DHS's $22.75M guard services contract for Southern California awarded to USPROTECT CORPORATION

Contract Overview

Contract Amount: $22,746,980 ($22.7M)

Contractor: Usprotect Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-02-15

End Date: 2008-03-13

Contract Duration: 392 days

Daily Burn Rate: $58.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 14

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GUARD SERVICES FOR SOUTHERN CALIFORNIA

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.7 million to USPROTECT CORPORATION for work described as: GUARD SERVICES FOR SOUTHERN CALIFORNIA Key points: 1. Contract value appears reasonable given the duration and scope of guard services. 2. Competition dynamics for this delivery order were not fully detailed, impacting price discovery assessment. 3. Risk indicators are moderate, with potential for performance issues in a large-scale service contract. 4. Performance context is limited without specific metrics on guard effectiveness or incident response. 5. Sector positioning is within government contracting for security services, a common area for federal spending.

Value Assessment

Rating: fair

The contract's total value of $22.75 million over approximately 13 months suggests a monthly expenditure of roughly $1.75 million. Benchmarking this against similar large-scale guard service contracts for federal facilities is challenging without more specific details on the number of personnel, hours, and specific security requirements. The Time and Materials (T&M) pricing structure can sometimes lead to cost overruns if not closely managed, but it also allows for flexibility in responding to changing needs. Without comparative data on per-guard costs or service levels, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. However, the specific number of bidders and the details of the competitive process are not provided in the available data. A competitive award generally suggests a better opportunity for price discovery and potentially more favorable pricing for the government compared to sole-source or limited competition scenarios. The 'unknown' classification stems from the lack of explicit details on the bidding process for this specific order.

Taxpayer Impact: While the delivery order was competitive, the lack of detailed information on the number of bids and the specific evaluation criteria makes it difficult to quantify the precise benefit to taxpayers. A robust competition typically drives down costs, but the extent of that benefit here remains unclear.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its facilities in Southern California, which receive security and protection. The services delivered include guard services, likely encompassing physical security, access control, and surveillance. The geographic impact is focused on Southern California, ensuring security across various DHS installations in the region. Workforce implications involve the employment of security personnel by USPROTECT CORPORATION to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Lack of detailed performance metrics makes it difficult to assess service quality and effectiveness.
Limited transparency on the competitive bidding process for this specific delivery order.

Positive Signals

Awarded through a competitive process, suggesting some level of market vetting.
Contract duration provides a stable security service provision for DHS facilities.
USPROTECT CORPORATION is a known entity in the security services market.

Sector Analysis

The federal government is a significant consumer of security and guard services, with substantial annual spending across various agencies. This contract falls within the broader security services sector, which includes physical security, cybersecurity, and protective services. The market for these services is competitive, with numerous private sector companies vying for government contracts. Benchmarking this contract's value requires comparison with other large-scale guard service contracts awarded by federal agencies, considering factors like personnel hours, geographic coverage, and specific security mandates.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, USPROTECT CORPORATION, would be responsible for its own workforce and any subcontracts it chooses to engage, but this contract does not appear to have been structured to prioritize small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is facilitated by the contract award itself being a public record, though detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of any investigations or audits initiated by DHS or its oversight bodies.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Guard Services for Federal Facilities
Time and Materials Contracts

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Performance Monitoring Challenges
Contractor Personnel Reliability

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.7 million to USPROTECT CORPORATION. GUARD SERVICES FOR SOUTHERN CALIFORNIA

Who is the contractor on this award?

The obligated recipient is USPROTECT 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 $22.7 million.

What is the period of performance?

Start: 2007-02-15. End: 2008-03-13.

What is the track record of USPROTECT CORPORATION in fulfilling federal contracts, particularly for guard services?

Assessing USPROTECT CORPORATION's track record requires a deeper dive into their contract history with federal agencies. While this specific contract indicates they were awarded a significant sum for guard services, it doesn't reveal their performance quality or reliability on past engagements. A comprehensive review would involve examining past performance evaluations, any documented disputes or contract terminations, and the types and scale of services they have previously provided. Without this historical data, it's difficult to gauge their proven capability and consistency in delivering similar services to the government.

How does the per-hour or per-guard cost of this contract compare to similar federal guard service contracts in Southern California?

Directly comparing the per-unit cost is challenging without knowing the exact number of guard hours or personnel deployed under this $22.75 million contract. The Time and Materials (T&M) pricing structure means costs are based on actual labor hours and material expenses, plus a markup. To benchmark effectively, one would need to analyze the average hourly rates for guards (potentially by skill level or shift), overtime rates, and any material costs incurred, and then compare these to prevailing rates for similar federal contracts in the Southern California region. This would require access to more granular cost data and a database of comparable contract pricing.

What are the primary risks associated with a large-scale, multi-year guard service contract like this one?

Key risks include potential cost overruns, especially with a Time and Materials (T&M) contract, if not managed diligently. Performance risks are also significant; ensuring consistent quality of service, adequate staffing levels, proper training, and adherence to security protocols across numerous locations can be challenging. There's also the risk of contractor personnel turnover impacting service continuity and security. Furthermore, the government faces risks related to contractor compliance with labor laws and regulations, and potential security breaches if guards are not adequately vetted or supervised. The sheer scale of the contract amplifies these potential issues.

How effective has DHS been in managing similar guard service contracts to ensure optimal value and security?

Evaluating DHS's effectiveness in managing similar contracts requires analyzing their historical performance across a portfolio of security service agreements. This would involve looking at metrics such as contract close-out rates, instances of contract modifications due to poor performance or scope creep, and the success of their oversight mechanisms in preventing fraud, waste, and abuse. Reports from the DHS Inspector General or Government Accountability Office (GAO) on federal contracting practices, particularly in security services, would provide valuable insights into DHS's strengths and weaknesses in managing such contracts to ensure both value for money and robust security.

What has been the historical spending trend for guard services by the Department of Homeland Security over the past five years?

To determine the historical spending trend for guard services by DHS, one would need to analyze federal procurement data (like FPDS or USASpending) for the relevant fiscal years. This analysis would involve filtering contracts by agency (DHS), product/service code (if applicable, though often broad), and keywords related to 'guard services,' 'protective services,' or 'security personnel.' Summing the obligations or award amounts for these contracts over the last five years would reveal whether DHS spending in this category has been increasing, decreasing, or remaining relatively stable, providing context for the significance of the $22.75 million contract.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 14

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 801 ROEDER RD STE 1000, SILVER SPRING, MD, 20910

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $22,746,980

Exercised Options: $22,746,980

Current Obligation: $22,746,980

Parent Contract

Parent Award PIID: GS07F0420N

IDV Type: FSS

Timeline