Treasury's IRS Spends $33.5M on Guard Services via Full & Open Competition
Contract Overview
Contract Amount: $33,497,880 ($33.5M)
Contractor: Securemedy Inc
Awarding Agency: Department of the Treasury
Start Date: 2016-10-01
End Date: 2019-11-30
Contract Duration: 1,155 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS - FMSS CONSOLIDATED GUARD SERVICES ANDOVER,MA; COVINGTON, KY; MEMPHIS, TN
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75244
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $33.5 million to SECUREMEDY INC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS - FMSS CONSOLIDATED GUARD SERVICES ANDOVER,MA; COVINGTON, KY; MEMPHIS, TN Key points: 1. Spending on security guards is a common government need, with this contract representing a moderate investment. 2. Securemendy Inc. secured this contract, indicating a competitive landscape for security services. 3. The contract's duration and value present a moderate financial risk. 4. The sector is Facilities Support Services, a broad category with varying cost benchmarks.
Value Assessment
Rating: good
The contract value of $33.5M over three years for guard services appears reasonable when benchmarked against similar large-scale security contracts. The per-unit cost is not directly calculable without more granular data on hours and rates.
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,' suggesting a competitive bidding process that aimed to maximize value. This method generally leads to better price discovery.
Taxpayer Impact: Taxpayer funds were used efficiently through a competitive process, ensuring value for money in security services.
Public Impact
Ensures security for IRS facilities in multiple locations, protecting sensitive government assets and information. Supports jobs within the private security sector through government contracting. Provides essential services that maintain operational continuity for the Internal Revenue Service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of nearly three years could lead to price increases if not managed.
- Lack of specific performance metrics makes it hard to assess service quality impact.
- Geographic dispersion of services may increase logistical complexity and cost.
Positive Signals
- Awarded through full and open competition, indicating potential for cost savings.
- Multiple locations served suggest a comprehensive security solution.
- Established contract with a known provider for essential services.
Sector Analysis
The Facilities Support Services sector, including security, is a significant area of government spending. Benchmarks vary widely based on service type, location, and contract size, but $33.5M for comprehensive guard services is substantial.
Small Business Impact
The contract was not awarded to a small business, as indicated by 'sb': false. This suggests larger, established firms dominated the bidding for this service requirement.
Oversight & Accountability
The award process under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies a degree of oversight. However, ongoing performance monitoring and cost control oversight details are not provided.
Related Government Programs
- Security Guards and Patrol Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for price escalation over contract duration.
- Limited transparency on specific performance metrics.
- Complexity of managing services across multiple geographic locations.
- Risk of reduced competition due to initial source exclusion.
Tags
security-guards-and-patrol-services, department-of-the-treasury, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $33.5 million to SECUREMEDY INC. IGF::OT::IGF FOR OTHER FUNCTIONS - FMSS CONSOLIDATED GUARD SERVICES ANDOVER,MA; COVINGTON, KY; MEMPHIS, TN
Who is the contractor on this award?
The obligated recipient is SECUREMEDY INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $33.5 million.
What is the period of performance?
Start: 2016-10-01. End: 2019-11-30.
What was the specific rationale for excluding certain sources before the full and open competition?
The exclusion of sources prior to full and open competition typically occurs when specific capabilities, past performance, or unique requirements necessitate a narrowed initial pool. This can sometimes be justified to ensure specialized needs are met, but it also carries a risk of limiting competition and potentially increasing costs if not carefully managed and documented.
How does the cost per guard hour compare to industry averages for similar government contracts?
Without specific hourly rates or detailed man-hour breakdowns, a direct comparison of cost per guard hour is not feasible. However, the overall contract value of $33.5M for nearly three years suggests a significant investment. Benchmarking would require access to the contract's detailed pricing structure and comparison with publicly available data for similar government security contracts.
What performance metrics were used to evaluate Securemendy Inc.'s service delivery during the contract period?
The provided data does not include specific performance metrics or evaluation reports for Securemendy Inc. Effective oversight would typically involve tracking key performance indicators related to response times, incident reporting accuracy, personnel reliability, and client satisfaction. The absence of this information limits the assessment of service effectiveness and value for money.
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
Offers Received: 10
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 3 POST OFFICE RD STE 101, WALDORF, MD, 20602
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,511,560
Exercised Options: $33,886,051
Current Obligation: $33,497,880
Actual Outlays: $2,238,105
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2016-10-01
Current End Date: 2019-11-30
Potential End Date: 2019-11-30 09:01:17
Last Modified: 2022-06-01
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