GXC INC awarded $2.5M for PSO SERVICES in NY, with DHS overseeing security guard needs

Contract Overview

Contract Amount: $2,543,510 ($2.5M)

Contractor: GXC Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-04-30

Contract Duration: 211 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PSO SERVICES - IRS BROOKHAVEN IN HOLTSVILLE, NY

Place of Performance

Location: HOLTSVILLE, SUFFOLK County, NEW YORK, 11742

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.5 million to GXC INC for work described as: PSO SERVICES - IRS BROOKHAVEN IN HOLTSVILLE, NY Key points: 1. Contract value of $2.5M for security services indicates a significant investment in safeguarding federal facilities. 2. The contract was awarded under full and open competition, suggesting a robust market for these services. 3. A fixed-price contract structure aims to control costs and provide predictability for the government. 4. The duration of 211 days suggests a focused, short-term need for these specific security services. 5. The service category (Security Guards and Patrol Services) is critical for maintaining operational security. 6. The award to GXC INC represents a specific choice within a potentially competitive landscape.

Value Assessment

Rating: good

The contract value of $2.54 million for approximately 7 months of security services appears reasonable given the scope. Benchmarking against similar contracts for security guards and patrol services at federal facilities of comparable size and complexity would provide a more precise value assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, assuming the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was broad, specific circumstances led to the exclusion of certain potential bidders. The number of bidders is not specified, but the 'full and open' designation suggests multiple interested parties were considered. This level of competition generally promotes price discovery and encourages competitive pricing.

Taxpayer Impact: A full and open competition, even with exclusions, is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overpricing.

Public Impact

Federal facilities in Brookhaven, NY, will benefit from enhanced security measures. The services delivered include security guards and patrol, ensuring physical safety and access control. The geographic impact is localized to Holtsville, NY, where the IRS facility is located. The contract supports the workforce within the security services industry, providing employment for guards and related personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the exact security needs are not precisely defined in the contract.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.
The 'after exclusion of sources' clause warrants further investigation to understand the rationale and its impact on competition.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests a healthy market and potential for competitive pricing.
The contract is for essential security services, directly contributing to the safety and operational integrity of a federal facility.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal agencies are major consumers of these services, contracting for everything from physical security guards to cybersecurity. Spending in this sector is driven by national security needs, protection of government assets, and compliance with regulations. Comparable spending benchmarks would involve analyzing other federal contracts for similar security guard and patrol services across different agencies and geographic locations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, GXC INC, is likely a larger entity capable of fulfilling the contract requirements independently.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's Office of Procurement Operations. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
IRS Facility Security
Security Guard Services
Patrol Services

Risk Flags

Potential lack of transparency regarding 'exclusions of sources'.
Need for detailed performance metrics to ensure value for money.
Reliance on fixed-price contracts requires clear scope definition to avoid disputes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.5 million to GXC INC. PSO SERVICES - IRS BROOKHAVEN IN HOLTSVILLE, NY

Who is the contractor on this award?

The obligated recipient is GXC INC.

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 $2.5 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-04-30.

What is the track record of GXC INC in performing similar federal security contracts?

Assessing the track record of GXC INC requires a review of their past performance on federal contracts, particularly those involving security guard and patrol services. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A history of successful, on-time, and within-budget performance on similar contracts would indicate a lower risk for this current award. Conversely, a pattern of poor performance, contract disputes, or significant delays would raise concerns about their capability to meet the requirements of this new contract effectively.

How does the awarded amount compare to the estimated value or budget for these security services?

The awarded amount of $2,543,510.36 for approximately seven months of security services needs to be compared against the government's initial estimate or allocated budget for this requirement. Without access to the government's independent government cost estimate (IGCE), it's challenging to definitively state if this represents exceptional value. However, the fact that it was awarded under full and open competition suggests that the price achieved is likely competitive within the market. Further analysis would involve comparing the per-diem or hourly rates implied by this contract value against market benchmarks for similar security personnel in the New York region.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

Key performance indicators (KPIs) for a security guard and patrol services contract typically revolve around factors such as response times to incidents, adherence to post orders, personnel reliability (e.g., attendance, background checks), and the prevention of security breaches. The contract documents themselves would outline the specific KPIs and the methodology for measuring performance. The Department of Homeland Security, through its contracting officer's representatives (CORs), would be responsible for monitoring these KPIs. Consistent failure to meet these metrics could lead to corrective actions, penalties, or even contract termination.

What is the historical spending pattern for security services at the IRS Brookhaven facility?

To understand the historical spending pattern for security services at the IRS Brookhaven facility, one would need to analyze past contracts awarded for similar services at this specific location. This involves querying federal procurement databases (like FPDS or SAM.gov) for contracts issued to this facility over several fiscal years. Analyzing these historical data points would reveal the average contract values, durations, incumbent contractors, and the types of security services procured. This context is crucial for assessing whether the current $2.54 million award represents an increase, decrease, or stable level of spending for these essential security functions.

What specific 'exclusions of sources' were applied, and what is their justification?

The phrase 'full and open competition after exclusion of sources' indicates that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded from consideration. The justification for such exclusions must be documented and typically relates to factors like the offeror's inability to meet specific technical requirements, past performance issues, or other pre-defined criteria outlined in the solicitation. Without access to the specific contract file or justification documentation, it is impossible to know the exact exclusions or their validity. Understanding these exclusions is important for assessing the true level of competition and potential impact on pricing.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 78 BRIDGE RD, ISLANDIA, NY, 11749

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,543,510

Exercised Options: $2,543,510

Current Obligation: $2,543,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP124DE2000001

IDV Type: IDC

Timeline