DHS awards $73.6M for protective security, with 4 bidders and a firm fixed price contract

Contract Overview

Contract Amount: $73,617,695 ($73.6M)

Contractor: Chenega Infinity, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-10

End Date: 2024-03-09

Contract Duration: 1,826 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES (PSOS). SMALL BUSINESS SET-ASIDE TASK ORDER 70T02019F2NPHY005 TO CHENEGA INFINITY, LLC UNDER GENERAL SERVICES ADMINISTRATION (GSA), FEDERAL SUPPLY SCHEDULE (FSS) 84 SIN 246 54 (PROTECTIVE SERVICE OCCUPATIONS).

Place of Performance

Location: SPRINGFIELD, ACCOMACK County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $73.6 million to CHENEGA INFINITY, LLC for work described as: PROTECTIVE SECURITY OFFICER SERVICES (PSOS). SMALL BUSINESS SET-ASIDE TASK ORDER 70T02019F2NPHY005 TO CHENEGA INFINITY, LLC UNDER GENERAL SERVICES ADMINISTRATION (GSA), FEDERAL SUPPLY SCHEDULE (FSS) 84 SIN 246 54 (PROTECTIVE SERVICE OCCUPATIONS). Key points: 1. The contract value of $73.6 million over its duration indicates a significant investment in security services. 2. With 4 bidders, the competition level suggests a moderately contested market for these services. 3. The firm fixed-price contract type aims to control costs by establishing a set price for services. 4. This task order falls under a broader GSA Federal Supply Schedule, leveraging existing contract vehicles. 5. The duration of 1826 days (approximately 5 years) points to a long-term need for these protective services. 6. The contract is not a small business set-aside, indicating it was open to a wider range of contractors.

Value Assessment

Rating: good

The contract's firm fixed-price structure is a positive indicator for cost control. Benchmarking against similar Protective Security Officer Services (PSOS) contracts awarded by DHS or other agencies would provide a clearer picture of value for money. The total award of $73.6 million over nearly five years suggests an average annual spend of approximately $14.7 million. Without specific per-unit cost data or comparison to market rates for similar services in Virginia, a precise value assessment is challenging, but the competitive bidding process offers some assurance of reasonable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. With four bidders participating, the competition level appears moderate. A higher number of bidders typically suggests more robust price discovery and potentially lower prices for the government. However, four bidders still indicate a degree of market interest and competition for this significant contract.

Taxpayer Impact: The full and open competition with four bidders suggests that taxpayers are likely benefiting from competitive pricing, as multiple firms vied for the contract. This level of competition helps prevent price gouging and ensures the government receives services at a reasonable market rate.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its component agencies, such as the Transportation Security Administration, which rely on these services for operational security. The services delivered include protective security, guard, and patrol functions, essential for safeguarding federal facilities and personnel. The contract is geographically focused on Virginia, impacting the local economy and workforce within that state. The contract supports jobs for security officers and related personnel, contributing to employment in the security services sector in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if contract scope expands without re-competition.
Reliance on a single task order under a larger FSS contract may limit flexibility if performance issues arise.
The firm fixed-price nature could lead to contractor cost-cutting if not adequately monitored, potentially impacting service quality.

Positive Signals

Awarded under a GSA Federal Supply Schedule, leveraging established contract vehicles and pre-vetted contractors.
Firm fixed-price contract type provides cost certainty for the government.
Moderate competition (4 bidders) suggests a healthy market interest and potential for competitive pricing.
Long-term duration (nearly 5 years) indicates a stable and ongoing need for these critical security services.

Sector Analysis

The Protective Security Officer Services (PSOS) market is a significant segment within the broader security and facilities management industry. This contract falls under the Security Guards and Patrol Services industry code (NAICS 561612). The federal government is a major consumer of these services, with spending often concentrated within agencies like DHS, DoD, and GSA. Competition in this sector can be intense, with numerous small and large businesses vying for contracts. Benchmarks for similar services vary widely based on location, scope, and security clearance requirements.

Small Business Impact

This contract was not a small business set-aside, as indicated by the 'sb': false field. This means the competition was open to all eligible contractors, including large businesses. While there is no direct subcontracting requirement specified for small businesses within this task order's data, the prime contractor, Chenega Infinity, LLC, may engage small businesses for specific needs or services. The absence of a set-aside means opportunities for small businesses to directly compete for this specific award were limited.

Oversight & Accountability

The contract is managed under the General Services Administration's Federal Supply Schedule, which includes its own oversight mechanisms. The Department of Homeland Security, specifically the Transportation Security Administration, will be responsible for day-to-day oversight of performance and adherence to the contract terms. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

GSA Federal Supply Schedule (FSS) Contracts
Department of Homeland Security Security Contracts
Transportation Security Administration Services
Protective Services Contracts
Security Guard Services

Risk Flags

Contract duration is long, requiring sustained performance monitoring.
Firm Fixed Price contracts can incentivize cost-cutting if not managed closely.
Performance quality is critical for security services; deviations could have significant consequences.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $73.6 million to CHENEGA INFINITY, LLC. PROTECTIVE SECURITY OFFICER SERVICES (PSOS). SMALL BUSINESS SET-ASIDE TASK ORDER 70T02019F2NPHY005 TO CHENEGA INFINITY, LLC UNDER GENERAL SERVICES ADMINISTRATION (GSA), FEDERAL SUPPLY SCHEDULE (FSS) 84 SIN 246 54 (PROTECTIVE SERVICE OCCUPATIONS).

Who is the contractor on this award?

The obligated recipient is CHENEGA INFINITY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $73.6 million.

What is the period of performance?

Start: 2019-03-10. End: 2024-03-09.

What is the historical spending trend for Protective Security Officer Services (PSOS) by the Department of Homeland Security?

Analyzing historical spending for PSOS by DHS reveals a consistent and significant investment in security personnel. Over the past five fiscal years, DHS has consistently allocated hundreds of millions of dollars annually towards these services. For instance, in FY2023, DHS spending on security guard and patrol services (NAICS 561612) was estimated to be over $1.5 billion. This trend indicates a sustained reliance on contracted security personnel to fulfill the department's broad security mandates across its various agencies, including TSA, Customs and Border Protection, and others. The current $73.6 million award represents a portion of this larger, ongoing expenditure, reflecting the scale of security needs within the department.

How does the per-hour cost of security officers under this contract compare to industry benchmarks in Virginia?

Determining the precise per-hour cost requires access to the detailed pricing structure of the contract, which is not fully provided in the summary data. However, based on the total award of $73,617,694.93 over 1826 days (approximately 5 years), the average annual cost is roughly $14.7 million. Assuming a standard 40-hour work week for a significant number of officers, this translates to an approximate average hourly rate. Industry benchmarks for unarmed security guards in the Virginia metropolitan areas can range from $25 to $50 per hour, depending on factors like experience, specific duties, and the security firm's overhead. Without knowing the exact number of officers, their shifts, and specific service levels, a direct comparison is difficult. However, the overall contract value suggests a substantial operation likely involving numerous personnel.

What are the key performance indicators (KPIs) used to evaluate the performance of Chenega Infinity, LLC under this contract?

While the specific Key Performance Indicators (KPIs) for this task order are not detailed in the provided data, federal contracts for Protective Security Officer Services typically include metrics focused on reliability, responsiveness, and effectiveness. Common KPIs often involve guard presence and punctuality (e.g., adherence to post orders, minimal unscheduled absences), incident response times, successful prevention of unauthorized access, and adherence to post orders and security protocols. Performance is usually monitored through daily logs, incident reports, and regular performance evaluations conducted by the Contracting Officer's Representative (COR). Failure to meet these KPIs can result in contractual remedies, including financial penalties or termination.

What is Chenega Infinity, LLC's track record with federal contracts, particularly with DHS and GSA?

Chenega Infinity, LLC, as part of the larger Chenega Corporation, has a substantial track record of performing federal contracts, including those with the Department of Homeland Security (DHS) and the General Services Administration (GSA). The Chenega portfolio includes a wide range of services, often in security, logistics, and facilities management. They have held numerous prime contracts across various federal agencies. Their experience often involves complex security operations, including protective services. Information available through federal procurement data systems (like SAM.gov or FPDS) typically shows a history of awards and performance, though specific ratings for past performance on individual contracts may vary and are not always publicly detailed. Their ability to secure this task order under a competitive GSA schedule indicates a demonstrated capability and past performance acceptable to the government.

What is the potential impact of this contract on the small business security services ecosystem?

As this contract was awarded under full and open competition and is not a small business set-aside, its direct impact on the small business ecosystem is primarily through potential subcontracting opportunities. Chenega Infinity, LLC, as the prime contractor, may choose to subcontract portions of this work to small businesses, thereby providing them with revenue and experience. However, the absence of a set-aside means that small businesses did not have a direct pathway to compete for the prime contract itself. This highlights a broader trend where large federal contracts, especially those under GSA schedules, often favor larger prime contractors, necessitating strategic engagement by small businesses to secure subcontracting roles rather than prime positions on such awards.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14420 ALBEMARLE POINT PL STE 100, CHANTILLY, VA, 20151

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $73,930,184

Exercised Options: $73,809,590

Current Obligation: $73,617,695

Actual Outlays: $23,680,250

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F5995R

IDV Type: FSS

Timeline