State Department awards $28.1M for Copenhagen security guards, with Securitas and SCIS JV winning

Contract Overview

Contract Amount: $28,114,860 ($28.1M)

Contractor: Securitas a S and Scis JV

Awarding Agency: Department of State

Start Date: 2018-10-01

End Date: 2023-11-30

Contract Duration: 1,886 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD SERVICES FOR U.S. MISSION COPENHAGEN, DENMARK

Plain-Language Summary

Department of State obligated $28.1 million to SECURITAS A S AND SCIS JV for work described as: LOCAL GUARD SERVICES FOR U.S. MISSION COPENHAGEN, DENMARK Key points: 1. Contract awarded to a joint venture, indicating potential for specialized capabilities. 2. The award value is substantial for security services in an international mission. 3. No small business participation noted, which could be a missed opportunity. 4. The sector is critical for diplomatic operations, requiring reliable security.

Value Assessment

Rating: fair

The contract's time and materials pricing structure can lead to cost overruns if not managed closely. Benchmarking against similar international security contracts is difficult without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which is positive for price discovery. However, the award to a joint venture might suggest a complex bidding process.

Taxpayer Impact: Taxpayer funds are used for essential security at a U.S. diplomatic mission, ensuring operational safety.

Public Impact

Ensures the safety and security of U.S. personnel and assets at the Copenhagen mission. Supports diplomatic operations by providing a stable and secure environment. Contributes to the U.S. government's international presence and security posture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns due to Time and Materials contract type.
  • Lack of small business participation.

Positive Signals

  • Full and open competition utilized.
  • Essential service for diplomatic mission.

Sector Analysis

This contract falls under security services, a critical sector for government operations, especially for overseas missions. Benchmarks for similar international security contracts vary widely based on location and scope.

Small Business Impact

The contract explicitly states no small business participation. This indicates that the prime contractor did not subcontract to small businesses for this requirement, potentially limiting opportunities for smaller firms.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Oversight would focus on ensuring service delivery meets security standards and managing the Time and Materials aspects to control costs.

Related Government Programs

  • Security Guards and Patrol Services
  • Department of State Contracting
  • Department of State Programs

Risk Flags

  • Time and Materials contract type increases risk of cost overruns.
  • Lack of small business participation.
  • Potential for vendor lock-in if competition was limited in practice.
  • Geopolitical risks associated with operating in an international location.

Tags

security-guards-and-patrol-services, department-of-state, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $28.1 million to SECURITAS A S AND SCIS JV. LOCAL GUARD SERVICES FOR U.S. MISSION COPENHAGEN, DENMARK

Who is the contractor on this award?

The obligated recipient is SECURITAS A S AND SCIS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2018-10-01. End: 2023-11-30.

What specific security threats or requirements necessitated this level of spending for the U.S. Mission in Copenhagen?

The specific security threats are likely classified but would encompass a range of risks including terrorism, espionage, and civil unrest. The requirements would detail personnel vetting, patrol schedules, access control, emergency response protocols, and technological surveillance to ensure the safety of diplomats, visitors, and sensitive information.

How effectively was the Time and Materials pricing structure managed to prevent cost overruns over the contract's duration?

Effectiveness of T&M management is difficult to assess without detailed financial reports and performance metrics. Key indicators would include adherence to estimated labor hours, justification for material purchases, and the ratio of actual costs to initial estimates. Regular audits and strong contract officer oversight are crucial.

What was the rationale for not including small businesses in this contract, given the full and open competition designation?

While the competition was open, the specific requirements may have favored large, established companies with extensive experience in international security operations and the capacity to manage complex joint ventures. The government may have prioritized proven capability and scale over small business set-asides for this critical mission support.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM18R0052

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6850 VERSAR CTR STE 400, SPRINGFIELD, VA, 22151

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,852,089

Exercised Options: $35,625,214

Current Obligation: $28,114,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2018-10-01

Current End Date: 2023-11-30

Potential End Date: 2023-11-30 00:00:00

Last Modified: 2024-03-06

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