DHS awards $20.7M for Protective Security Officer services in Maryland, with 9 bidders indicating strong competition

Contract Overview

Contract Amount: $20,743,980 ($20.7M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-01

End Date: 2028-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN BETHESDA, MD

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20816

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.7 million to TRIPLE CANOPY INC for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN BETHESDA, MD Key points: 1. The contract value of $20.7 million over four years suggests a competitive market for security services. 2. A high number of bidders (9) for this contract implies a healthy level of competition, potentially driving better pricing. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. This award falls within the Security Guards and Patrol Services industry, a common government contracting area. 5. The duration of 1460 days (4 years) provides stability for service delivery and contractor planning. 6. The geographic focus on Bethesda, Maryland, indicates a specific operational need within the Department of Homeland Security.

Value Assessment

Rating: good

The contract value of approximately $20.7 million over four years averages to about $5.18 million annually. Benchmarking this against similar large-scale security contracts requires detailed analysis of scope, location, and specific service requirements. However, the presence of nine bidders suggests that the pricing is likely competitive and reflects market rates for protective security services in the region. The firm-fixed-price structure further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with nine distinct bidders participating. This indicates a robust and accessible market for protective security services, allowing the Department of Homeland Security to solicit offers from a wide range of qualified vendors. The high number of bidders suggests that the solicitation was well-structured and attractive to potential offerors, fostering a competitive environment that typically leads to more favorable pricing and service options.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by driving down costs through competitive bidding and ensuring that the government secures services at a fair market price. This approach maximizes the use of taxpayer funds by preventing inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiaries are the Department of Homeland Security facilities and personnel in Bethesda, Maryland, who will receive enhanced security coverage. The services delivered include the provision of trained protective security officers to maintain a secure environment. The geographic impact is localized to Bethesda, Maryland, ensuring security at specific DHS installations within that area. The contract supports jobs within the private security sector, contributing to employment in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service requirements become highly specialized over time.
Ensuring consistent quality of service across all deployed officers throughout the contract duration.
Managing the transition of services at the end of the contract period to avoid security gaps.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition with nine bidders suggests a strong market and competitive pricing.
The contract duration allows for stable service provision and reduces frequent re-procurement costs.

Sector Analysis

The Protective Security Officer (PSO) services market is a significant segment within the broader security and facilities management industry. This contract, valued at $20.7 million, aligns with government spending trends for essential security operations. The North American Industry Classification System (NAICS) code 561612 (Security Guards and Patrol Services) encompasses a large number of firms, indicating a fragmented but active market. Comparable spending benchmarks would depend on the specific security requirements, officer levels, and geographic density, but this award appears to be a substantial contract within its domain.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside indicated (ss: false, sb: false), the presence of nine bidders suggests that smaller, specialized security firms may have participated as subcontractors. The prime contractor, Triple Canopy Inc., may have opportunities to engage small businesses for subcontracting, contributing to the small business ecosystem. Further analysis of the subcontracting plan would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Department of Homeland Security, responsible for monitoring performance and ensuring compliance with contract terms. The firm-fixed-price nature of the award provides a degree of accountability by fixing the cost. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Potential for service quality degradation over contract term
Risk of contractor financial instability impacting service delivery
Need for continuous performance monitoring to ensure compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.7 million to TRIPLE CANOPY INC. PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN BETHESDA, 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 $20.7 million.

What is the period of performance?

Start: 2024-04-01. End: 2028-03-31.

What is the historical spending pattern for Protective Security Officer (PSO) services by the Department of Homeland Security in Maryland?

Analyzing historical spending for PSO services by DHS in Maryland requires accessing detailed procurement data over several fiscal years. While this specific contract is for $20.7 million from April 2024 to March 2028, understanding past expenditures would involve looking at previous contracts awarded for similar services in the same geographic region. Factors such as changes in security requirements, inflation, and the number of facilities requiring PSO support would influence historical spending. Without access to a comprehensive historical database for this specific service and location, it's difficult to provide precise figures. However, general trends in federal security spending suggest a consistent need for these services, with potential fluctuations based on national security priorities and agency budgets. The current award's value can serve as a benchmark for recent spending levels in this area.

How does the number of bidders (9) compare to the average number of bidders for similar security guard contracts awarded by federal agencies?

A competition with nine bidders for a federal contract, particularly for security guard services, is generally considered robust. The average number of bidders can vary significantly based on the contract's size, complexity, geographic location, and the specific industry. For services like security guards, which are widely needed, a higher number of bidders is often observed, especially when the solicitation is well-defined and accessible to a broad range of companies. Industry benchmarks suggest that for contracts of this nature, anywhere from 3 to 10+ bidders can be common. Nine bidders indicates a healthy level of market interest and suggests that the solicitation was effectively advertised and that multiple firms found the opportunity attractive and feasible to pursue. This level of competition is favorable for the government, as it increases the likelihood of receiving competitive pricing and high-quality service proposals.

What are the key performance indicators (KPIs) typically used to evaluate the performance of Protective Security Officers under such contracts?

Key Performance Indicators (KPIs) for Protective Security Officer (PSO) contracts are crucial for ensuring service quality and accountability. Common KPIs often include metrics related to response times to incidents, adherence to post orders, accuracy in reporting and documentation, professionalism and appearance of officers, and the prevention of unauthorized access or security breaches. For instance, a KPI might be '98% adherence to scheduled post assignments' or 'response to alarms within 2 minutes.' Client satisfaction surveys and the number of reported security incidents (or lack thereof) can also serve as indirect KPIs. The effectiveness of training programs and the turnover rate of personnel might also be monitored. These KPIs are typically defined in the contract's Performance Work Statement (PWS) and are used during performance reviews to assess the contractor's success in meeting the government's security objectives.

What is the typical profit margin for companies providing security guard services to the federal government?

Determining the exact typical profit margin for companies providing security guard services to the federal government is complex, as it varies based on numerous factors including contract size, duration, specific service requirements, overhead costs, and the competitive landscape. However, industry analyses often suggest that profit margins for government contracting in the security sector can range from 5% to 15% for prime contractors. This margin needs to cover not only direct labor costs (which are often the largest component) but also indirect costs such as management, administration, insurance, training, equipment, and the cost of bidding on contracts. The firm-fixed-price nature of this contract means the contractor assumes more risk, which can influence the pricing strategy and desired profit margin. Highly competitive bids, like the one with nine bidders, may drive down the achievable profit margin for the winning contractor.

Are there any specific risks associated with relying on a single contractor for PSO services over a four-year period, even with full and open competition?

Even with full and open competition initially, relying on a single contractor for Protective Security Officer (PSO) services over a four-year period carries inherent risks. One primary risk is potential complacency or a decline in service quality over time, as the contractor may feel less pressure to innovate or maintain peak performance once the competitive phase is over. Another risk is vendor lock-in; if the contractor becomes deeply integrated into the agency's operations, switching providers at the end of the contract term can be disruptive and costly. Furthermore, unforeseen events such as the contractor experiencing financial difficulties, significant labor disputes, or a loss of key personnel could impact service continuity. While the firm-fixed-price structure provides cost certainty, it might also disincentivize the contractor from proactively suggesting cost-saving efficiencies if they are not contractually obligated to do so. Robust performance monitoring and clear contract management are essential to mitigate these risks.

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: 70RFP224QEC000001

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13530 DULLES TECHNOLOGY DR, 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: $36,664,099

Exercised Options: $20,743,980

Current Obligation: $20,743,980

Actual Outlays: $10,132,896

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000011

IDV Type: IDC

Timeline