DoD's $28.3M Guard Services Contract Awarded to Ares Group Inc. Amidst Full and Open Competition
Contract Overview
Contract Amount: $28,272,953 ($28.3M)
Contractor: Ares Group Incorporated
Awarding Agency: Department of Defense
Start Date: 2006-04-07
End Date: 2011-04-30
Contract Duration: 1,849 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200608!700417!9700!HQ0034!WHS A&PO !HQ003406C1014 !A!N! !Y! ! !20060407!20061130!006437144!006437144!006437144!N!ARES GROUP INC !8625C ENGLESIDE OFFICE PA !ALEXANDRIA !VA!22309!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000003174468!N!N!000023940068!S206!GUARD SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561612!A!A!3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!017!K! !C!N!Z! ! !Y!A!N!N!C!A! ! !B!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $28.3 million to ARES GROUP INCORPORATED for work described as: 200608!700417!9700!HQ0034!WHS A&PO !HQ003406C1014 !A!N! !Y! ! !20060407!20061130!006437144!006437144!006437144!N!ARES GROUP INC !8625C ENGLESIDE OFFICE PA !ALEXANDRIA !VA!22309!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. The Department of Defense awarded a $28.3 million contract for security guard services. 2. Ares Group Inc. secured the contract through full and open competition. 3. The contract duration is over 5 years, indicating a significant, ongoing need for security. 4. The sector is Security Guards and Patrol Services, a common government expenditure.
Value Assessment
Rating: fair
The contract value of $28.3 million over approximately 5 years suggests a substantial investment in security services. Benchmarking against similar contracts for guard services is necessary to determine if this pricing is competitive.
Cost Per Unit: $15,291 per period (benchmark)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process was intended. However, the 'exclusion of sources' clause warrants further investigation to understand its impact on price discovery.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but the specifics of source exclusion need scrutiny to confirm optimal value.
Public Impact
Ensures security at Washington Headquarters Services, a critical government facility. Supports national defense by providing essential security personnel. The contract's duration suggests a stable, long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price inflation due to 'exclusion of sources' clause.
- Contract duration may lead to complacency in seeking cost efficiencies.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded through full and open competition.
- Contract value is clearly defined.
- Services provided are essential for government operations.
Sector Analysis
The security services sector is competitive, with many firms offering guard and patrol services. Government contracts often represent a significant portion of revenue for established security companies. Benchmarks for similar contracts can vary widely based on location, scope, and security level required.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense through Washington Headquarters Services. Oversight would typically involve contract performance monitoring and financial audits to ensure compliance and value for money.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Ambiguity in 'exclusion of sources' clause.
- Long contract duration without clear performance metrics.
- Potential for uncompetitive pricing due to source exclusion.
- Lack of detail on small business participation.
Tags
security-guards-and-patrol-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.3 million to ARES GROUP INCORPORATED. 200608!700417!9700!HQ0034!WHS A&PO !HQ003406C1014 !A!N! !Y! ! !20060407!20061130!006437144!006437144!006437144!N!ARES GROUP INC !8625C ENGLESIDE OFFICE PA !ALEXANDRIA !VA!22309!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000003174468!N!N!000023940068!S206!GUARD SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561612!A!A!3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is ARES GROUP INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $28.3 million.
What is the period of performance?
Start: 2006-04-07. End: 2011-04-30.
What was the specific reason for excluding sources in this 'full and open competition' award, and did it limit the number of bids received?
The 'exclusion of sources' clause in a 'full and open competition' award is unusual and requires clarification. It could imply that certain types of vendors were intentionally not considered, potentially due to specific security clearances, past performance issues with other vendors, or unique requirements. Understanding the rationale behind this exclusion is crucial to determine if it genuinely fostered competition or inadvertently restricted it, potentially impacting the final price and the range of innovative solutions available.
How does the per-unit cost of $15,291 compare to industry benchmarks for similar security guard services in the Washington D.C. metropolitan area?
A per-unit cost of $15,291 for security guard services needs to be benchmarked against similar contracts in the region. Factors like the number of guards, hours of service, required skill levels, and specific security protocols heavily influence pricing. Without detailed service scope, it's difficult to definitively assess value. However, this figure provides a starting point for comparison with other government and private sector contracts to identify potential over or under-pricing.
What performance metrics are in place to ensure the effectiveness and efficiency of Ares Group Inc.'s security services?
The provided data does not detail the performance metrics or Key Performance Indicators (KPIs) established for this contract. Effective oversight requires clearly defined metrics related to response times, incident reporting accuracy, guard presence, and overall security posture. Without these, it is challenging to objectively assess the contractor's performance and ensure taxpayer money is yielding the desired security outcomes.
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: 17
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8625C ENGLESIDE OFFICE PA, ALEXANDRIA, VA, 22309
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2006-04-07
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2019-10-25
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