DHS awards $36M for Jackson Hole Airport security screening, with 4 bidders competing

Contract Overview

Contract Amount: $36,038,248 ($36.0M)

Contractor: Jackson Hole Airport Board

Awarding Agency: Department of Homeland Security

Start Date: 2011-01-28

End Date: 2017-06-30

Contract Duration: 2,345 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: THE CONTRACTOR SHALL PROVIDE SECURITY SCREENING SERVICES AT THE JACKSON HOLE AIRPORT, JACKSON, WYOMING IN ACCORDANCE WITH SECTION C, STATEMENT OF WORK. THIS CONTRACT IS A FIRM FIXED PRICE CONTRACT FOR A BASE PERIOD OF 11 MONTHS AND FOUR ONE YEAR OPTIONS. THE PERIOD OF PERFORMANCE IS 1 FEBRUARY 2011 THRU 31 DECEMBER 2015.

Place of Performance

Location: JACKSON, TETON County, WYOMING, 83001

State: Wyoming Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.0 million to JACKSON HOLE AIRPORT BOARD for work described as: THE CONTRACTOR SHALL PROVIDE SECURITY SCREENING SERVICES AT THE JACKSON HOLE AIRPORT, JACKSON, WYOMING IN ACCORDANCE WITH SECTION C, STATEMENT OF WORK. THIS CONTRACT IS A FIRM FIXED PRICE CONTRACT FOR A BASE PERIOD OF 11 MONTHS AND FOUR ONE YEAR OPTIONS. THE PERIOD OF PERFORMAN… Key points: 1. The contract's firm-fixed-price structure provides cost certainty for the government. 2. Competition among four bidders suggests a reasonably competitive market for these services. 3. The contract duration of over five years indicates a long-term need for security screening. 4. Performance is tied to specific security screening services at a key transportation hub. 5. The award falls within the Security Guards and Patrol Services industry.

Value Assessment

Rating: good

The contract value of approximately $36 million over its full potential period is substantial for airport security screening services. Benchmarking against similar contracts for security screening at airports of comparable size and traffic volume would be necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the contract, coupled with competition, suggests a managed approach to cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bids received. This level of competition is generally positive, indicating that multiple vendors were interested and capable of performing the required security screening services. The presence of four bidders suggests that the market is not overly concentrated and that the government likely received competitive pricing.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers, as it drives down prices through market forces and ensures the government is not overpaying for essential security services.

Public Impact

Travelers and airport personnel at Jackson Hole Airport benefit from enhanced security screening. The Transportation Security Administration (TSA) receives essential security screening services to maintain airport safety. The contract supports the local economy in Jackson, Wyoming, through employment opportunities for security personnel. The geographic impact is localized to the Jackson Hole Airport, ensuring security at this specific transportation node.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if the scope of services expands beyond the initial fixed-price agreement.
Reliance on a single contractor for a critical security function could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Competition among four bidders suggests a healthy market and potential for competitive pricing.
Long contract duration indicates a stable, ongoing need for these services.

Sector Analysis

The contract falls within the security services sector, specifically focusing on airport security screening. The North American Industry Classification System (NAICS) code 561612, Security Guards and Patrol Services, encompasses this type of work. The market for airport security is significant, driven by federal mandates and the need to ensure public safety. This contract represents a portion of the broader federal spending on transportation security infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses and that small business participation was not explicitly mentioned. Further investigation would be needed to determine if subcontracting opportunities were made available to small businesses. Without this information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's Transportation Security Administration (TSA). The firm-fixed-price nature of the contract provides a degree of financial oversight. Performance monitoring by the TSA contracting officer's representative (COR) would be crucial to ensure compliance with the statement of work and maintain service quality. Transparency would be enhanced through public contract databases.

Related Government Programs

Federal Airport Security Contracts
Transportation Security Administration Services
Airport Operations and Maintenance
Security Guard Services

Risk Flags

Long contract duration may lead to price increases if market conditions change.
Reliance on a single provider for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.0 million to JACKSON HOLE AIRPORT BOARD. THE CONTRACTOR SHALL PROVIDE SECURITY SCREENING SERVICES AT THE JACKSON HOLE AIRPORT, JACKSON, WYOMING IN ACCORDANCE WITH SECTION C, STATEMENT OF WORK. THIS CONTRACT IS A FIRM FIXED PRICE CONTRACT FOR A BASE PERIOD OF 11 MONTHS AND FOUR ONE YEAR OPTIONS. THE PERIOD OF PERFORMANCE IS 1 FEBRUARY 2011 THRU 31 DECEMBER 2015.

Who is the contractor on this award?

The obligated recipient is JACKSON HOLE AIRPORT BOARD.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $36.0 million.

What is the period of performance?

Start: 2011-01-28. End: 2017-06-30.

What is the historical spending trend for security screening services at Jackson Hole Airport?

The provided data reflects a single definitive contract awarded in 2011 with a period of performance extending to 2015, totaling approximately $36 million. To understand historical spending trends, one would need to examine contract awards prior to 2011 and potentially any subsequent contracts awarded after 2015 for the same services at Jackson Hole Airport. Analyzing these historical data points would reveal whether spending has increased, decreased, or remained relatively stable over time, and whether the number of bidders or contract types have changed, offering insights into market dynamics and potential cost efficiencies or escalations.

How does the per-contractor cost compare to similar airport security contracts nationwide?

A precise per-contractor cost comparison is not feasible with the data provided, as it lacks detailed cost breakdowns and specific service metrics. However, the total contract value of $36 million over its potential duration, awarded under full and open competition with four bidders, suggests a competitive pricing environment. To conduct a thorough comparison, one would need to identify contracts for similar security screening services at airports of comparable size and passenger volume, analyze their total values, contract lengths, and the number of bidders. Benchmarking against these similar contracts would reveal if the Jackson Hole Airport contract represents a favorable or unfavorable cost outcome for the government.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided contract abstract does not specify the Key Performance Indicators (KPIs) used to evaluate the contractor's performance. Typically, for security screening services, KPIs would include metrics such as screening wait times, the number of security incidents, compliance with federal security directives, personnel training and certification rates, and adherence to operational procedures. The Statement of Work (Section C) would likely detail these performance expectations and the methods for measuring them. Effective oversight by the TSA would involve regular monitoring and reporting against these KPIs to ensure the contractor is meeting the required security standards.

What is the contractor's track record with the TSA or other federal agencies?

The provided data does not include information on the specific contractor's track record. To assess this, one would need to identify the awarded contractor and then research their past performance on federal contracts, particularly those with the Transportation Security Administration (TSA) or other agencies involved in security services. Databases like the Federal Procurement Data System (FPDS) or contractor performance assessment reporting tools (e.g., Past Performance Information Retrieval System - PPIRS) could provide insights into their history of on-time delivery, quality of service, and any past performance issues or commendations.

What are the potential risks associated with a long-term contract for security screening services?

Long-term contracts for security screening services, like this one spanning over five years, carry several potential risks. Firstly, there's the risk of cost escalation if market rates for labor or equipment increase significantly over the contract period, potentially eroding the value of a fixed-price agreement if not adequately structured. Secondly, there's a risk of contractor complacency or performance degradation over time, as the initial competitive pressure diminishes. Thirdly, technological advancements in security screening could render current methods or equipment obsolete, requiring costly upgrades or contract modifications. Finally, changes in federal security mandates or threat landscapes might necessitate scope adjustments, leading to potential disputes or increased costs if not managed proactively.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSTS03-10-R-SPP032

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1250 E AIRPORT RD, JACKSON, WY, 83001

Business Categories: U.S. Government Authorities, Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,364,124

Exercised Options: $36,038,248

Current Obligation: $36,038,248

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline