State Department Awards $564M Guard Services Contract to Inter-Con Security Systems

Contract Overview

Contract Amount: $563,941,550 ($563.9M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $309.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GUARD SERVICES FOR DOS PHYSICAL FACILITIES CONUS AND OCONUS.

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91105

State: California Government Spending

Plain-Language Summary

Department of State obligated $563.9 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: GUARD SERVICES FOR DOS PHYSICAL FACILITIES CONUS AND OCONUS. Key points: 1. The contract value is substantial at $564 million, indicating significant demand for security services. 2. Inter-Con Security Systems, Inc. is the incumbent contractor, suggesting potential for established performance but also a need to ensure continued competitiveness. 3. The contract is for a long duration (5 years), which could lead to price escalations if not managed carefully. 4. The primary sector is security services, a critical area for government operations.

Value Assessment

Rating: good

The contract is a Time and Materials type, which can be less predictable in final cost compared to fixed-price contracts. The award amount of $564M over 5 years suggests a significant but potentially variable cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is ideal for price discovery and ensuring the government receives competitive pricing. The use of a definitive contract indicates a clear scope and expectation of services.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive bidding environment.

Public Impact

Ensures physical security for Department of State facilities, protecting personnel and assets. Supports national security interests by maintaining safe diplomatic and operational environments. Provides employment opportunities within the security services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (5 years) may lead to cost creep.
  • Time and Materials contract type can lead to cost overruns if not closely monitored.

Positive Signals

  • Awarded under full and open competition.
  • Incumbent contractor may offer efficiencies.

Sector Analysis

The security services sector is vital for government operations, particularly for agencies like the State Department. Benchmarks for similar guard services contracts vary widely based on scope, location, and service level, but a $564M award over five years suggests a large-scale, comprehensive security solution.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). There is no specific information provided on subcontracting opportunities for small businesses within this contract.

Oversight & Accountability

The Department of State is the contracting and administrative agency, implying direct oversight. The use of a definitive contract with a set end date suggests clear accountability for service delivery and performance.

Related Government Programs

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

Risk Flags

  • Potential for cost overruns due to Time and Materials contract type.
  • Long contract duration may reduce flexibility and increase risk of price escalation.
  • Lack of specific small business participation noted.
  • Performance metrics and oversight details are not provided in the summary data.

Tags

security-guards-and-patrol-services, department-of-state, ca, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $563.9 million to INTER-CON SECURITY SYSTEMS, INC.. GUARD SERVICES FOR DOS PHYSICAL FACILITIES CONUS AND OCONUS.

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 $563.9 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is the estimated hourly rate or cost per guard, and how does it compare to industry benchmarks?

The provided data does not specify per-unit costs or hourly rates. To assess value, a detailed analysis of the Time and Materials rates against industry benchmarks for similar security guard services in CONUS and OCONUS locations would be necessary. This would involve examining labor rates, overhead, and profit margins to determine if they are competitive.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured and enforced?

The data does not detail the specific KPIs or performance metrics. Effective oversight would require clearly defined metrics related to response times, incident reporting accuracy, personnel qualifications, and facility access control. Regular performance reviews and adherence to contract terms are crucial for ensuring service effectiveness and mitigating risks.

What is the process for managing scope changes and preventing scope creep, given the Time and Materials contract type?

Managing scope creep in a Time and Materials contract requires robust change control procedures. The Department of State must have a system in place for reviewing and approving any changes to the scope of work, ensuring that all modifications are justified, documented, and priced appropriately. Regular audits and communication with the contractor are essential.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM20R0129

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE, 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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $564,594,967

Exercised Options: $564,594,967

Current Obligation: $563,941,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-11-01

Current End Date: 2026-10-31

Potential End Date: 2026-10-31 00:00:00

Last Modified: 2026-02-12

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