DHS Awards $687M Task Order for SFO Airport Security Screening to Covenant Aviation Security

Contract Overview

Contract Amount: $687,134,884 ($687.1M)

Contractor: Covenant Aviation Security, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-02-06

End Date: 2026-06-30

Contract Duration: 1,970 days

Daily Burn Rate: $348.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: TASK ORDER TO SUPPORT SECURITY SCREENING SERVICES AT SFO AIRPORT.

Place of Performance

Location: SAN FRANCISCO, SAN MATEO County, CALIFORNIA, 94128

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $687.1 million to COVENANT AVIATION SECURITY, LLC for work described as: TASK ORDER TO SUPPORT SECURITY SCREENING SERVICES AT SFO AIRPORT. Key points: 1. Significant contract value of $687.1 million over its period of performance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract is for essential security screening services at a major airport. 4. Potential for long-term reliance on a single provider for critical services.

Value Assessment

Rating: good

The contract's fixed-price award fee structure aims to control costs while incentivizing performance. Benchmarking against similar airport security contracts would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to better price discovery and value for the government. The use of a delivery order under a larger contract framework is common.

Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing taxpayer value for essential security services.

Public Impact

Ensures continued security screening operations at San Francisco International Airport (SFO). Impacts travelers and airport operations through the provision of security personnel. Supports federal mandates for aviation security administered by the TSA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (approx. 5 years) could lead to price escalation.
  • Reliance on a single vendor for critical security functions.

Positive Signals

  • Awarded through full and open competition.
  • Fixed-price award fee structure can control costs.
  • Supports critical national security functions.

Sector Analysis

This contract falls within the Security Guards and Patrol Services sector (NAICS 561612). Spending in this sector is driven by federal, state, and local government needs for public safety and infrastructure protection.

Small Business Impact

The contract was awarded to Covenant Aviation Security, LLC. Information regarding small business subcontracting or set-asides is not provided in the data, suggesting it may not have been a primary focus for this specific task order.

Oversight & Accountability

The award is a task order under a larger contract, implying existing oversight mechanisms. The TSA's role in managing this contract ensures accountability for security operations.

Related Government Programs

  • Security Guards and Patrol Services
  • Department of Homeland Security Contracting
  • Transportation Security Administration Programs

Risk Flags

  • Long-term contract duration.
  • Potential for sole-source extension if not managed carefully.
  • Critical infrastructure security reliance.
  • Labor cost fluctuations.

Tags

security-guards-and-patrol-services, department-of-homeland-security, ca, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $687.1 million to COVENANT AVIATION SECURITY, LLC. TASK ORDER TO SUPPORT SECURITY SCREENING SERVICES AT SFO AIRPORT.

Who is the contractor on this award?

The obligated recipient is COVENANT AVIATION SECURITY, 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 $687.1 million.

What is the period of performance?

Start: 2021-02-06. End: 2026-06-30.

What is the historical performance of Covenant Aviation Security, LLC on similar contracts?

Assessing Covenant Aviation Security's past performance on comparable federal or airport security contracts is crucial. Reviewing past performance evaluations, on-time delivery records, and any documented disputes or contract modifications would provide insight into their reliability and ability to meet service level agreements. This information helps gauge the risk associated with this significant award and its potential for successful execution.

How does the per-unit cost of security personnel compare to industry benchmarks for major airports?

Benchmarking the per-unit cost of security personnel against similar contracts at other major airports is essential for evaluating value. Factors like labor rates, benefits, training requirements, and specific security protocols at SFO should be considered. A detailed cost analysis can reveal if the pricing is competitive or if there are opportunities for cost savings through negotiation or alternative service models.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this task order?

Understanding the specific KPIs and SLAs tied to this task order is vital for measuring effectiveness and ensuring accountability. These metrics likely include screening wait times, incident response rates, personnel training compliance, and adherence to security protocols. Regular monitoring and reporting against these SLAs will determine if the contractor is meeting the government's security objectives and providing adequate value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 156 TAMARACK AVE, NAPERVILLE, IL, 60540

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $715,311,890

Exercised Options: $714,606,990

Current Obligation: $687,134,884

Actual Outlays: $455,303,357

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0516DSPP906

IDV Type: IDC

Timeline

Start Date: 2021-02-06

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 11:59:59

Last Modified: 2026-03-30

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