Homeland Security's $26.2M contract for security services awarded to Valley Metro-Barbosa Group, JV

Contract Overview

Contract Amount: $26,177,851 ($26.2M)

Contractor: Valley Metro-Barbosa Group, JV

Awarding Agency: Department of Homeland Security

Start Date: 2011-11-30

End Date: 2013-04-30

Contract Duration: 517 days

Daily Burn Rate: $50.6K/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: CONTRACT HSCEDM-09-D-00005, NEW TRANSPORTATION TASK ORDER WITH A POP OF 12/01/2011 - 11/30/2012

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14202

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.2 million to VALLEY METRO-BARBOSA GROUP, JV for work described as: CONTRACT HSCEDM-09-D-00005, NEW TRANSPORTATION TASK ORDER WITH A POP OF 12/01/2011 - 11/30/2012 Key points: 1. The contract value of $26.2 million for a 17-month period suggests a significant investment in security infrastructure. 2. Awarded under full and open competition, this indicates a broad market search for the best value. 3. The fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. The contract duration of 517 days (approximately 17 months) allows for sustained service delivery. 6. The award was made to a joint venture, Valley Metro-Barbosa Group, JV, suggesting a collaborative approach to service provision.

Value Assessment

Rating: good

The contract value of $26.2 million over 17 months averages to approximately $1.54 million per month. Benchmarking this against similar large-scale security contracts requires access to proprietary cost data. However, the firm fixed-price structure suggests that the government has negotiated a price that the contractor must adhere to, implying a degree of cost control. The absence of specific performance metrics or cost breakdowns makes a precise value-for-money assessment challenging without further context on service scope and quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the agency sought proposals from all responsible sources after an initial exclusion period. This suggests a robust competitive process designed to solicit the widest possible range of offers. The fact that five bids were received (no: 5) further supports the notion of a competitive environment, which typically drives down prices and encourages innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government receives the most competitive pricing and best value available in the market. The presence of multiple bidders reduces the likelihood of inflated costs and increases the probability of selecting a high-quality service provider.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) personnel and facilities, who will receive enhanced security. The services delivered include security guards and patrol services, crucial for maintaining a safe and secure environment. The contract is geographically focused on New York (st: NY, sn: NEW YORK), indicating a specific operational area for these security services. The contract supports the workforce employed by Valley Metro-Barbosa Group, JV, contributing to employment in the security sector within New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen security challenges.
Dependence on a joint venture may introduce complexities in management and accountability if not clearly defined.
The exclusion of sources initially could warrant scrutiny to ensure fairness and thoroughness of the competitive process.

Positive Signals

Award under full and open competition suggests a thorough vetting of potential contractors.
The firm fixed-price contract type provides cost certainty for the government.
The joint venture structure might leverage specialized expertise from both parent companies.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract, classified under NAICS code 561612 (Security Guards and Patrol Services), falls within a segment focused on physical security and surveillance. The U.S. government is a major consumer of such services, particularly for federal buildings, border security, and law enforcement agencies. Spending in this sector is often driven by national security concerns and the need to protect critical infrastructure and personnel.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, the joint venture structure might involve subcontracting opportunities, potentially including small businesses, depending on the JV's internal policies and the specific requirements of the security services. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. The firm fixed-price nature of the contract implies that performance monitoring is key to ensuring service delivery meets the required standards. Transparency is generally facilitated through contract award databases and public reporting mechanisms. While no specific Inspector General (IG) is mentioned, the Department of Homeland Security has its own Office of Inspector General, which could conduct audits or investigations into contract performance and financial management.

Related Government Programs

Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Contracts
Security Guard Services Contracts
Federal Law Enforcement Support Services
New York Area Federal Contracts

Risk Flags

Contract awarded after exclusion of sources
Joint Venture structure may introduce management complexity
Fixed-price contract risk shifted to contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.2 million to VALLEY METRO-BARBOSA GROUP, JV. CONTRACT HSCEDM-09-D-00005, NEW TRANSPORTATION TASK ORDER WITH A POP OF 12/01/2011 - 11/30/2012

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 $26.2 million.

What is the period of performance?

Start: 2011-11-30. End: 2013-04-30.

What is the track record of Valley Metro-Barbosa Group, JV as a contractor?

Information regarding the specific track record of the joint venture 'VALLEY METRO-BARBOSA GROUP, JV' is not directly provided in the contract data. As a joint venture, its performance history would be a composite of its constituent companies' past performance, or it may represent a newly formed entity. To assess their track record, one would typically look at past performance evaluations on similar government contracts, any history of contract disputes or terminations, and client feedback. Without access to a contractor performance database or historical contract awards for this specific JV, a detailed assessment of their reliability and past success is not possible from the provided data alone.

How does the per-month cost of this contract compare to similar security contracts?

The contract value of $26,177,851.06 over a period of 517 days (approximately 17.2 months) equates to an average monthly cost of roughly $1,522,000. Comparing this figure to similar contracts requires access to a comprehensive database of federal procurements for security guard and patrol services, ideally filtered by geographic location (New York) and contract scope. Without such comparative data, it is difficult to definitively state whether this monthly cost is high, low, or average. Factors like the number of personnel, hours of service, specific security technologies deployed, and the threat environment in New York would heavily influence cost benchmarks.

What are the primary risks associated with this firm fixed-price contract?

The primary risks associated with a firm fixed-price (FFP) contract, while generally favorable to the government for cost control, lie in potential performance deficiencies or contractor financial instability. If the contractor, Valley Metro-Barbosa Group, JV, underestimates the costs or complexities of providing security services, they might cut corners on staffing, training, or equipment to maintain profitability. This could lead to reduced service quality or security lapses. Conversely, if the contractor faces unexpected cost increases (e.g., labor disputes, unforeseen security threats requiring more resources), they bear the financial burden, which could potentially lead to financial distress for the contractor, impacting service continuity. The government's risk is primarily ensuring adequate oversight to monitor performance and enforce contract terms.

How effective are security guard contracts in achieving their intended security outcomes?

The effectiveness of security guard contracts in achieving intended outcomes is highly dependent on several factors, including the clarity of the statement of work, the quality of the contractor's personnel and management, the level of government oversight, and the specific security environment. For a contract like this one with U.S. Immigration and Customs Enforcement (ICE), effective security guards are crucial for access control, surveillance, deterrence, and response to incidents. Success is typically measured by metrics such as incident reduction, response times, adherence to post orders, and overall security posture. While contracts provide a framework for service, the actual effectiveness relies on diligent execution by the contractor and vigilant monitoring by the agency.

What is the historical spending pattern for security services by U.S. Immigration and Customs Enforcement?

Historical spending patterns for security services by U.S. Immigration and Customs Enforcement (ICE) would likely show a consistent and significant investment in safeguarding its facilities and personnel. ICE operates numerous facilities nationwide, requiring robust security measures. Spending in this area is influenced by operational needs, threat assessments, and policy directives. Analyzing past contract awards for similar services (e.g., guard services, physical security systems) would reveal trends in contract values, types of services procured, and primary contractors. This specific contract, valued at $26.2 million over 17 months, represents a substantial, but potentially typical, expenditure for a large federal law enforcement agency requiring extensive security coverage in a major metropolitan area like New York.

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, 15

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business

Financial Breakdown

Contract Ceiling: $26,193,838

Exercised Options: $26,193,838

Current Obligation: $26,177,851

Parent Contract

Parent Award PIID: HSCEDM09D00005

IDV Type: IDC

Timeline