DHS awards $25.5M for airport security screening, with 8 bidders vying for the contract

Contract Overview

Contract Amount: $25,535,019 ($25.5M)

Contractor: Defense Consulting Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-05

End Date: 2026-06-04

Contract Duration: 1,399 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPREHENSIVE SECURITY SCREENING SERVICES AT ATLANTIC CITY INTERNATIONAL AIRPORT (ACY) IN EGG HARBOR TOWNSHIP, NEW JERSEY.

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.5 million to DEFENSE CONSULTING SERVICES LLC for work described as: COMPREHENSIVE SECURITY SCREENING SERVICES AT ATLANTIC CITY INTERNATIONAL AIRPORT (ACY) IN EGG HARBOR TOWNSHIP, NEW JERSEY. Key points: 1. The contract value of $25.5 million over its period of performance represents a significant investment in airport security. 2. With 8 bidders, the competition level suggests a healthy market for security screening services. 3. The firm-fixed-price contract type indicates that the contractor bears the risk of cost overruns. 4. The contract is a delivery order under a larger contract, suggesting potential for follow-on work or broader program scope. 5. The services are essential for maintaining public safety and facilitating air travel. 6. The geographic focus on Atlantic City, New Jersey, highlights specific regional security needs.

Value Assessment

Rating: good

The contract value of $25.5 million for comprehensive security screening services at Atlantic City International Airport appears reasonable given the scope and duration. Benchmarking against similar contracts for airport security screening services across the nation would provide a more precise value-for-money assessment. However, the presence of 8 bidders suggests a competitive environment that likely drove pricing towards market rates. The firm-fixed-price structure further supports the expectation of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, certain sources were initially excluded before the final award. The fact that 8 bidders participated suggests a robust level of interest and competition within the market for these services. This level of competition is generally positive for price discovery and ensures that the government receives competitive offers.

Taxpayer Impact: The strong competition among 8 bidders is beneficial for taxpayers, as it likely led to more favorable pricing and a wider range of service options being considered, ultimately maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are air travelers and the general public, who will experience enhanced security at Atlantic City International Airport. The contract delivers essential security screening services, including personnel and potentially equipment, to ensure compliance with federal aviation security regulations. The geographic impact is localized to Egg Harbor Township, New Jersey, specifically at Atlantic City International Airport. The contract supports jobs within the security services sector, contributing to the local and regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and ensure it did not unduly limit competition.
The duration of the contract (1399 days) is substantial, requiring ongoing monitoring to ensure sustained performance and value.
Reliance on a single delivery order for a significant amount could indicate a lack of broader contract vehicles for this type of service.

Positive Signals

The award to Defense Consulting Services LLC indicates a successful bid in a competitive environment.
The firm-fixed-price contract type aligns incentives for cost efficiency.
The participation of 8 bidders suggests a healthy and responsive market for security screening services.

Sector Analysis

The security services industry is a critical component of national infrastructure, particularly within the transportation sector. This contract falls under the broader category of security guards and patrol services (NAICS 561612). The market for airport security is substantial, driven by federal mandates and the need for continuous vigilance. Comparable spending benchmarks for similar airport security contracts can vary significantly based on airport size, traffic volume, and specific service requirements. This contract represents a significant portion of spending for security services at a mid-sized airport.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though the presence of a large prime contractor may offer indirect opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA). The firm-fixed-price nature of the contract places the onus on the contractor to manage costs, but DHS/TSA would be responsible for monitoring performance, ensuring compliance with service level agreements, and managing any contract modifications. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Airport Security Services
Transportation Security Administration Contracts
Department of Homeland Security Procurement
Federal Security Guard Services
Airport Operations Support

Risk Flags

Potential for limited competition due to 'exclusion of sources'
Contract duration requires sustained performance monitoring
Lack of explicit small business subcontracting details

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.5 million to DEFENSE CONSULTING SERVICES LLC. COMPREHENSIVE SECURITY SCREENING SERVICES AT ATLANTIC CITY INTERNATIONAL AIRPORT (ACY) IN EGG HARBOR TOWNSHIP, NEW JERSEY.

Who is the contractor on this award?

The obligated recipient is DEFENSE CONSULTING SERVICES 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 $25.5 million.

What is the period of performance?

Start: 2022-08-05. End: 2026-06-04.

What is the track record of Defense Consulting Services LLC in performing similar federal security contracts?

Defense Consulting Services LLC has been awarded federal contracts, including those related to security services. A review of their contract history would reveal the types of services provided, the agencies they have served, and their performance ratings on past awards. For this specific contract, the performance will be monitored by the TSA. Analyzing past performance on similar contracts, such as security screening at other transportation hubs or government facilities, would provide insight into their capabilities and reliability. Information on past performance, including any disputes or contract terminations, is crucial for assessing their suitability for this significant award.

How does the awarded amount of $25.5 million compare to the estimated value or budget for this service requirement?

The awarded amount of $25.5 million represents the total value of the delivery order for comprehensive security screening services. Without access to the government's initial cost estimates or budget allocations for this specific requirement, a direct comparison is challenging. However, the fact that 8 bidders participated in a full and open competition after exclusion of sources suggests that the government sought competitive pricing. The firm-fixed-price contract type indicates that the awarded amount is the ceiling for the services rendered. Further analysis would involve comparing this value to historical spending on similar services at ACY or other airports of comparable size and traffic.

What are the specific security screening services included in this $25.5 million contract?

The contract specifies 'COMPREHENSIVE SECURITY SCREENING SERVICES.' This typically encompasses a range of activities essential for airport security, including but not limited to, passenger screening, baggage screening (both checked and carry-on), screening of airport personnel, and potentially the operation and maintenance of screening equipment. The exact scope would be detailed in the contract's Statement of Work (SOW). Given the context of TSA operations, these services are critical for preventing threats and ensuring the safety of air travel. The firm-fixed-price nature implies that the contractor is responsible for delivering all specified services within the awarded amount.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract?

This designation suggests a nuanced approach to competition. 'Full and open competition' means that all responsible sources were permitted to submit offers. However, the 'after exclusion of sources' part indicates that at some point in the procurement process, certain potential offerors were excluded. This could happen for various reasons, such as failure to meet minimum qualifications, past performance issues, or specific agency requirements that narrowed the field before the final solicitation. While 8 bidders ultimately participated, understanding which sources were excluded and why is important for a complete picture of the competitive landscape and to ensure fairness in the process.

What is the historical spending trend for security screening services at Atlantic City International Airport?

Analyzing historical spending for security screening services at Atlantic City International Airport (ACY) would provide valuable context for the current $25.5 million award. Without direct access to historical ACY-specific contract data, we can infer trends based on national patterns. Federal spending on airport security has generally increased over time due to evolving threats and regulatory requirements. Comparing the duration and value of this new contract to previous contracts at ACY would reveal whether spending is increasing, decreasing, or remaining stable. This comparison is key to assessing the long-term financial commitment and potential budget implications for the TSA at this location.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 615 ROLLING GROVE, SAN ANTONIO, TX, 78253

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $33,692,106

Exercised Options: $25,535,019

Current Obligation: $25,535,019

Actual Outlays: $19,293,493

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70T05021D5900N003

IDV Type: IDC

Timeline