Homeland Security awards $2.8M for armed security guards in Tennessee, with limited competition

Contract Overview

Contract Amount: $2,829,604 ($2.8M)

Contractor: Ambassador Worldwide Protection Agency, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-15

End Date: 2025-08-31

Contract Duration: 320 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: LEVEL II-ARMED SECURITY GUARD SERVICES TO SUPPORT THE STATE OF TENNESSEE.

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37211

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.8 million to AMBASSADOR WORLDWIDE PROTECTION AGENCY, INC. for work described as: LEVEL II-ARMED SECURITY GUARD SERVICES TO SUPPORT THE STATE OF TENNESSEE. Key points: 1. Value for money appears fair given the limited competition and the nature of security services. 2. Competition dynamics indicate a sole-source award, potentially leading to higher costs. 3. Risk indicators are moderate, primarily related to the lack of competitive bidding. 4. Performance context is for essential security services supporting FEMA operations. 5. Sector positioning is within the security services industry, a common area for federal contracts.

Value Assessment

Rating: fair

The contract value of $2.83 million for armed security guard services over approximately 10.5 months appears within a reasonable range for specialized security. However, without a competitive bidding process, it is difficult to definitively benchmark the pricing against market rates or similar federal contracts. The absence of competition means there's less assurance of achieving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The data indicates a sole-source award, meaning only one vendor was solicited or considered. This lack of competition limits the government's ability to explore various pricing structures and service offerings from multiple providers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the cost savings that typically arise from a competitive bidding process. The government may have paid a premium due to the absence of competing offers.

Public Impact

The primary beneficiaries are the Department of Homeland Security (FEMA) through the provision of essential security services. The services delivered include armed security guard support, crucial for protecting federal assets and personnel. The geographic impact is focused on Tennessee, specifically supporting operations within the state. Workforce implications include the employment of security personnel by Ambassador Worldwide Protection Agency, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing for taxpayers.
Sole-source awards can reduce transparency and accountability in contract selection.
Limited data available on the contractor's specific performance history for this type of service.

Positive Signals

Contract supports critical security functions for a federal agency.
Award is for a defined period, allowing for future reassessment of competition.
Contract is a Purchase Order, a common and relatively straightforward procurement instrument.

Sector Analysis

The federal government frequently procures security guard services across various agencies to protect facilities, personnel, and assets. The North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services represents a significant market. While specific benchmarks for armed security in Tennessee are not readily available, federal spending in this sector is substantial, often involving competitive solicitations to ensure value.

Small Business Impact

This contract was awarded to Ambassador Worldwide Protection Agency, Inc. and does not indicate any small business set-aside provisions. There is no information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor engages in subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and procurement oversight mechanisms. As a Purchase Order, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source nature, and accountability would be managed through performance monitoring and contract close-out procedures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Homeland Security Contracts
Federal Emergency Management Agency Support Services
Security Guard Services
Armed Guard Contracts
Tennessee Federal Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.8 million to AMBASSADOR WORLDWIDE PROTECTION AGENCY, INC.. LEVEL II-ARMED SECURITY GUARD SERVICES TO SUPPORT THE STATE OF TENNESSEE.

Who is the contractor on this award?

The obligated recipient is AMBASSADOR WORLDWIDE PROTECTION AGENCY, INC..

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 $2.8 million.

What is the period of performance?

Start: 2024-10-15. End: 2025-08-31.

What is the track record of Ambassador Worldwide Protection Agency, Inc. with federal contracts, particularly for security services?

Information regarding the specific track record of Ambassador Worldwide Protection Agency, Inc. with federal contracts, especially for armed security guard services, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to analyze past performance, contract values, and any reported issues. Without this external data, it's difficult to assess their experience and reliability beyond this single award. Federal agencies typically vet contractors, but past performance is a key factor in award decisions, especially in competitive scenarios.

How does the awarded price compare to similar armed security guard contracts in Tennessee or the surrounding region?

Benchmarking the awarded price of $2.83 million for armed security guard services in Tennessee is challenging without access to a broader dataset of comparable federal or state contracts. The provided data does not include per-unit costs or labor hour rates, which are essential for a detailed comparison. Factors such as the number of guards, hours of service, specific security requirements (e.g., level of threat, specialized equipment), and the duration of the contract significantly influence pricing. Given the sole-source nature, it's plausible that the price might be higher than if it had been competitively bid.

What are the primary risks associated with a sole-source award for essential security services?

The primary risks associated with a sole-source award for essential security services include potential overpayment due to the lack of price competition, reduced incentive for the contractor to innovate or provide exceptional service, and a lack of transparency in the procurement process. Taxpayers may not receive the best value for their money. Furthermore, if the sole-source contractor fails to perform adequately, the government may face significant challenges in finding and transitioning to an alternative provider quickly, potentially disrupting critical security operations. This also limits the government's ability to leverage market competition to drive down costs and improve service quality.

What specific security needs does this contract address for FEMA in Tennessee?

This contract addresses the need for Level II-Armed Security Guard Services to support the State of Tennessee operations managed by the Federal Emergency Management Agency (FEMA). While the exact nature of the facilities or assets requiring protection is not specified, armed security is typically employed in situations involving higher risks, the protection of sensitive government property, or ensuring the safety of personnel in potentially volatile environments. These services are crucial for maintaining operational security and continuity for FEMA's presence and activities within Tennessee, especially during or after disaster response efforts.

What is the historical spending pattern for security guard services by the Department of Homeland Security (FEMA)?

Historical spending patterns for security guard services by the Department of Homeland Security (DHS), including FEMA, are substantial and varied. DHS consistently procures a wide range of security services to protect its numerous facilities, personnel, and critical infrastructure nationwide. Spending in this category often fluctuates based on national security needs, disaster response requirements, and specific operational demands. While this specific $2.83 million award is for Tennessee, DHS's overall annual expenditure on security services can run into hundreds of millions or even billions of dollars across all its components and geographic areas. Analyzing past spending would reveal trends in contract types (competitive vs. sole-source), average contract values, and key service providers.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8121 WALNUT RUN RD STE 102, CORDOVA, TN, 38018

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,829,604

Exercised Options: $2,829,604

Current Obligation: $2,829,604

Actual Outlays: $2,710,698

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline