FEMA's $28.9M Federal Protective Services contract awarded to Falco Electronics, Inc. under a non-competitive process

Contract Overview

Contract Amount: $28,896,694 ($28.9M)

Contractor: Falco Electronics, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2004-09-08

End Date: 2010-04-13

Contract Duration: 2,043 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FEDERAL PROTECTIVE SERVICES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.9 million to FALCO ELECTRONICS, INC for work described as: FEDERAL PROTECTIVE SERVICES Key points: 1. The contract's value of $28.9 million over its lifetime indicates a significant investment in protective services. 2. Awarded non-competitively, the contract raises questions about potential price efficiencies and market engagement. 3. The long duration of the contract (2004-2010) suggests a sustained need for these services. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. The 'All Other Support Services' NAICS code is broad, making direct performance comparisons challenging without more specific service details. 6. The contract was awarded to a single vendor, limiting opportunities for broader market participation and innovation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is difficult due to its non-competitive nature and the broad NAICS code. Without comparable bids or market analysis, it's hard to definitively assess if the $28.9 million represented a fair price. The fixed-price structure offers some cost control, but the lack of competition means there was no direct pressure to offer the lowest possible price. Further analysis would require understanding the specific services rendered and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed openly. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, unique capabilities, or urgent needs. The absence of multiple bidders means there was no direct price negotiation driven by market competition, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards can mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding. This can result in a higher overall expenditure for the services provided.

Public Impact

Federal facilities and personnel are protected through the services provided under this contract. The contract ensures the continuity of essential security and protective services for government assets. The geographic impact is likely nationwide, covering federal facilities managed by FEMA. The contract supports the operational readiness and safety of federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
The broad service category makes it difficult to assess specific performance metrics.
Long contract duration without re-competition could indicate missed opportunities for cost savings or service improvements.

Positive Signals

Fixed-price contract type provides budget certainty.
The contract fulfilled a sustained need for protective services.
Awarded to a single entity suggests specialized capabilities were met.

Sector Analysis

The Federal Protective Services sector encompasses a range of security and support services for government facilities. This contract falls under the broader 'All Other Support Services' category, which can include a wide array of non-professional services. The market for such services is competitive, but specific niche areas, like those potentially served by Falco Electronics, can sometimes be dominated by a limited number of providers. Without more detail on the specific services, it's hard to benchmark against industry standards.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a single entity, Falco Electronics, Inc., suggests that small businesses were either not involved in the bidding process or did not possess the specific capabilities required for this sole-source award. This limits the direct economic benefit to the small business ecosystem from this particular contract.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security and the Federal Emergency Management Agency. As a sole-source award, the justification for the procurement and the subsequent performance monitoring would be critical. Transparency is limited due to the non-competitive nature. Inspector General oversight would apply to ensure proper use of funds and contract compliance.

Related Government Programs

Federal Protective Service
Department of Homeland Security Contracts
FEMA Support Services
Security Services Contracts

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed service description hinders performance and value assessment.
Long contract duration without re-competition may indicate missed savings opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.9 million to FALCO ELECTRONICS, INC. FEDERAL PROTECTIVE SERVICES

Who is the contractor on this award?

The obligated recipient is FALCO ELECTRONICS, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2004-09-08. End: 2010-04-13.

What specific protective services were provided under this contract?

The contract falls under NAICS code 561990, 'All Other Support Services.' While the specific details of the protective services rendered are not explicitly stated in the provided data, this category typically encompasses a wide range of non-professional support services. For Federal Protective Services, this could include physical security, access control, monitoring, emergency response coordination, and other related support functions necessary to ensure the safety and security of federal facilities and personnel. The broad nature of the NAICS code suggests the services were likely comprehensive but not highly specialized in a single technical domain.

Why was this contract awarded on a sole-source basis?

The data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), and it was awarded to a single vendor. While the specific justification for the sole-source award is not provided, common reasons include the unavailability of other sources, a critical need that could not be met through competition, or a unique capability possessed by the sole awardee. For a contract of this value and duration, a detailed justification would have been required by federal acquisition regulations, likely citing reasons such as proprietary technology, essential continuity of services, or a lack of market availability for the specific requirements.

How does the contract duration of 2043 days (approx. 5.6 years) compare to typical federal contracts for similar services?

A contract duration of approximately 5.6 years is relatively long for federal service contracts, especially those that could potentially be competed. While longer-term contracts can offer stability and reduce administrative burden, they also carry the risk of entrenching a vendor and potentially missing out on cost savings or service improvements that could arise from periodic re-competition. Typical federal service contracts often have initial periods of 1-5 years, with options for renewal. The length here suggests a sustained, long-term requirement for the specific protective services provided by Falco Electronics, Inc.

What is the significance of the 'FIRM FIXED PRICE' contract type?

The 'FIRM FIXED PRICE' (FFP) contract type is significant because it places the majority of the risk and responsibility for cost overruns on the contractor, Falco Electronics, Inc. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government, specifically FEMA and DHS, with a high degree of cost certainty. It incentivizes the contractor to manage its costs efficiently to maximize profit. For taxpayers, this means the total amount paid for the services is largely predetermined, barring any contract modifications.

What does the award to Falco Electronics, Inc. suggest about its capabilities in the federal protective services market?

The award of a sole-source contract valued at $28.9 million over approximately 5.6 years to Falco Electronics, Inc. suggests the company possessed unique or essential capabilities that were deemed necessary by FEMA. Sole-source awards are not granted lightly; they imply that either Falco Electronics was the only entity capable of meeting the stringent requirements, or there were specific circumstances (like urgent need or proprietary solutions) that precluded competition. This indicates Falco Electronics held a significant position or specialized expertise within the federal protective services domain at the time of the award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › Income Security R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10404 E 55TH PLACE STE W, TULSA, OK, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $28,896,694

Exercised Options: $28,896,694

Current Obligation: $28,896,694

Timeline