DHS awards $19.1M contract for security services in New York, raising value-for-money questions

Contract Overview

Contract Amount: $19,087,250 ($19.1M)

Contractor: Valley Metro-Barbosa Group, JV

Awarding Agency: Department of Homeland Security

Start Date: 2009-10-19

End Date: 2010-11-30

Contract Duration: 407 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUND MOBILIZATION CLIN

Place of Performance

Location: BATAVIA, GENESEE County, NEW YORK, 14020

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.1 million to VALLEY METRO-BARBOSA GROUP, JV for work described as: FUND MOBILIZATION CLIN Key points: 1. The contract's value of $19.1 million for security services warrants scrutiny regarding its cost-effectiveness. 2. Competition was limited, with only 5 bidders participating in a 'full and open competition after exclusion of sources' scenario. 3. The fixed-price contract type suggests a defined scope, but potential for cost overruns remains a risk indicator. 4. Performance context is limited, with a duration of 407 days for the delivery order. 5. This contract falls within the broader security and protective services sector for federal agencies. 6. The lack of small business set-aside raises questions about broader economic impact. 7. The contract was awarded by U.S. Immigration and Customs Enforcement (ICE), a component of DHS.

Value Assessment

Rating: fair

The total award amount of $19.1 million for security guard services over approximately 13 months appears substantial. Benchmarking against similar contracts for security services in major metropolitan areas like New York is crucial to assess value for money. Without specific details on the scope of services, number of personnel, and hours provided, it is difficult to definitively assess if the pricing is competitive or if it represents a fair market value. The fixed-price nature of the contract suggests a defined cost, but the overall expenditure requires further analysis against service delivery outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a 'full and open competition after exclusion of sources' with 5 bidders. This specific procurement method suggests that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, potentially limiting the pool of qualified bidders. The participation of 5 bidders indicates some level of competition, but the exclusion of sources could impact price discovery and potentially lead to higher costs than a truly unrestricted open competition.

Taxpayer Impact: The limited competition, even within an 'open' framework, may have resulted in taxpayers paying a premium compared to a scenario with broader participation. The exclusion of certain sources could have inadvertently reduced competitive pressure, impacting the final negotiated price.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential security services. The services delivered include security guards and patrol services, crucial for protecting federal facilities and personnel. The geographic impact is concentrated in New York (NY), ensuring security at specific locations within the state. Workforce implications include the direct employment of security personnel by the contractor, contributing to the local economy in New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources may have inflated costs.
Lack of transparency on specific service metrics makes value assessment difficult.
The fixed-price contract could mask inefficiencies if scope is not tightly managed.
The contract duration is relatively short, potentially leading to frequent re-competition costs.

Positive Signals

The contract was awarded under a competitive process, indicating some level of vetting.
The fixed-price contract provides cost certainty for the government, assuming scope is well-defined.
Security services are critical for agency operations, ensuring continuity and safety.

Sector Analysis

This contract falls within the broader federal sector of security and protective services, which includes guard services, alarm systems, and investigative services. The market for these services is substantial, with numerous private sector companies offering a wide range of solutions. Federal spending in this area is consistent, driven by the need to protect government assets and personnel across various agencies. Comparable spending benchmarks would typically look at per-guard hourly rates, site-specific security needs, and the overall security posture required by the agency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). This suggests that the procurement was open to all eligible contractors, including large businesses. While this may ensure access to a wider range of capabilities, it also means that opportunities for small businesses to directly compete for or subcontract on this specific award were not explicitly prioritized through a set-aside mechanism. The impact on the small business ecosystem depends on whether the prime contractor has a robust subcontracting plan that includes small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is often limited to the contract award itself, with detailed performance data and financial breakdowns usually not publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Immigration and Customs Enforcement Support Services
General Services Administration (GSA) Schedule Contracts for Security
Security Guard Services for Federal Facilities

Risk Flags

Limited competition may impact price.
Lack of detailed performance metrics.
Potential for cost overruns despite fixed price if scope is poorly managed.
Exclusion of sources in competition needs justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.1 million to VALLEY METRO-BARBOSA GROUP, JV. FUND MOBILIZATION CLIN

Who is the contractor on this award?

The obligated recipient is VALLEY METRO-BARBOSA GROUP, JV.

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 $19.1 million.

What is the period of performance?

Start: 2009-10-19. End: 2010-11-30.

What specific security services were included in this $19.1 million contract, and how do they compare to industry standards for similar federal facilities in New York?

The contract data specifies 'Security Guards and Patrol Services' (ND: 561612). However, the precise scope of services, such as the number of guards, hours of coverage, specific duties (e.g., access control, surveillance, response), and required qualifications, is not detailed in the provided data. To compare with industry standards, one would need to analyze typical costs for armed vs. unarmed guards, supervisory ratios, and specialized security technologies deployed in similar federal facilities in the New York metropolitan area. Without this granular detail, a direct comparison of value-for-money is challenging. The $19.1 million award over approximately 407 days suggests a significant operational requirement, likely involving substantial personnel hours and potentially advanced security measures.

How did the 'full and open competition after exclusion of sources' procurement method impact the final price and the range of potential bidders?

The 'full and open competition after exclusion of sources' (CT) is a nuanced procurement method. It implies that the solicitation was broadly advertised, but certain potential offerors were excluded prior to the solicitation phase, possibly due to pre-qualification requirements, past performance issues, or specific agency needs identified during market research. While it aims for broad competition, the exclusion could limit the number of viable bidders, potentially reducing competitive pressure on price. If only a few highly qualified firms remained, the government might not achieve the lowest possible price compared to a truly unrestricted competition. The fact that 5 bidders participated suggests a moderately competitive environment, but the exclusion factor warrants further investigation into why sources were excluded and its potential impact on the final award price.

What is the historical spending pattern for security services by U.S. Immigration and Customs Enforcement (ICE) in New York, and how does this contract compare?

Analyzing historical spending patterns for ICE security services in New York requires access to comprehensive federal procurement databases beyond the provided data snippet. Typically, one would look at the total amount spent by ICE on similar services (NAICS code 561612) within the New York region over several fiscal years. This contract's $19.1 million award over approximately 13 months represents a significant expenditure. Comparing it would involve calculating the average annual spending on security guards by ICE in NY and assessing if this award is an outlier, a continuation of previous spending levels, or indicative of an increased requirement. Factors like changes in security threats, facility expansions, or shifts in contracting strategies would influence historical spending.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured and evaluated?

The provided data does not specify the Key Performance Indicators (KPIs) or the evaluation methodology for this contract. In a typical federal contract for security services, KPIs often include metrics such as response times to incidents, guard presence and punctuality, incident reporting accuracy and timeliness, adherence to post orders, and overall customer satisfaction. Performance is usually evaluated through regular reports, site inspections, and feedback from government personnel overseeing the contract. The effectiveness of the contractor is crucial for ensuring the security of ICE facilities and personnel. Without explicit KPIs and evaluation data, assessing the contractor's performance and the overall success of the contract is not possible from the given information.

Given the fixed-price contract type, what mechanisms are in place to ensure the contractor remains efficient and avoids scope creep or unnecessary costs?

A Firm Fixed Price (FFP) contract (PT) like this one places the primary cost risk on the contractor. However, mechanisms to ensure efficiency and prevent scope creep are still vital. These typically include clearly defined contract line item numbers (CLINs) detailing the exact services required, detailed performance work statements (PWS), and rigorous government oversight. The contracting officer's representative (COR) or contracting officer (CO) is responsible for monitoring performance against the PWS and ensuring that any changes to the scope are handled through formal contract modifications, which would likely involve price adjustments. Regular progress meetings and performance reviews help identify potential issues early. The government's role is to ensure the contractor meets the defined requirements efficiently without unauthorized scope expansion.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCEDM-08-R-00008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12513 BAILBOND DR, EDINBURG, TX, 78542

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $19,955,611

Exercised Options: $19,955,611

Current Obligation: $19,087,250

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCEDM09D00005

IDV Type: IDC

Timeline