SEC's $27.5M security contract awarded to First Coast Security Solutions, Inc. over 5 years

Contract Overview

Contract Amount: $27,530,859 ($27.5M)

Contractor: First Coast Security Solutions, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2013-09-21

End Date: 2018-10-31

Contract Duration: 1,866 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SECURITY GUARD SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $27.5 million to FIRST COAST SECURITY SOLUTIONS, INC. for work described as: IGF::OT::IGF SECURITY GUARD SERVICES Key points: 1. Contract value represents a significant investment in physical security for the SEC. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide predictable spending. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. The contract was awarded to a single vendor, First Coast Security Solutions, Inc.

Value Assessment

Rating: good

The contract's total value of $27.5 million over approximately five years suggests a substantial commitment to security services. Benchmarking this against similar contracts for federal agencies of comparable size and security needs would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control. Without specific per-unit cost data or comparisons to market rates for similar services in the Washington D.C. area, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of 10 bids suggests a healthy level of competition for this security guard services contract. This level of competition is generally expected to drive down prices and encourage the selection of the most capable and cost-effective offeror.

Taxpayer Impact: A competitive bidding process for essential services like security guards helps ensure that taxpayer dollars are used efficiently, securing the best possible price and service quality for the government.

Public Impact

The primary beneficiaries are the Securities and Exchange Commission (SEC) and its employees, who will receive enhanced physical security. The services delivered include security guard and patrol services, crucial for protecting federal facilities and personnel. The contract's geographic impact is focused on the District of Columbia, where the SEC's primary operations are located. The contract supports jobs within the private security sector, specifically for First Coast Security Solutions, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced price competitiveness over time if not managed effectively.
Reliance on a single vendor for critical security functions may pose risks if the vendor experiences performance issues or financial instability.
The specific details of the 'exclusion of sources' clause in the competition type warrant further examination to ensure no undue restrictions were placed on potential bidders.

Positive Signals

The award was made following a full and open competition, indicating a robust selection process.
The firm fixed-price contract type provides cost certainty for the agency and taxpayers.
The contract was awarded to a single, presumably qualified, vendor, streamlining service delivery.
The duration of the contract (1866 days) suggests a stable, long-term security solution.

Sector Analysis

The security guard services industry is a significant component of the broader private security sector. This contract falls under NAICS code 561612, which covers establishments primarily engaged in providing security guards and patrol services. The market for these services is driven by the need for physical security at government facilities, commercial properties, and other institutions. Federal spending in this area is substantial, reflecting the government's commitment to protecting its assets and personnel. This contract with the SEC represents a portion of that overall federal expenditure on security.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) flag is also false. This suggests that the contract was not specifically targeted towards small businesses, and there is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless First Coast Security Solutions, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Securities and Exchange Commission's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract provides a degree of cost oversight. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and specific oversight activities are typically internal. There is no explicit mention of an Inspector General's direct jurisdiction over this specific contract in the provided data, but the SEC's Office of Inspector General would have the authority to investigate fraud, waste, or abuse related to federal contracts.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for security services
Department of Homeland Security (DHS) contracts for protective services
Other agency-specific contracts for physical security and guard services

Risk Flags

Contract duration exceeds typical short-term needs, requiring careful performance monitoring.
Sole-source award (to First Coast Security Solutions, Inc.) necessitates verification of competitive process integrity.
Fixed-price contract type may limit flexibility if requirements change significantly.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $27.5 million to FIRST COAST SECURITY SOLUTIONS, INC.. IGF::OT::IGF SECURITY GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is FIRST COAST SECURITY SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2013-09-21. End: 2018-10-31.

What is the historical spending pattern for security guard services at the SEC?

Analyzing the SEC's historical spending on security guard services prior to this $27.5 million contract (2013-2018) would provide valuable context. Understanding if this contract represents an increase, decrease, or stable level of spending compared to previous periods is crucial. For instance, if previous contracts were significantly smaller or awarded to different vendors, it might indicate a shift in strategy or market dynamics. Conversely, if this is a continuation of a long-standing relationship, it suggests consistent needs. Without access to historical procurement data for the SEC's security services, it's difficult to establish a precise trend, but the 5-year duration and substantial value of this definitive contract suggest a significant and ongoing requirement.

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

Benchmarking the cost per contractor for this $27.5 million SEC contract against similar federal security guard contracts is essential for assessing value. While the provided data does not include specific per-unit costs (e.g., hourly rates for guards), the total contract value and duration (1866 days, approximately 62 months) can be used for a high-level comparison. If the average annual cost of this contract ($27.5M / 5 years = $5.5M/year) is significantly higher or lower than comparable contracts awarded by agencies like GSA or DHS for similar services in the same geographic region (District of Columbia), it would indicate potential overpricing or exceptional value. Further analysis would require detailed breakdowns of guard hours, labor rates, and overhead.

What is the track record of First Coast Security Solutions, Inc. with federal contracts?

First Coast Security Solutions, Inc. was awarded this definitive contract by the SEC, indicating they have experience providing services to federal agencies. To assess their track record thoroughly, one would need to examine their performance on this and any other federal contracts they may have held. Key factors include on-time delivery, quality of service, adherence to security protocols, and any past performance issues or disputes. A review of contract databases (like FPDS or SAM.gov) could reveal the number and types of federal contracts awarded to First Coast Security Solutions, Inc., their total value, and potentially performance ratings or award histories. A positive performance history on this substantial contract would suggest reliability.

What are the specific security risks mitigated by this contract?

This contract for security guard and patrol services directly addresses the physical security risks faced by the Securities and Exchange Commission. These risks typically include unauthorized access to facilities, theft of sensitive information or assets, workplace violence, and protection of personnel and visitors. The presence of trained security guards acts as a deterrent to potential intruders and criminals. Patrol services ensure continuous monitoring of the premises, identifying and responding to security breaches or suspicious activities promptly. By securing sensitive areas and controlling access, the contract helps prevent breaches that could compromise national security, financial data, or operational integrity.

How does the competition level (10 bidders) impact the final price and service quality?

A competition involving 10 bidders, as seen in this SEC security contract, generally has a positive impact on both price and service quality. A larger pool of bidders increases the likelihood that the government will receive competitive pricing, as companies vie to win the contract. This pressure often leads to more attractive bids. Furthermore, a robust competition allows the agency to select the offeror that not only provides the best price but also demonstrates superior technical capabilities, relevant experience, and a strong understanding of the required security services. The SEC could leverage this competition to secure favorable terms and ensure a high standard of service delivery throughout the contract's duration.

What is the significance of the 'definitive contract' award type?

The award of a 'definitive contract' signifies a formal, legally binding agreement between the SEC and First Coast Security Solutions, Inc. for the provision of security guard services. Unlike basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts that may require further action to define specific orders, a definitive contract typically outlines the full scope of work, pricing, delivery schedule, and terms and conditions upfront. This suggests that the requirements for security services were well-defined at the time of award, and the contract establishes a clear, fixed commitment for the duration specified (September 21, 2013, to October 31, 2018). This structure provides predictability for both the agency and the contractor.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SECHQ113R0018

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 INDEPENDENT DR STE 117, JACKSONVILLE, FL, 32202

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

Financial Breakdown

Contract Ceiling: $27,530,859

Exercised Options: $27,530,859

Current Obligation: $27,530,859

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline