State Department awards $24.1M security contract to Inter-Con Security Systems, Inc

Contract Overview

Contract Amount: $24,137,184 ($24.1M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2005-06-01

End Date: 2010-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD CONTRACT

Plain-Language Summary

Department of State obligated $24.1 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: LOCAL GUARD CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1825 days (5 years) indicates a long-term need for security services. 3. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. The award was made by the Department of State, highlighting the critical nature of security for diplomatic missions. 6. The absence of small business set-aside indicates the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not carefully managed and monitored for efficiency. Comparing this to similar contracts for security services at diplomatic facilities would provide better insight into whether the pricing reflects market rates for the level of service provided. The total award amount of $24.1 million over five years suggests a significant investment in security infrastructure and personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, which typically involves soliciting bids from all responsible prospective contractors. The data indicates two bids were received. A higher number of bidders generally leads to more competitive pricing and a wider range of solutions, but with only two bids, the extent of true price discovery is somewhat limited. The government's ability to secure the best value depends on the attractiveness of the solicitation and the capabilities of the bidders.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down prices and improves service quality.

Public Impact

The primary beneficiaries are the Department of State and its personnel, who receive enhanced security at facilities. The services delivered include security guard and patrol functions, crucial for protecting diplomatic assets and personnel. The geographic impact is likely concentrated around the specific facilities managed by the Department of State where these guards are deployed. Workforce implications include the creation of jobs for security guards, potentially impacting local employment in the areas where services are rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Limited number of bidders (2) may indicate potential barriers to entry or a niche market, impacting price competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value for money.
The contract duration of 5 years locks in a provider, potentially reducing flexibility for future needs or technological advancements.

Positive Signals

Awarded through full and open competition, suggesting an effort to maximize value and choice.
The contract addresses a critical government function (security), indicating a necessary and important service.
The long duration suggests a stable and predictable security posture for the Department of State.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the 'Security Guards and Patrol Services' category (NAICS 561612). The market for government security contracts is substantial, driven by the need to protect federal facilities, personnel, and sensitive information both domestically and abroad. Comparable spending benchmarks would involve analyzing other contracts for similar security services awarded by various federal agencies to entities like Inter-Con Security Systems, Inc. or its competitors.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary focus of the procurement was on securing the best offer from any qualified vendor, rather than specifically promoting small business participation. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear, though larger prime contractors often engage small businesses for specialized support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. While specific Inspector General (IG) jurisdiction is not detailed here, the Department of State's Office of Inspector General would likely have oversight authority concerning fraud, waste, and abuse related to this contract.

Related Government Programs

Department of State Diplomatic Security Service
Federal Protective Service Contracts
Department of Defense Security Contracts
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition (2 bidders) may reduce price discovery.
Lack of detailed performance metrics in award data.
Contract duration may limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $24.1 million to INTER-CON SECURITY SYSTEMS, INC.. LOCAL GUARD CONTRACT

Who is the contractor on this award?

The obligated recipient is INTER-CON SECURITY SYSTEMS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2005-06-01. End: 2010-05-31.

What is the historical spending pattern for security services by the Department of State?

Analyzing historical spending patterns for security services by the Department of State is crucial for understanding the context of this $24.1 million award. While specific historical data is not provided in the prompt, federal agencies like the State Department typically have consistent and significant expenditures on security due to the nature of their operations, especially concerning overseas embassies and consulates. Trends might show an increase in spending over time due to evolving security threats, or fluctuations based on geopolitical events and budget allocations. Comparing this contract's value to previous years' spending on similar services would reveal whether this represents an increase, decrease, or stable investment in security. It also helps in identifying potential patterns of sole-source awards versus competitive procurements for security needs.

How does the per-unit cost of security guards under this contract compare to industry benchmarks?

Determining the per-unit cost of security guards under this contract requires more granular data than what is provided. The total award of $24.1 million over 1825 days (5 years) needs to be broken down by the number of guard hours or personnel employed. Without this, a direct comparison to industry benchmarks for hourly rates or per-guard costs is not feasible. However, the Time and Materials (T&M) nature of the contract implies that costs are based on actual labor hours and materials used, plus a fixed fee or profit. If data were available on the average hourly rate charged by Inter-Con Security Systems, Inc., it could be benchmarked against prevailing wages and industry standards for similar security services in the contract's geographic location, considering factors like guard experience, certifications, and the specific security environment.

What is Inter-Con Security Systems, Inc.'s track record with federal government contracts, particularly with the Department of State?

Inter-Con Security Systems, Inc. has a notable track record with federal government contracts, including significant work with the Department of State. As a provider of security services, the company has been awarded numerous contracts across various agencies, often for protective services at federal facilities, embassies, and other sensitive locations. Their experience with the State Department specifically suggests a familiarity with the unique security requirements and protocols associated with diplomatic missions. A review of their contract history would likely reveal the types and values of previous awards, their performance ratings (if publicly available), and any instances of contract disputes or challenges. This history provides insight into their capacity, reliability, and established relationship with the client agency.

What are the potential risks associated with a Time and Materials (T&M) contract for security services?

Time and Materials (T&M) contracts, like the one awarded to Inter-Con Security Systems, Inc. for $24.1 million, carry inherent risks, primarily concerning cost control. In a T&M arrangement, the government pays for the actual labor hours expended by the contractor and the cost of materials used, plus a predetermined profit margin. The primary risk is that costs can escalate beyond initial estimates if the contractor's efficiency is low, if the scope of work expands without proper controls, or if there is potential for overcharging on hours or materials. For security services, this could mean paying for extended idle time for guards or inflated costs for equipment. Effective oversight, detailed record-keeping, and clear task definitions are critical to mitigate these risks and ensure the government receives good value.

How does the competition level (2 bidders) for this contract potentially impact its overall value and cost-effectiveness?

The competition level for this contract, with only two bidders responding to a full and open solicitation, presents a mixed picture regarding value and cost-effectiveness. On one hand, having multiple bidders generally fosters competition, driving down prices and encouraging innovation. However, with only two offers, the competitive pressure might be less intense than if there were numerous bidders. This could potentially lead to higher prices than might be achieved in a more crowded market. The government's ability to secure the best value depends heavily on the quality of the solicitation, the capabilities and pricing strategies of the two bidders, and the negotiation process. If the two bidders were highly capable and their proposals were well-evaluated, good value could still be achieved, but the risk of suboptimal pricing is higher compared to a scenario with robust competition.

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: SC015003R0001

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE # 200, PASADENA, CA, 28

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,464,983

Exercised Options: $24,137,184

Current Obligation: $24,137,184

Timeline