DHS Spends $10.9M on Armed Guard Services via BPA, Lacking Small Business Participation
Contract Overview
Contract Amount: $10,953,543 ($11.0M)
Contractor: General Security Services Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2007-09-28
End Date: 2010-09-30
Contract Duration: 1,098 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Sector: Other
Official Description: ARMED GUARD SERVICE
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44199, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Homeland Security obligated $11.0 million to GENERAL SECURITY SERVICES CORPORATION for work described as: ARMED GUARD SERVICE Key points: 1. Significant contract value of $10.9 million for essential security services. 2. General Security Services Corporation is the sole awardee under this BPA. 3. Potential risk associated with a lack of small business involvement. 4. Spending falls within the Security Guards and Patrol Services sector.
Value Assessment
Rating: fair
The contract value of $10.9 million over three years suggests a substantial investment. Benchmarking against similar armed guard service contracts is difficult without more granular data on service levels and geographic scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating an initial effort to solicit broad market interest. However, the subsequent award mechanism (BPA) and the single awardee raise questions about sustained competition and price discovery over the contract's life.
Taxpayer Impact: Taxpayer funds are being utilized for essential security services. The effectiveness of competition in driving value for money is a key consideration for taxpayer impact.
Public Impact
Ensures physical security for Department of Homeland Security facilities and personnel. Supports critical national security missions by providing protection. Potential for cost savings or enhanced service through competitive bidding processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Single awardee under BPA may limit future competition
Positive Signals
- Awarded under full and open competition initially
- Essential service provision
Sector Analysis
Spending on security guard services is crucial for government operations, particularly for agencies like DHS. Benchmarks for this sector vary widely based on service complexity, location, and security clearance requirements.
Small Business Impact
The data indicates that small businesses were not awarded any portion of this contract (ss: false, sb: false). This suggests a missed opportunity to support small business growth and potentially leverage specialized capabilities within the small business sector.
Oversight & Accountability
The use of a Blanket Purchase Agreement (BPA) implies a framework for streamlined ordering. Oversight would focus on ensuring fair pricing, performance standards, and adherence to contract terms throughout the BPA's lifecycle.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Limited ongoing competition
- Lack of small business utilization
- Potential for vendor lock-in
- Price escalation risk over time
Tags
security-guards-and-patrol-services, department-of-homeland-security, oh, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.0 million to GENERAL SECURITY SERVICES CORPORATION. ARMED GUARD SERVICE
Who is the contractor on this award?
The obligated recipient is GENERAL SECURITY SERVICES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2007-09-28. End: 2010-09-30.
What was the rationale for awarding the BPA to a single vendor if the initial competition was full and open?
The rationale for a single award under a full and open competition BPA could stem from various factors. It might indicate that only one vendor met all the stringent requirements, offered the best value proposition at the time of award, or possessed unique capabilities. Alternatively, the agency might have prioritized ease of administration and established a relationship with a trusted provider, potentially at the expense of ongoing competitive pressure.
How does the pricing of this contract compare to industry benchmarks for similar armed guard services?
Without specific details on the scope of services, geographic coverage, and required security clearances, a precise comparison to industry benchmarks is challenging. However, a $10.9 million spend over approximately three years suggests a significant investment. Further analysis would require comparing the per-hour rates, overhead, and profit margins against publicly available data for comparable government and commercial contracts.
What are the potential risks associated with the lack of small business participation in this contract?
The absence of small business participation represents a missed opportunity to foster economic growth and innovation. It could also indicate potential barriers to entry for smaller firms in this contracting space. From a risk perspective, over-reliance on a single large contractor might lead to reduced flexibility, potential price increases over time, and a narrower pool of solutions if the incumbent contractor's performance falters.
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
Evaluated Preference: NONE
Contractor Details
Address: 9110 MEADOWVIEW RD, MINNEAPOLIS, MN, 55425
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,953,543
Exercised Options: $10,953,543
Current Obligation: $10,953,543
Parent Contract
Parent Award PIID: HSGS05P04GCD0005
IDV Type: BPA
Timeline
Start Date: 2007-09-28
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2017-07-31
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