DHS awards $133M contract for protective security services, with 7 bidders vying for the work

Contract Overview

Contract Amount: $133,302,725 ($133.3M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Homeland Security

Start Date: 2019-10-01

End Date: 2025-02-28

Contract Duration: 1,977 days

Daily Burn Rate: $67.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN SILVER SPRING AND BELTSVILLE MD

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $133.3 million to TRIPLE CANOPY INC for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN SILVER SPRING AND BELTSVILLE MD Key points: 1. The contract value of $133.3 million over its potential period of performance represents a significant investment in security services. 2. With 7 bidders, the competition level suggests a moderately competitive market for these specialized security services. 3. The firm-fixed-price contract type aims to control costs, but requires careful monitoring to ensure value. 4. The duration of the contract, spanning nearly 2,000 days, indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized segment within the security industry. 6. The contract's focus on Maryland locations highlights a concentrated geographic need for protective security.

Value Assessment

Rating: good

The contract's total value of $133.3 million over its estimated 1977-day duration averages approximately $67,427 per day. Benchmarking this against similar large-scale security contracts is challenging without more granular data on service levels and geographic scope. However, the firm-fixed-price nature suggests an expectation of cost control by the agency. The number of bids received (7) indicates a reasonable level of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation attracted 7 bidders, suggesting a healthy level of interest and competition within the market for protective security services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. The presence of multiple bidders suggests that the government is likely to receive a fair price for the security services provided.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced security at its facilities in Silver Spring and Beltsville, Maryland. The contract ensures the provision of protective security officer (PSO) services, safeguarding federal assets and personnel. The services are geographically concentrated within Maryland, impacting the local economy through employment and business activity. The contract supports jobs for security professionals, contributing to the workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in firm-fixed-price contracts if not managed diligently.
Ensuring consistent service quality across all deployed officers over a long contract duration.
Managing potential price increases if market labor rates rise significantly during the contract period.

Positive Signals

Full and open competition generally leads to better pricing and wider access to qualified vendors.
The firm-fixed-price structure provides cost certainty for the agency.
A significant number of bidders (7) indicates a robust and responsive market.

Sector Analysis

The security services industry is a substantial sector within the broader professional services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The market is characterized by a mix of large, established providers and smaller, specialized firms. Federal spending in this area is driven by the need to protect government facilities, personnel, and sensitive information. Comparable spending benchmarks would typically involve analyzing per-square-foot security costs or per-officer rates for similar government facilities.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is Triple Canopy Inc., a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the security services being delivered.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Homeland Security's Office of Procurement Operations. The firm-fixed-price nature of the contract implies that the contractor bears the primary responsibility for cost control. Performance monitoring, quality assurance checks, and adherence to contract terms would be key oversight mechanisms. Transparency is generally maintained through contract award databases, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

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

Risk Flags

Long contract duration may increase risk of cost escalation or service degradation if not managed properly.
Firm-fixed-price contracts require diligent oversight to ensure quality is maintained.
Dependence on a single large contractor for critical security services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $133.3 million to TRIPLE CANOPY INC. PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN SILVER SPRING AND BELTSVILLE MD

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 $133.3 million.

What is the period of performance?

Start: 2019-10-01. End: 2025-02-28.

What is the historical spending pattern for protective security services by DHS in Maryland?

Analyzing historical spending for DHS protective security services in Maryland requires access to detailed federal procurement data. While this specific contract is valued at $133.3 million, understanding the broader trend involves looking at previous awards for similar services within the state. Factors such as changes in security requirements, facility expansions or consolidations, and shifts in contracting strategies (e.g., from multiple smaller contracts to larger IDIQs or single awards) would influence spending patterns. Without a comprehensive historical dataset for DHS in Maryland specifically for NAICS 561612, it's difficult to provide precise historical figures. However, federal spending on security services generally has seen an upward trend over the past two decades due to increased security concerns and evolving threats.

How does the per-day cost of this contract compare to industry benchmarks for similar security services?

The total contract value is $133,302,725.29 over a period of 1977 days, resulting in an approximate daily cost of $67,427. Benchmarking this against industry standards for Protective Security Officer (PSO) services is complex due to variations in service scope, officer-to-area ratios, required security clearances, and geographic location. Generally, government contracts for security services can be competitive. However, without specific details on the number of officers, their post orders, and the specific security requirements (e.g., armed vs. unarmed, level of surveillance), a direct comparison is difficult. Industry benchmarks often vary widely, but a daily rate for a team of security personnel could range from a few hundred to several thousand dollars depending on these factors. The significant total value suggests a substantial operation.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical KPIs for Protective Security Officer (PSO) services often include metrics related to officer presence and punctuality, incident response times, adherence to post orders, report accuracy and timeliness, and overall effectiveness in preventing security breaches. For a contract of this magnitude and duration, DHS likely employs a robust performance management plan. This would involve regular performance reviews, site visits, and potentially a performance evaluation system where the contractor receives ratings on various aspects of service delivery. Failure to meet critical KPIs could result in contractual remedies, including financial penalties or termination.

What is the track record of Triple Canopy Inc. in performing similar large-scale government security contracts?

Triple Canopy Inc. has a significant history of performing large-scale security contracts, particularly for government agencies. The company has been involved in providing security services in complex and high-risk environments, including overseas operations. Their experience often includes providing armed and unarmed guards, physical security, and protective services. When evaluating their track record for this specific DHS contract, it would be prudent to examine past performance evaluations, any past performance issues or disputes, and their demonstrated ability to manage large workforces and complex logistical requirements. Their established presence in the federal contracting space suggests a familiarity with government requirements and compliance standards.

What are the potential risks associated with a firm-fixed-price contract of this duration?

A firm-fixed-price (FFP) contract, especially one with a long duration like this 1977-day contract, carries inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on quality or service to maximize profit if costs increase unexpectedly during the contract period. Conversely, the contractor bears the risk of cost overruns if their initial price estimate was too low or if unforeseen circumstances (like significant inflation in labor or operational costs) arise. Effective contract management, including robust oversight and clear performance standards, is crucial to mitigate these risks and ensure the government receives the intended value throughout the contract's life.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RFP219QEC000014

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $138,643,555

Exercised Options: $133,302,725

Current Obligation: $133,302,725

Actual Outlays: $64,856,697

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $7,746,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000018

IDV Type: IDC

Timeline