DHS Spends $34.2M on Guard Services, Lacking Competition and Price Benchmarks
Contract Overview
Contract Amount: $34,213,612 ($34.2M)
Contractor: Bsa/Lb&b Joint Venture
Awarding Agency: Department of Homeland Security
Start Date: 2004-12-23
End Date: 2011-04-08
Contract Duration: 2,297 days
Daily Burn Rate: $14.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: GUARD SERVICES
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $34.2 million to BSA/LB&B JOINT VENTURE for work described as: GUARD SERVICES Key points: 1. Significant spending on guard services over 6 years. 2. Lack of competition raises concerns about price discovery. 3. No readily available unit cost benchmarks for comparison. 4. Contract awarded by DHS Office of Procurement Operations.
Value Assessment
Rating: questionable
Pricing assessment is difficult due to the absence of a per-unit cost benchmark and the contract's fixed-price nature with economic adjustments. The lack of competitive bidding further hinders a robust value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited approach. This lack of competition likely impacted price discovery, potentially leading to less favorable pricing for the government.
Taxpayer Impact: Taxpayer funds were expended without the benefit of competitive pricing, potentially resulting in overpayment.
Public Impact
Essential security services provided to a major federal agency. Long contract duration (over 6 years) represents sustained expenditure. Potential for cost savings if competition were introduced in future procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No unit cost benchmark
- Long contract duration
- Economic price adjustment clause
Positive Signals
- Essential service provided
- Awarded by DHS
Sector Analysis
Spending on security guard services falls under the broader professional, scientific, and technical services sector. Benchmarks for this specific service are difficult to ascertain without competitive data.
Small Business Impact
Analysis of small business participation is not possible from the provided data, as the awardee is a joint venture and no specific small business set-aside information is present.
Oversight & Accountability
Oversight of this contract's value and performance is challenging without competitive data and clear unit cost metrics. The Department of Homeland Security's Office of Procurement Operations managed the award.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Lack of competition
- No per-unit cost benchmark
- Long contract duration
- Economic price adjustment clause
- Limited transparency on pricing justification
Tags
security-guards-and-patrol-services, department-of-homeland-security, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $34.2 million to BSA/LB&B JOINT VENTURE. GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is BSA/LB&B JOINT VENTURE.
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 $34.2 million.
What is the period of performance?
Start: 2004-12-23. End: 2011-04-08.
What was the rationale for limiting competition on this significant guard services contract?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' suggesting a limited competition approach. The specific rationale, such as a sole-source justification or a specific exception to full and open competition, is not detailed. Understanding this rationale is crucial for assessing whether the government received fair value and if alternative, more competitive methods could have been employed.
How does the $34.2 million expenditure compare to industry benchmarks for similar guard services, given the lack of competitive data?
Direct comparison to industry benchmarks is challenging without a per-unit cost (CPU) or more detailed service scope. The absence of competitive bidding further complicates value assessment. While $34.2 million over nearly 7 years represents a substantial investment, its reasonableness cannot be definitively determined without comparative pricing data from similar, competitively procured contracts.
What is the potential taxpayer impact of awarding this contract without full and open competition?
Awarding contracts without full and open competition can lead to a higher taxpayer impact. The lack of competitive pressure may result in prices that are not the most economical. While the contract type includes economic price adjustments, the initial pricing and subsequent adjustments might be less favorable than if multiple bidders had vied for the 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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bering Straits Native Corporation (UEI: 076641612)
Address: 9891 BROKEN LAND PKWY STE 305, COLUMBIA, MD, 03
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,457,786
Exercised Options: $41,221,618
Current Obligation: $34,213,612
Timeline
Start Date: 2004-12-23
Current End Date: 2011-04-08
Potential End Date: 2011-04-08 00:00:00
Last Modified: 2011-04-08
More Contracts from Bsa/Lb&b Joint Venture
- Facility Engineer Services — $48.7M (Department of Defense)
- Supply Operations&mgmt TAS::21 2020::TAS — $35.7M (Department of Defense)
- 200511!000671!5700!fa5000!3cons/Lgc !FA500004C0019 !A!N! !Y! !p00001!20041001!20050930!145119215!145119215!145119215!n!bsa/Lb&b Joint Venture !9891 Broken Land Pkwy STE !columbia !md!21046!22690!020!02!elmendorf AFB !anchorage !alaska !+000002717154!n!n!000000000000!m141!operation/Hospitals&infirmaries !S1 !services !000 !* !561210!E! !3! ! !C! ! !20200930!B! ! !n!z!b!n!j!1!001!n!5a!c!n!z! ! !y!a!n!n!e! ! ! !d!a!000!a!b!n! ! ! ! ! ! !0001! ! — $34.9M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)