DHS awards $36.3M for USCG security services in Northeast/East region, with 8 bidders

Contract Overview

Contract Amount: $36,262,680 ($36.3M)

Contractor: Alutiiq Advanced Security Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-04-01

End Date: 2022-04-30

Contract Duration: 1,855 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF NATIONAL SECURITY GUARD SERVICES SUPPORTING USCG INSTALLATIONS IN THE NORTHEAST/EAST REGION OF THE U.S.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.3 million to ALUTIIQ ADVANCED SECURITY SOLUTIONS LLC for work described as: IGF::OT::IGF NATIONAL SECURITY GUARD SERVICES SUPPORTING USCG INSTALLATIONS IN THE NORTHEAST/EAST REGION OF THE U.S. Key points: 1. Contract value of $36.3M over 5 years suggests a moderate annual spend for security services. 2. Full and open competition after exclusion of sources indicates a competitive process, though the specific exclusion warrants review. 3. The presence of 8 bidders points to a healthy level of market interest and potential for competitive pricing. 4. Fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies if managed well. 5. The contract supports critical USCG installations, highlighting its importance for national security and operational readiness. 6. Geographic focus on the Northeast/East region aligns with significant USCG operational areas.

Value Assessment

Rating: good

The total award of $36.3 million over approximately five years averages to about $7.26 million annually. Benchmarking this against similar contracts for security guard services for federal installations requires detailed analysis of scope, location, and service levels. However, the presence of 8 bidders in a full and open competition suggests that the pricing is likely within a competitive range. The firm fixed-price nature of the contract also implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor is efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was generally open, specific sources may have been excluded for defined reasons. The participation of 8 bidders suggests a robust competitive environment, which typically drives down prices and encourages innovation. The exclusion of certain sources, if not clearly justified by technical or security requirements, could potentially limit the breadth of competition and its impact on price discovery.

Taxpayer Impact: The competitive nature of this award, with 8 bidders, is generally favorable for taxpayers as it increases the likelihood of securing services at a fair market price. The exclusion of sources, however, warrants scrutiny to ensure it did not unnecessarily inflate costs.

Public Impact

The U.S. Coast Guard benefits from enhanced security at its installations in the Northeast/East region. Services include security guards and patrol services, crucial for maintaining operational integrity and safety. The geographic impact is concentrated in the Northeast and East regions of the U.S., supporting key maritime infrastructure. The contract supports the workforce employed by Alutiiq Advanced Security Solutions LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type needs further investigation to ensure it did not unduly restrict competition.
The specific security requirements and performance metrics should be closely monitored to ensure effective service delivery.
Potential for contractor consolidation in the security services market if this contractor wins multiple large contracts.

Positive Signals

The contract was awarded through a competitive process with a significant number of bidders (8).
The firm fixed-price contract type aligns incentives for contractor efficiency.
The contract supports a critical federal agency (USCG) with essential security services.
The duration of the contract (over 5 years) provides stability for both the agency and the contractor.

Sector Analysis

The security guard and patrol services sector is a significant component of the broader professional, scientific, and technical services industry. Federal agencies, particularly those with physical assets and security needs like the U.S. Coast Guard, are major consumers of these services. The market is characterized by a mix of large, established providers and smaller, specialized firms. This contract, valued at over $36 million, represents a substantial award within this sector, likely falling into the mid-to-large contract size category for security services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Alutiiq Advanced Security Solutions LLC, may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Analysis of the contractor's subcontracting history would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, with specific oversight likely managed by the U.S. Coast Guard. The firm fixed-price nature of the contract means that performance monitoring is key to ensuring value. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Defense Security Services
Immigration and Customs Enforcement Security Support
General Services Administration Schedules for Security Services

Risk Flags

Potential for limited competition due to 'Exclusion of Sources'
Contract performance risk
Personnel security and reliability risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.3 million to ALUTIIQ ADVANCED SECURITY SOLUTIONS LLC. IGF::OT::IGF NATIONAL SECURITY GUARD SERVICES SUPPORTING USCG INSTALLATIONS IN THE NORTHEAST/EAST REGION OF THE U.S.

Who is the contractor on this award?

The obligated recipient is ALUTIIQ ADVANCED SECURITY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $36.3 million.

What is the period of performance?

Start: 2017-04-01. End: 2022-04-30.

What is the track record of Alutiiq Advanced Security Solutions LLC with federal contracts, particularly in security services?

Alutiiq Advanced Security Solutions LLC has a history of performing federal contracts, including those related to security services. A review of their contract history would reveal the types of services provided, their performance ratings on past contracts, and any significant issues or accolades. For this specific contract, understanding their past performance with the U.S. Coast Guard or similar agencies would provide insight into their capability to meet the requirements. Data on past performance, such as CPARS (Contractor Performance Assessment Reporting System) ratings, would be crucial for a comprehensive assessment. Without specific CPARS data, it's difficult to definitively assess their track record beyond the fact they were awarded this significant contract.

How does the awarded price compare to market rates for similar security guard services?

Benchmarking the awarded price of approximately $7.26 million annually against market rates for similar security guard services requires detailed information on the specific services rendered, the geographic locations, the required security clearances, and the level of personnel (e.g., armed vs. unarmed, experience levels). The fact that this contract was awarded under 'Full and Open Competition After Exclusion of Sources' with 8 bidders suggests a competitive market. If the average cost per guard hour or per post is significantly lower than industry averages for comparable services in the Northeast/East region, it indicates good value. Conversely, if it's higher, it might suggest inefficiencies or unique requirements driving up costs. A detailed cost-benefit analysis comparing the contract's deliverables to its price against industry standards is necessary for a definitive assessment.

What are the primary risks associated with this contract, and how are they being managed?

Key risks include potential underperformance by the contractor in delivering security services, leading to security vulnerabilities for USCG installations. Another risk is cost escalation if the firm fixed-price contract does not adequately account for unforeseen operational challenges, though this risk is primarily borne by the contractor. Personnel-related risks, such as high turnover or inadequate vetting of guards, could also impact service quality. Management of these risks likely involves robust performance monitoring by the USCG, clear performance standards and penalties outlined in the contract, and regular communication channels with the contractor. The 'Exclusion of Sources' aspect also presents a risk if it was not fully justified, potentially limiting the best possible value.

What is the historical spending pattern for security services by the U.S. Coast Guard in this region?

Analyzing historical spending patterns for security services by the U.S. Coast Guard in the Northeast/East region is crucial for context. This $36.3 million contract over five years represents an average annual spend of approximately $7.26 million. Understanding if this amount is consistent with, higher than, or lower than previous spending levels for similar services in the region would indicate trends in cost and contract scope. Significant deviations could signal changes in security needs, market pricing, or contracting strategies. For instance, if historical spending was consistently lower, it might prompt questions about the current contract's scope or pricing. Conversely, if it's higher, it could reflect increased security requirements or inflation.

How effective has the 'Full and Open Competition After Exclusion of Sources' approach been in securing competitive pricing for this contract?

The 'Full and Open Competition After Exclusion of Sources' approach, with 8 bidders, suggests that the exclusion did not entirely stifle competition. Having 8 bidders generally indicates a healthy market interest and provides a basis for competitive pricing. The effectiveness, however, hinges on the justification for excluding certain sources. If the exclusions were based on legitimate, well-defined criteria (e.g., specific technical capabilities, security clearances not widely held), then the competition achieved is likely robust. If the exclusions were arbitrary or poorly justified, it could have limited the pool of potential bidders and potentially led to less competitive pricing than a truly open competition might have yielded. The final price achieved relative to benchmarks would be the ultimate indicator of effectiveness.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3909 ARCTIC BLVD STE 500, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,445,384

Exercised Options: $36,262,680

Current Obligation: $36,262,680

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $32,898,674

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG2317DPGC002

IDV Type: IDC

Timeline