DHS Spends $22.9M on Hawaii Guard Services via Competitive Delivery Order

Contract Overview

Contract Amount: $22,911,204 ($22.9M)

Contractor: Akal Security, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-02-15

End Date: 2012-03-12

Contract Duration: 1,852 days

Daily Burn Rate: $12.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HAWAII GUARD SERVICES

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96850

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.9 million to AKAL SECURITY, INC. for work described as: HAWAII GUARD SERVICES Key points: 1. Significant contract value of $22.9 million over five years. 2. Competition was present, with AKAL SECURITY, INC. winning the award. 3. Risk is moderate due to the Time and Materials pricing structure. 4. Sector is Security Services, a common government procurement area.

Value Assessment

Rating: fair

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not closely managed. Benchmarking against similar security guard contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded via a competitive delivery order, indicating multiple bids were likely considered. This method generally promotes price discovery, but the Time and Materials structure may limit its effectiveness in controlling final costs.

Taxpayer Impact: Taxpayers funded $22.9 million for security services, with potential for increased costs due to the T&M pricing model.

Public Impact

Ensures security for Hawaii facilities, contributing to public safety. Supports local employment through the contracted security personnel. Government spending on essential services like security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Long contract duration (5 years)

Positive Signals

Competitive award process
Essential service provision

Sector Analysis

The security services sector is a consistent area of government spending. Benchmarks for similar contracts vary widely based on location, scope, and service level, but $22.9 million over five years for guard services is substantial.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The competitive delivery order process suggests some level of oversight. However, the Time and Materials pricing requires diligent monitoring to ensure cost-effectiveness and prevent waste.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Time and Materials pricing
Lack of detailed cost breakdown
Potential for cost overruns
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.9 million to AKAL SECURITY, INC.. HAWAII GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is AKAL SECURITY, INC..

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 $22.9 million.

What is the period of performance?

Start: 2007-02-15. End: 2012-03-12.

What was the average hourly rate for security personnel under this contract, and how does it compare to market rates?

Without specific labor category rates and hours worked, calculating an average hourly rate is not possible from the provided data. A comparison to market rates would require access to detailed pricing information and regional labor cost data for security guards.

Were there any performance issues or cost overruns reported during the contract's five-year period?

The provided data does not contain information on contract performance or cost overruns. Such details would typically be found in contract performance reports, payment histories, or agency audit findings, which are not included here.

How effectively did the competitive process ensure value for money, given the Time and Materials pricing structure?

While the competitive process likely secured a base rate, the Time and Materials structure inherently introduces risk to value for money. Effective price discovery is limited if the scope of work or hours required were not well-defined upfront, potentially leading to higher costs than a fixed-price contract.

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: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7 INFINITY LOOP, ESPANOLA, NM, 87532

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,911,204

Exercised Options: $22,911,204

Current Obligation: $22,911,204

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F0061M

IDV Type: FSS

Timeline