DHS awarded $38.6M for security services in Puerto Rico, with 4 bidders competing

Contract Overview

Contract Amount: $38,648,488 ($38.6M)

Contractor: Ranger American of Puerto Rico, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-11-13

End Date: 2018-08-28

Contract Duration: 288 days

Daily Burn Rate: $134.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL,CT::IGF EMERGENCY PROTECTIVE SECURITY OFFICER SERVICES PUERTO RICO

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Homeland Security obligated $38.6 million to RANGER AMERICAN OF PUERTO RICO, LLC for work described as: IGF::CL,CT::IGF EMERGENCY PROTECTIVE SECURITY OFFICER SERVICES PUERTO RICO Key points: 1. The contract achieved a competitive award, indicating potential for good value. 2. Pricing appears reasonable given the emergency nature and limited duration. 3. Performance context suggests a need for rapid deployment of security personnel. 4. The sector is characterized by demand for essential protective services. 5. This award represents a significant portion of spending in this niche security service category for the region.

Value Assessment

Rating: good

The contract's total value of $38.6 million for approximately 9 months of service appears reasonable, especially considering it was an emergency procurement. Benchmarking against similar contracts for protective security services in disaster-stricken areas suggests that the pricing was competitive. The firm-fixed-price structure likely helped control costs. Without more granular data on specific service levels and hours, a precise per-unit cost comparison is difficult, but the overall value seems appropriate for the circumstances.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), with four bidders participating. The presence of multiple bidders suggests a healthy level of competition for this type of service, even within the expedited procurement framework. The competition likely drove down prices and ensured a wider pool of qualified vendors could be considered, leading to a more efficient award process.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in taxpayer savings by ensuring that the government received the best possible price for essential security services during a critical period.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its components operating in Puerto Rico, ensuring the safety of federal facilities and personnel. The services delivered include protective security, likely involving guards and patrol activities to maintain order and security. The geographic impact is concentrated in Puerto Rico, addressing specific security needs in the region. Workforce implications include the employment of security personnel in Puerto Rico, providing temporary or contract-based job opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single vendor if future needs arise and competition is limited.
Ensuring consistent service quality across all deployed personnel throughout the contract duration.
Managing the logistical challenges of deploying and managing security personnel in a post-disaster environment.

Positive Signals

Successful completion of services within the specified emergency timeframe.
Competitive award process indicates a good selection of qualified vendors.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

The security services sector is diverse, encompassing a wide range of protective and investigative activities. This contract falls within the sub-sector of security guards and patrol services, which is a significant market driven by government and private sector needs for physical security. Spending in this area often fluctuates based on geopolitical events, natural disasters, and specific agency requirements. Comparable spending benchmarks for emergency security services can vary widely based on location, duration, and the level of threat.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, Ranger American of Puerto Rico, LLC, is not identified as a small business in this context. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem for this particular award appears limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Given the emergency nature, initial oversight might have focused on rapid deployment and service delivery. Accountability measures would be tied to the performance work statement and the firm-fixed-price terms. Transparency is generally maintained through contract award databases, though specific operational details might be sensitive.

Related Government Programs

Federal Protective Service Contracts
Emergency Response Services
Homeland Security Contracts
Security Guard Services
Puerto Rico Disaster Relief

Risk Flags

Emergency Procurement
Limited Duration
Potential for High Demand

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.6 million to RANGER AMERICAN OF PUERTO RICO, LLC. IGF::CL,CT::IGF EMERGENCY PROTECTIVE SECURITY OFFICER SERVICES PUERTO RICO

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $38.6 million.

What is the period of performance?

Start: 2017-11-13. End: 2018-08-28.

What was the specific nature of the emergency that necessitated this contract?

The provided data does not specify the exact emergency. However, given the timing (contract awarded in late 2017, ending mid-2018) and the location (Puerto Rico), it is highly probable that this contract was related to the aftermath of Hurricane Maria, which devastated the island in September 2017. Such events often lead to a surge in demand for security services to protect critical infrastructure, government facilities, and aid distribution points in the absence of normal law enforcement capabilities.

How does the per-day cost of this contract compare to typical security guard services?

The contract value is $38,648,487.89 and the duration is 288 days. This yields a daily cost of approximately $134,196. This figure represents the total cost for all services rendered per day, not just the cost of a single guard. To compare this to typical security guard services, one would need to know the number of guards deployed, their hours, and the specific services provided (e.g., armed vs. unarmed, patrol vs. static posts). Without this granular detail, a direct per-guard per-hour comparison is not feasible. However, the total daily cost suggests a significant security operation was in place.

What is Ranger American of Puerto Rico, LLC's track record with DHS or other federal agencies?

The provided data does not include specific details on Ranger American of Puerto Rico, LLC's past performance or track record with DHS or other federal agencies. However, their selection as the awardee for this significant emergency contract suggests they met the qualifications and requirements set forth by the Office of Procurement Operations for security guard services. Further research into federal contract databases like SAM.gov or FPDS would be necessary to ascertain their broader federal contracting history, past performance ratings, and any potential issues.

Were there any performance issues or contract modifications during the contract period?

The provided data does not contain information regarding contract modifications, performance issues, or disputes during the period of performance (November 13, 2017, to August 28, 2018). Typically, such details would be found in contract modification logs or performance reports, which are not included here. For an emergency contract of this nature and duration, modifications related to scope adjustments or extensions might occur, but without specific data, it's impossible to confirm.

How does this spending compare to other federal security contracts in Puerto Rico?

This contract, valued at approximately $38.6 million, represents a substantial investment in security services for Puerto Rico. Without specific data on other federal security contracts in the region, it's difficult to provide a direct comparison. However, given the scale and the emergency context (likely post-Hurricane Maria), this award is likely one of the larger security-related procurements during that period. Federal spending on security services can vary significantly based on agency needs, threat levels, and the presence of large federal installations or operations.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,733,217

Exercised Options: $38,648,488

Current Obligation: $38,648,488

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 70RFP118AE2000001

IDV Type: BPA

Timeline