Army awards $18.4M contract for security services to C & D Enterprises, Inc

Contract Overview

Contract Amount: $18,369,650 ($18.4M)

Contractor: C & D Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-08-29

End Date: 2013-11-30

Contract Duration: 4,111 days

Daily Burn Rate: $4.5K/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: 200212!020741!2100!TM05 !US ARMY ROBERT MORRIS ACQUISITIO!DATM0502C0057 !A!N! !N! !20020829!20050930!075769547!075769547!075769547!N!C AND D ENTERPRISES, INC !306 N DELAWARE DR !COLORADO SPRIN !CO!80909!73540!053!35!SOCORRO !SOCORRO !NEW MEXICO!+000000100000!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561612!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!K! !C!N!Z! ! !Y!B!Y!N! ! !A! !B!A!000!A!B!N! ! ! ! ! !W81C39!0001!

Place of Performance

Location: WHITE SANDS MISSILE RANGE, DONA ANA County, NEW MEXICO, 88002

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to C & D ENTERPRISES, INC. for work described as: 200212!020741!2100!TM05 !US ARMY ROBERT MORRIS ACQUISITIO!DATM0502C0057 !A!N! !N! !20020829!20050930!075769547!075769547!075769547!N!C AND D ENTERPRISES, INC !306 N DELAWARE DR !COLORADO SPRIN !CO!80909!73540!053!35!SOCORRO !SOCOR… Key points: 1. Contract awarded for security guard and patrol services. 2. Long contract duration of over 10 years. 3. Firm Fixed Price contract type suggests predictable costs. 4. Awarded under full and open competition. 5. Contractor is a small business based in New Mexico. 6. Services provided in Socorro, New Mexico.

Value Assessment

Rating: fair

The total award amount of $18.4 million over a period of more than 10 years suggests an average annual spend of approximately $1.8 million. Without specific details on the scope of services, number of guards, or hours, a direct value-for-money assessment is challenging. However, the duration of the contract could indicate a stable, long-term need for these services. Benchmarking against similar contracts for security services of comparable scale and duration would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources may have been excluded, potentially limiting the breadth of competition. The number of bidders is not explicitly stated in the provided data, making it difficult to assess the intensity of the competition. This procurement method might suggest specific requirements or circumstances that led to the exclusion of some potential offerors.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources might have been justified by specific needs. However, taxpayers could potentially benefit from broader competition, which often drives down prices.

Public Impact

Provides essential security services to protect Army assets and personnel. Supports the local economy in Socorro, New Mexico, through service provision. Ensures operational continuity for the Army facility in Socorro. Potentially creates or sustains jobs for security personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) may indicate a lack of recent market testing or potential for price increases over time.
The 'exclusion of sources' in the competition type warrants further investigation into the reasons and potential impact on price.
Limited information on the specific services and performance metrics makes it difficult to assess overall effectiveness.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to a small business based in New Mexico supports small business initiatives.
Contract awarded under a competitive process, even with exclusions, suggests some level of market engagement.

Sector Analysis

The security services sector is a significant part of the federal contracting landscape, encompassing a wide range of protective services. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. Federal spending in this sector is driven by the need to protect government facilities, personnel, and assets across various agencies. Comparable spending benchmarks would involve analyzing other contracts for similar security services awarded by the Department of Defense or other federal agencies to understand the typical pricing and contract structures.

Small Business Impact

The contractor, C & D ENTERPRISES, INC., is identified as a small business. This award likely contributes to the government's small business contracting goals. The contract's duration and value suggest a significant engagement for a small business. Further analysis would be needed to determine if there are subcontracting requirements associated with this award and how it impacts the broader small business ecosystem in New Mexico.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Inspector General's office within the Department of Defense would have jurisdiction for investigating fraud, waste, or abuse. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Department of Defense Security Contracts
Federal Security Guard Services
Army Installation Support Contracts
Small Business Set-Aside Analysis (if applicable)
Long-Term Service Contracts

Risk Flags

Long contract duration may reduce opportunities for market price adjustments.
Exclusion of sources in competition warrants further review.
Limited public data on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to C & D ENTERPRISES, INC.. 200212!020741!2100!TM05 !US ARMY ROBERT MORRIS ACQUISITIO!DATM0502C0057 !A!N! !N! !20020829!20050930!075769547!075769547!075769547!N!C AND D ENTERPRISES, INC !306 N DELAWARE DR !COLORADO SPRIN !CO!80909!73540!053!35!SOCORRO !SOCORRO !NEW MEXICO!+000000100000!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561612!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is C & D ENTERPRISES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2002-08-29. End: 2013-11-30.

What specific security services were provided under this contract, and what were the key performance indicators?

The provided data indicates the contract was for 'Security Guards and Patrol Services' (NAICS 561612). However, specific details regarding the scope of services, such as the number of guards, hours of operation, types of patrols, or specific security measures implemented, are not available in the abbreviated data. Key performance indicators (KPIs) and their associated metrics, which would typically be outlined in the contract's statement of work, are also not provided. Understanding these details is crucial for assessing the contractor's performance and the overall value delivered.

How does the total contract value of $18.4 million compare to similar security service contracts awarded by the Army or DoD?

The total award value of $18.4 million over a period spanning from August 2002 to November 2013 (approximately 11 years and 3 months) represents an average annual expenditure of roughly $1.6 million. To benchmark this effectively, one would need to compare it against other firm-fixed-price contracts for security guard and patrol services awarded by the Department of the Army or Department of Defense during a similar timeframe. Factors such as the geographic location, the specific security requirements (e.g., armed vs. unarmed guards, level of surveillance), and the size and importance of the facility being protected would need to be considered for a meaningful comparison. Without these comparative data points, it's difficult to definitively state whether this contract represents a particularly high or low value.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the procurement was intended to be competitive, specific criteria or circumstances led to the exclusion of certain potential bidders. Common reasons for such exclusions can include highly specialized requirements that only a limited number of contractors can meet, urgent needs where only pre-qualified vendors could respond quickly, or specific national security considerations. Without further documentation or details from the contracting agency (Department of the Army), the precise rationale for excluding sources remains unclear. This exclusion could potentially limit price competition and may warrant scrutiny to ensure it was fully justified and in the government's best interest.

What is the track record of C & D ENTERPRISES, INC. with federal contracts, particularly with the Department of Defense?

C & D ENTERPRISES, INC. was awarded this $18.4 million contract by the Department of the Army. The provided data indicates this was a significant award for the company, spanning over a decade. To fully assess their track record, a review of their complete federal contract history would be necessary. This would include examining other contracts awarded to them, their performance history on those contracts (e.g., any past performance issues, awards, or terminations), and their overall experience with providing security services to government entities. Their status as a small business may also influence the types and sizes of contracts they typically receive.

How did the contract's duration of over 10 years impact its overall cost-effectiveness and risk profile?

A contract duration exceeding 10 years, as seen with this $18.4 million award, can have mixed effects on cost-effectiveness and risk. On one hand, a long-term contract can provide stability and predictability for both the government and the contractor, potentially leading to efficiencies and reduced administrative burden compared to frequent re-competitions. It can also foster a strong working relationship. However, such extended periods can also introduce risks. Market prices for services may fluctuate significantly over a decade, potentially leading to the government paying above-market rates if the contract terms do not include mechanisms for price adjustments. Furthermore, a long duration might reduce the incentive for the contractor to innovate or improve services over time, and it limits opportunities for other capable contractors to compete for the business.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Nevada Property 1 LLC (UEI: 144630571)

Address: 306 N DELAWARE DR, COLORADO SPRIN, CO, 80909

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline