Coast Guard awards $7.9M contract for alarm monitoring, but competition was limited

Contract Overview

Contract Amount: $7,896 ($7.9K)

Contractor: BAY Cities Pyrotector Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $22/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ALARM MONITORING INSPECTION SERVICE FOR ASSF.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7,896 to BAY CITIES PYROTECTOR INC. for work described as: ALARM MONITORING INSPECTION SERVICE FOR ASSF. Key points: 1. The contract value of $7.9 million for alarm monitoring services appears reasonable given the 3-year duration. 2. Limited competition for this fire protection service raises questions about potential price overruns. 3. The fixed-price contract type mitigates some risk for the government regarding cost escalation. 4. This contract supports essential fire protection services for U.S. Coast Guard facilities. 5. The award to Bay Cities Pyrotector Inc. indicates a focus on specialized fire safety providers.

Value Assessment

Rating: fair

The contract value of $7.9 million over 364 days (approximately $21,630 per day) for alarm monitoring and inspection services needs further benchmarking. Without comparable contracts for similar services in California or nationally, it's difficult to definitively assess value for money. However, the firm fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'Not Competed' (sole-source) justification, meaning there was no open competition. This approach is typically used when only one source is capable of meeting the requirement. The lack of competition means the government did not benefit from multiple bids to drive down prices or explore innovative solutions. This raises concerns about whether the government secured the best possible price and service.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no market pressure to ensure the lowest reasonable price.

Public Impact

This contract directly benefits the U.S. Coast Guard by ensuring the operational readiness and safety of its facilities through reliable alarm monitoring. The service delivered is critical for fire prevention and rapid response, protecting personnel and assets. The geographic impact is focused on California, where the U.S. Coast Guard facilities requiring this service are located. The contract supports specialized roles within the fire protection industry, potentially maintaining or creating jobs for skilled technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for new or smaller businesses to enter the market.
Dependence on a single provider could create future risks if performance issues arise or the provider exits the market.

Positive Signals

Firm fixed-price contract limits cost escalation risk for the government.
Contract ensures essential safety services are maintained for critical Coast Guard infrastructure.
The award is to an established entity, potentially indicating a known quantity in terms of service delivery.

Sector Analysis

The fire protection services sector is crucial for national security and public safety, encompassing a wide range of services from equipment installation and maintenance to inspection and monitoring. This contract falls within the broader facilities maintenance and security services market. While specific spending benchmarks for alarm monitoring services are not readily available, the overall federal spending on security and facility support services is substantial, often involving competitive solicitations to ensure value.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. The sole-source nature of the award means that opportunities for small businesses to participate as prime contractors or through subcontracting were not explored through this specific procurement action.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and internal agency oversight. Transparency is limited due to the sole-source nature, and specific accountability measures would be detailed within the contract terms and conditions, including performance standards and payment clauses.

Related Government Programs

Federal Fire Protection Services
Homeland Security Facility Maintenance
Coast Guard Infrastructure Support
Alarm System Installation and Maintenance Contracts

Risk Flags

Limited Competition
Sole-Source Justification
Potential for Overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7,896 to BAY CITIES PYROTECTOR INC.. ALARM MONITORING INSPECTION SERVICE FOR ASSF.

Who is the contractor on this award?

The obligated recipient is BAY CITIES PYROTECTOR INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $7,896.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the historical spending pattern for alarm monitoring and inspection services by the U.S. Coast Guard or Department of Homeland Security?

Analyzing historical spending requires access to detailed federal procurement databases. Without specific data for this exact service category, it's challenging to provide precise figures. However, agencies like the Department of Homeland Security (DHS) and its components, such as the U.S. Coast Guard, consistently allocate significant funds towards facility maintenance, security, and operational support. This includes services like alarm monitoring, fire suppression systems, and related inspections. Past spending trends often show a mix of competitive and sole-source awards, with larger, more complex requirements typically undergoing full and open competition to leverage market capabilities and achieve better pricing. Smaller, specialized, or emergency-driven needs might sometimes result in sole-source or limited competition awards. Understanding the historical context for similar services would involve looking at contract vehicles for fire protection, security systems, and facility management across DHS over the past 5-10 years.

How does the price of this contract compare to similar alarm monitoring services procured by other federal agencies?

Benchmarking this contract's price against similar federal procurements is difficult without access to a comprehensive database of comparable contracts. The value of $7.9 million over approximately one year (364 days) translates to roughly $21,630 per day. Factors influencing price include the type and sophistication of the alarm systems, the number of facilities covered, the scope of inspection services, response time requirements, and geographic location. Typically, agencies aim for competitive bidding to establish fair market prices. A sole-source award, as in this case, bypasses this price discovery mechanism. To perform a robust comparison, one would need to identify contracts with similar service scopes, durations, and geographic coverage, ideally awarded through full and open competition, and then analyze their pricing structures. Without such data, assessing whether this price represents good value for money remains speculative.

What are the specific risks associated with a sole-source award for critical fire protection services?

A sole-source award for critical services like fire protection introduces several risks. Firstly, the primary risk is financial: the government may pay a higher price than it would have under a competitive environment, as there is no market pressure to offer the lowest bid. Secondly, there's a risk of reduced innovation; without competition, the incumbent contractor may have less incentive to introduce cost-saving technologies or improved service methods. Thirdly, there's a potential for vendor lock-in and reduced flexibility. The agency becomes dependent on a single provider, which can be problematic if the contractor's performance declines, if their pricing increases significantly in future years, or if they decide to exit the market. Finally, a sole-source award can limit opportunities for small businesses and potentially stifle the growth of a competitive market for these essential services.

What is the track record of Bay Cities Pyrotector Inc. in performing federal contracts, particularly for the U.S. Coast Guard or DHS?

Information regarding the specific track record of Bay Cities Pyrotector Inc. on federal contracts, especially with the U.S. Coast Guard or the Department of Homeland Security, would typically be found in federal procurement databases like SAM.gov or through contract performance reports. Without direct access to these detailed records for this specific contractor, a definitive assessment of their track record is not possible. Generally, agencies consider past performance as a key factor in contract awards. If this company has a history of successful contract performance with the government, it might have contributed to the decision for a sole-source award, particularly if they possess unique capabilities or have a long-standing relationship. Conversely, any past performance issues could represent a risk. A thorough review would involve examining past contract awards, performance evaluations, and any disputes or terminations.

How does the duration and value of this contract align with typical federal procurements for alarm monitoring services?

The duration of this contract is 364 days, which is a common length for federal purchase orders and shorter-term service contracts, often used to procure services efficiently or when full program requirements are not yet defined for longer periods. The total value of $7.9 million for this period suggests a significant scope of service, potentially covering multiple facilities or a high level of monitoring and inspection activity. Typical federal procurements for alarm monitoring can vary widely in duration, from short-term needs to multi-year contracts (often with option periods) awarded through competitive processes. Longer-term, larger-value contracts are more frequently competed to ensure best value. A 364-day contract of this value, especially if sole-sourced, might indicate a specific, immediate need or a gap-filling requirement rather than a long-term strategic sourcing effort.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Fire Protection

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1315 67TH ST, EMERYVILLE, CA, 94608

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,896

Exercised Options: $7,896

Current Obligation: $7,896

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline