State Department awards $32.6M for US Embassy Finland security services to Torres-Avarn Security LLC

Contract Overview

Contract Amount: $32,656,189 ($32.7M)

Contractor: Torres-Avarn Security LLC

Awarding Agency: Department of State

Start Date: 2019-04-09

End Date: 2025-01-31

Contract Duration: 2,124 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD SERVICES: US EMBASSY FINLAND

Plain-Language Summary

Department of State obligated $32.7 million to TORRES-AVARN SECURITY LLC for work described as: LOCAL GUARD SERVICES: US EMBASSY FINLAND Key points: 1. The contract value is substantial, reflecting the critical nature of embassy security. 2. Torres-Avarn Security LLC is the sole awardee, raising questions about competition. 3. The risk appears moderate, given the established need for security services. 4. The sector is government contracting for security services, a competitive but specialized field.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar embassy security contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity implies Torres-Avarn Security LLC was the most advantageous offer.

Taxpayer Impact: Taxpayer funds are being used for essential diplomatic security, with the aim of obtaining best value through competition.

Public Impact

Ensures the physical security and safety of U.S. personnel and property at the Embassy in Finland. Supports diplomatic operations by providing a secure environment for staff and visitors. Contributes to the overall U.S. foreign policy and national security objectives abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation with Time and Materials contract type.
Limited visibility into specific cost drivers without detailed breakdowns.

Positive Signals

Awarded under full and open competition.
Long-term contract provides stability for essential security services.

Sector Analysis

This contract falls within the government contracting sector for security services. Spending in this sector is driven by national security needs and the protection of federal assets and personnel globally. Benchmarks are highly variable based on location and service level.

Small Business Impact

The data does not indicate whether small businesses were involved in the subcontracting or prime contracting opportunities for this award.

Oversight & Accountability

The Department of State is responsible for overseeing this contract to ensure the effective delivery of security services and proper use of funds. Regular performance reviews and audits would be expected.

Related Government Programs

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

Risk Flags

Time and Materials contract type can lead to cost overruns.
Lack of detailed cost breakdown makes value assessment difficult.
Sole awardee may warrant further review of competition effectiveness.
Geopolitical risks in the region could impact security needs and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $32.7 million to TORRES-AVARN SECURITY LLC. LOCAL GUARD SERVICES: US EMBASSY FINLAND

Who is the contractor on this award?

The obligated recipient is TORRES-AVARN SECURITY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.7 million.

What is the period of performance?

Start: 2019-04-09. End: 2025-01-31.

What is the estimated cost per hour for security personnel under this Time and Materials contract, and how does it compare to industry averages for similar roles in Finland?

The provided data does not detail the hourly rates for security personnel. A Time and Materials contract means costs are based on direct labor hours at specified rates, plus actual material costs. To assess value, these rates would need to be compared against prevailing wages and market rates for security guards in the Helsinki area, considering experience and security clearance levels.

Given the full and open competition, what factors led to Torres-Avarn Security LLC being the sole awardee, and were there any specific performance or cost advantages identified?

While awarded under full and open competition, the selection of a sole awardee suggests Torres-Avarn Security LLC presented the most advantageous offer based on the evaluation criteria. This could include a combination of competitive pricing, demonstrated technical capability, past performance, and understanding of the specific security requirements for a U.S. embassy in a foreign capital.

What mechanisms are in place to monitor and control costs under this Time and Materials contract to prevent overruns and ensure taxpayer value?

The Department of State's contracting officers are responsible for monitoring contract performance and costs. Mechanisms typically include regular reporting requirements from the contractor, review of invoices for accuracy and reasonableness, and potentially establishing cost ceilings or fixed-price components for certain services or materials to mitigate risk.

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

Solicitation ID: 19AQMM18R0369

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7389 LEE HWY STE 340, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,704,525

Exercised Options: $34,704,525

Current Obligation: $32,656,189

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline