Commerce Department's $64.7M Security Contract Awarded to SECTEK, Inc. for USPTO Services

Contract Overview

Contract Amount: $64,703,583 ($64.7M)

Contractor: Sectek, Inc.

Awarding Agency: Department of Commerce

Start Date: 2014-05-05

End Date: 2020-02-14

Contract Duration: 2,111 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF SECURITY GUARD SERVICES - BASE YEAR. CONTACTS: BECKY MOREHART (PROCUREMENT); KEVIN LEWIS (COTR) AND JOE BURNS (OAS).

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $64.7 million to SECTEK, INC. for work described as: IGF::OT::IGF SECURITY GUARD SERVICES - BASE YEAR. CONTACTS: BECKY MOREHART (PROCUREMENT); KEVIN LEWIS (COTR) AND JOE BURNS (OAS). Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration potentially increasing risk. 4. Performance context is tied to the U.S. Patent and Trademark Office's physical security needs. 5. Sector positioning is within the security services industry, a common area for federal procurement.

Value Assessment

Rating: fair

The contract's total value of $64.7 million over its full term represents a significant investment in security services for the U.S. Patent and Trademark Office. Benchmarking this against similar large-scale security contracts for federal facilities is challenging without more granular data on service levels and specific security requirements. However, the duration of the contract (over 5 years) suggests a need for consistent, long-term security presence, which can sometimes lead to economies of scale but also carries risks of price escalation or service obsolescence if not managed carefully. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 4 bids were received, suggesting a reasonable level of competition for this type of service. A competitive process like this generally helps in price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios. The presence of multiple bidders implies that the market has sufficient capacity and interest to support the government's needs.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing overpayment and encouraging efficiency from the awarded contractor.

Public Impact

Benefits the U.S. Patent and Trademark Office by ensuring the physical security of its facilities and personnel. Delivers essential security guard and patrol services to protect government assets and maintain a safe working environment. Geographic impact is concentrated at USPTO facilities, primarily in Virginia. Workforce implications include the employment of security personnel by the contractor, SECTEK, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) increases the risk of price becoming uncompetitive over time or services becoming outdated.
Reliance on labor hours can lead to cost overruns if not closely monitored for efficiency and necessity.
Potential for contractor performance degradation over a long contract period without consistent oversight.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bids received (4) suggest a healthy level of market interest and competition.
Contract provides essential security services, fulfilling a critical government function.

Sector Analysis

The security services industry is a significant component of the federal procurement landscape, encompassing a wide range of services from physical guarding to cybersecurity. Federal spending in this sector is consistently high due to the government's extensive infrastructure and operational needs. This contract for security guards and patrol services falls under the NAICS code 561612. Comparable spending benchmarks would involve analyzing other large federal contracts for similar security guard services across various agencies and locations to assess cost-effectiveness.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the prime contractor, SECTEK, Inc., is not a small business. There is no explicit information provided regarding subcontracting plans or goals for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific prime contract appears limited, though the overall federal security market may involve small business participation in other contracts or as subcontractors to larger firms.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Contracting Officer's Representative (COR) and the Contracting Officer (CO) within the Department of Commerce, specifically the U.S. Patent and Trademark Office. Accountability measures are typically embedded in the contract's performance work statement (PWS), including service level agreements and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts for Security
Department of Justice Security Contracts

Risk Flags

Long contract duration may lead to price inflexibility.
Performance metrics not detailed, making objective assessment difficult.
Potential for cost creep if labor hours are not efficiently managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $64.7 million to SECTEK, INC.. IGF::OT::IGF SECURITY GUARD SERVICES - BASE YEAR. CONTACTS: BECKY MOREHART (PROCUREMENT); KEVIN LEWIS (COTR) AND JOE BURNS (OAS).

Who is the contractor on this award?

The obligated recipient is SECTEK, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $64.7 million.

What is the period of performance?

Start: 2014-05-05. End: 2020-02-14.

What is the historical spending pattern for security services at the U.S. Patent and Trademark Office prior to this contract?

Analyzing historical spending patterns for security services at the U.S. Patent and Trademark Office (USPTO) prior to this $64.7 million contract (awarded May 2014, ending Feb 2020) is crucial for context. Without specific prior contract data, we can infer general trends. Federal agencies like the USPTO typically require continuous security services, suggesting a history of recurring contracts for guards and patrols. Spending levels would likely fluctuate based on facility needs, threat assessments, and budget allocations. A significant contract like this often represents a consolidation or expansion of previous services. To provide a precise historical comparison, access to USPTO's procurement history for security services over the preceding 5-10 years would be necessary, looking at contract values, durations, and awarded vendors to identify trends in cost and competition.

How does SECTEK, Inc.'s performance on this contract compare to industry benchmarks for security guard services?

Assessing SECTEK, Inc.'s performance on this $64.7 million contract against industry benchmarks requires access to performance metrics, which are not publicly detailed in the provided data. Typically, performance for security contracts is evaluated based on factors like response times, incident reporting accuracy, guard attentiveness, adherence to post orders, and overall client satisfaction. Industry benchmarks often involve metrics such as guard turnover rates, training compliance, and the number of security incidents per period. Without specific performance reports or quality assurance reviews related to this contract, a direct comparison is difficult. However, the fact that the contract was awarded and executed over several years suggests a baseline level of acceptable performance, though it doesn't preclude areas for improvement or potential issues that may have arisen.

What are the specific security risks mitigated by this contract for the USPTO?

This contract for security guard and patrol services at the U.S. Patent and Trademark Office (USPTO) is designed to mitigate a range of physical security risks. These include unauthorized access to facilities, theft of government property, damage to infrastructure, workplace violence, and espionage. Security personnel provide a visible deterrent, control access points, monitor surveillance systems, respond to emergencies, and enforce security protocols. By ensuring a consistent and professional security presence, the contract helps protect sensitive information, valuable equipment, and the safety of USPTO employees and visitors. The specific risks addressed would be detailed in the Performance Work Statement (PWS), tailored to the USPTO's unique operational environment and threat landscape.

What is the total cost per year for security services under this contract, and how does it compare to other federal agencies of similar size?

The total value of this contract is $64,703,583.22, spanning from May 5, 2014, to February 14, 2020, which is approximately 5.75 years. To calculate the average annual cost, we divide the total value by the duration in years: $64,703,583.22 / 5.75 years ≈ $11,252,790 per year. Comparing this annual cost to other federal agencies of similar size requires data on their security spending, which is not readily available in a standardized format. Factors influencing cost include the number of facilities, square footage, geographic location, security threat levels, and the specific services required (e.g., number of guards, hours of coverage, specialized equipment). Agencies with comparable physical footprints and security needs, such as other large bureaus within the Department of Commerce or similar intellectual property offices in other countries, would provide the most relevant comparison points.

Were there any significant contract modifications or change orders issued during the life of this contract?

Information regarding specific contract modifications or change orders for this SECTEK, Inc. security services contract is not detailed in the provided summary data. Federal contracts, especially those with longer durations like this one (over 5 years), often undergo modifications. These can be for various reasons, including adjustments to scope of work, changes in service requirements, incorporation of new technologies, or modifications to pricing based on economic factors or revised needs. Significant modifications could impact the total contract value and performance. To determine if any occurred, one would need to consult the official contract file or databases that track contract modifications, such as the Federal Procurement Data System (FPDS).

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1650 TYSONS BLVD STE 925, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $64,703,584

Exercised Options: $64,703,584

Current Obligation: $64,703,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0279M

IDV Type: FSS

Timeline