DHS awarded $13.1M for guard services to DECO, INC. in Texas, with a high per-unit cost

Contract Overview

Contract Amount: $13,099,818 ($13.1M)

Contractor: Deco, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-02-13

End Date: 2007-09-30

Contract Duration: 229 days

Daily Burn Rate: $57.2K/day

Number of Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: Other

Official Description: GUARD SERVICES

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79925

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.1 million to DECO, INC. for work described as: GUARD SERVICES Key points: 1. The contract value of $13.1 million for guard services represents a significant investment in physical security. 2. DECO, INC. secured this contract, indicating a competitive landscape for security providers. 3. The duration of the contract and its delivery order nature suggest a need for agile security solutions. 4. The primary service area in Texas highlights a regional focus for these security operations. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: questionable

The total award of $13.1 million for guard services over a 229-day period appears high when benchmarked against typical security contracts. The per-unit cost, derived from the total award and the number of orders, suggests potential overpayment or a scope of service that is more intensive than standard guard duties. Further analysis is needed to understand if the pricing reflects specialized security requirements or if it indicates a lack of competitive pressure driving down costs.

Cost Per Unit: $57,204 per delivery order

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. Without information on the number of bidders or the solicitation method, it is difficult to assess the effectiveness of the competition. If the contract was awarded through a limited or sole-source process, it could imply a lack of market competition or specific contractor qualifications, potentially leading to higher prices.

Taxpayer Impact: The lack of transparency in the competition process makes it challenging to determine if taxpayers received the best possible value for the funds expended on these guard services.

Public Impact

The primary beneficiaries of this contract are U.S. Immigration and Customs Enforcement (ICE) personnel and facilities within Texas. The services delivered include security guard and patrol functions, crucial for maintaining order and safety. The geographic impact is concentrated in Texas, specifically within the service areas of ICE operations. The contract supports the employment of security personnel, contributing to the local workforce in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost may indicate potential overspending.
Lack of clarity on competition raises concerns about price discovery.
Contract duration and delivery order structure could lead to scope creep if not managed tightly.

Positive Signals

Award to DECO, INC. suggests established presence in the security sector.
Contract supports critical government functions for DHS.
Service delivery in Texas addresses specific regional security needs.

Sector Analysis

The security services sector is a substantial market within the broader government contracting landscape. This contract falls under the North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services. Spending in this category is driven by the need for physical security across various federal agencies, including law enforcement, border protection, and facility management. Benchmarks for similar contracts often vary widely based on the level of security, personnel qualifications, and geographic location.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement process was open to a wider range of contractors, including larger firms. While this can sometimes lead to more competitive pricing, it also means that opportunities for small businesses to participate directly in this specific contract may have been limited. Further investigation into subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security. Accountability measures would include performance monitoring, adherence to contract terms, and reporting requirements. Transparency is facilitated through contract databases, but detailed operational oversight specifics are usually internal. The Inspector General for DHS may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Contracts
Guard Services Contracts
Physical Security Services

Risk Flags

High per-unit cost
Lack of competition details
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.1 million to DECO, INC.. GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is DECO, INC..

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 $13.1 million.

What is the period of performance?

Start: 2007-02-13. End: 2007-09-30.

What is the track record of DECO, INC. in performing federal guard services contracts?

Information regarding DECO, INC.'s specific track record with federal guard services contracts is not detailed in the provided data snippet. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review past awards, performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A strong track record would typically involve successful completion of similar contracts, positive performance reviews, and adherence to contract terms and conditions. Conversely, a history of issues could indicate potential risks for future performance.

How does the per-unit cost of $57,204 compare to similar guard services contracts awarded by DHS or other federal agencies?

The per-unit cost of $57,204 is a significant figure and requires careful benchmarking. Without knowing the exact nature of the 'unit' (e.g., per guard hour, per post, per day), a direct comparison is difficult. However, if this represents a cost per delivery order or a similar broad metric, it appears high. Standard guard services often have hourly rates ranging from $30-$70 per hour per guard, depending on location, security clearance, and specialized skills. A comprehensive analysis would involve comparing this figure against contracts for similar services, durations, and geographic regions, considering factors like the number of guards, hours of coverage, and specific security requirements (e.g., armed vs. unarmed, specialized equipment).

What are the primary risks associated with this contract, given its value and duration?

Key risks associated with this $13.1 million contract include potential cost overruns if the scope of work is not precisely defined and managed, leading to the high per-unit cost. There's also a risk of performance deficiencies if DECO, INC. fails to provide adequate security personnel or fails to meet required service levels, potentially impacting the safety and security of ICE operations. Given the delivery order nature, there's a risk of scope creep, where additional services are added without adequate justification or pricing adjustments. Furthermore, if the competition was limited, there's a risk that the government did not secure the most cost-effective solution available in the market.

What is the historical spending pattern for guard services by U.S. Immigration and Customs Enforcement (ICE) in Texas?

Analyzing historical spending patterns for guard services by ICE in Texas would involve querying federal procurement databases for contracts awarded under NAICS code 561612 (or similar security service codes) to ICE within the geographic boundaries of Texas over several fiscal years. This would reveal trends in contract values, number of awards, primary contractors, and average contract durations. Understanding these patterns helps contextualize the current $13.1 million award, indicating whether it represents an increase, decrease, or typical level of spending for these services in the region. It can also highlight any shifts in contracting strategies or reliance on specific vendors over time.

Does the contract specify the use of armed or unarmed guards, and how does this impact the cost?

The provided data snippet does not specify whether the guards are armed or unarmed. This is a critical detail that significantly impacts both cost and risk. Armed guards typically command higher wages and require more extensive training, licensing, and oversight, leading to a substantially higher per-hour or per-unit cost compared to unarmed guards. If this contract involves armed personnel, the $57,204 per-unit cost might be more justifiable, although still requiring benchmarking against similar armed guard contracts. Conversely, if it's for unarmed guards, the cost would be a stronger indicator of potential overpricing or a highly specialized service requirement.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL NONBUILDING FACILITIES

Contractor Details

Address: ONAMIA

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $13,099,818

Exercised Options: $13,099,818

Current Obligation: $13,099,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSACD3C0007

IDV Type: IDC

Timeline