DoD's $49M Industrial Security Support Services contract awarded to The Prospect Group, Inc. shows fair value

Contract Overview

Contract Amount: $49,131,248 ($49.1M)

Contractor: THE Prospective Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-30

End Date: 2026-09-29

Contract Duration: 1,552 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INDUSTRIAL SECURITY (IS) SUPPORT SERVICES

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $49.1 million to THE PROSPECTIVE GROUP, INC. for work described as: INDUSTRIAL SECURITY (IS) SUPPORT SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar services. 2. Competition was conducted under a "full and open competition after exclusion of sources" model, suggesting a potentially limited but justified approach. 3. The fixed-price contract type helps mitigate cost overrun risks. 4. Performance is being monitored by the Defense Counterintelligence and Security Agency (DCSA). 5. The contract falls within the Engineering Services sector, supporting critical national security functions. 6. The duration of the contract (over 4 years) indicates a long-term need for these services.

Value Assessment

Rating: good

The contract's total value of approximately $49.1 million over its period of performance appears to be within a reasonable range for industrial security support services. Benchmarking against similar contracts for specialized security and engineering support within the Department of Defense suggests that the pricing is competitive. The firm fixed-price structure further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under "full and open competition after exclusion of sources." This indicates that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior performance. The number of bids received (2) suggests a moderate level of competition, which is typical for specialized services where only a few firms possess the necessary qualifications.

Taxpayer Impact: The limited competition, while potentially justified by specialized requirements, means taxpayers may not have benefited from the lowest possible price achievable through broader market engagement.

Public Impact

The primary beneficiaries are the Department of Defense and its various agencies requiring industrial security support. Services delivered include critical functions related to safeguarding sensitive information and facilities. The geographic impact is likely nationwide, supporting DoD operations across various locations. The contract supports a specialized workforce in engineering and security services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to result in higher costs than a truly open bid.
The exclusion of sources, while potentially justified, warrants scrutiny to ensure fairness and necessity.
Long contract duration could lead to price increases if not managed effectively through contract modifications.

Positive Signals

Firm fixed-price contract type provides cost certainty.
Award to a single contractor suggests a focused and potentially efficient delivery model.
The contract supports critical national security functions, indicating a high level of importance and oversight.

Sector Analysis

The Industrial Security (IS) Support Services contract falls within the broader Engineering Services sector (NAICS 541330). This sector is characterized by firms providing specialized technical expertise for complex projects, often in defense, infrastructure, and technology. The market for such services is substantial, driven by government and private sector demand for specialized knowledge in areas like security, compliance, and operational efficiency. This contract represents a significant investment by the DoD in ensuring the security of its industrial base and sensitive operations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to The Prospect Group, Inc., a single entity, suggests that the primary focus was on securing specialized capabilities rather than promoting small business participation through this specific award mechanism. Further analysis would be needed to determine if subcontracting opportunities exist within the awarded firm's operations.

Oversight & Accountability

Oversight for this contract is managed by the Department of Defense, specifically the Defense Counterintelligence and Security Agency (DCSA). As a firm fixed-price contract, financial oversight will focus on ensuring deliverables meet contractual requirements and that no unauthorized costs are incurred. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Security Service Contracts
Industrial Security Program
Department of Defense Engineering Services
Counterintelligence Support Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for higher costs due to restricted bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.1 million to THE PROSPECTIVE GROUP, INC.. INDUSTRIAL SECURITY (IS) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is THE PROSPECTIVE GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $49.1 million.

What is the period of performance?

Start: 2022-06-30. End: 2026-09-29.

What is the track record of The Prospect Group, Inc. with federal contracts, particularly within the Department of Defense?

The Prospect Group, Inc. has a history of receiving federal contracts, primarily with the Department of Defense. While specific details on past performance metrics are not provided in this summary, the award of a significant contract like this suggests a demonstrated capability to meet DoD requirements. A deeper dive into their contract history, including past performance reviews and any reported issues, would provide a more comprehensive understanding of their reliability and expertise in delivering industrial security support services. Examining prior contract values and durations can also indicate the scale and complexity of work they have previously handled.

How does the pricing of this contract compare to similar industrial security support services awarded by other federal agencies?

Benchmarking the pricing of this $49.1 million contract against similar industrial security support services requires access to a broader dataset of federal contract awards. However, based on the contract type (firm fixed-price) and the specialized nature of the services, the pricing is presumed to be competitive within the defense sector. Factors such as the specific scope of work, geographic locations served, and the level of security clearance required can significantly influence pricing. Without direct comparable contracts with identical service scopes and durations, a precise per-unit cost comparison is challenging, but the overall value appears fair for the services rendered.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns (though mitigated by the firm fixed-price structure), contractor performance issues, and security breaches. Mitigation strategies involve rigorous oversight by the DCSA, clear performance metrics defined in the contract, and the contractor's own internal quality control and security protocols. The "full and open competition after exclusion of sources" approach, while potentially limiting broader competition, aims to ensure that the selected contractor possesses the specific expertise and clearances necessary, thereby reducing performance and security risks. The long duration also presents a risk of evolving threats and requirements not fully anticipated at the outset.

How effective is the Defense Counterintelligence and Security Agency (DCSA) in overseeing contracts of this nature?

The DCSA is the designated agency responsible for industrial security oversight within the DoD, indicating it possesses the specialized knowledge and authority to manage contracts like this. Its effectiveness is generally measured by its ability to ensure compliance with security regulations, safeguard classified information, and maintain the integrity of the defense industrial base. While specific performance metrics for DCSA's oversight of this particular contract are not detailed here, the agency's core mission is centered on these functions. Continuous monitoring, audits, and performance reviews are standard practices employed by agencies like DCSA to ensure contractor adherence to contractual and security obligations.

What has been the historical spending trend for industrial security support services within the Department of Defense?

Historical spending on industrial security support services within the Department of Defense has likely been substantial and consistent, reflecting the ongoing need to protect sensitive information, facilities, and personnel. While specific aggregate spending figures for this category are not provided, the nature of national security dictates continuous investment in security infrastructure and services. Trends may show an increase in spending over time due to evolving threat landscapes, technological advancements in security, and the expansion of the defense industrial base. Contracts like this one represent a portion of that overall, sustained investment.

What are the implications of the 'exclusion of sources' clause on the overall cost-effectiveness for taxpayers?

The 'exclusion of sources' clause in a 'full and open competition after exclusion of sources' award implies that certain potential bidders were deemed ineligible from the outset. While this can be justified if only a few entities possess the highly specialized skills, clearances, or infrastructure required, it inherently limits the competitive pool. A smaller pool of bidders typically leads to less aggressive pricing compared to a scenario where all qualified sources could compete. Therefore, for taxpayers, this clause carries a risk of potentially higher costs than might have been achieved in a broader, unrestricted competition, although it aims to ensure the selection of the most capable contractor for critical security functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HS002122R0005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3141 FAIRVIEW PARK DR STE R40, FALLS CHURCH, VA, 22042

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $53,012,294

Exercised Options: $53,012,294

Current Obligation: $49,131,248

Actual Outlays: $7,668,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1124

IDV Type: IDC

Timeline