Treasury's IRS Spent $11.9M on K-9 Guard Services from Protection Strategies Inc

Contract Overview

Contract Amount: $11,929,105 ($11.9M)

Contractor: Protection Strategies Inc

Awarding Agency: Department of the Treasury

Start Date: 2006-09-14

End Date: 2011-01-31

Contract Duration: 1,600 days

Daily Burn Rate: $7.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANDOVER/METHUEN&K-9 GUARDS FY07

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810, UNITED STATES OF AMERICA

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.9 million to PROTECTION STRATEGIES INC for work described as: ANDOVER/METHUEN&K-9 GUARDS FY07 Key points: 1. The contract awarded to Protection Strategies Inc. for K-9 guard services totaled $11.9 million over its duration. 2. The service falls under the Security Guards and Patrol Services NAICS code (561612). 3. The contract was awarded as a competitive delivery order, suggesting some level of price discovery. 4. The contract utilized a Firm Fixed Price (FFP) structure, which shifts cost risk to the contractor. 5. The contract duration was 1600 days.

Value Assessment

Rating: fair

The total award amount of $11.9M over approximately 4.4 years for K-9 guard services needs comparison to similar contracts. Without specific unit rates or service levels, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. The competitive nature should have aided in price discovery, though the specific mechanism isn't detailed.

Taxpayer Impact: Taxpayer funds were used for security services. The competitive award process aims to ensure reasonable pricing, but the total expenditure of $11.9M warrants scrutiny against market rates.

Public Impact

Ensures security at IRS facilities through specialized K-9 units. Supports law enforcement and asset protection efforts. Provides employment for security personnel and K-9 handlers. Contributes to the overall operational readiness of the IRS.

Waste & Efficiency Indicators

Waste Risk Score: 74 / 10

Warning Flags

  • Lack of detailed performance metrics.
  • Potential for price creep in follow-on contracts.
  • Dependence on a single contractor for critical security functions.

Positive Signals

  • Competitive award process.
  • Firm Fixed Price contract type.
  • Long-term contract provides stability.

Sector Analysis

The security services sector, particularly guard and patrol services, is competitive. Spending benchmarks for K-9 units can vary significantly based on geographic location, threat levels, and specific service requirements.

Small Business Impact

The data indicates the award went to 'Protection Strategies Inc.' Further analysis would be needed to determine if this is a small business and if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The competitive delivery order process suggests some level of oversight. However, detailed information on performance monitoring, contract modifications, and post-award reviews is not provided.

Related Government Programs

  • Security Guards and Patrol Services
  • Department of the Treasury Contracting
  • Internal Revenue Service Programs

Risk Flags

  • High total expenditure ($11.9M).
  • Long contract duration (1600 days).
  • Specialized service requiring specific expertise.
  • Potential for limited competition in niche markets.
  • Lack of detailed performance data for independent assessment.

Tags

security-guards-and-patrol-services, department-of-the-treasury, ma, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.9 million to PROTECTION STRATEGIES INC. ANDOVER/METHUEN&K-9 GUARDS FY07

Who is the contractor on this award?

The obligated recipient is PROTECTION STRATEGIES 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 $11.9 million.

What is the period of performance?

Start: 2006-09-14. End: 2011-01-31.

What was the average annual cost for these K-9 guard services, and how does it compare to industry benchmarks for similar government contracts?

The total award was $11.9 million over approximately 1600 days (about 4.4 years). This averages to roughly $2.7 million per year. Comparing this to industry benchmarks requires detailed service scope, handler-to-dog ratios, and geographic cost-of-living data, which are not provided. However, this figure represents a significant investment in specialized security.

What specific risks were identified and mitigated by using K-9 units, and were there alternative, potentially less costly, security measures considered?

K-9 units are typically employed for enhanced detection (explosives, narcotics), deterrence, and apprehension capabilities beyond standard human guards. Risks mitigated likely include unauthorized access, theft, and potential threats to personnel or property. Alternative measures might include advanced surveillance technology or increased human guard presence, but the unique capabilities of K-9s often justify their use in high-risk environments.

How effectively did the competitive delivery order process ensure value for money, considering the total expenditure and the specialized nature of the services?

The competitive delivery order process theoretically promotes value by allowing multiple vendors to bid, driving down prices. However, the effectiveness in ensuring value for money depends on the number of bidders, the clarity of the solicitation, and the evaluation criteria. For specialized services like K-9 units, the market might be limited, potentially impacting the degree of competition and price discovery achieved.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 118 MITCHELL RD STE B, OAK RIDGE, TN, 37830

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $11,929,105

Exercised Options: $11,929,105

Current Obligation: $11,929,105

Parent Contract

Parent Award PIID: GS07F0442N

IDV Type: FSS

Timeline

Start Date: 2006-09-14

Current End Date: 2011-01-31

Potential End Date: 2011-01-31 00:00:00

Last Modified: 2017-03-02

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