DOJ's $33M security contract with STARSIDE SECURITY & INVESTIGATION INC awarded under full and open competition

Contract Overview

Contract Amount: $33,030,372 ($33.0M)

Contractor: Starside Security & Investigation Inc

Awarding Agency: Department of Justice

Start Date: 2013-11-22

End Date: 2018-09-30

Contract Duration: 1,773 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF

Place of Performance

Location: DIAMOND BAR, LOS ANGELES County, CALIFORNIA, 91765

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $33.0 million to STARSIDE SECURITY & INVESTIGATION INC for work described as: IGF::CL::IGF Key points: 1. Value for money appears fair given the duration and scope of security services provided. 2. Competition dynamics indicate a robust bidding process, potentially leading to competitive pricing. 3. Risk indicators are moderate, with performance context suggesting a need for ongoing oversight. 4. Sector positioning places this contract within the broader security services market for federal agencies. 5. Performance context suggests a long-term need for security services, indicating consistent demand.

Value Assessment

Rating: fair

The contract's total value of approximately $33 million over nearly five years suggests a moderate annual spend for security services. Benchmarking against similar contracts for security guards and patrol services is challenging without more granular data on service levels and geographic coverage. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a reasonable level of competition for these security services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

Benefits federal law enforcement operations by providing essential security personnel. Services delivered include guarding and patrol, ensuring the safety of federal facilities and personnel. Geographic impact is concentrated in California, where the services were presumably rendered. Workforce implications include the creation of jobs for security guards and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality across different locations or time periods.
Risk of price creep if contract terms are not strictly managed.
Dependence on a single contractor for critical security functions.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract structure shifts cost risk to the contractor.
Long contract duration indicates a stable and ongoing need for these services.

Sector Analysis

The security services industry is a significant component of the federal contracting landscape, encompassing a wide range of protective services. This contract falls under the Security Guards and Patrol Services NAICS code (561612), a segment characterized by numerous providers ranging from small businesses to large corporations. Federal spending in this sector is driven by the need to protect government assets, personnel, and facilities across various agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to STARSIDE SECURITY & INVESTIGATION INC, which is not explicitly identified as a small business in the provided data, suggests that larger firms may dominate this particular service area or that the competition favored larger entities. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Marshals Service, the specific agency within the Department of Justice. Accountability measures are inherent in the contract's performance clauses and payment terms. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Contracts
General Services Administration Schedules for Security Services

Risk Flags

Contract Duration
Potential for Service Disruption
Personnel Vetting and Training

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $33.0 million to STARSIDE SECURITY & INVESTIGATION INC. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is STARSIDE SECURITY & INVESTIGATION INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $33.0 million.

What is the period of performance?

Start: 2013-11-22. End: 2018-09-30.

What is the historical spending pattern for security services by the U.S. Marshals Service?

Analyzing historical spending patterns for security services by the U.S. Marshals Service is crucial for understanding the context of this $33 million contract. While specific historical data for this exact contract is limited to its award and duration, broader trends in federal security spending can be examined. Agencies like the U.S. Marshals Service often require continuous security presence, leading to consistent, multi-year contracts. Spending can fluctuate based on threat assessments, facility expansion or consolidation, and shifts in security policy. Without access to detailed historical procurement data for the Marshals Service specifically, it's difficult to pinpoint exact year-over-year spending. However, the overall federal expenditure on security services is substantial and generally increases over time due to inflation and evolving security needs. This contract represents a significant, but likely not isolated, investment in maintaining operational security for the agency.

How does the per-unit cost of security guards under this contract compare to market rates?

Determining the precise per-unit cost of security guards under this contract is challenging without detailed breakdowns of hours, guard levels (e.g., armed vs. unarmed, supervisory), and specific duties. The provided data indicates a total contract value of $33,030,371.87 over approximately 1773 days (roughly 4.85 years). If we assume a constant workforce and average daily rate, a very rough estimate could be derived, but this would be highly speculative. Market rates for security guards vary significantly by location, experience, licensing requirements, and whether the guards are armed. Federal contracts often include specific training and vetting requirements that can increase costs. To perform a true benchmark, one would need to compare the contractor's proposed rates against similar federal solicitations in California or against industry reports for security guard wages and overhead in comparable metropolitan areas. Given the firm-fixed-price nature, the government aimed to secure these services at a predetermined rate, but whether that rate is competitive requires deeper analysis of the bid proposals and market conditions at the time of award.

What is STARSIDE SECURITY & INVESTIGATION INC's track record with federal contracts?

STARSIDE SECURITY & INVESTIGATION INC has a track record of securing federal contracts, including this significant Delivery Order valued at over $33 million with the Department of Justice. The provided data indicates this contract was awarded under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, likely the GSA STARS II contract (indicated by 'STARSIDE' and 'ST' in the data). Federal procurement databases would reveal other contracts awarded to this entity, potentially across different agencies and for various security-related services. Analyzing these past awards can provide insights into their performance history, the types of services they typically provide, and their success rate in competitive bidding. A review of contract performance reports, if publicly available, or any past performance evaluations would offer a more comprehensive understanding of their reliability and quality of service in fulfilling federal obligations.

What are the primary risks associated with this type of security services contract?

Primary risks associated with this type of security services contract include performance failures, such as inadequate guard presence, insufficient response to incidents, or failure to adhere to post orders. There's also a risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen operational demands or labor cost increases, although the contractor typically assumes this risk. Personnel-related risks are significant, including issues with guard vetting, training, retention, and potential misconduct. Contract administration risks involve challenges in monitoring performance, ensuring compliance with regulations, and managing contract modifications. Finally, there's a strategic risk if the contractor's financial stability is questionable, potentially leading to service disruptions. The long duration of this contract (nearly 5 years) amplifies these risks, necessitating robust oversight.

How does the competition level (4 bidders) impact the value proposition for the government?

A competition level of 4 bidders for this security services contract generally suggests a healthy degree of market interest and a reasonable opportunity for price discovery. With multiple firms vying for the contract, the government is more likely to receive competitive pricing as bidders strive to offer the most attractive proposals. This level of competition can lead to a better value proposition by driving down costs and encouraging innovation in service delivery. However, the 'optimal' number of bidders can vary depending on the complexity and size of the requirement. For a large, multi-year contract like this, four bidders indicate that the market is sufficiently robust to support competition, reducing the risk of a suboptimal award due to limited options. It suggests that the government avoided a sole-source or highly restricted competition scenario, which typically results in higher prices and less accountability.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1930 S BREA CANYON RD STE, DIAMOND BAR, CA, 91765

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

Financial Breakdown

Contract Ceiling: $33,191,878

Exercised Options: $33,191,878

Current Obligation: $33,030,372

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: GS07F9400S

IDV Type: FSS

Timeline