State Dept. Awards $3.6M Contract for Embassy Guard Services in Eswatini
Contract Overview
Contract Amount: $3,657,781 ($3.7M)
Contractor: MAX Enterprise (PTY) Ltd
Awarding Agency: Department of State
Start Date: 2022-03-01
End Date: 2026-10-31
Contract Duration: 1,705 days
Daily Burn Rate: $2.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LOCAL GUARD SERVICES U.S. EMBASSY MBABANE ESWATINI
Plain-Language Summary
Department of State obligated $3.7 million to MAX ENTERPRISE (PTY) LTD for work described as: LOCAL GUARD SERVICES U.S. EMBASSY MBABANE ESWATINI Key points: 1. Contract awarded to MAX ENTERPRISE (PTY) LTD for security services. 2. Full and open competition was utilized for this procurement. 3. The contract spans over 4 years, indicating a long-term need. 4. The service category is Security Guards and Patrol Services.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed closely. The awarded amount of $3.6M over 1705 days suggests a daily rate of approximately $2,145, which needs further benchmarking against similar international security contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the Time and Materials pricing structure may limit the effectiveness of competitive bidding in controlling the final cost.
Taxpayer Impact: Taxpayers are exposed to potential cost increases due to the T&M nature of the contract, although the competitive process aims to mitigate this.
Public Impact
Ensures security for the U.S. Embassy in Eswatini, a critical diplomatic function. Supports local employment in Eswatini through the contracted service provider. The contract's duration suggests a stable, ongoing requirement for security presence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited visibility into specific guard performance metrics.
- Geopolitical risks in Eswatini could impact service delivery.
Positive Signals
- Full and open competition utilized.
- Contract supports U.S. diplomatic presence abroad.
- Long-term contract provides stability.
Sector Analysis
This contract falls under general government services, specifically security. Benchmarking security guard services can be complex due to varying labor costs, threat levels, and service requirements across different global locations.
Small Business Impact
The contract was awarded to MAX ENTERPRISE (PTY) LTD, a foreign entity, and there is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The Department of State is responsible for oversight. The Time and Materials contract type necessitates diligent monitoring of hours and materials to ensure cost-effectiveness and prevent waste.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Time and Materials pricing structure.
- Potential for cost overruns.
- Lack of specific performance metrics.
- Geopolitical instability in the region.
- Contractor is a foreign entity.
Tags
security-guards-and-patrol-services, department-of-state, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $3.7 million to MAX ENTERPRISE (PTY) LTD. LOCAL GUARD SERVICES U.S. EMBASSY MBABANE ESWATINI
Who is the contractor on this award?
The obligated recipient is MAX ENTERPRISE (PTY) LTD.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $3.7 million.
What is the period of performance?
Start: 2022-03-01. End: 2026-10-31.
What is the benchmark cost for similar embassy guard services in comparable regions?
Benchmarking embassy guard services requires detailed analysis of threat levels, required personnel, hours of operation, and specific security equipment. Without access to classified threat assessments or detailed service level agreements for other embassies, a precise benchmark is difficult. However, daily rates for security personnel in high-risk or remote locations can range significantly, often exceeding $1,000-$2,000 per day when factoring in management, equipment, and overhead.
What are the specific risks associated with a Time and Materials contract for security services in Eswatini?
The primary risk of a T&M contract for security in Eswatini is the potential for inflated costs if labor hours or material usage are not rigorously tracked and justified. Scope creep, where additional services are performed without formal modification, can also increase costs. Furthermore, the effectiveness of the guards themselves might be compromised if the focus shifts from quality service delivery to maximizing billable hours.
How effectively does this contract ensure the physical security of the U.S. Embassy in Eswatini?
The effectiveness hinges on the quality of MAX ENTERPRISE (PTY) LTD's personnel, their training, adherence to protocols, and the oversight provided by the Department of State. While the contract provides the necessary resources, the actual security posture depends on the contractor's performance and the government's ability to monitor and enforce service level agreements, especially given the T&M structure.
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
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: LOT 321 MBABANE TOWNSHIP, MBABANE
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Sole Proprietorship, Special Designations
Financial Breakdown
Contract Ceiling: $7,226,965
Exercised Options: $5,656,724
Current Obligation: $3,657,781
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-03-01
Current End Date: 2026-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2026-04-13
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