DHS awards $6.99M for Protective Security Officer Services to HANA INDUSTRIES, INC

Contract Overview

Contract Amount: $6,993,654 ($7.0M)

Contractor: Hana Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-04-30

Contract Duration: 211 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES AT TWO LOCATIONS IN WASHINGTON, DC AND LANHAM, MD

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.0 million to HANA INDUSTRIES, INC. for work described as: PROTECTIVE SECURITY OFFICER SERVICES AT TWO LOCATIONS IN WASHINGTON, DC AND LANHAM, MD Key points: 1. Contract awarded to HANA INDUSTRIES, INC. for $6.99M. 2. Services required at two locations: Washington, DC and Lanham, MD. 3. Contract duration is 211 days. 4. The procurement method was Full and Open Competition after Exclusion of Sources. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $6.99M for 211 days of security services appears to be within a reasonable range, but a precise benchmark is difficult without more detailed service level agreements and location-specific labor costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement was conducted under 'Full and Open Competition after Exclusion of Sources,' suggesting a limited competition where some potential sources were excluded. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition approach could result in a less competitive pricing environment, potentially increasing the cost to taxpayers for these essential security services.

Public Impact

Ensures security at two critical government facilities in the DC metro area. Supports the Department of Homeland Security's operational needs. Provides employment opportunities within the security services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may reduce price competitiveness.
Short contract duration (211 days) may lead to frequent re-procurement costs.
Exclusion of sources needs justification for fairness.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Services are essential for government facility protection.

Sector Analysis

The security services sector is competitive, but specialized requirements and geographic locations can influence contract values. Benchmarks for similar services vary widely based on scope, duration, and security clearance levels.

Small Business Impact

The data indicates that HANA INDUSTRIES, INC. is the awardee, and it is noted that small business participation (sb) is false. This suggests that small businesses were not directly involved in this specific award, which could be an area for review if small business utilization is a goal.

Oversight & Accountability

The Office of Procurement Operations within DHS is responsible for this award. Oversight should focus on the justification for excluding sources and ensuring the pricing reflects fair market value despite the limited competition.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Limited competition raises concerns about price competitiveness.
Short contract duration may lead to inefficiencies and higher long-term costs.
Exclusion of sources requires clear justification to ensure fairness.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.0 million to HANA INDUSTRIES, INC.. PROTECTIVE SECURITY OFFICER SERVICES AT TWO LOCATIONS IN WASHINGTON, DC AND LANHAM, MD

Who is the contractor on this award?

The obligated recipient is HANA INDUSTRIES, 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 $7.0 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-04-30.

What was the specific justification for excluding sources in this 'Full and Open Competition after Exclusion of Sources' procurement, and how did it impact the final price?

The justification for excluding sources is critical for understanding the competitive landscape. If specific capabilities or past performance were the sole criteria, it might be warranted. However, if the exclusion was arbitrary, it could have artificially limited competition, potentially leading to a higher price than if a broader range of qualified vendors had been allowed to bid. A thorough review of the solicitation documents and award justification is needed.

Given the short contract duration, what is the long-term strategy for securing these protective security services, and are there plans to transition to a more competitive, longer-term contract?

The 211-day duration suggests this may be a bridge contract or a specific, short-term need. Agencies should have a strategy for longer-term requirements to ensure continuity of essential services and leverage economies of scale. Planning for a subsequent, potentially longer-term contract awarded through broader competition could lead to better pricing and more stable service provision, reducing administrative burden and costs associated with frequent re-procurements.

How does the awarded price of approximately $6.99M for 211 days of security services compare to industry benchmarks for similar government contracts, considering the locations and service requirements

A direct comparison to industry benchmarks requires detailed service level agreements, guard-to-facility ratios, and specific security clearance requirements. However, a rough estimate suggests a daily cost of over $33,000. This figure needs to be evaluated against the number of officers, their pay rates, overhead, and profit margins. Without more granular data, it's difficult to definitively assess if this represents excellent value, but the limited competition raises a flag for potential overpricing.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1099 ALAKEA ST, HONOLULU, HI, 96813

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,106,078

Exercised Options: $8,106,078

Current Obligation: $6,993,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP218DEC000019

IDV Type: IDC

Timeline