DHS awards $77.2M contract for security services to ISS Action Inc., with services spanning over 3 years

Contract Overview

Contract Amount: $77,225,778 ($77.2M)

Contractor: ISS Action Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-01

End Date: 2026-01-15

Contract Duration: 1,263 days

Daily Burn Rate: $61.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GROUND TRANSPORTATION

Place of Performance

Location: JAMAICA, QUEENS County, NEW YORK, 11434

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $77.2 million to ISS ACTION INC for work described as: GROUND TRANSPORTATION Key points: 1. Contract value appears reasonable given the duration and scope of security services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's Time and Materials pricing structure introduces some cost variability. 4. Performance is contextually benchmarked against similar security guard contracts. 5. This contract positions ISS Action Inc. as a key provider within the federal security services sector. 6. The contract duration of over three years indicates a need for sustained security support.

Value Assessment

Rating: good

The contract value of approximately $77.2 million over 1263 days (roughly 3.5 years) suggests an average annual spend of around $22 million. This figure seems within a reasonable range for comprehensive security guard and patrol services for a large federal agency like U.S. Customs and Border Protection. Benchmarking against similar large-scale federal security contracts would provide a more precise value-for-money assessment, but the initial figures do not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives competitive pricing for essential services.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving essential security services. The services delivered include security guards and patrol, crucial for maintaining the safety and security of federal facilities and operations. The contract is geographically focused on New York (NY), indicating a specific operational area for these security services. This contract supports a workforce of security personnel, contributing to employment in the security sector within the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not carefully managed and monitored.
The duration of the contract (over 3 years) necessitates ongoing vigilance to ensure continued value and performance.
Reliance on a single awardee for a significant security contract requires robust performance management.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded favorable terms.
The contract is for essential security services, indicating a clear and ongoing government need.
The contractor, ISS Action Inc., is likely experienced in providing such services, given the award.

Sector Analysis

The federal security services market is substantial, encompassing a wide range of protective services for government facilities and operations. This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on security and investigation services. Comparable spending benchmarks would involve analyzing other large federal contracts for security guards and patrol services across various agencies and geographic locations to gauge market rates and typical contract values.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem for this specific award appears limited, though the prime contractor may engage small businesses as subcontractors if not explicitly prohibited or mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) contracting officers and program managers within DHS. Accountability measures would be embedded in the contract's performance standards and deliverables. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Customs and Border Protection Operations Support
Security Guard Services Federal
Time and Materials Contracts

Risk Flags

Time and Materials Pricing Structure
Potential for Cost Overruns
Contract Duration Requires Sustained Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $77.2 million to ISS ACTION INC. GROUND TRANSPORTATION

Who is the contractor on this award?

The obligated recipient is ISS ACTION INC.

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 $77.2 million.

What is the period of performance?

Start: 2022-08-01. End: 2026-01-15.

What is the historical spending pattern for security services by U.S. Customs and Border Protection in New York?

Analyzing historical spending patterns for security services by U.S. Customs and Border Protection (CBP) in New York requires access to detailed procurement data over several fiscal years. While this specific contract award is for $77.2 million from August 2022 to January 2026, understanding CBP's broader spending in this category and region would involve looking at previous contracts for similar services. Factors to consider include the number of previous contracts, their values, the duration of service, and the incumbent contractors. A trend of increasing or decreasing spending could indicate shifts in security needs, budget allocations, or market competition. Without specific historical data for CBP in NY, it's difficult to provide a precise pattern, but a consistent need for security services is implied by the current award's scale and duration.

How does the per-hour cost for security guards under this contract compare to market rates in New York?

Determining the precise per-hour cost for security guards under this Time and Materials (T&M) contract is challenging without knowing the labor hours billed and the specific rates for different security personnel (e.g., armed vs. unarmed, supervisory vs. guard). T&M contracts allow for reimbursement of direct labor hours at specified rates, plus the cost of materials and a fee or profit. To compare with market rates in New York, one would need to identify the labor rates ISS Action Inc. is charging for various security roles and benchmark these against prevailing wages and commercial security service provider rates in the New York metropolitan area. Factors like unionization, required certifications, and the specific security requirements (e.g., access control, patrol intensity) influence market rates. A comprehensive analysis would involve obtaining detailed billing data and comparing it to industry reports and competitor pricing for similar services in the region.

What is ISS Action Inc.'s track record with federal contracts, particularly for security services?

ISS Action Inc. has a history of receiving federal contracts, as indicated by this award from the Department of Homeland Security (DHS). To assess their track record thoroughly, one would need to examine their past performance on similar contracts, including their success in meeting delivery schedules, quality standards, and budgetary constraints. Data from the Federal Procurement Data System (FPDS) or other contract databases would reveal the types of agencies they have served, the value and duration of previous awards, and any reported performance issues or commendations. A strong track record typically involves consistent performance, positive past performance reviews, and a history of successful contract completions, especially in the specialized field of security services for high-stakes government operations.

What are the potential risks associated with a Time and Materials contract for security services?

Time and Materials (T&M) contracts, like the one awarded to ISS Action Inc. for security services, carry inherent risks, primarily related to cost control. The government agrees to pay the contractor for the actual cost of direct labor (at specified hourly rates) and materials, plus a fixed fee or percentage for profit. The primary risk is that the contractor may not be incentivized to control labor hours or material costs efficiently, potentially leading to cost overruns if not rigorously monitored. Scope creep can also be an issue, where the 'materials' or effort expands beyond the initial understanding. Effective oversight, detailed record-keeping, and strong contract management are crucial to mitigate these risks and ensure the government receives good value. The contract should include clauses that establish a ceiling on total costs and require detailed justification for all hours and materials expended.

How does the competition level for this contract compare to other federal security service procurements?

This contract was awarded under 'full and open competition,' which is the preferred method for federal procurements and generally indicates a healthy level of competition. This means that all responsible sources were encouraged to submit proposals. While the exact number of bidders is not specified in the provided data, the 'full and open' designation suggests that multiple companies likely vied for the contract. This contrasts with 'sole-source' or 'limited competition' awards, where fewer bidders participate, potentially due to specific qualifications, urgent needs, or limited market availability. A higher number of bidders in a full and open competition typically leads to more competitive pricing and a wider range of innovative solutions, ultimately benefiting the government and taxpayers.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 204 E MCKENZIE ST, PUNTA GORDA, FL, 33950

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $77,225,778

Exercised Options: $77,225,778

Current Obligation: $77,225,778

Actual Outlays: $72,823,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70B03C19A00000040

IDV Type: BPA

Timeline