State Department awards $8.8M contract for security services to CGS-OPCL SECURITY LLC

Contract Overview

Contract Amount: $8,847,386 ($8.8M)

Contractor: Cgs-Opcl Security LLC

Awarding Agency: Department of State

Start Date: 2020-11-24

End Date: 2026-08-31

Contract Duration: 2,106 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD SERVICES NEW ZEALAND

Plain-Language Summary

Department of State obligated $8.8 million to CGS-OPCL SECURITY LLC for work described as: LOCAL GUARD SERVICES NEW ZEALAND Key points: 1. The contract value of $8.8 million over its period of performance represents a significant investment in security services. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and contractor selection. 3. Risk indicators are evaluated based on contract type, performance history, and potential for cost overruns. 4. Performance context is established by comparing this award to similar security service contracts. 5. The sector positioning of this contract is within the broader security services industry, a critical area for government operations.

Value Assessment

Rating: fair

The contract value of $8.8 million for security guard services over approximately 6 years (2106 days) averages to roughly $4,187 per day. Without specific details on the number of guards, hours, or locations covered, a direct value-for-money assessment is challenging. However, comparing this to industry benchmarks for similar services would be necessary to determine if the pricing is competitive. The 'TIME AND MATERIALS' contract type introduces a risk of cost escalation if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit offers. The presence of 2 bids suggests a moderate level of competition. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially better value for the government.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

This contract directly benefits the Department of State by ensuring the security of its facilities and personnel. The services delivered include security guards and patrol services, crucial for maintaining a safe environment. The geographic impact is likely concentrated around the facilities managed by the Department of State, both domestically and potentially abroad. Workforce implications include the creation of jobs for security personnel employed by CGS-OPCL SECURITY LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'TIME AND MATERIALS' contract type can lead to cost overruns if not managed diligently.
Limited competition (2 bidders) may not have resulted in the most cost-effective pricing.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality.

Positive Signals

Awarded through 'FULL AND OPEN COMPETITION,' suggesting a fair and accessible bidding process.
The contract has a defined period of performance, allowing for periodic re-evaluation of needs and competition.
The contractor, CGS-OPCL SECURITY LLC, was selected through a competitive process.

Sector Analysis

The security services industry is a vital component of the broader professional, scientific, and technical services sector. This contract falls under the Security Guards and Patrol Services sub-sector (NAICS 561612). Government spending in this area is consistently high due to the need for protection of federal assets and personnel. Comparable spending benchmarks would involve analyzing other federal contracts for similar security guard services across various agencies and geographic locations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, CGS-OPCL SECURITY LLC, is likely a large business given the contract value, and its subcontracting practices would need further investigation to understand its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of State. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Contracts
Department of State Security Operations
Uniformed Protective Services
Guard Services Contracts

Risk Flags

Potential for cost overruns due to TIME AND MATERIALS contract type.
Limited competition (2 bidders) may impact price discovery.
Lack of detailed performance metrics in provided data.
Long contract duration increases risk of market rate fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.8 million to CGS-OPCL SECURITY LLC. LOCAL GUARD SERVICES NEW ZEALAND

Who is the contractor on this award?

The obligated recipient is CGS-OPCL 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 $8.8 million.

What is the period of performance?

Start: 2020-11-24. End: 2026-08-31.

What is the historical spending pattern for security guard services by the Department of State?

Analyzing historical spending patterns for security guard services by the Department of State is crucial for understanding trends, identifying potential cost efficiencies, and setting realistic budget expectations. Without access to specific historical data for this agency, a general observation can be made that federal agencies, particularly those with significant overseas operations or sensitive domestic facilities like the State Department, consistently allocate substantial funds to security. This spending is often influenced by geopolitical events, threat assessments, and evolving security requirements. Benchmarking current contract values against past awards for similar services can reveal whether costs are rising, falling, or remaining stable. It also helps in identifying if the agency is consolidating contracts or diversifying its vendor base. A detailed analysis would involve examining contract databases for awards made over the last 5-10 years, categorizing them by service type and value, and looking for patterns in award types (e.g., sole-source vs. competitive) and contractor performance.

How does the per-unit cost of this contract compare to similar security contracts awarded by other federal agencies?

A direct comparison of the per-unit cost for this $8.8 million contract with CGS-OPCL SECURITY LLC to similar security contracts awarded by other federal agencies is challenging without more granular data. The provided information lacks details on the specific services rendered, such as the number of guards, hours of service, geographic locations, and required skill levels. However, a preliminary assessment can be made by considering the contract duration (2106 days) and total value ($8,847,385.87), yielding an average annual cost of approximately $4.2 million. If this contract primarily involves standard security guard services, this annual figure can be benchmarked against other agency contracts for comparable services. Factors like prevailing wage rates in the service area, the level of security clearance required, and the specific risks associated with the protected sites significantly influence per-unit costs. A comprehensive comparison would necessitate accessing detailed contract line item data from multiple agencies and normalizing for these influencing variables.

What is the track record of CGS-OPCL SECURITY LLC in performing federal contracts, particularly for the Department of State?

Evaluating the track record of CGS-OPCL SECURITY LLC is essential for assessing the reliability and performance risk associated with this $8.8 million contract. As a federal contractor, CGS-OPCL SECURITY LLC's past performance is typically documented in federal procurement databases, which often include past performance evaluations and any history of contract disputes, terminations, or awards for excellence. For this specific contract, the fact that it was awarded under full and open competition suggests that the agency reviewed the contractor's qualifications and past performance. However, the limited number of bidders (2) might indicate that fewer contractors were either interested or qualified. A deeper dive into the contractor's history would involve searching databases for previous awards, their values, durations, and the agencies they served. Examining any publicly available performance reviews or debriefings from prior contracts can provide insights into their ability to meet requirements, manage costs, and deliver services effectively. Without this specific historical data, it's difficult to definitively assess their track record.

What are the potential risks associated with the 'TIME AND MATERIALS' contract type for this security services award?

The 'TIME AND MATERIALS' (T&M) contract type, used for this $8.8 million security services award, presents inherent risks primarily related to cost control and potential overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure places a greater burden on the government to closely monitor contractor effort and expenditures to ensure efficiency and prevent waste. Key risks include: 1) Lack of contractor incentive for efficiency: Since the contractor is reimbursed for time and materials, there's less financial incentive to complete tasks quickly or find cost-saving measures. 2) Potential for scope creep: Without strict oversight, the scope of work can expand, leading to increased costs. 3) Difficulty in estimating final cost: The final cost is not known upfront, making budgeting and financial planning more challenging for the agency. To mitigate these risks, the Department of State must implement robust oversight mechanisms, including detailed timesheet reviews, regular progress reports, and clear definitions of billable hours and material costs.

How does the duration of this contract (2106 days) impact the overall value and risk for the Department of State?

The duration of this contract, approximately 2106 days (or about 5.77 years), has significant implications for both the overall value and risk for the Department of State. A longer contract duration can offer stability and predictability for essential services like security, potentially reducing the administrative burden and costs associated with frequent re-competition. It allows the contractor, CGS-OPCL SECURITY LLC, to invest in personnel and resources, potentially leading to improved service quality and a stronger working relationship. However, a longer duration also increases the risk of cost escalation due to inflation, changes in market rates for labor and materials, and unforeseen operational challenges. Furthermore, it ties the agency to a specific contractor and service model for an extended period, potentially limiting its ability to adapt to evolving security needs or take advantage of newer, more cost-effective technologies or approaches that may emerge during the contract term. Effective management and contingency planning are crucial to mitigate these risks over the contract's lifespan.

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: 19AQMM20R0205

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7389 LEE HWY STE 207, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,858,329

Exercised Options: $11,858,329

Current Obligation: $8,847,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline