State Department awards $31.4M contract for global canine services, raising questions on competition and value

Contract Overview

Contract Amount: $31,450,410 ($31.5M)

Contractor: Michael Stapleton Associates, Ltd.

Awarding Agency: Department of State

Start Date: 2022-03-30

End Date: 2023-03-29

Contract Duration: 364 days

Daily Burn Rate: $86.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GLOBAL CANINE SERVICES - BRIDGE CONTRACT WORLDWIDE PROTECTIVE SERVICES BUREAU OF DIPLOMATIC SECURITY US DEPARTMENT OF STATE

Place of Performance

Location: WINCHESTER, FREDERICK County, VIRGINIA, 22602

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $31.5 million to MICHAEL STAPLETON ASSOCIATES, LTD. for work described as: GLOBAL CANINE SERVICES - BRIDGE CONTRACT WORLDWIDE PROTECTIVE SERVICES BUREAU OF DIPLOMATIC SECURITY US DEPARTMENT OF STATE Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract's duration and value suggest a significant need for specialized security services. 3. Performance is rated 'good', indicating satisfactory service delivery but room for improvement. 4. The use of Time and Materials pricing introduces potential for cost overruns if not managed closely. 5. This contract falls under 'Other Scientific and Technical Consulting Services', a broad category. 6. The primary contractor has a history of performing similar services for the government.

Value Assessment

Rating: good

The contract's value of $31.4 million over one year appears substantial for specialized canine security services. Benchmarking against similar contracts is challenging due to the unique nature of global protective services. However, the 'good' performance rating suggests the contractor is meeting expectations. The Time and Materials pricing structure, while flexible, warrants close monitoring to ensure cost-effectiveness and prevent scope creep. Without competitive bidding, it's difficult to definitively assess if this represents the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. While this ensures specialized expertise, it bypasses the price discovery benefits that open competition provides, potentially leading to higher costs for taxpayers.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the lowest possible price, potentially resulting in less efficient use of taxpayer funds.

Public Impact

The primary beneficiaries are the personnel and facilities protected by the specialized canine security services, ensuring a safer operating environment for diplomatic missions. Services delivered include the provision of highly trained canines and handlers for security and detection purposes. The geographic impact is global, supporting the Department of State's worldwide protective services. Workforce implications include the employment of specialized handlers and trainers, as well as the support staff for canine operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Time and Materials contract type can lead to cost overruns if not strictly managed.
Reliance on a single contractor for critical security services poses a risk if performance degrades or issues arise.

Positive Signals

Contractor has a demonstrated track record in providing similar services.
Performance rating of 'good' indicates satisfactory service delivery.
The contract addresses a critical security need for the Department of State.

Sector Analysis

This contract falls within the broader 'Other Scientific and Technical Consulting Services' sector, specifically addressing specialized security and protective services. The market for such niche services, particularly those involving highly trained canines and handlers for government agencies operating in sensitive environments, is relatively small and specialized. Comparable spending benchmarks are difficult to establish due to the unique nature of the services and the global operational scope. The Department of State's reliance on such contracts highlights the critical role of private security firms in supporting diplomatic and security operations.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The sole-source nature of the award further limits opportunities for small business participation. This suggests that the specialized nature of global canine protective services is currently met by larger, established firms, potentially overlooking opportunities to foster growth within the small business ecosystem for these niche services.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of State's Bureau of Diplomatic Security. Accountability measures would include performance reviews, adherence to contract terms, and reporting requirements. Transparency is facilitated through contract databases, though the sole-source nature limits public insight into the justification for the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of State Protective Services
Global Security Contracts
Canine Security Services
Federal Law Enforcement Support Services

Risk Flags

Sole-source award
Time and Materials pricing
Critical security service

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $31.5 million to MICHAEL STAPLETON ASSOCIATES, LTD.. GLOBAL CANINE SERVICES - BRIDGE CONTRACT WORLDWIDE PROTECTIVE SERVICES BUREAU OF DIPLOMATIC SECURITY US DEPARTMENT OF STATE

Who is the contractor on this award?

The obligated recipient is MICHAEL STAPLETON ASSOCIATES, LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2022-03-30. End: 2023-03-29.

What is the contractor's track record with the Department of State and other federal agencies for similar canine security services?

Michael Stapleton Associates, Ltd. has a history of performing services related to security and protective operations for various government entities. While specific details on past canine service contracts with the Department of State are not fully elaborated in the provided data, the 'good' performance rating on this current contract suggests a level of competence and reliability. Further investigation into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their suitability and experience in delivering specialized canine security solutions across different agencies and operational environments.

How does the pricing of this $31.4 million contract compare to similar sole-source canine security contracts awarded by other federal agencies?

Directly comparing the pricing of this $31.4 million contract to similar sole-source canine security contracts is challenging due to the highly specialized and often unique nature of these services, as well as the global operational scope. Sole-source awards inherently lack the price discovery mechanism of competitive bidding, making external benchmarking difficult. To assess value, one would need to analyze the specific deliverables, the required expertise of personnel and canines, the geographic locations of service, and the duration of the contract. Without access to detailed pricing breakdowns and comparable contract data, it is difficult to definitively state whether this contract represents optimal value for taxpayer dollars, though the 'good' performance rating suggests the services are being delivered satisfactorily.

What are the primary risks associated with awarding a sole-source contract for critical global protective services, and how are they mitigated?

The primary risks of a sole-source award for critical global protective services include potential overpayment due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a dependency on a single provider which can be problematic if performance falters or the contractor faces unforeseen issues. Mitigation strategies typically involve rigorous negotiation of contract terms, including pricing and performance metrics, establishing clear deliverables and key performance indicators (KPIs), and implementing robust oversight mechanisms. The Department of State likely employs contract specialists to negotiate favorable terms and has established procedures for monitoring contractor performance and addressing any deficiencies promptly to ensure continuity of essential security operations.

How effective has the Bureau of Diplomatic Security been in managing and overseeing this specific global canine services contract to ensure optimal performance and value?

The effectiveness of the Bureau of Diplomatic Security's management and oversight of this contract is indicated by the 'good' performance rating. This suggests that the contractor is meeting the required standards and delivering the contracted services satisfactorily. However, 'good' implies there is room for improvement. Effective oversight would involve regular performance reviews, site visits (where feasible), prompt resolution of any issues or discrepancies, and ensuring adherence to the contract's terms and conditions, particularly regarding the Time and Materials pricing. A deeper analysis would require examining specific oversight reports, performance metrics, and any documented instances of corrective actions or commendations.

What is the historical spending trend for global canine security services by the Department of State, and how does this $31.4 million contract fit within that trend?

Historical spending data for global canine security services by the Department of State is not explicitly provided in the current dataset. However, the award of a $31.4 million contract for a one-year period suggests a significant and ongoing requirement for these specialized services. This amount indicates a substantial investment, potentially reflecting an increase in security needs or a consolidation of previously fragmented services. To understand the trend, one would need to examine prior years' spending on similar contracts, including the number of contracts, their values, and the contractors involved. This would help determine if this represents a typical expenditure, an increase, or a decrease in federal investment in this area.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM21R0301

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 9 MURRAY ST 2ND FLR, NEW YORK, NY, 10007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,011,458

Exercised Options: $35,011,458

Current Obligation: $31,450,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline