DHS awards $31.4M for armed guard services, with 7 bids received

Contract Overview

Contract Amount: $31,421,962 ($31.4M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-28

End Date: 2022-04-30

Contract Duration: 702 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED GUARD II SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.4 million to TRIPLE CANOPY INC for work described as: ARMED GUARD II SERVICES Key points: 1. Value for money appears reasonable given the firm fixed-price contract type and competitive bidding. 2. Competition dynamics show a healthy level of interest with 7 bidders for this security service contract. 3. Risk indicators are moderate, typical for security services, with performance dependent on contractor execution. 4. Performance context is for security guard services, a recurring need for federal agencies. 5. Sector positioning is within the security and protective services industry, a significant government spending area.

Value Assessment

Rating: good

The contract was awarded at a firm fixed price, which helps control costs. With 7 bids, the pricing is likely competitive. The benchmarked value of $44,761 per year suggests a reasonable cost for the services provided, especially considering the specialized nature of armed guards. This price point is within expected ranges for similar security contracts.

Cost Per Unit: $44,761 per year (estimated based on total award and duration)

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 receipt of 7 bids suggests a robust competitive environment for these security services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where contractors must offer competitive pricing to win the contract.

Public Impact

Benefits the Department of Homeland Security by providing essential security personnel. Delivers security guard and patrol services to protect federal facilities and personnel. Geographic impact is concentrated in the District of Columbia. Workforce implications include employment for security guards and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting security continuity.
Reliance on a single contractor for critical security functions.

Positive Signals

Firm fixed-price contract limits cost overruns.
Competitive award process suggests a fair market price.
Contract duration provides stability for service provision.

Sector Analysis

The security and protective services sector is a substantial part of federal contracting. This contract falls under NAICS code 561612, Security Guards and Patrol Services. Spending in this area is consistent across many federal agencies requiring physical security. Comparable spending benchmarks for similar services vary widely based on location, scope, and level of security required.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary award went to a large business. Future contracts in this category may offer opportunities for small business participation.

Oversight & Accountability

Oversight is managed by the Department of Homeland Security, likely through contract officers and CORs responsible for monitoring performance and ensuring compliance with the contract terms. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Physical Security Services
Guard Services
Department of Homeland Security Contracts

Risk Flags

Contract performance risk
Potential for service disruption
Need for diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.4 million to TRIPLE CANOPY INC. ARMED GUARD II SERVICES

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 $31.4 million.

What is the period of performance?

Start: 2020-05-28. End: 2022-04-30.

What is the historical spending trend for armed guard services by the Department of Homeland Security?

Analyzing historical spending for armed guard services by DHS requires access to detailed federal procurement data over multiple fiscal years. While this specific contract award is for $31.4 million over its duration, understanding the broader trend involves looking at all similar contracts awarded by DHS. Factors influencing spending include changes in security requirements, threat assessments, and agency budgets. Without a comprehensive historical dataset for this specific service category across DHS, it's difficult to pinpoint a precise trend. However, generally, spending on security services tends to be relatively stable or increase in response to heightened security concerns or expansion of federal operations.

How does the per-unit cost of this contract compare to other federal armed guard service contracts?

The estimated per-unit cost for this contract is approximately $44,761 per year. To benchmark this effectively, we would need to compare it against similar contracts awarded by other federal agencies or even within DHS itself, considering factors like geographic location, hours of service, and specific security requirements (e.g., level of armament, training standards). A preliminary comparison suggests this cost is within a reasonable range for armed guard services in a high-cost area like Washington D.C. However, a definitive comparison would require a detailed analysis of contract terms and service levels across a broader set of comparable contracts.

What are the key performance indicators (KPIs) expected for this armed guard service contract?

Key performance indicators for an armed guard service contract typically focus on reliability, responsiveness, and professionalism. These often include metrics such as guard punctuality (e.g., less than 1% unscheduled absence rate), response times to incidents, adherence to post orders, successful completion of required training and certifications, and minimal security breaches or incidents attributed to guard failure. The contract likely specifies these KPIs, and performance would be monitored by the Contracting Officer's Representative (COR) to ensure compliance and service quality. Failure to meet KPIs could result in contract remedies or termination.

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

Triple Canopy Inc. has a significant track record in providing security services, including armed guard and protective services, to various U.S. government agencies, particularly in high-risk environments. They have been awarded numerous contracts for services in locations such as Iraq and Afghanistan, as well as domestic security support. Their experience includes providing personnel, training, and security solutions. While specific performance details for every contract are not publicly available, their continued award of substantial government contracts suggests a generally satisfactory performance history, though like any large contractor, they may have faced scrutiny or challenges on specific engagements.

What is the potential risk associated with the duration and value of this contract?

The contract has a duration of approximately two years (702 days) with a total award value of $31.4 million. The primary risks associated with this duration and value include potential scope creep if requirements evolve, contractor performance degradation over time, and the financial commitment required from the government. For a firm-fixed-price contract, the risk of cost overruns is primarily on the contractor, but the government bears the risk of receiving substandard services if performance is not adequately monitored. The value necessitates robust oversight to ensure accountability and prevent waste, fraud, or abuse 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: 70RFP220QEC000001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Constellis Holdings, LLC

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: $31,421,962

Exercised Options: $31,421,962

Current Obligation: $31,421,962

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000018

IDV Type: IDC

Timeline