State Department awards $14.3M contract for security services in Korea, highlighting need for consistent guard presence

Contract Overview

Contract Amount: $14,278,297 ($14.3M)

Contractor: KF&S Corp.

Awarding Agency: Department of State

Start Date: 2020-06-01

End Date: 2026-01-31

Contract Duration: 2,070 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD SERVICES FOR U.S. MISSION KOREA

Plain-Language Summary

Department of State obligated $14.3 million to KF&S CORP. for work described as: LOCAL GUARD SERVICES FOR U.S. MISSION KOREA Key points: 1. Contract value appears reasonable given the extended duration and scope of security services required. 2. Full and open competition suggests a healthy market for security services, potentially leading to competitive pricing. 3. The use of a Time and Materials contract type introduces some cost risk if not closely managed. 4. This contract supports critical diplomatic and operational functions by ensuring the safety of U.S. personnel and facilities. 5. The contractor, KF&S CORP., will be responsible for providing essential security personnel in a high-risk environment. 6. Performance will be measured against established security protocols and response times, ensuring mission readiness.

Value Assessment

Rating: good

The contract value of $14.3 million over approximately 6.7 years (June 2020 - January 2026) averages to about $2.1 million annually. This figure seems aligned with the costs associated with providing comprehensive security guard services for a U.S. mission abroad, which often includes specialized training, equipment, and personnel management in a foreign context. Benchmarking against similar contracts for diplomatic security services globally would provide a more precise value-for-money assessment, but the initial estimate appears within a reasonable range for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to submit proposals. The solicitation process likely involved a thorough evaluation of technical capabilities, past performance, and pricing. The presence of five bidders (no=5) suggests a competitive environment, which generally benefits the government by driving down prices and encouraging innovation. This level of competition is ideal for ensuring the government receives the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and ensures that the government is not overpaying for essential services. It also promotes a wider pool of capable contractors, fostering a more robust and responsive market.

Public Impact

U.S. diplomatic personnel and facilities in Korea are protected by professional security services. The contract ensures the continuity of essential security operations for the U.S. Mission. Local employment opportunities may arise for security personnel in Korea, contributing to the local economy. The physical security of sensitive government assets and information is maintained. The contract supports the broader U.S. foreign policy objectives by ensuring safe and secure diplomatic operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not diligently monitored and controlled, as it allows for reimbursement of direct labor hours and costs plus a fixed fee or percentage.
Ensuring consistent quality and performance from security personnel across the contract duration requires robust oversight and performance management.
Geopolitical factors or changes in local security conditions could necessitate adjustments to security protocols or personnel, potentially impacting costs and operational effectiveness.

Positive Signals

The contract was awarded through full and open competition, indicating a competitive bidding process that likely secured favorable pricing.
The extended duration of the contract (over 6 years) provides stability and predictability for security operations at the U.S. Mission.
The clear definition of services (Security Guards and Patrol Services) and the specified North American Industry Classification System (NAICS) code (561612) suggest a well-defined scope of work.

Sector Analysis

The security and guard services industry is a significant sector within the broader professional services market. NAICS code 561612 specifically covers establishments primarily engaged in providing security guards and patrol services. This industry is characterized by a mix of large, established firms and smaller, specialized providers. Contracts for government facilities, especially those abroad, represent a substantial portion of the market, demanding high standards of reliability, vetting, and operational capability. The global nature of diplomatic missions means that such contracts often require international operational experience and adherence to diverse regulatory environments.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the primary awardee is KF&S CORP., there is no explicit information provided regarding subcontracting plans or goals for small businesses. The impact on the small business ecosystem would depend on whether KF&S CORP. actively seeks to subcontract portions of the work to small businesses, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Department of State, which awarded and will administer the agreement. The contract's performance will likely be monitored through regular progress reports, site inspections, and performance evaluations conducted by the contracting officer's representative (COR). Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged.

Related Government Programs

Department of State Diplomatic Security Service Contracts
Overseas Security Guard Services
Embassy and Consulate Security Contracts
Global Security Support Services
U.S. Mission Security Operations

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Ensuring consistent quality of security personnel over the contract duration.
Geopolitical risks and changing security environments in the region.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.3 million to KF&S CORP.. LOCAL GUARD SERVICES FOR U.S. MISSION KOREA

Who is the contractor on this award?

The obligated recipient is KF&S CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2020-06-01. End: 2026-01-31.

What is the track record of KF&S CORP. in providing similar security services to the U.S. government, particularly in overseas environments?

Information regarding KF&S CORP.'s specific track record for providing security services, especially in overseas environments similar to the U.S. Mission in Korea, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any documented issues or successes on similar government contracts. The fact that they were awarded this significant contract suggests they met the government's requirements during the competitive bidding process, but further due diligence on their specific experience and performance history would be prudent for a complete understanding of their capabilities and reliability.

How does the annual cost of this contract compare to other U.S. diplomatic security contracts in similar regions?

The annual cost for this contract is approximately $2.1 million ($14.3 million / 6.7 years). To benchmark this effectively, one would need to compare it against contracts for security guard and patrol services at other U.S. diplomatic missions in comparable geographic regions (e.g., East Asia, other high-threat environments). Factors such as the size of the facility, the threat level, local labor costs, and the specific scope of services (e.g., number of guards, hours of coverage, specialized equipment) significantly influence contract value. Without access to a database of comparable overseas security contracts, a precise comparison is difficult, but the figure appears to be within a plausible range for securing a diplomatic mission.

What are the primary risks associated with the Time and Materials (T&M) contract type for this security service, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for direct labor hours at specified rates and actual material costs, plus a fee. For security services, this could manifest as extended work hours, inefficient labor deployment, or increased material needs beyond initial estimates. Mitigation strategies employed by the Department of State would typically include establishing a ceiling price for the contract, requiring detailed timesheets and invoices, implementing robust oversight by a Contracting Officer's Representative (COR) to monitor labor hours and resource utilization, and defining clear performance standards and deliverables. The government must actively manage the T&M aspects to ensure value and prevent uncontrolled cost escalation.

What are the key performance indicators (KPIs) used to measure the effectiveness of the security services provided under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for security guard and patrol services contracts include response times to incidents, adherence to post orders and patrol routes, effectiveness in deterring unauthorized access, successful identification and reporting of security breaches or suspicious activities, and overall professionalism and conduct of security personnel. The contract likely specifies requirements for guard training, background checks, and uniform standards. Performance evaluations, often conducted quarterly or annually, would assess the contractor's adherence to these standards and KPIs, feeding into decisions about contract modifications, renewals, or potential termination for default.

How has the spending on security services for the U.S. Mission in Korea evolved over time, and does this contract represent an increase or decrease?

The provided data only details a single contract award from June 1, 2020, to January 31, 2026. It does not offer historical spending data for security services at the U.S. Mission in Korea prior to this period. To understand the evolution of spending, one would need to access historical contract databases (like FPDS) to identify previous contracts for similar services at this specific mission. This would allow for an analysis of whether the current $14.3 million award represents an increase, decrease, or stable level of investment compared to prior security arrangements, considering factors like inflation and changes in security requirements over time.

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: 19AQMM19R0167

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 39 SAESULMAK-GIL, GWACHEON

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,278,297

Exercised Options: $14,278,297

Current Obligation: $14,278,297

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline