DHS Awards $19.6M for Perimeter Security Assets for 2025 Presidential Inauguration

Contract Overview

Contract Amount: $19,645,182 ($19.6M)

Contractor: Arcus Group, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-12-23

End Date: 2025-03-12

Contract Duration: 79 days

Daily Burn Rate: $248.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS ORDER IS TO PROCURE PERIMETER ASSETS IN SUPPORT OF THE 2025 PRESIDENTIAL INAUGURATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.6 million to ARCUS GROUP, LLC for work described as: THE PURPOSE OF THIS ORDER IS TO PROCURE PERIMETER ASSETS IN SUPPORT OF THE 2025 PRESIDENTIAL INAUGURATION Key points: 1. Significant investment focused on a critical, time-sensitive national event. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk is moderate, tied to event execution and potential vendor performance issues. 4. Spending is concentrated in support services for a high-profile government function.

Value Assessment

Rating: fair

The award of $19.6M for perimeter assets appears to be a significant expenditure for a short-duration event. Benchmarking against similar event-specific security procurements would be necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict the pool of potential bidders and could impact the government's ability to secure the lowest possible price.

Taxpayer Impact: Taxpayer funds are being used for essential security infrastructure for a major national event. The limited competition raises questions about optimal price discovery.

Public Impact

Ensures security for a major national event, impacting public safety and confidence. Procurement supports the logistical and security needs of the Presidential Inauguration. Funds are allocated to a specific, high-visibility government function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Short-term need for assets could result in underutilization post-event.
Reliance on specific vendors due to source exclusion.

Positive Signals

Addresses critical security requirements for a national event.
Firm fixed-price contract provides cost certainty.
Delivery order placed with a specific company for timely execution.

Sector Analysis

This procurement falls under support services, specifically related to event security for a major government function. Benchmarks for similar event-driven security procurements are difficult to establish due to unique requirements and short timelines.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting some level of pre-existing oversight. However, the 'exclusion of sources' clause warrants specific review to ensure fairness and justification.

Related Government Programs

All Other Support Services
Department of Homeland Security Contracting
U.S. Secret Service Programs

Risk Flags

Limited competition may inflate costs.
Short-term asset need raises questions of long-term value.
Potential for vendor performance issues impacting event security.
Lack of detailed justification for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.6 million to ARCUS GROUP, LLC. THE PURPOSE OF THIS ORDER IS TO PROCURE PERIMETER ASSETS IN SUPPORT OF THE 2025 PRESIDENTIAL INAUGURATION

Who is the contractor on this award?

The obligated recipient is ARCUS GROUP, 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 $19.6 million.

What is the period of performance?

Start: 2024-12-23. End: 2025-03-12.

What specific perimeter assets are being procured, and how do their costs compare to industry standards for similar event security?

The specific perimeter assets are not detailed in the provided data. However, the total award of $19.6M for a 79-day duration suggests significant equipment and service costs. A thorough review of the contract line items and comparison with market rates for temporary security infrastructure rental or purchase would be necessary to assess value for money.

What is the justification for excluding other potential sources, and what impact did this have on the final price?

The justification for excluding other sources is not provided. This 'limited competition' approach can restrict the vendor pool, potentially leading to higher prices than if a broader competition were held. The government must have a documented rationale for such exclusions, often related to unique capabilities or urgent needs.

How effectively will these perimeter assets contribute to the overall security of the Presidential Inauguration, and what are the contingency plans?

The effectiveness of the assets is presumed to be high given the critical nature of the event. However, effectiveness also depends on integration with other security measures and personnel. Contingency plans for equipment failure, unforeseen threats, or logistical challenges are crucial but not detailed in this data.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 827 OAKWOOD AVE, LAKE FOREST, IL, 60045

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $19,645,182

Exercised Options: $19,645,182

Current Obligation: $19,645,182

Actual Outlays: $19,640,222

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70US0920D70090002

IDV Type: IDC

Timeline