DHS awards $30.5M for protective security services in Northern Virginia, with 8 bids received

Contract Overview

Contract Amount: $30,531,304 ($30.5M)

Contractor: Golden Svcs, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $41.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT MULTIPLE LOCATIONS IN NORTHERN VIRGINIA.

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.5 million to GOLDEN SVCS, LLC for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT MULTIPLE LOCATIONS IN NORTHERN VIRGINIA. Key points: 1. Contract value of $30.5M over two years suggests a significant need for security services. 2. Full and open competition indicates a potentially competitive bidding process. 3. The number of bids (8) provides a reasonable level of competition for this service. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized security services market. 6. Contract duration of 729 days (2 years) allows for consistent service delivery. 7. The award to GOLDEN SVCS, LLC requires scrutiny of their past performance and capacity. 8. Geographic focus on Northern Virginia highlights a concentrated demand in a high-security area.

Value Assessment

Rating: fair

The contract value of $30.5M for two years of protective security services in Northern Virginia appears substantial. Benchmarking against similar contracts for PSO services is crucial to determine if this represents a fair price. The firm-fixed-price structure suggests that the contractor bears the cost overrun risk, which can be a positive indicator for value if managed effectively. However, without specific per-unit cost data or comparisons to market rates for similar services in the region, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The receipt of 8 bids suggests a healthy level of interest and competition for these protective security services. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting a contractor that offers the best value. The agency's approach to competition appears robust in this instance.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drives down costs through competitive pressure, ensuring the government receives services at a more favorable price point.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its facilities in Northern Virginia, which will receive enhanced security. The services delivered include protective security officer (PSO) functions, likely encompassing access control, surveillance, and response. The geographic impact is concentrated in Northern Virginia, a region with significant federal presence. Workforce implications include job creation for security officers employed by the awarded contractor, GOLDEN SVCS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's capacity to scale services to meet potential fluctuations in security needs.
Ensuring consistent quality of service across all designated locations in Northern Virginia.
Potential for price increases in future contract renewals if competition diminishes.
Adequacy of background checks and vetting for all deployed security personnel.
Monitoring contractor compliance with all federal labor laws and regulations.

Positive Signals

Award to a single contractor for a defined period ensures continuity of essential security operations.
Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a competitive market for these services.
The contract duration allows for stable service provision and relationship building.
Focus on a specific geographic area may allow for optimized resource deployment.

Sector Analysis

The security services industry, particularly for government contracts, is highly competitive and specialized. NAICS code 561612 covers security guards and patrol services, a sector that includes a wide range of providers from small local firms to large national corporations. Federal spending in this area is substantial, driven by the need to protect government assets and personnel. This contract fits within the broader category of facility support services, where consistent performance and adherence to strict protocols are paramount. Comparable spending benchmarks would involve analyzing other federal contracts for similar PSO services in high-demand regions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if GOLDEN SVCS, LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it is difficult to assess the direct benefit to the small business ecosystem. However, the absence of a small business set-aside means larger, more established firms likely dominated the bidding process.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Homeland Security's Office of Procurement Operations. Accountability measures are typically embedded in the contract's performance work statement (PWS), outlining specific deliverables and service standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

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

Risk Flags

Contractor performance history needs thorough review.
Potential for cost overruns if fixed-price is not managed effectively.
Ensuring adequate staffing levels and training for security personnel.
Geographic concentration may present single-point-of-failure risks if not managed.
Dependence on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.5 million to GOLDEN SVCS, LLC. PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT MULTIPLE LOCATIONS IN NORTHERN VIRGINIA.

Who is the contractor on this award?

The obligated recipient is GOLDEN SVCS, LLC.

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 $30.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the historical spending pattern for protective security services by the Department of Homeland Security in Northern Virginia?

Analyzing historical spending data for DHS in Northern Virginia for protective security services (NAICS 561612) would provide crucial context for the $30.5M award. This involves examining past contract values, durations, and awarded contractors over several fiscal years. A trend of increasing or consistently high spending in this category could indicate persistent security needs or potential market inflation. Conversely, a sudden spike might warrant further investigation into the specific requirements driving the current award. Understanding the baseline spending allows for a more accurate assessment of whether this contract represents a reasonable investment or a potential overspend compared to historical norms and evolving security requirements in the region.

How does the per-hour cost of security personnel under this contract compare to industry benchmarks for similar services in the Northern Virginia region?

To assess the value for money, a detailed breakdown of the contract's cost structure is needed to derive an effective per-hour rate for the security personnel. This rate should then be benchmarked against prevailing market rates for comparable Protective Security Officer (PSO) services in the Northern Virginia area. Factors such as the level of security clearance required, specific duties (e.g., armed vs. unarmed, access control, patrol), and experience level of the officers significantly influence hourly wages. If the contract's derived hourly rate is substantially higher than market averages, it could indicate potential overpricing or a need for renegotiation. Conversely, a rate below market might suggest potential issues with service quality or contractor sustainability.

What is the track record of GOLDEN SVCS, LLC in performing similar federal contracts, particularly regarding performance quality and on-time delivery?

Evaluating the past performance of GOLDEN SVCS, LLC is critical to understanding the risk associated with this $30.5M award. This involves reviewing their performance history on previous federal contracts, specifically looking for indicators of reliability, quality of service, and adherence to contract terms. Data from sources like the Contractor Performance Assessment Reporting System (CPARS) can provide insights into customer satisfaction, timeliness of delivery, and any instances of contract disputes or deficiencies. A history of strong performance suggests a lower risk of service disruption and a higher likelihood of achieving the contract's objectives. Conversely, a pattern of poor performance, missed deadlines, or unresolved issues would raise significant concerns about the agency's selection and the potential for future problems.

What specific security threats or requirements necessitate the level of spending and service outlined in this contract for Northern Virginia?

Understanding the specific security threats and operational requirements driving this $30.5M contract is essential for assessing its necessity and effectiveness. Northern Virginia hosts numerous sensitive federal facilities, including intelligence agencies, military installations, and critical infrastructure. The contract likely details the types of posts, hours of coverage, and specific security protocols required. Information regarding the threat landscape, such as intelligence assessments or past security incidents, would justify the scale of the PSO services. Without this context, it is difficult to determine if the allocated funds are proportionate to the actual security risks and operational demands faced by the Department of Homeland Security in the region.

Are there any performance metrics or key performance indicators (KPIs) defined within the contract that will be used to measure the effectiveness of the security services provided?

The effectiveness of the security services hinges on clearly defined performance metrics and Key Performance Indicators (KPIs) within the contract's Performance Work Statement (PWS). These metrics should objectively measure the contractor's adherence to standards, such as response times to incidents, accuracy of access control procedures, and overall effectiveness in preventing security breaches. The presence and rigor of these KPIs are crucial for accountability. Regular performance reviews based on these metrics allow the government to track the contractor's success, identify areas for improvement, and ensure that taxpayer funds are yielding the desired security outcomes. The absence of robust KPIs would significantly weaken oversight and make it challenging to assess true value.

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: 70RFP224QEC000006

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 414 OLD HOLDERFORD ROAD, KINGSTON, TN, 37763

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,889,370

Exercised Options: $30,531,304

Current Obligation: $30,531,304

Actual Outlays: $14,038,728

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP224DEC000006

IDV Type: IDC

Timeline