DHS Awards $2M for Electronic Security Systems Sustainment to Red Peak Technical Services

Contract Overview

Contract Amount: $1,994,293 ($2.0M)

Contractor: RED Peak Technical Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-29

End Date: 2027-03-31

Contract Duration: 913 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ELECTRONIC SECURITY SYSTEMS SUSTAINMENT SUPPORT SERVICES

Place of Performance

Location: SPRINGFIELD, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.0 million to RED PEAK TECHNICAL SERVICES, LLC for work described as: ELECTRONIC SECURITY SYSTEMS SUSTAINMENT SUPPORT SERVICES Key points: 1. Contract awarded to Red Peak Technical Services, LLC for $1.99M. 2. Services include sustainment support for electronic security systems. 3. The contract was not competed under Simplified Acquisition Procedures (SAP). 4. This falls under the Security Systems Services sector. 5. The contract duration is 913 days.

Value Assessment

Rating: questionable

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The lack of competition raises concerns about whether the government received the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, suggesting a limited competition approach. This method may not yield the most competitive pricing, as fewer vendors had the opportunity to bid.

Taxpayer Impact: The limited competition may result in taxpayers paying more than necessary for these sustainment services.

Public Impact

Ensures continued operation of critical electronic security systems for DHS. Potential for increased costs due to Time and Materials contract type. Lack of transparency in the procurement process. Supports a single vendor for an extended period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Time and Materials contract type
Lack of clear justification for limited competition

Positive Signals

Addresses a critical need for security system sustainment

Sector Analysis

This contract falls within the Security Systems Services sector, which includes the installation and maintenance of electronic security systems. Benchmarks for similar services can vary widely based on system complexity and service level agreements.

Small Business Impact

The contract was awarded to Red Peak Technical Services, LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further analysis would be needed to determine if small business set-asides were considered.

Oversight & Accountability

The procurement process, particularly the lack of competition under SAP, warrants further oversight to ensure fair pricing and effective use of taxpayer funds. Accountability for the chosen procurement method should be clearly documented.

Related Government Programs

Security Systems Services (except Locksmiths)
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Lack of competition
Time and Materials contract type
Potential for cost overruns
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.0 million to RED PEAK TECHNICAL SERVICES, LLC. ELECTRONIC SECURITY SYSTEMS SUSTAINMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is RED PEAK TECHNICAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-09-29. End: 2027-03-31.

What was the specific justification for not competing this contract under SAP, and were alternative limited competition methods explored?

The justification for not competing under SAP is not explicitly provided in the data. Typically, agencies may opt for limited competition due to urgent needs, sole-source justifications, or specific technical requirements. However, without further documentation, it's unclear if other limited competition strategies were considered or if this was the most appropriate path to ensure value for money.

How does the Time and Materials pricing structure compare to fixed-price or other contract types for similar sustainment services, and what controls are in place to manage costs?

Time and Materials contracts can be riskier for the government as costs are not capped upfront. Compared to fixed-price contracts, they offer less cost certainty. Effective management requires robust oversight, detailed tracking of labor hours and material costs, and clear ceiling limitations to prevent cost overruns and ensure value.

What is the long-term strategy for electronic security system sustainment, and will future procurements involve greater competition to ensure cost-effectiveness?

The provided data focuses on a single contract award and does not outline the long-term strategy. Future procurements should aim for increased competition, potentially through larger IDIQ contracts or more robust solicitations, to leverage market forces and achieve better pricing and service levels for the government.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70RDA124Q00000149

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3909 ARCTIC BLVD, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $3,409,473

Exercised Options: $1,994,293

Current Obligation: $1,994,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline