DHS awarded $34M for security services in DC, with a high per-unit cost for guard services

Contract Overview

Contract Amount: $34,060,586 ($34.1M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Homeland Security

Start Date: 2017-10-01

End Date: 2018-09-30

Contract Duration: 364 days

Daily Burn Rate: $93.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CL,CT::IGF PROTECTIVE SECURITY OFFICER SERVICES AT 4 LOCATIONS IN WASHINGTON, D.C.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.1 million to TRIPLE CANOPY INC for work described as: IGF::CL,CT::IGF PROTECTIVE SECURITY OFFICER SERVICES AT 4 LOCATIONS IN WASHINGTON, D.C. Key points: 1. The contract for protective security officer services was awarded to Triple Canopy Inc. for $34.1 million. 2. Services were delivered across four locations within Washington, D.C. 3. The contract duration was one year, from October 1, 2017, to September 30, 2018. 4. The primary service category was Security Guards and Patrol Services (NAICS 561612). 5. This contract was awarded under full and open competition. 6. The contract type was a delivery order, indicating it was part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The total award amount of $34.1 million for one year of security services across four locations in Washington D.C. appears substantial. Benchmarking against similar contracts for protective security services is crucial to determine value for money. The provided data does not include specific labor rates or quantities, making a detailed price assessment difficult. However, the high benchmarked per-unit cost suggests potential areas for cost savings in future procurements.

Cost Per Unit: $93,573 per unit (likely annual cost per guard, requires further clarification)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and service quality. The specific number of bidders is not provided, but the full and open nature indicates a robust competition was sought.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging a wider pool of qualified contractors to offer their best prices.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its facilities in Washington, D.C., which received enhanced security. The services delivered included protective security officer functions, ensuring the safety and security of government personnel and assets. The geographic impact is concentrated within Washington, D.C., specifically at the four designated locations. The contract supported jobs within the security services sector, likely employing numerous security guards and supervisory staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The per-unit cost benchmark of $93,573 is notably high, suggesting potential for overspending or the need for more efficient service delivery models.
Lack of detailed breakdown on labor hours and rates makes it difficult to fully assess cost-effectiveness.
The contract was a delivery order, which can sometimes lead to less predictable overall spending if the base IDIQ contract is not well-managed.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract provided essential security services to a critical federal agency.
Services were delivered within the nation's capital, ensuring security for key government operations.

Sector Analysis

The security services industry is a significant sector within the U.S. economy, encompassing a wide range of protective and investigative activities. Federal spending in this area is substantial, driven by the need to secure government facilities, personnel, and sensitive information. This contract falls under the Security Guards and Patrol Services category, which is a core component of the broader security industry. Comparable spending benchmarks would involve analyzing other federal contracts for similar security guard 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, small businesses were likely not the primary recipients of this award. However, the prime contractor, Triple Canopy Inc., may have subcontracting opportunities for small businesses, though this information is not detailed in the provided data. The absence of a small business set-aside suggests the competition was aimed at larger, established security firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Specific oversight mechanisms would include performance monitoring, quality assurance checks, and financial audits. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Security Guard Services
Government Facility Security

Risk Flags

High Per-Unit Cost
Potential for Cost Overruns
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.1 million to TRIPLE CANOPY INC. IGF::CL,CT::IGF PROTECTIVE SECURITY OFFICER SERVICES AT 4 LOCATIONS IN WASHINGTON, D.C.

Who is the contractor on this award?

The obligated recipient is TRIPLE CANOPY 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 $34.1 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-09-30.

What is the specific breakdown of services provided under this contract, and how do they align with the NAICS code 561612?

NAICS code 561612, 'Security Guards and Patrol Services,' encompasses a range of activities including providing on-site security personnel, monitoring surveillance equipment, and patrolling premises to protect clients' property and personnel from harm and theft. Under this specific contract with the Department of Homeland Security (DHS), the services likely involved uniformed security officers stationed at four designated locations in Washington, D.C. These officers would have been responsible for access control, deterring unauthorized entry, responding to security incidents, and maintaining a visible security presence. The contract type, 'LABOR HOURS,' indicates that payment was based on the actual hours worked by the security personnel, rather than a fixed price for a defined scope of work. This suggests a need for flexibility in staffing levels based on operational requirements at the various DHS facilities.

How does the per-unit cost of $93,573 compare to industry benchmarks for security guard services?

The per-unit cost of $93,573, likely representing an annualized cost per security guard, appears to be on the higher end when compared to typical industry benchmarks for security guard services. While exact comparisons are difficult without knowing the specific skill level, hours, and benefits included, standard rates for unarmed security guards often range from $25-$50 per hour. Annualizing this at 2080 hours per year would place the cost between $52,000 and $104,000. However, federal contracts, especially in high-security environments like Washington D.C., often include higher labor costs due to stringent vetting, specialized training, benefits packages, and overhead. The $93,573 figure suggests that this contract may have involved guards with specialized training, working extended hours, or providing services in a high-cost urban area, or it could indicate a potential area for cost optimization in future procurements if comparable services can be obtained at a lower rate.

What are the potential risks associated with a delivery order contract for security services?

Delivery order contracts, often issued under an Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle, can present several risks. One primary risk is the potential for cost creep if the base IDIQ contract's ceiling is not carefully managed or if task orders are issued without sufficient justification for their scope and cost. For security services, there's also a risk of inconsistent service quality across different delivery orders or locations if performance standards are not uniformly applied and monitored. Another concern can be the lack of transparency in the issuance of individual delivery orders, potentially leading to perceptions of favoritism if the ordering process is not strictly competitive or well-documented. Furthermore, if the base contract is lengthy, the security landscape or agency needs might evolve, making the services procured through later delivery orders less relevant or efficient.

What is the track record of Triple Canopy Inc. in providing federal security services?

Triple Canopy Inc. has a significant history of providing security services to the U.S. government, particularly in complex and high-risk environments. The company has been awarded numerous federal contracts, often involving protective services, security operations, and training for agencies such as the Department of Defense, Department of State, and Department of Homeland Security. Their experience includes providing security personnel for embassies, military installations, and other government facilities. While their track record is generally extensive, like many large federal contractors, they have also faced scrutiny and challenges related to contract performance, personnel management, and pricing in the past. A thorough review of their performance on this specific DHS contract, as well as other relevant federal awards, would be necessary to fully assess their capabilities and reliability for this type of service.

How does the total contract value of $34.1 million compare to overall federal spending on security guard services?

The $34.1 million awarded to Triple Canopy Inc. for one year of security services represents a notable investment for a single contract covering four locations. However, when viewed against the backdrop of total federal spending on security guard services, it is a relatively modest portion. The U.S. government procures billions of dollars worth of security services annually across various agencies, including defense, homeland security, justice, and others. This contract is one of many contributing to the overall federal expenditure in this sector. To contextualize its size, one would need to examine the total federal budget allocated to NAICS code 561612 and similar security-related codes over the contract period and compare this award to the average size and number of contracts within that category.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Constellis Holdings, LLC (UEI: 966133477)

Address: 13530 DULLES TECHNOLOGY DR STE 500, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $34,060,586

Exercised Options: $34,060,586

Current Obligation: $34,060,586

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQEC16D00008

IDV Type: IDC

Timeline