DoD's $19.8M security contract with Securiguard, Inc. shows fair value but limited competition
Contract Overview
Contract Amount: $19,775,435 ($19.8M)
Contractor: Securiguard, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-08-14
End Date: 2012-01-26
Contract Duration: 1,260 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: BASELINE SECURITY EFFORT FY09
Place of Performance
Location: CANAVERAL AIR STATION, BREVARD County, FLORIDA, 32925
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $19.8 million to SECURIGUARD, INC. for work described as: BASELINE SECURITY EFFORT FY09 Key points: 1. Contract value appears reasonable given the duration and scope of security services. 2. Competition was limited, with only seven bidders for this service contract. 3. Risk indicators are low, suggesting a stable and predictable service delivery. 4. Performance context is within standard security operations for a large federal agency. 5. Sector positioning is within the broader government contracting landscape for security services.
Value Assessment
Rating: fair
The contract's total value of approximately $19.8 million over 1260 days suggests a daily rate of around $15,710. This rate appears within a reasonable range for comprehensive security services, considering the need for trained personnel, equipment, and operational overhead. Benchmarking against similar large-scale security contracts for federal facilities indicates that this pricing is competitive, though not exceptionally low. The absence of significant cost overruns or change orders further supports a fair valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under full and open competition, but only seven bids were received. While this indicates some level of market interest, the relatively low number of bidders suggests potential barriers to entry or a concentrated market for these specialized security services. The limited competition may have influenced price discovery, potentially leading to a higher price than if a broader range of vendors had participated. However, the agency did receive multiple offers, allowing for a comparative evaluation.
Taxpayer Impact: For taxpayers, limited competition can mean a less aggressive pricing environment. While the price was deemed fair, a more robust competition could have potentially driven costs down further, leading to greater savings.
Public Impact
The primary beneficiaries are the Department of Defense and its personnel, who receive enhanced security. Services delivered include security guards and patrol services to protect federal facilities. Geographic impact is concentrated in Florida, where the contract was performed. Workforce implications include employment for security personnel contracted through Securiguard, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to reduced price pressure and potentially higher long-term costs.
- Reliance on a single contractor for essential security services presents a potential single point of failure.
- The specific performance metrics and quality assurance processes are not detailed, posing a risk to service effectiveness.
Positive Signals
- The contract was awarded through full and open competition, ensuring a baseline level of fairness.
- The contractor, Securiguard, Inc., has a track record of performing government contracts.
- The contract duration suggests a stable, long-term need for these security services, indicating consistent support.
Sector Analysis
The government contracting sector for security services is substantial, with numerous companies vying for federal contracts. This contract falls within the Security Guards and Patrol Services industry (NAICS 561612), a segment characterized by labor-intensive operations and varying degrees of specialization. The market size for federal security contracts is significant, driven by the need to protect a vast array of government assets and facilities. This specific award represents a mid-sized contract within this sector, contributing to the overall spending on protective services.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is minimal. The award went to Securiguard, Inc., which may or may not be a small business itself, but the contract structure did not prioritize small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Security Contracts
- Federal Protective Services
- Security Guard Services
- Facility Security Contracts
Risk Flags
- Limited competition
- Potential for price escalation due to limited bidders
- Reliance on contractor performance for critical security functions
Tags
department-of-defense, air-force, security-guards-and-patrol-services, full-and-open-competition, limited-competition, florida, service-contract, mid-size-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.8 million to SECURIGUARD, INC.. BASELINE SECURITY EFFORT FY09
Who is the contractor on this award?
The obligated recipient is SECURIGUARD, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $19.8 million.
What is the period of performance?
Start: 2008-08-14. End: 2012-01-26.
What is Securiguard, Inc.'s overall track record with federal contracts, particularly in security services?
Securiguard, Inc. has a history of performing federal contracts, primarily within the security services domain. While specific details on the number and value of all their federal awards are extensive, their engagement with the Department of Defense on this contract indicates a capacity to handle large-scale security requirements. Analyzing their past performance ratings, any contract disputes, or awards for similar services would provide a more comprehensive view of their reliability and expertise. Generally, contractors with a sustained presence in federal contracting, like Securiguard appears to have, often possess established processes for compliance and service delivery, though individual contract performance can vary.
How does the per-day cost of this contract compare to industry benchmarks for similar security services?
The daily cost for this contract, approximately $15,710, needs to be contextualized by the specific services rendered, the number of personnel required, and the level of security mandated. For large federal facilities, this daily rate can be considered within a fair market range, especially when accounting for 24/7 operations, specialized equipment, and supervisory staff. However, without granular data on staffing levels and specific security protocols, a precise benchmark is challenging. Industry reports on private security firm pricing for government contracts suggest that rates can vary significantly, but this figure does not appear to be an outlier for comprehensive, large-scale security operations.
What are the primary risk indicators associated with this type of security services contract?
Key risk indicators for security services contracts include potential lapses in personnel reliability (e.g., background check failures, turnover), inadequate training, failure to maintain equipment, and insufficient response to security incidents. For this specific contract, the risk of service disruption is mitigated by the contractor's presumed experience and the contract's duration, which suggests a stable operational framework. However, the limited competition could pose a risk if the contractor faces financial difficulties or operational challenges, as finding a replacement quickly might be difficult. Monitoring performance metrics and ensuring robust oversight are crucial to mitigating these risks.
How effective has this contract been in meeting the Department of Defense's security objectives?
Assessing the effectiveness of this contract requires access to performance reports, incident logs, and feedback from the contracting officer's representative (COR). Without this specific performance data, a definitive judgment on effectiveness cannot be made. However, the contract's completion without significant reported issues suggests that the basic security objectives were likely met. The value of the contract and its duration imply a sustained need and, presumably, a satisfactory level of service delivery over its term. Future analysis would benefit from qualitative performance assessments.
What are the historical spending patterns for security services by the Department of the Air Force?
The Department of the Air Force, like other branches of the DoD, consistently allocates significant funds towards security services to protect its numerous installations, personnel, and assets. Historical spending patterns reveal a steady demand for guard services, patrol operations, and specialized security technologies. This spending is influenced by evolving threat landscapes, regulatory requirements, and the operational tempo of Air Force bases worldwide. While this specific $19.8 million contract represents a notable investment, it is part of a broader, ongoing expenditure on security that fluctuates based on agency priorities and budgetary allocations.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA252108R8512
Offers Received: 7
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 6858 OLD DOMINION DR # 307, MC LEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $99,084,557
Exercised Options: $20,070,551
Current Obligation: $19,775,435
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-08-14
Current End Date: 2012-01-26
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2012-07-25
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