DHS Awards $105.7M for IST Sustainment to S & K Security Group LLC

Contract Overview

Contract Amount: $105,707,925 ($105.7M)

Contractor: S & K Security Group LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-01

End Date: 2026-01-31

Contract Duration: 30 days

Daily Burn Rate: $3.5M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IST SUSTAINMENT

Place of Performance

Location: SAINT IGNATIUS, LAKE County, MONTANA, 59865

State: Montana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $105.7 million to S & K SECURITY GROUP LLC for work described as: IST SUSTAINMENT Key points: 1. Significant contract value of over $105 million. 2. Sole-source award to S & K Security Group LLC. 3. Potential risk due to lack of competition. 4. Focus on repair and maintenance of electronic and precision equipment.

Value Assessment

Rating: questionable

The contract value of $105.7 million for a 30-day period is exceptionally high, suggesting potential overpricing or scope creep. Benchmarking against similar sustainment contracts is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The lack of competition limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition raises concerns about the efficient use of taxpayer funds, as a more competitive process could have potentially secured a lower price.

Public Impact

Customs and Border Protection relies on this sustainment for critical equipment. The sole-source nature of the award may impact the availability of services from other vendors. Taxpayers may be paying a premium due to the lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value for short duration
Lack of competition

Positive Signals

Specific sustainment service for critical agency function

Sector Analysis

The Information Technology (IT) sector, particularly repair and maintenance services, often sees significant government spending. This contract falls under the Electronic and Precision Equipment Repair and Maintenance NAICS code (811210).

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or excluded from this sole-source opportunity.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable and that the services provided meet the government's needs effectively.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award lacks competitive pricing.
High value for a short contract duration.
Potential for inflated costs without competition.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $105.7 million to S & K SECURITY GROUP LLC. IST SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is S & K SECURITY GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $105.7 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-31.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?

The justification for a sole-source award is critical. Agencies must demonstrate that only one responsible source can provide the required supplies or services. For this contract, the agency should have conducted a thorough price analysis, potentially including historical pricing, commercial item pricing, or independent government cost estimates, to validate the $105.7 million price for a 30-day period.

What are the risks associated with awarding a $105.7 million contract for only 30 days on a sole-source basis?

The primary risks include potential overpricing due to the lack of competition, the possibility of inefficient service delivery if the vendor is not incentivized by market forces, and the missed opportunity to foster competition that could lead to innovation and cost savings in the future. The short duration for such a high value also raises questions about the contract's scope and planning.

How does this contract contribute to the effectiveness of U.S. Customs and Border Protection's mission?

This contract is for 'IST SUSTAINMENT,' implying it is crucial for maintaining the operational readiness of essential Information Systems Technology (IST) used by CBP. Effective sustainment ensures that critical equipment functions reliably, directly supporting CBP's border security and trade facilitation missions. Without this sustainment, operational disruptions could occur.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 63066 OLD HIGHWAY 93, SAINT IGNATIUS, MT, 59865

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

Financial Breakdown

Contract Ceiling: $413,197,000

Exercised Options: $413,197,000

Current Obligation: $105,707,925

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline