Department of Defense awards $3.96M contract for guard services to Defense Consulting Services LLC

Contract Overview

Contract Amount: $3,964,868 ($4.0M)

Contractor: Defense Consulting Services LLC

Awarding Agency: Department of Defense

Start Date: 2023-02-16

End Date: 2026-02-28

Contract Duration: 1,108 days

Daily Burn Rate: $3.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD SERVICES

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $4.0 million to DEFENSE CONSULTING SERVICES LLC for work described as: GUARD SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Performance period extends over 1108 days, suggesting a need for sustained security presence. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. Awarded as a purchase order, which typically signifies smaller, less complex acquisitions. 6. The contractor, Defense Consulting Services LLC, is relatively new to federal contracting based on available data.

Value Assessment

Rating: questionable

The contract value of approximately $3.96 million over 1108 days (roughly $3,578 per day) for guard services needs further benchmarking. Without comparison to similar contracts for guard services in Alabama or for the Defense Information Systems Agency, it is difficult to definitively assess value for money. The lack of competition suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can meet the specific requirements, or in urgent situations. The lack of competition limits the government's ability to leverage market forces to secure the best possible price and terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the opportunity for cost savings that could be realized through a competitive bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive enhanced security. Services delivered include security guards and patrol services, crucial for maintaining a safe environment. The geographic impact is localized to Alabama, where the services will be performed. The contract supports the defense sector's operational security needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the selection process due to sole-source award.
Potential for contractor lock-in if requirements are highly specialized.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Longer performance period suggests a stable, ongoing need for services.
Awarded to a specific entity, potentially indicating a tailored solution.

Sector Analysis

The security services industry is a significant component of the broader professional, scientific, and technical services sector. This contract falls under the NAICS code 561612, which covers establishments primarily engaged in providing security guards and patrol services. The federal government is a major consumer of these services across various agencies, particularly within defense and civilian departments, to protect personnel, facilities, and sensitive information. Benchmarking this contract's value would involve comparing its daily rate to similar guard services contracts awarded by the DoD or other federal agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Defense Consulting Services LLC, without further information on its size, does not directly indicate an impact on the small business ecosystem. Future analysis could explore if the prime contractor has a history of subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the Defense Information Systems Agency (DISA). As a purchase order, it may have less formal oversight than a larger, more complex contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Security Contracts
Defense Information Systems Agency Procurement
Security Guard Services Federal Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award limits price competition.
Lack of performance data for the contractor.
Potential for above-market pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.0 million to DEFENSE CONSULTING SERVICES LLC. GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is DEFENSE CONSULTING SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2023-02-16. End: 2026-02-28.

What is the track record of Defense Consulting Services LLC in federal contracting?

Based on the provided data, Defense Consulting Services LLC is the contractor for this specific purchase order. Further investigation into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain the company's full federal contracting history. This includes understanding the number and types of contracts previously awarded, their performance history, and any past performance evaluations. Without this broader context, it's difficult to assess their experience and reliability beyond this single award.

How does the daily rate of this contract compare to similar guard services contracts?

The contract value of $3,964,868.11 over 1108 days equates to a daily rate of approximately $3,578. This rate needs to be benchmarked against comparable guard services contracts. Factors such as the level of security required (e.g., armed vs. unarmed guards, specific security clearances), the geographic location (Alabama), and the specific services provided (patrol, access control, etc.) significantly influence pricing. A comparison with other DoD contracts for similar services in the same region would reveal if this rate is competitive or potentially inflated due to the lack of competition.

What are the primary risks associated with a sole-source award for guard services?

The primary risk associated with a sole-source award for guard services is the potential for paying a premium price due to the absence of competitive bidding. Without competing offers, the government may not achieve the best possible value. Other risks include limited vendor options if the current contractor underperforms, and a lack of transparency in the selection process. This can also stifle innovation and prevent the government from benefiting from new technologies or service delivery models offered by other potential providers.

How effective are guard services in meeting the Department of Defense's security objectives?

Guard services are a fundamental component of the Department of Defense's physical security strategy, aimed at protecting personnel, installations, and critical assets from threats. Their effectiveness is contingent on factors such as the quality of personnel, the clarity of post orders, adequate supervision, and integration with broader security measures (e.g., surveillance systems, access control). While essential, guard services are one layer of security. Their effectiveness in meeting DoD objectives is typically measured through performance metrics outlined in the contract, incident response rates, and periodic security assessments.

What is the historical spending pattern for guard services by the Defense Information Systems Agency?

Analyzing historical spending patterns for guard services by the Defense Information Systems Agency (DISA) requires access to comprehensive federal procurement data. This would involve querying databases like FPDS or USAspending to identify all contracts awarded for NAICS code 561612 (or similar security services codes) by DISA over several fiscal years. Understanding these patterns would reveal trends in contract values, types of services procured, dominant contractors, and the prevalence of competitive versus sole-source awards. This context is crucial for evaluating whether the current $3.96M award is consistent with past spending or represents an anomaly.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 615 ROLLING GRV, SAN ANTONIO, TX, 78253

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,964,868

Exercised Options: $3,964,868

Current Obligation: $3,964,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline