State Department awards $36.8M contract for security services, highlighting a need for robust protection

Contract Overview

Contract Amount: $36,800,548 ($36.8M)

Contractor: Sicuritalia - Securitas Critical Infrastructure Services Inc JV

Awarding Agency: Department of State

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: US MISSION

Place of Performance

Location: WESTLAKE VILLAGE, LOS ANGELES County, CALIFORNIA, 91361

State: California Government Spending

Plain-Language Summary

Department of State obligated $36.8 million to SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV for work described as: US MISSION Key points: 1. Contract value represents a significant investment in safeguarding U.S. missions abroad. 2. Competition dynamics suggest a potentially competitive bidding process for these critical services. 3. Performance context is crucial given the sensitive nature of protecting diplomatic facilities. 4. Sector positioning places this contract within the broader security services industry supporting government operations. 5. Risk indicators may include geopolitical instability and the need for specialized security expertise.

Value Assessment

Rating: good

The contract value of $36.8 million over five years suggests a substantial commitment to security. Benchmarking against similar contracts for security services at U.S. diplomatic facilities is essential to fully assess value for money. The pricing structure, likely influenced by labor costs, equipment, and operational overhead in various global locations, needs careful examination. Without specific comparable contract data, it's challenging to definitively state if this represents excellent value, but the duration and scope imply a well-defined need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, encouraging providers to offer their best pricing and service offerings to secure the award. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final negotiated price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best value by allowing all qualified vendors to participate.

Public Impact

U.S. diplomatic missions and personnel abroad are the primary beneficiaries, ensuring their safety and security. The services delivered include security guard and patrol functions, vital for maintaining a secure environment. Geographic impact is global, covering various U.S. mission locations requiring security support. Workforce implications include the potential employment of security professionals, both domestically and potentially in host countries, depending on hiring practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational complexities in diverse locations are underestimated.
Ensuring consistent service quality and adherence to security protocols across all deployed locations.
Managing contractor performance and responsiveness in high-risk or remote environments.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting of potential providers.
The multi-year duration indicates a stable and predictable security requirement, allowing for long-term planning.
The contract specifies security guard and patrol services, aligning with core government security needs.

Sector Analysis

This contract falls within the security and protective services sector, a critical component of government operations, particularly for agencies with international presences like the Department of State. The market for these services is substantial, driven by government requirements for physical security, personnel protection, and facility monitoring. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded by federal agencies for similar protective services at embassies, consulates, and other sensitive sites.

Small Business Impact

The data indicates 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 provision. The prime contractor, a joint venture, suggests a potential collaboration between entities, but the focus remains on larger prime contractors for this scale of service. The impact on the small business ecosystem is indirect, primarily through the overall demand for security services that may create opportunities for smaller specialized firms as subcontractors to the prime, if permitted by the contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for security at diplomatic facilities. Accountability measures would be embedded within the contract's performance work statement, including service level agreements, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases, but detailed operational oversight specifics are typically internal to the agency. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of State Diplomatic Security Service
Federal Protective Service Contracts
Embassy Security Contracts
Global Security Services

Risk Flags

Geopolitical Risk
Operational Complexity
Personnel Safety
Compliance with Local Regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $36.8 million to SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV. US MISSION

Who is the contractor on this award?

The obligated recipient is SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.8 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

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

Analyzing historical spending for the Department of State's overseas missions reveals a consistent and significant investment in security services. Over the past decade, the department has awarded numerous contracts for guard services, physical security systems, and specialized protective details, often in the tens to hundreds of millions of dollars annually. Factors influencing this spending include the number of diplomatic posts, the geopolitical risk environment in various countries, and evolving security threats. For instance, major geopolitical events or security incidents at U.S. facilities often lead to increased scrutiny and investment in security measures. Benchmarking the current $36.8 million award against this historical context helps determine if it aligns with established spending levels or represents a notable increase or decrease, potentially indicating shifts in security posture or contracting strategies.

How does the awarded price per year compare to industry benchmarks for similar security services?

The awarded contract totals $36.8 million over five years, averaging approximately $7.36 million per year. To benchmark this against industry standards for security guard and patrol services, one would typically look at factors such as the number of personnel required, the hours of service, the level of security clearance needed, and the geographic location's cost of living and operational expenses. For instance, contracts for armed guards in high-threat environments or major metropolitan areas command higher rates than unarmed guards in lower-risk regions. Without specific details on the number of guards, posts covered, and operational tempo, a precise per-unit cost comparison is difficult. However, government contracts often include overhead and profit margins that need to be considered. If this average annual cost is significantly higher or lower than comparable government or commercial contracts for similar scope and risk, it would indicate potential overpricing or exceptional value.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

Key Performance Indicators (KPIs) for a contract of this nature, focused on security guard and patrol services for U.S. missions, are critical for ensuring mission safety and operational effectiveness. While the specific KPIs are detailed in the Performance Work Statement (PWS), common metrics would likely include response times to incidents, adherence to post orders, personnel reliability and attendance rates, successful completion of security patrols, incident reporting accuracy and timeliness, and compliance with all security protocols and regulations. The Department of State would likely track metrics related to the prevention of unauthorized access, the effectiveness of surveillance, and the overall security posture of the facilities. Performance evaluations would assess the contractor's ability to meet or exceed these KPIs, with potential financial incentives or penalties tied to performance outcomes.

What is the track record of SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV as a government contractor?

SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV is a joint venture formed by established entities in the security sector. Securitas is a well-known global provider of security services with extensive experience in government contracting, including security for federal facilities and diplomatic missions. SICURITALIA also has a significant presence in security operations. As a joint venture, their combined capabilities are leveraged to meet the demanding requirements of large-scale government contracts. Assessing their track record would involve reviewing past performance evaluations on similar federal contracts, any history of contract disputes or performance issues, and their demonstrated ability to manage complex security operations across diverse geographic locations. Their ability to secure this significant contract suggests a positive assessment of their capabilities and past performance by the Department of State.

What are the potential risks associated with providing security services in the diverse locations of U.S. missions?

Providing security services across diverse global locations for U.S. missions presents a range of significant risks. Geopolitical instability in host countries can escalate threats, requiring adaptable and robust security measures. Varying local laws, customs, and labor regulations necessitate careful navigation to ensure compliance and operational effectiveness. Logistical challenges, including transportation, communication, and supply chain management, can be complex, especially in remote or underdeveloped areas. Furthermore, cultural differences and language barriers can impact communication and coordination between security personnel and local authorities or populations. The risk of personnel safety for the contracted security guards themselves is also a primary concern, requiring comprehensive risk mitigation strategies, including threat assessments, emergency response planning, and appropriate protective equipment.

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: 19AQMM20R0247

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13900 LINCOLN PARK DR STE 370, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,320,922

Exercised Options: $36,800,548

Current Obligation: $36,800,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0048

IDV Type: IDC

Timeline