DoD awards $12.3M for security support, with T3W Business Solutions Inc. securing the contract

Contract Overview

Contract Amount: $12,337,264 ($12.3M)

Contractor: T3W Business Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-24

End Date: 2026-05-23

Contract Duration: 1,460 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SECURITY SUPPORT SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to T3W BUSINESS SOLUTIONS, INC. for work described as: SECURITY SUPPORT SERVICES Key points: 1. Contract value of $12.3M over 4 years suggests a significant investment in security support. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The 'Delivery Order' award type implies this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The fixed fee pricing structure, while common, requires careful monitoring to ensure cost control. 5. The contract duration of 1460 days (4 years) allows for sustained support but also necessitates long-term performance evaluation. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, suggesting a technical component to the security support.

Value Assessment

Rating: fair

Benchmarking the $12.3M value against similar security support contracts is challenging without more specific service details. The 'Cost Plus Fixed Fee' (CPFF) structure can lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed cost breakdowns or comparisons to industry benchmarks for specific security support tasks, assessing true value-for-money is difficult. However, the competitive award process may have helped to establish a reasonable baseline price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 4 bidders (indicated by 'no': 4) implies a moderate level of competition for this requirement. While not an extremely high number of bidders, it is sufficient to provide some price discovery and encourage competitive pricing.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price reductions and encouraging contractors to offer their best value solutions to win the contract.

Public Impact

The Department of the Navy benefits from enhanced security support services. This contract likely supports critical infrastructure protection and operational security for naval facilities. The geographic impact is centered in California, where the contract is stated to be performed. The contract may have implications for the cybersecurity and physical security workforce, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in CPFF contracts if not rigorously monitored.
Ensuring the fixed fee remains appropriate throughout the contract lifecycle.
Defining clear performance metrics to assess the effectiveness of security support services.

Positive Signals

Awarded under full and open competition, indicating a fair and accessible bidding process.
Multiple bidders participated, suggesting a degree of market interest and competition.
The contract is for a defined period, allowing for structured performance evaluation.

Sector Analysis

The engineering services sector (NAICS 541330) is a broad category encompassing a wide range of technical consulting and design services. Within this sector, security support services can range from physical security system design to cybersecurity consulting. Federal spending in this area is substantial, driven by national security needs and the protection of critical infrastructure. This contract likely fits within the broader defense industrial base, supporting the operational readiness and security posture of the Department of Defense.

Small Business Impact

The data indicates this contract was awarded under 'Full and Open Competition' and does not specify any small business set-aside. Furthermore, the 'sb' (small business) flag is false. This suggests that small businesses were not specifically targeted for this award, and it is unclear if subcontracting opportunities for small businesses will be a significant component of this contract's execution.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The 'Cost Plus Fixed Fee' (CPFF) structure necessitates robust financial oversight to ensure that costs are allowable, allocable, and reasonable. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits by the Defense Contract Audit Agency (DCAA). The specific Inspector General jurisdiction would be that of the Department of Defense.

Related Government Programs

Department of Defense Security Services
Naval Facilities Engineering Command Contracts
Engineering and Technical Services Contracts
Information Technology Security Services
Physical Security Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Need for rigorous oversight of contractor performance and costs.
Clarity of scope and deliverables is crucial for effective service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to T3W BUSINESS SOLUTIONS, INC.. SECURITY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is T3W BUSINESS SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2022-05-24. End: 2026-05-23.

What is the specific nature of the 'security support services' being provided under this contract?

The provided data indicates the contract falls under NAICS code 541330, 'Engineering Services.' While labeled as 'SECURITY SUPPORT SERVICES,' this suggests the services likely involve technical expertise related to security. This could encompass a range of activities such as the design, integration, and maintenance of physical security systems (e.g., access control, surveillance), cybersecurity consulting, risk assessments, threat analysis, or the development of security protocols and procedures. Without further details on the Statement of Work (SOW), the precise scope remains broad but leans towards technically-oriented security solutions rather than purely personnel-based guarding services.

How does the awarded amount of $12.3M compare to historical spending on similar security support services by the Department of the Navy?

To accurately compare $12.3M to historical spending, one would need to identify comparable contracts based on service type (e.g., cybersecurity, physical security engineering), duration, and agency component. The provided data is limited to this single contract. However, a general assessment suggests that $12.3M over four years ($3.075M annually) is a moderate-sized contract for specialized engineering and security support. Larger, more complex security overhauls or enterprise-wide cybersecurity initiatives could easily run into tens or hundreds of millions of dollars. Conversely, smaller, localized security upgrades or specific consulting engagements might be in the hundreds of thousands. This contract appears to fall within a mid-range for sustained, specific security support.

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

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a 'SECURITY SUPPORT SERVICES' contract under 'Engineering Services' with a 'Cost Plus Fixed Fee' structure, typical KPIs would likely focus on the successful implementation and maintenance of security systems, adherence to project timelines, effectiveness of threat mitigation, cybersecurity posture improvements, and compliance with relevant security standards and regulations. Performance would also be assessed based on the contractor's ability to manage costs within the agreed-upon fixed fee and allowable cost framework, and their responsiveness to evolving security threats or requirements. Formal reviews and acceptance criteria outlined in the contract's Statement of Work would dictate the specific metrics.

What is the potential risk associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this security support service?

The primary risk associated with a 'Cost Plus Fixed Fee' (CPFF) contract type for security support services is the potential for cost overruns. While the contractor's profit (the fixed fee) is capped, they are reimbursed for all allowable costs incurred. If the contractor is inefficient, experiences unforeseen challenges, or if the scope of work expands without adequate adjustments to the fee structure, the total cost to the government could exceed initial estimates. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and manage any scope changes effectively. The government bears the risk of cost escalation beyond the initial projected total cost.

Given the 'Full and Open Competition' award, what does the number of bidders (4) imply about the market for these security support services?

The fact that this contract was awarded under 'Full and Open Competition' with four bidders suggests a moderately competitive market for these specific security support services. Four bidders indicate that multiple companies were interested and capable of performing the work, which is generally positive for price discovery and value. However, it is not an exceptionally high number, which might be seen in more commoditized or broadly defined service areas. This number implies that while there is competition, the market may be somewhat specialized, or perhaps the specific requirements of the solicitation were tailored, potentially limiting the pool of highly qualified and interested parties. It suggests a healthy, but not hyper-competitive, environment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6600122R3501

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3921 AMPUDIA ST, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,927,657

Exercised Options: $14,343,937

Current Obligation: $12,337,264

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $747,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8637

IDV Type: IDC

Timeline