DHS awards $4.8M contract for video support, raising questions on value and competition

Contract Overview

Contract Amount: $4,822,424 ($4.8M)

Contractor: Active Security Consulting LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-25

End Date: 2026-09-25

Contract Duration: 1,096 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATIONAL VIDEO CAPABILITY SUPPORT FOR TSD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.8 million to ACTIVE SECURITY CONSULTING LLC for work described as: OPERATIONAL VIDEO CAPABILITY SUPPORT FOR TSD. Key points: 1. Contract value appears reasonable for specialized IT support services. 2. Limited competition may have impacted price discovery. 3. Potential risks include contractor performance and long-term cost escalation. 4. This contract supports critical operational functions for the U.S. Secret Service. 5. The IT services sector is highly competitive, but specific niche support can be limited. 6. The contract is a definitive contract, suggesting a defined scope and duration.

Value Assessment

Rating: fair

The contract value of $4.8 million over three years for operational video capability support seems within a reasonable range for specialized IT services. However, without detailed breakdowns of labor categories, hours, and specific deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for video surveillance system maintenance and support would provide a clearer picture of whether the pricing is competitive. The fixed-price nature of the contract offers some cost certainty, but the overall value depends heavily on the effective delivery of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bidders participating. While this indicates an attempt to solicit a broad range of offers, the relatively low number of bidders for a contract of this size and duration might suggest that the market for this specific niche service is not as robust as anticipated, or that other factors limited participation. The competition level provides some assurance of price discovery, but further analysis of the bid proposals would be needed to confirm optimal pricing.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service quality. However, if the specialized nature of the service restricts the pool of qualified bidders, taxpayers may not be realizing the full benefit of broad competition.

Public Impact

The U.S. Secret Service benefits from enhanced operational video capabilities. Services delivered include support for video systems crucial for security and operations. The geographic impact is primarily within the District of Columbia, where the Secret Service has significant operations. The contract supports IT professionals and potentially specialized video technicians, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs or if unforeseen technical challenges arise.
Dependence on a single contractor for critical video support could pose operational risks if performance falters.
Limited competition may have resulted in a higher-than-optimal price.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Fixed-price contract type provides cost certainty for the government.
The contract duration is defined, allowing for predictable budgeting.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer facilities management and support for video systems. The market for such specialized support can be niche, often requiring specific technical expertise and security clearances. Comparable spending benchmarks in this area are difficult to establish without more granular data on the specific technologies and services involved. The overall IT services market is vast, but contracts for highly specialized operational support are less common and may command premium pricing.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. Given the specialized nature of the services, it is possible that larger, more established firms with the requisite expertise and security clearances were better positioned to bid. This contract's structure does not appear to directly benefit the small business ecosystem in this specific instance.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the U.S. Secret Service. The fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency is generally maintained through contract award databases, but detailed performance metrics and ongoing oversight activities are internal to the agency.

Related Government Programs

Department of Homeland Security IT Support Services
U.S. Secret Service Operational Technology Contracts
Federal Video Surveillance System Maintenance
Computer Facilities Management Services

Risk Flags

Limited competition may impact price realization.
Contractor performance risk for specialized IT support.
Potential for scope creep in long-term IT service contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.8 million to ACTIVE SECURITY CONSULTING LLC. OPERATIONAL VIDEO CAPABILITY SUPPORT FOR TSD.

Who is the contractor on this award?

The obligated recipient is ACTIVE SECURITY CONSULTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-25.

What is the specific nature of the 'OPERATIONAL VIDEO CAPABILITY SUPPORT' and what technologies are involved?

The contract data indicates 'OPERATIONAL VIDEO CAPABILITY SUPPORT FOR TSD' (Technical Security Division). This likely encompasses the maintenance, operation, and potentially upgrade of video surveillance and monitoring systems used by the U.S. Secret Service for protective and investigative missions. The specific technologies could range from high-definition cameras, digital video recorders (DVRs), network video recorders (NVRs), video management software (VMS), and associated network infrastructure. The 'TSD' designation suggests a focus on technical aspects of security systems, implying a need for specialized IT and engineering support to ensure these systems are functional, secure, and capable of meeting operational requirements.

How does the $4.8 million contract value compare to similar federal contracts for video support services?

Benchmarking this $4.8 million contract against similar federal contracts requires access to a comprehensive database of IT support and video system contracts. However, for a three-year period, this value suggests a moderate-sized contract. Contracts for enterprise-level video surveillance system maintenance and support can range significantly, from hundreds of thousands to tens of millions of dollars, depending on the scale, complexity, and criticality of the systems. Given it's for a specific division (TSD) within the Secret Service, the value appears plausible if it covers a significant operational footprint. A detailed comparison would necessitate analyzing contract scope, service level agreements, and the specific technologies supported.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential contractor underperformance, leading to disruptions in critical video capabilities, and the possibility of cost escalation if the fixed-price contract doesn't adequately account for unforeseen technical issues or scope creep. Another risk is the reliance on a single contractor for specialized support. Mitigation strategies likely involve robust performance monitoring by the U.S. Secret Service, clearly defined service level agreements (SLAs), and contingency planning. The fixed-price structure itself is a risk mitigation tool, transferring some cost risk to the contractor. However, the limited competition might suggest a higher initial price, which is a risk to value for money.

What is the track record of ACTIVE SECURITY CONSULTING LLC in providing similar services to the federal government?

Information regarding the specific track record of ACTIVE SECURITY CONSULTING LLC in providing 'OPERATIONAL VIDEO CAPABILITY SUPPORT' to the federal government is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, other federal contracts awarded to this company, and any reported issues or successes. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for evaluating their history. Without this information, it's difficult to definitively assess their capability and reliability for this specific contract.

How does the 'full and open competition' with three bidders impact the overall value and taxpayer cost?

Awarding a contract through 'full and open competition' is intended to maximize the pool of potential offerors, thereby fostering competition and driving down prices. In this case, with three bidders, there was a degree of competition. However, the optimal number of bidders for price discovery can vary; some studies suggest that more than three bidders generally lead to more competitive pricing. The fact that only three submitted bids might indicate a niche market or high barriers to entry. While taxpayers benefit from competition, the value realized depends on whether these three bidders offered sufficiently competitive proposals. If the market is inherently limited, the price might be higher than in a more crowded field, even with competition.

What are the historical spending patterns for similar video support services within the Department of Homeland Security or U.S. Secret Service?

Historical spending patterns for similar video support services within DHS or the Secret Service are not provided in the data. To analyze this, one would need to examine past contracts for video system maintenance, support, and related IT services awarded by these agencies over several fiscal years. This would involve looking at contract values, durations, and the specific services rendered. Understanding historical spending can help identify trends, potential cost efficiencies, or areas where spending has increased significantly, providing context for the current $4.8 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 38327 JOHN MOSBY HWY, MIDDLEBURG, VA, 20117

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $5,193,224

Exercised Options: $4,822,424

Current Obligation: $4,822,424

Actual Outlays: $2,833,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline