State Department's $22.5M security guard contract awarded to Acuity-Janus Global, LLC, faced limited competition

Contract Overview

Contract Amount: $22,475,840 ($22.5M)

Contractor: Acuity - Janus Global, LLC

Awarding Agency: Department of State

Start Date: 2014-11-01

End Date: 2019-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF LOCAL GUARD SERVICES

Plain-Language Summary

Department of State obligated $22.5 million to ACUITY - JANUS GLOBAL, LLC for work described as: IGF::CL::IGF LOCAL GUARD SERVICES Key points: 1. The contract's value for money is fair, given the extended duration and the nature of security services. 2. Competition dynamics were limited, with only one bid received, potentially impacting price discovery. 3. Risk indicators are moderate, primarily related to the sole bid and the time-and-materials pricing structure. 4. Performance context suggests a need for consistent security presence across various locations. 5. Sector positioning places this contract within the broader government contracting landscape for security services.

Value Assessment

Rating: fair

The contract's total value of approximately $22.5 million over five years suggests a moderate annual spend for security guard services. Benchmarking against similar contracts for security personnel is challenging without more specific service details (e.g., number of guards, hours, locations). However, the time-and-materials pricing structure can sometimes lead to cost overruns if not closely managed, which warrants careful oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under full and open competition, but only one bid was received from ACUITY - JANUS GLOBAL, LLC. This limited competition raises concerns about whether the government received the best possible pricing and terms. A single bidder scenario can indicate potential barriers to entry for other firms, market consolidation, or a lack of interest from the broader security services industry for this specific requirement.

Taxpayer Impact: A single bid limits the government's ability to negotiate favorable terms and potentially pay higher prices than if multiple competitive bids were submitted. Taxpayers may not be benefiting from the full potential of market competition.

Public Impact

The primary beneficiaries are the Department of State and its personnel, who receive essential security services. Services delivered include security guard and patrol functions, crucial for protecting government facilities and assets. The geographic impact is likely widespread, covering various State Department locations domestically and potentially internationally. Workforce implications include the employment of security personnel, contributing to the private security industry workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bidder may have resulted in suboptimal pricing for taxpayers.
The time-and-materials (T&M) contract type can lead to cost uncertainty and potential overruns if not managed stringently.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality and effectiveness comprehensively.

Positive Signals

The contract was awarded to a single entity, potentially simplifying contract management and oversight.
The duration of the contract (5 years) suggests a stable, long-term need for these security services.
The award was made under a 'full and open competition' solicitation, indicating an initial intent to maximize competition.

Sector Analysis

The security services industry is a significant segment of the government contracting market, encompassing a wide range of protective services. This contract falls under the Security Guards and Patrol Services NAICS code (561612). The market is characterized by numerous providers, from small specialized firms to large multinational corporations. Government contracts for security are substantial, driven by the need to protect federal facilities, personnel, and assets both domestically and abroad. This specific award represents a portion of the overall federal spending on outsourced security solutions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, ACUITY - JANUS GLOBAL, LLC, may choose to subcontract portions of the work to small businesses as part of their business strategy, which is not detailed here. The absence of a small business set-aside means the opportunity was open to all eligible large and small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a definitive contract, it implies a level of established terms and conditions. Transparency is facilitated by the contract award notice, but detailed performance reports and Inspector General audits would provide deeper insights into accountability. The specific oversight mechanisms and their effectiveness would depend on the internal controls and monitoring processes implemented by the State Department.

Related Government Programs

Federal Protective Service Contracts
Department of State Security Operations
General Services Administration (GSA) Schedule Contracts
Department of Homeland Security Security Services

Risk Flags

Limited Competition
Time and Materials Pricing
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.5 million to ACUITY - JANUS GLOBAL, LLC. IGF::CL::IGF LOCAL GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is ACUITY - JANUS GLOBAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $22.5 million.

What is the period of performance?

Start: 2014-11-01. End: 2019-10-31.

What is the track record of ACUITY - JANUS GLOBAL, LLC with federal contracts, particularly for security services?

Acuity - Janus Global, LLC has a history of receiving federal contracts, primarily within the security services domain. Analyzing their past performance on similar contracts awarded by agencies like the Department of State, Department of Defense, or others would be crucial. Key aspects to examine include their on-time delivery rates, adherence to contract specifications, any past performance issues or disputes, and their overall reputation with contracting officers. Understanding their experience with managing large-scale security operations, including guard deployment, training, and supervision, provides insight into their capability to fulfill this specific requirement effectively. Data on contract modifications, overruns, or terminations from previous awards can also highlight potential risks or strengths.

How does the awarded price compare to market rates for similar security guard services?

Benchmarking the awarded price against market rates for similar security guard services is complex without granular details on the scope of work, such as the number of guards, hours of service, specific security requirements (e.g., armed vs. unarmed, specialized equipment), and geographic locations. However, given the contract's total value of approximately $22.5 million over five years, the average annual value is around $4.5 million. If this contract involved a significant number of guards across multiple high-security locations, the price might be considered competitive. Conversely, if the scope was more limited, the price could be on the higher end. The fact that only one bid was received complicates a direct price comparison, as there was no competitive pressure to drive the price down to market lows.

What are the primary risks associated with a time-and-materials contract for security services?

Time-and-materials (T&M) contracts, like the one awarded to ACUITY - JANUS GLOBAL, LLC, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட markup. This structure can lead to cost uncertainty and potential overruns if the contractor's efficiency is low or if the scope of work expands unexpectedly. For security services, risks include inflated labor hours, unnecessary material purchases, and a reduced incentive for the contractor to optimize resource utilization. Effective oversight, including detailed timesheet verification, monitoring of material costs, and robust scope management, is critical to mitigate these risks and ensure the government receives good value.

What does the limited competition (one bid) imply for the effectiveness of the procurement process?

The submission of only one bid under a 'full and open competition' solicitation suggests potential issues with the procurement process or the market environment. It could indicate that the solicitation requirements were too restrictive, the anticipated contract value was not attractive enough, or there were significant barriers to entry for other potential bidders. This limited competition raises concerns about whether the government achieved the best possible outcome in terms of price, quality, and innovation. While the single bidder might be capable, the lack of alternatives prevents a thorough assessment of market competitiveness and may have led to a higher price than could have been secured through robust competition. It also signals a need for the agency to review its acquisition strategies for similar future requirements.

How has federal spending on security guard services evolved over the past five years?

Federal spending on security guard services has generally remained substantial, reflecting the ongoing need to protect government assets and personnel. While specific figures fluctuate based on agency needs, geopolitical events, and budget allocations, the overall trend indicates a consistent demand. Agencies like the Department of State, Department of Defense, and Homeland Security are major consumers of these services. Spending patterns can be influenced by changes in security threat levels, policy shifts towards outsourcing, and the consolidation within the private security industry. Analyzing historical spending data for the NAICS code 561612 (Security Guards and Patrol Services) across the federal government can reveal trends in contract values, number of awards, and average contract durations, providing context for individual contract awards like this one.

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: SAQMMA13R0354

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: EOD Technology Inc. (UEI: 078670677)

Address: 2229 OLD HWY 95, LENOIR CITY, TN, 37771

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,664,982

Exercised Options: $25,510,710

Current Obligation: $22,475,840

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline