DHS awarded $13.1M for security guards in Oklahoma, with a per-guard cost of $2,871

Contract Overview

Contract Amount: $13,092,058 ($13.1M)

Contractor: J. Diamond Group, Inc., the

Awarding Agency: Department of Homeland Security

Start Date: 2008-07-01

End Date: 2009-09-30

Contract Duration: 456 days

Daily Burn Rate: $28.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED GUARD SERVICES STATE OF OKLAHOMA. CONTRACT NO. GS-07F-0305L. TASK ORDER NO. HSCEC7-08-F-00078. PDN NO. PJ8R700327.

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74116

State: Oklahoma Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.1 million to J. DIAMOND GROUP, INC., THE for work described as: ARMED GUARD SERVICES STATE OF OKLAHOMA. CONTRACT NO. GS-07F-0305L. TASK ORDER NO. HSCEC7-08-F-00078. PDN NO. PJ8R700327. Key points: 1. The contract value of $13.1 million for armed guard services represents a significant investment in securing federal facilities within Oklahoma. 2. Competition dynamics indicate a competitive delivery order, suggesting a reasonable price discovery process. 3. The duration of 456 days (approximately 15 months) provides a stable operational period for the services. 4. The fixed-firm price structure offers cost certainty for the government, mitigating risks of cost overruns. 5. The service falls under the Security Guards and Patrol Services NAICS code, a common requirement for federal agencies. 6. The contract was awarded to J. Diamond Group, Inc., highlighting a specific contractor's role in federal security provision.

Value Assessment

Rating: fair

The total award of $13.1 million for armed guard services over approximately 15 months appears substantial. The benchmarked per-unit cost of $2,871 (likely per guard per period, though the exact unit is unclear from the data) needs further context. Without comparable contract data for similar services in the same region or for the same agency, it's difficult to definitively assess value for money. However, the fixed-firm pricing suggests an attempt to control costs.

Cost Per Unit: $2,871

Competition Analysis

Competition Level: limited

The contract type is listed as 'COMPETITIVE DELIVERY ORDER,' which implies some level of competition, but the data does not specify the number of bidders or the exact nature of the competition. It is not a full and open competition. This limited competition could potentially lead to less aggressive pricing compared to a broader solicitation.

Taxpayer Impact: Limited competition may mean taxpayers did not benefit from the lowest possible price that could have been achieved through a wider bidding process.

Public Impact

Federal facilities in Oklahoma are provided with enhanced security through armed guard services. U.S. Immigration and Customs Enforcement (ICE) personnel and assets are protected. The contract ensures the physical security and safety of government property and personnel within the state. The services contribute to the operational continuity of ICE's mission in Oklahoma.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information raises questions about the extent of price discovery.
The per-unit cost benchmark requires further validation against similar contracts.
The specific deliverables and performance metrics are not detailed in the provided data.

Positive Signals

Fixed-firm pricing provides cost certainty for the government.
The contract was awarded under a competitive delivery order, indicating some level of market engagement.
The contractor, J. Diamond Group, Inc., is established as a provider of these services.

Sector Analysis

The security services sector is a critical component of federal procurement, encompassing a wide range of protective measures. This contract for armed guard services falls under the Security Guards and Patrol Services industry (NAICS 561612). Federal spending in this area is consistently high, driven by the need to protect sensitive government facilities, personnel, and assets. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar guard services across different agencies and geographic locations to assess cost-effectiveness.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. There is no information available regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside goals or subcontracting requirements, the direct impact on small businesses is not quantifiable from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG, where basic award information is published. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations related to contract performance or compliance.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Immigration and Customs Enforcement Support Contracts
Armed Guard Services Procurement
Government Facility Security Contracts

Risk Flags

Limited competition may impact price.
Per-unit cost requires further validation.
Contractor performance history not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.1 million to J. DIAMOND GROUP, INC., THE. ARMED GUARD SERVICES STATE OF OKLAHOMA. CONTRACT NO. GS-07F-0305L. TASK ORDER NO. HSCEC7-08-F-00078. PDN NO. PJ8R700327.

Who is the contractor on this award?

The obligated recipient is J. DIAMOND GROUP, INC., THE.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2008-07-01. End: 2009-09-30.

What is the specific unit of measure for the $2,871 benchmark cost, and how does it compare to industry standards for armed guard services?

The provided data indicates a benchmark cost of $2,871. However, the specific unit of measure (e.g., per guard per month, per guard per hour, per post per day) is not explicitly stated. To accurately assess its value, this figure needs to be compared against industry benchmarks for armed guard services, considering factors like geographic location, level of armament, required certifications, and hours of service. Without this context, the $2,871 figure is difficult to interpret as either high or low. Further analysis would require obtaining the full contract details to identify the precise unit and then researching prevailing market rates for comparable services in Oklahoma or similar regions.

How many bids were received for this competitive delivery order, and what does this imply about the level of competition?

The data classifies this contract as a 'COMPETITIVE DELIVERY ORDER' (CT: COMPETITIVE DELIVERY ORDER) and notes there were 4 offers received (no: 4). While this indicates that the contract was not sole-source and that multiple entities submitted proposals, the term 'competitive delivery order' can sometimes imply a less rigorous competition than a full and open solicitation. The number of offers (4) suggests a moderate level of interest. A higher number of bids would typically indicate stronger competition, potentially leading to more favorable pricing for the government. Conversely, a low number of bids might suggest limited market interest or specialized requirements that restrict the pool of potential contractors.

What is the track record of J. Diamond Group, Inc. in providing federal security services, particularly for agencies like DHS?

J. Diamond Group, Inc. has been awarded this $13.1 million contract by the Department of Homeland Security (DHS) for armed guard services in Oklahoma. To assess their track record, one would need to examine their past performance on federal contracts, specifically looking at contracts of similar size, scope, and duration. Key indicators include past performance reviews, any history of contract disputes, timely delivery of services, and compliance with federal regulations. Information on previous contracts awarded to J. Diamond Group, Inc. by DHS or other federal agencies, along with their performance ratings, would provide a clearer picture of their reliability and capability in fulfilling federal security requirements.

How does the total contract value of $13.1 million compare to historical federal spending on security guard services in Oklahoma or for ICE?

The total contract value of $13.1 million for armed guard services in Oklahoma awarded to J. Diamond Group, Inc. represents a significant expenditure. To contextualize this, historical federal spending data for security guard services within Oklahoma, or specifically for U.S. Immigration and Customs Enforcement (ICE) nationwide or in similar regions, would be necessary. Analyzing trends in federal procurement for these services can reveal whether this award is an outlier, consistent with past spending patterns, or indicative of an increasing demand. Without comparative historical data, it is challenging to determine if this contract represents an efficient use of taxpayer funds relative to previous investments in similar security provisions.

What are the specific risks associated with this contract, given its duration and the nature of armed guard services?

Key risks associated with this contract include potential performance issues, such as inadequate guard performance, breaches of security protocols, or failure to maintain required staffing levels. The use of armed personnel introduces risks related to safety, liability, and the potential for misuse of force. Given the contract duration of approximately 15 months, there's also a risk of contractor complacency or a decline in service quality over time. Furthermore, changes in federal security requirements or budget constraints could impact the contract's ongoing viability or necessitate modifications. Ensuring robust oversight, clear performance standards, and appropriate insurance coverage are crucial mitigation strategies.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6410 SW BLVD STE 128, FORT WORTH, TX, 76109

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,092,058

Exercised Options: $13,092,058

Current Obligation: $13,092,058

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F0305L

IDV Type: FSS

Timeline