State Department awards $7.2M task order for security services in Naples, Italy

Contract Overview

Contract Amount: $7,249,865 ($7.2M)

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: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD- TASK ORDER NAPLES, ITALY

Plain-Language Summary

Department of State obligated $7.2 million to SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV for work described as: LOCAL GUARD- TASK ORDER NAPLES, ITALY Key points: 1. Contract awarded to a joint venture, suggesting a need for specialized capabilities or capacity. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of 5 years indicates a long-term need for these security services. 4. The award was made under full and open competition, implying a robust bidding process. 5. The North American Industry Classification System (NAICS) code 561612 points to security guard and patrol services.

Value Assessment

Rating: fair

The contract's value of $7.2 million over five years averages to approximately $1.45 million annually. Without specific benchmarks for security services in Naples, it's difficult to definitively assess value for money. However, the Time and Materials pricing structure requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial expectations. Comparison to similar contracts for security services at U.S. diplomatic facilities would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. This competitive process is generally expected to yield fair market pricing and encourage efficiency from the winning contractor. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it typically drives down costs through competitive bidding and encourages contractors to offer their best pricing and performance.

Public Impact

U.S. diplomatic personnel and facilities in Naples, Italy, will benefit from enhanced security. The services provided include security guards and patrol, contributing to the safety of the mission. The geographic impact is localized to Naples, Italy, supporting the U.S. Embassy or Consulate operations there. The contract supports jobs within the security services sector, potentially for local hires or U.S. personnel stationed abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics or KPIs in the provided data makes assessing effectiveness challenging.
The joint venture structure could introduce complexities in management and accountability.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Long-term contract duration (5 years) indicates a stable and ongoing need for critical services.
The contract supports a vital government function: diplomatic security.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the security guards and patrol services sub-sector. The global market for security services is substantial, driven by increasing security concerns for government facilities, private businesses, and critical infrastructure. Benchmarking this contract's value would require comparing it against similar security contracts awarded by the Department of State or other federal agencies for overseas posts, considering factors like location, scope of services, and contract type.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct recipients of this prime contract. However, the joint venture structure might involve small businesses as partners or subcontractors, though this is not specified. The primary impact on the small business ecosystem would be the lack of direct opportunity for small businesses to compete for this specific task order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers responsible for diplomatic security in Naples. The contract's Time and Materials nature necessitates rigorous oversight to track labor hours and material costs, ensuring they align with the agreed-upon rates and are reasonable. Transparency is generally maintained through contract reporting mechanisms, and while specific Inspector General (IG) jurisdiction for this particular task order isn't detailed, the Department of State's Office of Inspector General would have oversight authority over the agency's contracting activities.

Related Government Programs

Department of State Diplomatic Security Service Contracts
Overseas Security Contracts
Guard Services Contracts
Task Orders under Larger Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Time and Materials contract type requires close monitoring to prevent cost overruns.
Lack of specific performance metrics in the provided data makes objective assessment difficult.
Joint venture structure may introduce complexities in accountability and management.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $7.2 million to SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV. LOCAL GUARD- TASK ORDER NAPLES, ITALY

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 $7.2 million.

What is the period of performance?

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

What is the track record of SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV with the Department of State or other federal agencies?

Information regarding the specific track record of the joint venture 'SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV' with the Department of State or other federal agencies is not directly available in the provided data. To assess their track record, one would typically review past performance evaluations, contract history databases (like SAM.gov or FPDS), and any reported disputes or awards. A joint venture's performance is also influenced by the individual track records of its constituent companies, SICURITALIA and SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC. Researching these entities separately would be necessary to gain a fuller understanding of their experience and reliability in fulfilling similar government contracts, particularly those involving security services at overseas diplomatic missions.

How does the average annual cost of $1.45 million compare to similar security contracts at U.S. diplomatic facilities?

Benchmarking the average annual cost of $1.45 million for security services in Naples against similar contracts at U.S. diplomatic facilities requires access to a broader dataset of federal contracts. Factors such as the specific location (cost of living, threat level), the size and complexity of the facility, the scope of services (e.g., number of guards, types of technology), and the prevailing market rates for security personnel in that region significantly influence pricing. Without comparative data on contracts for facilities of similar size and risk profile in comparable overseas locations, it is challenging to definitively state whether this contract represents excellent, fair, or questionable value. A detailed analysis would involve comparing guard-to-facility ratios, hourly rates, and overhead costs across multiple contracts.

What are the primary risks associated with a Time and Materials (T&M) contract for security services?

The primary risk associated with a Time and Materials (T&M) contract for security services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials used, plus a fee. If the scope of work is not well-defined, or if project management and oversight are insufficient, the contractor may incur higher labor hours or use more materials than anticipated, leading to costs exceeding the government's budget. For security services, this could manifest as extended patrol times, unnecessary material usage, or inefficient deployment of personnel. Effective risk mitigation requires robust government oversight, detailed tracking of hours and materials, and clear definitions of what constitutes 'necessary' or 'reasonable' costs.

What is the significance of the contract being a 'Delivery Order' rather than a standalone contract?

The designation 'DELIVERY ORDER' indicates that this contract is likely a task order issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a Basic Ordering Agreement (BOA). IDIQs and BOAs establish terms and conditions, pricing structures, and sometimes maximum order limitations, allowing agencies to procure goods or services incrementally as needed. A delivery order then specifies the exact quantity, delivery schedule, and total price for a particular requirement. This approach offers flexibility for the agency, allowing them to respond to evolving needs without conducting a full competitive procurement for each individual requirement. It also implies that the initial award (the IDIQ or BOA) likely underwent a competitive process.

How does the 5-year duration impact the overall value and risk assessment?

The 5-year duration (1825 days) for this security services task order suggests a stable, long-term requirement for these services at the Naples facility. From a value perspective, a longer duration can sometimes lead to better pricing if the contractor can achieve economies of scale or secure long-term resource commitments. However, it also extends the period during which costs can escalate, particularly with a Time and Materials contract. From a risk perspective, a longer duration increases the exposure to potential changes in threat environments, geopolitical situations, or U.S. government policy, which might necessitate adjustments to the security plan or contract terms. It also means that any inefficiencies or performance issues by the contractor will persist for a longer period, requiring sustained oversight.

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: $10,303,061

Exercised Options: $7,249,865

Current Obligation: $7,249,865

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