DHS awards $480M for airport security screening, with 5 bidders competing for a 5-year contract

Contract Overview

Contract Amount: $480,058,496 ($480.1M)

Contractor: Covenant Aviation Security, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-07-01

End Date: 2021-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $263.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL,CT::IGF TASK ORDER 3 - SFO/SAN FRANCISCO INTERNATIONAL AIRPORT SECURITY SCREENING SERVICES UNDER THE SCREENING PARTNERSHIP PROGRAM (SPP).

Place of Performance

Location: SAN FRANCISCO, SAN MATEO County, CALIFORNIA, 94128

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $480.1 million to COVENANT AVIATION SECURITY, LLC for work described as: IGF::CL,CT::IGF TASK ORDER 3 - SFO/SAN FRANCISCO INTERNATIONAL AIRPORT SECURITY SCREENING SERVICES UNDER THE SCREENING PARTNERSHIP PROGRAM (SPP). Key points: 1. The contract value represents a significant investment in airport security infrastructure. 2. Competition dynamics suggest a healthy market for security screening services. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. Performance is tied to the Screening Partnership Program, indicating a focus on efficiency and collaboration. 5. The duration of the contract allows for sustained service delivery and potential for long-term performance improvements. 6. The award to a single contractor highlights the need for specialized capabilities in this sector.

Value Assessment

Rating: good

The contract value of approximately $480 million over five years averages to about $96 million annually. Benchmarking against similar large-scale security screening contracts is challenging without more specific service details. However, the number of bidders (5) suggests a competitive environment that likely drove a reasonable price. The firm-fixed-price contract type provides cost certainty for the government, assuming the contractor can manage its operational expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bidders vying for the opportunity. The presence of multiple bidders indicates that the market for airport security screening services is sufficiently robust to attract several qualified companies. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a range of capable providers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Travelers at San Francisco International Airport benefit from enhanced security screening services. The Transportation Security Administration (TSA) receives critical support for its screening operations. The contract supports jobs within the aviation security sector in California. The Screening Partnership Program aims to improve security effectiveness and operational efficiency at participating airports.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Reliance on a single contractor for a critical security function.
Ensuring consistent adherence to evolving security protocols and standards.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm-fixed-price contract provides cost predictability.
Long contract duration allows for stable service provision and potential for efficiency gains.
Contractor operates under the TSA's Screening Partnership Program, suggesting alignment with federal security objectives.

Sector Analysis

The aviation security sector is a critical component of national infrastructure, involving specialized services for passenger and baggage screening. This contract falls within the broader security services industry, which is characterized by stringent regulatory requirements and a need for highly trained personnel. The Transportation Security Administration (TSA) is a major procurer of these services, often utilizing competitive solicitations to ensure value and effectiveness. Market size for airport screening services is substantial, driven by the volume of air travel and evolving security threats.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is Covenant Aviation Security, LLC, there is no explicit information on subcontracting plans with small businesses. Future analysis could explore whether the prime contractor has a robust small business subcontracting program to ensure opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Homeland Security (DHS) through the Transportation Security Administration (TSA). The firm-fixed-price contract type provides a degree of financial oversight by establishing a set cost. Performance metrics and service level agreements, though not detailed here, would be crucial for ongoing accountability. Transparency would be enhanced by public reporting on performance outcomes and any significant issues encountered during contract execution.

Related Government Programs

Airport Security Services
Transportation Security Administration Contracts
Federal Security Guard Services
Screening Partnership Program
Homeland Security Contracts

Risk Flags

Potential for performance issues with a single large contractor.
Ensuring consistent adherence to evolving security standards.
Reliance on contractor's ability to manage workforce effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $480.1 million to COVENANT AVIATION SECURITY, LLC. IGF::CL,CT::IGF TASK ORDER 3 - SFO/SAN FRANCISCO INTERNATIONAL AIRPORT SECURITY SCREENING SERVICES UNDER THE SCREENING PARTNERSHIP PROGRAM (SPP).

Who is the contractor on this award?

The obligated recipient is COVENANT AVIATION SECURITY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $480.1 million.

What is the period of performance?

Start: 2016-07-01. End: 2021-06-30.

What is the historical spending pattern for airport security screening services at San Francisco International Airport?

Analyzing historical spending for airport security screening at SFO requires access to prior contract data. This specific contract, valued at approximately $480 million over five years (2016-2021), represents a significant annual expenditure averaging around $96 million. Without prior contract details, it's difficult to establish a trend. However, the scale of this award suggests a consistent and substantial need for these services, likely driven by passenger volume and TSA mandates. Future analysis could involve comparing this award to previous TSA contracts at SFO or other major airports to identify spending trends, potential cost efficiencies, or inflationary pressures within the sector.

How does the per-passenger screening cost compare to industry benchmarks?

Determining a precise per-passenger screening cost requires detailed operational data, including the total number of passengers screened under this contract and the total contract cost allocated to screening operations. The provided data does not include passenger volume. However, if we assume an average annual contract value of $96 million, and if SFO handles tens of millions of passengers annually, the per-passenger cost could range from a few dollars to under a dollar, depending on the exact figures. Industry benchmarks for per-passenger screening costs can vary significantly based on airport size, security level, and the specific services provided. Without specific passenger throughput data for SFO during the contract period, a direct comparison to industry benchmarks is not feasible with the current information.

What is the track record of Covenant Aviation Security, LLC in performing similar federal contracts?

Covenant Aviation Security, LLC has a history of performing federal contracts, particularly within the aviation security domain. As a provider of security screening services, their track record would be assessed based on past performance evaluations, on-time delivery, adherence to security protocols, and overall client satisfaction. Information regarding past performance on similar contracts, especially those with the TSA or other federal agencies, would be crucial for a comprehensive assessment. This includes examining any past performance issues, contract modifications, or disputes. A review of their contract history, including the number and value of previous awards, and any available performance ratings, would provide insight into their reliability and capability to fulfill this significant contract.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of this security screening contract?

Key Performance Indicators (KPIs) for airport security screening contracts typically focus on operational efficiency, security effectiveness, and passenger experience. For this contract, KPIs likely include metrics such as average wait times for passengers, the number of security incidents or breaches, adherence to screening protocols (e.g., correct identification of prohibited items), and personnel performance evaluations. The TSA's Screening Partnership Program (SPP) itself may have specific performance benchmarks that contractors must meet. While not detailed in the provided data, these KPIs are essential for the TSA to monitor the contractor's performance, ensure compliance with federal security standards, and measure the overall value and effectiveness of the services provided.

How has spending on airport security screening services evolved over the past decade?

Spending on airport security screening services has generally seen an upward trend over the past decade, influenced by factors such as increased air travel, evolving security threats, and technological advancements. Following the implementation of the Screening Partnership Program (SPP), which this contract is part of, there has been a focus on optimizing efficiency and potentially leveraging private sector expertise. Contracts like this one, awarded under full and open competition and with significant values, reflect the ongoing federal commitment to maintaining high security standards. However, the exact evolution of spending can be complex, influenced by budget allocations, specific airport needs, and shifts in security policy. Analyzing aggregate federal spending data across multiple years and agencies would provide a clearer picture of the overall trend.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 156 TAMARACK AVE, NAPERVILLE, IL, 60540

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $480,308,496

Exercised Options: $480,058,496

Current Obligation: $480,058,496

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSTS0516DSPP906

IDV Type: IDC

Timeline