DHS Coast Guard Awards $24M for Security Guard Services, Facing Limited Competition

Contract Overview

Contract Amount: $24,077,812 ($24.1M)

Contractor: Apsi-Centerra JV, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-04-01

End Date: 2022-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $13.2K/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 SECURITY GUARD SERVICES SUPPORTING USCG INSTALLATIONS IN THE SOUTHERN US REGION.

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 $24.1 million to APSI-CENTERRA JV, LLC for work described as: IGF::OT::IGF SECURITY GUARD SERVICES SUPPORTING USCG INSTALLATIONS IN THE SOUTHERN US REGION. Key points: 1. Spending on security guard services for USCG installations totals $24.08M. 2. APSI-CENTERRA JV, LLC holds the contract, raising questions about competition. 3. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting potential limitations. 4. The sector is primarily security services, with potential for broader application in facility management.

Value Assessment

Rating: fair

The contract's total value of $24.08M over five years appears reasonable for extensive security guard services across multiple installations. However, without specific details on guard hours, rates, and service levels, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method, while allowing for some competition, inherently limits the pool of potential bidders and may not yield the most competitive pricing.

Taxpayer Impact: The pricing impact is unclear due to the limited competition. Taxpayers may have paid more than if a truly open competition had been conducted.

Public Impact

Ensures security and safety for critical US Coast Guard installations in the Southern US. Supports the operational readiness of the Coast Guard by providing essential personnel. The contract's duration of five years provides stability for service provision. Potential for job creation within the security services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about optimal pricing.
Contract awarded under 'exclusion of sources' needs further scrutiny.
Lack of small business participation noted.

Positive Signals

Provides essential security for critical infrastructure.
Long-term contract ensures service continuity.
Experienced contractor likely delivering reliable services.

Sector Analysis

This contract falls within the broader security and protective services sector. Benchmarks for similar government contracts for security guards vary widely based on location, scope, and service level agreements, but $24M over five years for regional support suggests a significant operational footprint.

Small Business Impact

The data indicates that small businesses were not primary participants in this contract, as indicated by 'sb': false. Further analysis is needed to determine if opportunities were adequately advertised or if subcontracting opportunities were pursued.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security (US Coast Guard), a major federal agency with established oversight mechanisms. The 'exclusion of sources' clause warrants specific attention from oversight bodies to ensure fairness and value.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition may result in suboptimal pricing.
The 'exclusion of sources' clause requires further investigation.
Lack of small business participation.
Potential for higher costs due to restricted bidder pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.1 million to APSI-CENTERRA JV, LLC. IGF::OT::IGF SECURITY GUARD SERVICES SUPPORTING USCG INSTALLATIONS IN THE SOUTHERN US REGION.

Who is the contractor on this award?

The obligated recipient is APSI-CENTERRA JV, 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 $24.1 million.

What is the period of performance?

Start: 2017-04-01. End: 2022-03-31.

What was the rationale for excluding certain sources in the competition process?

The rationale for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, past performance, or unique capabilities that only a limited number of vendors possess. Understanding this rationale is crucial for assessing whether the exclusion was justified and if it truly served the government's best interest in obtaining the required services.

How does the per-unit cost of security personnel compare to industry averages given the contract's scope?

Without detailed breakdowns of guard hours, pay rates, benefits, and overhead included in the contract's pricing structure, a direct per-unit cost comparison is not feasible. The total award of $24.08M over five years for regional USCG installation support suggests a substantial number of personnel. A thorough analysis would require comparing the contractor's proposed labor rates and indirect costs against established benchmarks for similar security services in the Southern US region.

What is the potential impact on taxpayer value due to the limited competition method used?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, by its nature, restricts the number of potential bidders. This limitation can reduce competitive pressure, potentially leading to higher prices than might be achieved in a truly open market. While the government likely sought specific capabilities, the exclusion could mean taxpayers did not benefit from the lowest possible price achievable through broader competition.

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

Solicitation ID: HSCG23-16-R-PFP025

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 W 38TH AVE STE 200F, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,955,750

Exercised Options: $24,077,812

Current Obligation: $24,077,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG2317DPGC003

IDV Type: IDC

Timeline