FEMA awards $30.8M for armed security guards in Puerto Rico under full and open competition

Contract Overview

Contract Amount: $30,850,150 ($30.9M)

Contractor: Ranger American of Puerto Rico, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-05-08

End Date: 2020-07-14

Contract Duration: 798 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CT::IGF LEVEL II ARMED SECURITY GUARDS FOR FEMA FACILITIES - DR4339PR

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00924

Plain-Language Summary

Department of Homeland Security obligated $30.9 million to RANGER AMERICAN OF PUERTO RICO, LLC for work described as: IGF::CT::IGF LEVEL II ARMED SECURITY GUARDS FOR FEMA FACILITIES - DR4339PR Key points: 1. Contract awarded to Ranger American of Puerto Rico, LLC for security services. 2. The contract value is $30.85 million over its period of performance. 3. Services provided under NAICS code 561612 (Security Guards and Patrol Services). 4. This contract was awarded under full and open competition after exclusion of sources. 5. The contract duration was 798 days.

Value Assessment

Rating: good

The contract value of $30.85 million for armed security guards over approximately two years appears reasonable given the scope and location. Benchmarking against similar contracts for security services in disaster-affected areas would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayer funds are being used to secure FEMA facilities, which is a necessary expense for disaster response and recovery operations.

Public Impact

Ensures security for FEMA facilities during critical disaster response and recovery operations in Puerto Rico. Supports local employment through the contracted security firm. Provides essential services that contribute to the stability and safety of recovery efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if security needs escalate beyond initial projections.
Reliance on a single contractor may limit flexibility in adapting to changing security landscapes.

Positive Signals

Awarded through a competitive process, suggesting fair pricing.
Addresses a critical need for security in a disaster-prone region.
Supports ongoing FEMA operations in Puerto Rico.

Sector Analysis

The security services sector is competitive, with numerous providers. Spending on security guards is a common expenditure for government agencies, especially those involved in disaster management and facility protection.

Small Business Impact

The data indicates the awardee is Ranger American of Puerto Rico, LLC. Further analysis would be needed to determine if small businesses were involved as subcontractors or if this award impacted small business participation goals.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security (FEMA). Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial accountability.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Contract duration and potential for follow-on needs.
Geographic specificity of services (Puerto Rico).
Nature of services (armed security guards).
Award mechanism ('after exclusion of sources').

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.9 million to RANGER AMERICAN OF PUERTO RICO, LLC. IGF::CT::IGF LEVEL II ARMED SECURITY GUARDS FOR FEMA FACILITIES - DR4339PR

Who is the contractor on this award?

The obligated recipient is RANGER AMERICAN OF PUERTO RICO, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $30.9 million.

What is the period of performance?

Start: 2018-05-08. End: 2020-07-14.

What was the specific justification for excluding other sources during the 'full and open competition after exclusion of sources' process?

The term 'full and open competition after exclusion of sources' typically implies that while the competition was intended to be broad, certain sources were initially excluded based on specific criteria, possibly related to unique capabilities, past performance, or geographic presence relevant to the disaster area. The exact justification would require reviewing the contract's Justification and Approval (J&A) document.

How does the per-unit cost of security guard hours compare to industry benchmarks for similar services in Puerto Rico?

Without specific hourly rates or detailed service level agreements, a precise per-unit cost comparison is difficult. However, the total contract value of $30.85 million over roughly 22 months suggests an average annual cost of approximately $14 million. Benchmarking this against average security guard wages and overhead in Puerto Rico would be necessary for a definitive assessment.

What performance metrics were used to ensure the effectiveness of the armed security guards provided by Ranger American?

Effective oversight would involve tracking key performance indicators (KPIs) such as incident response times, number of security breaches (if any), adherence to post orders, and overall facility security status. Regular performance reviews and feedback mechanisms between FEMA and Ranger American would be crucial for ensuring service quality and accountability.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE02DR4339PR-SECURITY

Offers Received: 22

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 605 CALLE LODI URB VILLA CAPRI, RIO PIEDRAS, PR, 00924

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,850,150

Exercised Options: $30,850,150

Current Obligation: $30,850,150

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline