State Department's $17.3M security contract for Mexico City mission awarded to Inter-con Security Systems

Contract Overview

Contract Amount: $17,267,898 ($17.3M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2018-01-01

End Date: 2023-10-31

Contract Duration: 2,129 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD PROGRAM - US MISSION IN MEXICO CITY

Plain-Language Summary

Department of State obligated $17.3 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: LOCAL GUARD PROGRAM - US MISSION IN MEXICO CITY Key points: 1. Contract value represents a significant investment in securing diplomatic facilities abroad. 2. Inter-con Security Systems has a substantial presence in the security services market. 3. The contract duration of over 5 years suggests a need for consistent, long-term security. 4. The use of Time and Materials pricing may introduce cost variability. 5. The contract's focus on security guards and patrol services highlights a critical operational need. 6. The award was made under full and open competition, indicating a broad market search.

Value Assessment

Rating: good

The contract value of approximately $17.3 million over five years for security guard services at the U.S. Mission in Mexico City appears reasonable given the scope and duration. Benchmarking against similar contracts for diplomatic security services globally suggests that pricing for guard services can vary significantly based on location, threat level, and required personnel. While specific per-unit cost data is not provided, the overall award amount indicates a substantial commitment to maintaining security at a key diplomatic post. Further analysis would require detailed breakdowns of labor rates and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple companies were likely solicited and submitted proposals. The process aims to ensure the government receives competitive pricing and the best value by allowing any qualified vendor to participate. The number of bidders, if available, would provide further insight into the level of market interest and the intensity of competition. A robust competition generally leads to more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs through market forces, ensuring that government funds are used efficiently for essential services like diplomatic security.

Public Impact

The U.S. Mission in Mexico City and its personnel are the primary beneficiaries, ensuring their safety and operational continuity. The contract delivers essential security guard and patrol services, maintaining a secure environment. The geographic impact is localized to Mexico City, a critical hub for U.S. diplomatic operations. The contract supports employment for security personnel, contributing to the local and potentially U.S. workforce in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not closely managed.
Reliance on a single contractor for extended periods may reduce flexibility in adapting to evolving security needs.
Geopolitical risks in Mexico City could impact operational continuity and security requirements.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Long contract duration suggests a stable and reliable security solution.
The contract addresses a critical national security need for diplomatic facilities.

Sector Analysis

The security services industry is a large and diverse sector, encompassing physical security, cybersecurity, and consulting. Contracts for guard services, like this one, are a significant segment, particularly for government facilities and large private entities. The market is competitive, with numerous providers ranging from large multinational corporations to smaller regional firms. This contract fits within the broader category of protective services, essential for maintaining safety and security at government installations worldwide. Comparable spending benchmarks for similar security contracts at U.S. embassies and consulates would provide further context on value.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to Inter-con Security Systems, a large provider, suggests that subcontracting opportunities for small businesses might be limited unless specifically mandated or pursued by the prime contractor. The absence of small business participation goals could mean a missed opportunity to leverage the agility and specialized services of smaller firms within the security sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's Bureau of Diplomatic Security and the contracting officer's representative (COR) at the U.S. Mission in Mexico City. Accountability measures would include performance reviews, adherence to service level agreements, and financial audits. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. The Inspector General of the Department of State would have jurisdiction for audits and investigations.

Related Government Programs

Worldwide Protective Services (WWPS)
Embassy Security Contracts
Department of State Security Operations
Diplomatic Security Services

Risk Flags

Time and Materials pricing may lead to cost uncertainty if not managed effectively.
Potential for vendor lock-in due to long contract duration.
Geopolitical instability in the region could impact security needs and operational continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $17.3 million to INTER-CON SECURITY SYSTEMS, INC.. LOCAL GUARD PROGRAM - US MISSION IN MEXICO CITY

Who is the contractor on this award?

The obligated recipient is INTER-CON SECURITY SYSTEMS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2018-01-01. End: 2023-10-31.

What is the historical spending pattern for security services at the U.S. Mission in Mexico City?

Historical spending data for security services at the U.S. Mission in Mexico City prior to this contract award is not directly available in the provided data. However, the current contract, valued at approximately $17.3 million and spanning from January 1, 2018, to October 31, 2023 (a duration of nearly five years), indicates a consistent and substantial requirement for security personnel. This suggests that previous contracts for similar services likely existed and were of significant value, reflecting the ongoing need to secure diplomatic facilities in a complex environment. Analyzing past contract awards for this specific mission or similar posts would provide a clearer picture of spending trends and potential increases or decreases in security investment over time.

How does the per-hour labor rate for security guards under this contract compare to market rates in Mexico City?

The provided data does not include specific per-hour labor rates for security guards under this contract, making a direct comparison to market rates in Mexico City impossible. The contract is structured as Time and Materials (T&M), which typically involves billing for direct labor hours at agreed-upon rates, plus the cost of materials. While the overall contract value is substantial, the absence of detailed rate information prevents an assessment of whether these rates are competitive or inflated compared to local industry standards. To perform such an analysis, one would need access to the contract's labor rate schedule and benchmark it against prevailing wages for security personnel with similar qualifications and responsibilities in the Mexico City region.

What are the key performance indicators (KPIs) used to evaluate Inter-con Security Systems' performance under this contract?

The specific Key Performance Indicators (KPIs) used to evaluate Inter-con Security Systems' performance under this contract are not detailed in the provided summary data. However, for security guard and patrol services contracts, typical KPIs often include metrics such as response times to incidents, adherence to post orders, guard attentiveness and professionalism, incident reporting accuracy, and overall effectiveness in preventing unauthorized access or security breaches. The Department of State, through its contracting officer's representative (COR), would be responsible for monitoring these KPIs and ensuring that Inter-con meets the contractual requirements for security and safety at the U.S. Mission in Mexico City. Regular performance reviews and site inspections would likely be part of the oversight process.

What is the risk profile associated with Inter-con Security Systems as a contractor for this mission?

The provided data does not explicitly detail the risk profile of Inter-con Security Systems. However, general risk factors for security contractors include past performance issues, financial stability, compliance with labor laws, and security clearances for personnel. Inter-con Security Systems is a large, established company in the security industry, which may suggest a lower risk profile compared to smaller, less experienced firms. The fact that the contract was awarded under full and open competition implies that the Department of State assessed Inter-con's qualifications and found them acceptable. Further risk assessment would require reviewing past performance evaluations, any documented disputes or contract terminations, and the company's overall track record in fulfilling government contracts.

How does the total contract value compare to other security contracts awarded by the Department of State for similar overseas missions?

The total contract value of approximately $17.3 million over nearly five years for security services at the U.S. Mission in Mexico City is substantial, reflecting the importance and scale of operations at a major diplomatic post. Comparing this to other Department of State security contracts for similar overseas missions requires access to a broader dataset of awards. However, security contracts for embassies and consulates in high-threat environments or large capital cities often run into the tens of millions of dollars over multi-year periods. Factors influencing contract value include the size of the facility, the number of personnel required, the specific threat environment, and the scope of services (e.g., guard force, access control, emergency response). This contract appears to be within the expected range for securing a significant U.S. diplomatic presence abroad.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE # 200, PASADENA, CA, 91105

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,605,820

Exercised Options: $20,605,820

Current Obligation: $17,267,898

Actual Outlays: $5,769,128

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA17D0152

IDV Type: IDC

Timeline