirement, or in cases of urgent need, or when a specific national security interest is involved. Without further documentation from the Department of Transportation's Maritime Administration, the precise rationale remains unclear. This lack of transparency can raise concerns about whether the government obtained the best possible value and if competition was genuinely precluded.

How does the per-unit cost of security personnel compare to industry benchmarks for similar services in Texas?

The provided data does not include specific details on the number of personnel, hours worked, or hourly rates, making a direct per-unit cost comparison impossible. The total award amount of $3.1 million over approximately 1842 days (roughly 5 years) averages to about $1,687 per day. To perform a meaningful benchmark, one would need to know the number of guards, their shifts, and the specific security duties. Industry benchmarks for security guards vary widely based on location, experience, and required certifications. Without this granular data, assessing the cost-effectiveness on a per-unit basis is speculative.

What is the track record of SMR Security Services, L.L.C. in performing federal contracts, particularly for the Department of Transportation?

The provided data does not contain information regarding the track record or past performance of SMR Security Services, L.L.C. on federal contracts. To assess their reliability and capability, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Without this information, it is difficult to gauge their experience and success in fulfilling similar security service requirements for government agencies.

What are the specific security requirements and service levels outlined in this purchase order?

The provided data identifies the North American Industry Classification System (NAICS) code as 561612, which corresponds to 'Security Guards and Patrol Services.' However, the specific details of the security requirements, such as the number of personnel, hours of operation, types of security measures (e.g., access control, surveillance, response protocols), and performance standards, are not included. These details would typically be found within the full text of the purchase order or associated statements of work, which are necessary to fully understand the scope and expected outcomes of the contract.

What is the historical spending pattern for security services by the Maritime Administration, and how does this award compare?

The provided data does not include historical spending patterns for security services by the Maritime Administration. To analyze this, one would need to examine past contract awards for similar services over several fiscal years. Comparing this $3.1 million award to previous expenditures would reveal whether this represents an increase, decrease, or stable level of investment in security. Understanding historical trends is crucial for assessing the significance of this particular contract within the agency's broader budget and operational priorities for 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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 69727623Q000004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11825 W INTERSTATE 10, SAN ANTONIO, TX, 78230

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,988,333

Exercised Options: $3,106,871

Current Obligation: $3,106,871

Actual Outlays: $2,190,920

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline