Montech Inc. awarded $10.2M for security services, with 9 bidders indicating strong competition
Contract Overview
Contract Amount: $10,205,086 ($10.2M)
Contractor: Montech Inc
Awarding Agency: Department of Energy
Start Date: 2020-12-01
End Date: 2026-08-18
Contract Duration: 2,086 days
Daily Burn Rate: $4.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SECURITY SERVICES
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87106
Plain-Language Summary
Department of Energy obligated $10.2 million to MONTECH INC for work described as: SECURITY SERVICES Key points: 1. The contract's value appears reasonable given the scope of security services required. 2. Strong competition among 9 bidders suggests a healthy market for these services. 3. The time and materials pricing structure introduces some cost variability. 4. Performance context is limited, but the duration suggests ongoing security needs. 5. This contract positions Montech Inc. as a key provider in the energy sector's security landscape. 6. The definitive contract award type allows for flexibility but requires careful monitoring.
Value Assessment
Rating: good
The $10.2 million award for security services over approximately 6.8 years (2020-2026) suggests an average annual spend of roughly $1.5 million. Benchmarking against similar government contracts for security guard and patrol services (NAICS 561612) indicates this is within a typical range for large-scale federal installations. The time and materials (T&M) pricing, while common, necessitates diligent oversight to ensure efficient labor utilization and prevent cost overruns compared to fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation was broad, specific exclusions were applied before the final award. With 9 bidders participating, the competition level was robust, which typically drives more competitive pricing and better value for the government. This level of engagement suggests that multiple capable firms were interested and able to bid, fostering a competitive environment.
Taxpayer Impact: A high number of bidders generally translates to better price discovery and potentially lower costs for taxpayers, as companies vie to win the contract by offering competitive rates and terms.
Public Impact
The Department of Energy benefits from continuous and reliable security services at its New Mexico facilities. The contract ensures the protection of sensitive government assets and personnel. Geographic impact is concentrated in New Mexico, supporting local security operations. Workforce implications include employment opportunities for security personnel within the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to unpredictable costs if not managed closely.
- The 'After Exclusion of Sources' clause warrants scrutiny to ensure fairness and prevent undue restrictions on competition.
- Limited detail on specific performance metrics makes it difficult to assess effectiveness beyond basic service provision.
Positive Signals
- Robust competition with 9 bidders suggests a healthy market and potential for good value.
- The long contract duration (over 6 years) provides stability for essential security services.
- Award to Montech Inc. indicates a trusted provider for critical government infrastructure.
Sector Analysis
The security services sector for government contracts is highly competitive, with numerous firms specializing in physical security, surveillance, and guard services. NAICS code 561612, 'Security Guards and Patrol Services,' encompasses a significant portion of this market. Federal spending in this area is substantial, driven by the need to protect critical infrastructure, federal buildings, and sensitive information across various agencies. This contract with the Department of Energy fits within the broader trend of agencies outsourcing security functions to specialized private sector providers.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Montech Inc. may be a large business, the robust 'full and open' competition suggests opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear and warrants further investigation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The definitive contract structure allows for modifications and adjustments, necessitating active management. Transparency is generally maintained through contract award databases, but detailed performance reports and audits are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Federal Protective Service Contracts
- Department of Energy Security Operations
- Physical Security Services
- Guard Services Contracts
- NAICS 561612 Contracts
Risk Flags
- Time and Materials Pricing
- Potential for Cost Overruns
- Justification for Source Exclusions
- Limited Performance Metrics Visibility
Tags
security-services, department-of-energy, montech-inc, time-and-materials, full-and-open-competition, definitive-contract, naics-561612, new-mexico, guard-services, federal-contract, energy-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.2 million to MONTECH INC. SECURITY SERVICES
Who is the contractor on this award?
The obligated recipient is MONTECH INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $10.2 million.
What is the period of performance?
Start: 2020-12-01. End: 2026-08-18.
What is Montech Inc.'s track record with federal contracts, particularly in security services?
Montech Inc. has a history of securing federal contracts, with this $10.2 million award for security services being a significant recent award. While the provided data doesn't detail their entire contract history, their ability to win a 'full and open' competition against 9 other bidders suggests a proven capability and a satisfactory performance record with the government. Further analysis would involve reviewing their past performance evaluations (e.g., CPARS) and the types and values of previous contracts awarded to them to fully assess their track record and experience in delivering similar security solutions.
How does the $10.2 million contract value compare to similar security service contracts awarded by the Department of Energy or other federal agencies?
The $10.2 million contract value, spread over approximately 6.8 years, averages around $1.5 million annually. This figure appears to be within the expected range for comprehensive security services at a federal facility, especially considering the scope of 'Security Guards and Patrol Services' (NAICS 561612). Comparable contracts for similar services at large government installations often fall within the low to mid-seven figures annually. The robust competition with 9 bidders further suggests that the pricing was likely competitive within the market rate for such services.
What are the primary risks associated with a Time and Materials (T&M) contract for security services, and how are they mitigated?
The primary risk with a Time and Materials (T&M) contract is the potential for cost escalation if labor hours are not efficiently managed or if the scope of work expands without proper controls. This can lead to costs exceeding initial estimates and potentially exceeding the contract's ceiling. Mitigation strategies employed by the government typically include establishing a contract ceiling, requiring detailed timesheets and justifications for hours worked, implementing performance metrics to ensure productivity, and conducting regular reviews and audits of billing. The Department of Energy's contracting officer would be responsible for diligent oversight to manage these risks.
What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the fairness and effectiveness of the bidding process?
This designation implies that the initial solicitation was intended for broad competition ('full and open'), but certain sources were excluded prior to the final award decision. This could be due to various reasons, such as specific technical requirements, past performance issues, or national security concerns. While it allows for some level of pre-selection, the fact that 9 bidders still participated suggests that the exclusion criteria did not unduly limit the pool of qualified and competitive vendors. The effectiveness hinges on the justification for exclusions being sound and transparent to ensure fair market access for eligible companies.
How has federal spending on security services (NAICS 561612) trended over the past five years, and does this contract align with that trend?
Federal spending on security services, particularly under NAICS 561612, has generally remained robust, reflecting the ongoing need to protect government assets and facilities. While specific year-over-year trends can fluctuate based on agency budgets and emerging threats, the overall demand for these services has been consistent. This $10.2 million contract awarded in late 2020 aligns with this trend, representing a significant investment by the Department of Energy to secure its operations. It suggests continued reliance on private sector security providers to fulfill essential protective functions.
What are the potential implications of this contract for small businesses in the security services sector?
As this contract was not a small business set-aside and was awarded under full and open competition, its direct impact on small businesses is likely through subcontracting opportunities. Montech Inc., as the prime contractor, may engage small businesses for specialized services or to meet subcontracting goals, if any were established. However, the absence of explicit small business participation metrics in the award data means the extent of this impact is uncertain. Small businesses capable of providing niche security solutions or support services could potentially benefit if Montech actively seeks them out.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89233120RNA000078
Offers Received: 9
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2109 AIRPARK ROAD SE - 110, ALBUQUERQUE, NM, 87106
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $11,758,625
Exercised Options: $11,758,625
Current Obligation: $10,205,086
Actual Outlays: $8,954,558
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-12-01
Current End Date: 2026-08-18
Potential End Date: 2026-08-19 00:00:00
Last Modified: 2026-03-26
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