DoD's $11.9M Security Services Contract Awarded to L & R Security Services Inc. Amidst Full and Open Competition
Contract Overview
Contract Amount: $11,900,448 ($11.9M)
Contractor: L & R Security Services Inc
Awarding Agency: Department of Defense
Start Date: 2007-03-23
End Date: 2012-03-31
Contract Duration: 1,835 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 1 APR 07 - 30 SEP 07
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70118
Plain-Language Summary
Department of Defense obligated $11.9 million to L & R SECURITY SERVICES INC for work described as: 1 APR 07 - 30 SEP 07 Key points: 1. Contract value of $11.9M over 5 years for security services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with the long contract duration (1835 days). 4. Spending falls within the Security Guards and Patrol Services sector (NAICS 561612).
Value Assessment
Rating: fair
The contract value of $11.9M over approximately 5 years suggests an average annual spend of $2.38M. Benchmarking against similar contracts for security guard services is necessary to determine if this pricing is competitive.
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 process was initiated. However, the exclusion of sources warrants further investigation to ensure true price discovery.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at the best possible price. The specific impact depends on the effectiveness of the competition.
Public Impact
Ensures security services for Department of the Army operations. Supports national defense through provision of essential security personnel. Potential for job creation within the security services industry.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Long contract duration may lead to price inflexibility.
- Exclusion of sources in competition needs clarification.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Clear contract type (Firm Fixed Price) for cost certainty.
Sector Analysis
This contract falls under the Security Guards and Patrol Services sector, a critical component of facility and operational security. Spending benchmarks for this sector vary widely based on location, service level, and contract duration.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss=false, sb=false). Further analysis is needed to understand if opportunities were missed for small businesses in this procurement.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, suggesting established oversight mechanisms. However, the 'exclusion of sources' clause requires scrutiny to ensure accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price escalation due to long contract duration.
- Lack of small business participation.
- Ambiguity in 'exclusion of sources' clause.
- Performance monitoring over a 5-year period requires diligence.
Tags
security-guards-and-patrol-services, department-of-defense, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.9 million to L & R SECURITY SERVICES INC. 1 APR 07 - 30 SEP 07
Who is the contractor on this award?
The obligated recipient is L & R SECURITY SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $11.9 million.
What is the period of performance?
Start: 2007-03-23. End: 2012-03-31.
What was the rationale behind excluding specific sources during the full and open competition, and did this exclusion impact the final price?
The rationale for excluding sources during a 'full and open competition after exclusion of sources' typically involves specific justifications like national security, proprietary technology, or unique capabilities. Without further details, it's difficult to ascertain the exact reason. This exclusion could potentially limit price competition if the excluded sources were significant competitors, possibly leading to a less optimal price for the government.
How does the firm-fixed-price structure mitigate risks associated with potential cost overruns over the 5-year contract period?
A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor. This means L & R Security Services Inc. is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This structure provides significant cost certainty for the Department of the Army, protecting taxpayers from unexpected cost increases due to contractor inefficiencies or unforeseen market fluctuations.
Given the contract's duration and the nature of security services, what measures are in place to ensure the continued effectiveness and quality of services provided by L & R Security Services Inc.?
The effectiveness and quality of services over a 5-year contract are typically managed through performance standards, regular inspections, and defined deliverables within the contract. The Department of the Army likely has quality assurance personnel to monitor contractor performance. However, the long duration necessitates proactive oversight to prevent service degradation and ensure ongoing alignment with evolving security needs.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912P807R0048
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3930 OLD GENTILLY RD, NEW ORLEANS, LA, 70126
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,019,885
Exercised Options: $11,900,448
Current Obligation: $11,900,448
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2007-03-23
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2020-09-28
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