Homeland Security awards $3.5M for armed security in South Carolina disaster zones

Contract Overview

Contract Amount: $3,525,580 ($3.5M)

Contractor: Strategic Security Corp

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-08

End Date: 2026-04-07

Contract Duration: 546 days

Daily Burn Rate: $6.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, TOOLS, MATERIALS, TRANSPORTATION AND INCIDENTAL ITEMS TO PERFORM LEVEL II ARMED SECURITY GUARD SERVICES AT DISASTER RELATED SITES AND FACILITIES WITHIN THE STATE OF SOUTH CAROLINA FOR DECLARED DISAST

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29201

State: South Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.5 million to STRATEGIC SECURITY CORP for work described as: THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, TOOLS, MATERIALS, TRANSPORTATION AND INCIDENTAL ITEMS TO PERFORM LEVEL II ARMED SECURITY GUARD SERVICES AT DISASTER RELATED SITES AND FACILITIES WITHIN THE STATE OF SOUTH CAROLINA FOR DECLARED DISAST Key points: 1. Contract value appears reasonable for specialized armed security services over an 18-month period. 2. Competition dynamics indicate a potentially efficient price discovery process. 3. Risk indicators are moderate, given the nature of disaster response and armed personnel. 4. Performance context involves critical support during emergency situations. 5. Sector positioning is within the essential security services for federal emergency management.

Value Assessment

Rating: good

The contract value of approximately $3.5 million for 546 days of service, covering Level II armed security guard services, seems aligned with market rates for such specialized and critical support. While direct comparisons are difficult without specific regional data for disaster response security, the pricing appears to be within a justifiable range given the need for trained and armed personnel in potentially hazardous environments. The contract's structure, likely based on labor hours and specific site requirements, allows for flexibility while managing costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While the specific number of bidders is not detailed, SAP is typically used for procurements below a certain threshold where full and open competition might be less efficient. This approach can lead to faster award times but may not always yield the lowest possible price compared to broader solicitations. The limited nature of the competition warrants a review of the solicitation process to ensure fair opportunity.

Taxpayer Impact: For taxpayers, a limited competition under SAP can sometimes mean slightly higher costs than a fully competed contract, but it also ensures timely delivery of essential services during emergencies, which has its own value.

Public Impact

The primary beneficiaries are residents and infrastructure within declared disaster areas in South Carolina requiring security. Services delivered include armed security guard presence at disaster-related sites and facilities. Geographic impact is focused on the state of South Carolina, specifically areas affected by declared disasters. Workforce implications include the deployment of trained security personnel, potentially creating temporary employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs due to limited competition under SAP.
Ensuring consistent quality and reliability of armed guards in dynamic disaster environments.
Managing contractor performance and accountability across potentially dispersed and evolving sites.

Positive Signals

Contract addresses a critical need for security during emergency response.
FEMA's use of specialized security services demonstrates preparedness for disaster events.
The definitive contract structure provides a clear framework for service delivery.

Sector Analysis

The security services sector is a vital component of national infrastructure, particularly for government agencies like FEMA. This contract falls within the broader security and protective services industry, which is characterized by a mix of large, established firms and smaller, specialized providers. Spending in this area often fluctuates with national security needs and disaster response requirements. Benchmarking against similar contracts for armed security services during emergencies is challenging due to the unique operational context and geographic specificity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Strategic Security Corp's size is not provided, but the nature of federal contracting often involves large prime contractors. Further analysis would be needed to determine if opportunities exist for small businesses to participate as subcontractors on this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to service delivery. Transparency is facilitated through contract databases, though specific operational details of security deployments may be sensitive. The Inspector General for DHS would have jurisdiction for audits and investigations.

Related Government Programs

FEMA Disaster Relief Fund
Department of Homeland Security - Emergency Management
Federal Protective Service Contracts
Armed Guard Services Contracts

Risk Flags

Limited Competition
Potential for Price Inflation
Performance Monitoring in Dynamic Environments

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.5 million to STRATEGIC SECURITY CORP. THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, TOOLS, MATERIALS, TRANSPORTATION AND INCIDENTAL ITEMS TO PERFORM LEVEL II ARMED SECURITY GUARD SERVICES AT DISASTER RELATED SITES AND FACILITIES WITHIN THE STATE OF SOUTH CAROLINA FOR DECLARED DISAST

Who is the contractor on this award?

The obligated recipient is STRATEGIC SECURITY CORP.

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 $3.5 million.

What is the period of performance?

Start: 2024-10-08. End: 2026-04-07.

What is the track record of Strategic Security Corp with federal contracts, particularly with FEMA or DHS?

A review of federal procurement data indicates that Strategic Security Corp has a history of receiving federal contracts, primarily for security guard services. While specific details on performance metrics for past contracts are not readily available in this summary, their recurring engagement suggests a level of capability and reliability that meets federal requirements. Further investigation into past performance evaluations and any reported issues or commendations would provide a more comprehensive understanding of their track record with agencies like FEMA and DHS, especially in high-stakes environments like disaster response.

How does the per-day cost of this contract compare to similar armed security services during disaster events?

Calculating a precise per-day cost requires dividing the total contract value ($3,525,579.52) by the contract duration in days (546), yielding approximately $6,457 per day. This figure encompasses all labor, equipment, and overhead for Level II armed security. Benchmarking this against similar disaster response security contracts is complex due to variations in threat levels, required personnel-to-site ratios, geographic spread, and specific service requirements (e.g., Level II vs. Level III guards). However, given the specialized nature of armed security in potentially volatile disaster zones, this daily rate appears to be within a reasonable range, reflecting the inherent risks and operational demands.

What are the primary risks associated with contracting armed security for disaster response, and how are they mitigated?

Key risks include the unpredictable nature of disaster sites, potential for escalation of conflict, ensuring guard professionalism and de-escalation skills, and maintaining consistent service across dispersed locations. Mitigation strategies likely involve rigorous vetting and training of security personnel, clear rules of engagement, robust communication protocols, and active performance monitoring by FEMA. The contract's structure, specifying Level II armed guards, suggests a focus on deterrence and presence rather than direct combat, aiming to manage risk appropriately for the environment. Continuous assessment of the evolving situation on the ground is crucial for adapting security measures.

What is the historical spending pattern for armed security services by FEMA in South Carolina or similar disaster-prone states?

Historical spending data for FEMA's procurement of armed security services in South Carolina or comparable disaster-prone states would reveal trends in demand and cost over time. Such analysis could show whether spending has increased due to more frequent or severe disasters, or if contract values have risen due to inflation or changes in service requirements. Understanding these patterns helps in forecasting future needs and budgeting effectively. Without specific historical data, it's difficult to ascertain if this $3.5 million award represents a typical or an exceptional level of investment for such services in the region.

How does the 'COMPETED UNDER SAP' designation impact the potential for cost savings for taxpayers?

Competing a contract under Simplified Acquisition Procedures (SAP) is generally intended for procurements below certain dollar thresholds (e.g., $250,000, though this can be higher for certain categories) where full and open competition might be administratively burdensome. While SAP can expedite the acquisition process, it typically involves fewer bidders than a full solicitation. This limited competition can sometimes result in prices that are not as aggressively driven down as they might be in a broader, more competitive environment. Therefore, for taxpayers, competing under SAP may offer less potential for maximum cost savings compared to a full and open competition, although it balances this with efficiency and speed, which are critical in emergency response scenarios.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70FBR425R00000005

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 19 BELLEMEADE AVE, SMITHTOWN, NY, 11787

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,167,940

Exercised Options: $4,167,940

Current Obligation: $3,525,580

Actual Outlays: $2,991,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline