DHS awards $88.6M for armed guard services, with a significant portion allocated to DC

Contract Overview

Contract Amount: $88,641,645 ($88.6M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-05-01

End Date: 2026-02-28

Contract Duration: 1,399 days

Daily Burn Rate: $63.4K/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 $88.6 million to TRIPLE CANOPY INC for work described as: ARMED GUARD II SERVICES Key points: 1. Contract value represents a substantial investment in security services for the Department of Homeland Security. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (nearly 4 years) indicates a long-term need for these services. 4. The primary service area is Washington D.C., highlighting a concentration of security needs in the capital. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. The award was made via a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total award of $88.6 million over approximately 3.8 years suggests a significant but potentially reasonable investment for comprehensive security services. Benchmarking against similar large-scale security contracts for federal agencies is crucial for a definitive value assessment. The firm fixed-price structure provides cost predictability. However, without detailed breakdowns of service levels and specific guard requirements, a precise value-for-money evaluation is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 7 bidders participating, the competition appears robust, which generally leads to better pricing and service offerings for the government. This level of competition suggests that the government likely received competitive proposals and selected the best value offer.

Taxpayer Impact: A competitive bidding process for security services helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Provides essential security and protection for Department of Homeland Security facilities and personnel. Ensures the safety and operational continuity of critical government functions. Primarily benefits the District of Columbia by providing security in a high-stakes environment. Supports a workforce of security professionals, contributing to employment in the security sector. Enhances the overall security posture of federal assets within the National Capital Region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined and managed.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring consistent quality and adherence to standards across all deployed personnel requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract type provides budget certainty.
Long-term contract duration allows for stable security planning and resource allocation.
The contractor, Triple Canopy Inc., has experience in providing security services.

Sector Analysis

The security services sector is a significant component of the federal contracting landscape, encompassing a wide range of protective services. This contract falls within the security guards and patrol services industry (NAICS 561612), a market characterized by numerous providers ranging from small businesses to large corporations. Federal spending in this area is consistently high due to the need to protect sensitive facilities, personnel, and assets across various agencies. This specific award to Triple Canopy Inc. for armed guard services represents a substantial portion of spending within this niche, likely supporting high-security requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, Triple Canopy Inc., is a large entity, suggesting that subcontracting opportunities for small businesses may be limited unless specifically mandated or pursued by the prime contractor. The absence of a small business focus in this award means that the direct economic benefit to the small business ecosystem from this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight by fixing costs. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

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

Risk Flags

Potential for performance issues given the scale and duration of the contract.
Reliance on armed personnel requires stringent oversight and adherence to use-of-force policies.
Concentration of services in the DC area may not reflect broader national security needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $88.6 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 $88.6 million.

What is the period of performance?

Start: 2022-05-01. End: 2026-02-28.

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

Historical spending data for armed guard services by the Department of Homeland Security (DHS) reveals a consistent and significant investment in security personnel. While specific figures fluctuate year-to-year based on evolving threats and operational needs, DHS consistently allocates substantial funds to ensure the protection of its vast array of facilities and personnel. Contracts for these services are often awarded through competitive processes, with major security firms frequently securing these awards. The duration of these contracts can vary, but multi-year agreements are common to ensure continuity. Analysis of past awards indicates a trend towards performance-based contracts, emphasizing measurable security outcomes. The total spending on armed guard services by DHS has generally remained in the tens to hundreds of millions of dollars annually, reflecting the critical nature of these protective measures for a department responsible for national security and border control.

How does the per-unit cost of guards under this contract compare to similar federal contracts?

A precise per-unit cost comparison for armed guards under this $88.6 million DHS contract is challenging without access to the detailed service rates within the contract's pricing structure. However, given the contract's firm fixed-price nature and the requirement for armed personnel, the per-hour or per-guard cost is expected to be competitive within the federal contracting market. Similar contracts for armed guards in high-security environments, particularly in the Washington D.C. metropolitan area, often range from $50 to over $100 per hour per guard, depending on factors like required certifications, experience levels, shift differentials, and the specific security threat environment. The presence of 7 bidders in this full and open competition suggests that the government likely secured rates that are benchmarked against market standards. Further analysis would require comparing specific labor categories, overhead rates, and profit margins against publicly available data for comparable federal security contracts.

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

Key Performance Indicators (KPIs) for armed guard services contracts, such as this one awarded to Triple Canopy Inc. by DHS, are crucial for ensuring effective security delivery and accountability. While the specific KPIs are detailed within the contract's Performance Work Statement (PWS), common metrics include response times to incidents, adherence to post orders, guard presence and punctuality, incident reporting accuracy and timeliness, and successful completion of required training and background checks. For armed personnel, KPIs might also encompass firearms proficiency scores and adherence to strict protocols regarding the use of force. Performance is typically monitored through regular reports submitted by the contractor, site inspections, and feedback from government personnel interacting with the guards. Failure to meet these KPIs can result in contractual remedies, including financial penalties or even termination of the contract, underscoring their importance in maintaining security standards.

What is the track record of Triple Canopy Inc. in fulfilling similar federal security contracts?

Triple Canopy Inc. has a significant track record in providing security services, including armed guard functions, to various U.S. government agencies. The company has been awarded numerous federal contracts over the years, often in support of high-risk or complex operational environments. Their experience spans providing security for diplomatic facilities, military installations, and government agencies, both domestically and internationally. Past performance evaluations, where publicly available, generally indicate a capacity to meet contractual requirements. However, like many large federal contractors, Triple Canopy has also faced scrutiny and challenges on certain contracts, which is typical given the scale and sensitivity of the services provided. Prospective analysis of their performance on this DHS contract would involve reviewing past performance questionnaires (PPQs) and any available contract data, such as award history and any reported disputes or corrective actions, to assess their reliability and effectiveness.

What is the potential impact of this contract on the overall security posture of the Department of Homeland Security?

This $88.6 million contract for armed guard services is poised to have a substantial positive impact on the overall security posture of the Department of Homeland Security (DHS). By securing comprehensive security coverage, likely for critical facilities and operations, DHS can enhance its ability to prevent unauthorized access, deter threats, and respond effectively to security incidents. The long-term nature of the contract (nearly four years) allows for consistent application of security protocols and personnel deployment, contributing to a stable and reliable security environment. The focus on armed guards suggests coverage for areas requiring a higher level of protection, directly bolstering the department's defense against potential physical threats. Ultimately, this investment in professional security services is fundamental to DHS's mission of safeguarding the nation's security and resilience.

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: 70RFP222QEC000003

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: $92,419,592

Exercised Options: $88,641,645

Current Obligation: $88,641,645

Actual Outlays: $68,307,476

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000018

IDV Type: IDC

Timeline