State Department Awards $14.38M Contract for Embassy Security Guard Services to NVE, Inc

Contract Overview

Contract Amount: $14,377,884 ($14.4M)

Contractor: NVE, Inc

Awarding Agency: Department of State

Start Date: 2022-02-28

End Date: 2026-01-31

Contract Duration: 1,433 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CONSTRUCTION GUARD FOR EMBASSIES ETC.

Plain-Language Summary

Department of State obligated $14.4 million to NVE, INC for work described as: CONSTRUCTION GUARD FOR EMBASSIES ETC. Key points: 1. Contract awarded to NVE, Inc. for security guard services. 2. The contract has a duration of 1433 days, ending January 31, 2026. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The primary service is security guards and patrol services, classified under NAICS 561612.

Value Assessment

Rating: fair

The contract's value of $14.38 million over approximately four years suggests a moderate annual spend. Benchmarking against similar government contracts for security services is necessary to determine if the pricing is competitive, considering the specific requirements and geographic locations of the embassies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and fosters price discovery. This method aims to secure the best value for the government by encouraging multiple companies to submit proposals.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the essential security services provided to diplomatic facilities.

Public Impact

Ensures the physical security and safety of U.S. embassies and diplomatic personnel abroad. Supports the critical mission of the Department of State in maintaining international relations. Provides employment opportunities within the security services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data.
Potential for cost overruns if labor hour pricing is not carefully managed.
Geopolitical risks associated with embassy security could impact service delivery.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Clear contract duration and defined service scope.
Essential service supporting national security interests.

Sector Analysis

The security services sector, particularly for government contracts, is highly competitive. Benchmarks for similar contracts often vary based on location, security levels required, and the specific services offered. This contract falls within the broader professional, scientific, and technical services category.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Oversight by the Department of State is crucial to ensure NVE, Inc. meets all contractual obligations and security standards. Regular performance reviews and audits are standard practice for such contracts to maintain accountability.

Related Government Programs

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

Risk Flags

Potential for scope creep or unmanaged changes impacting cost.
Dependence on a single contractor for critical security functions.
Geopolitical instability in regions where embassies are located.
Adequacy of background checks and vetting for security personnel.
Ensuring consistent service quality across multiple, potentially remote, locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.4 million to NVE, INC. CONSTRUCTION GUARD FOR EMBASSIES ETC.

Who is the contractor on this award?

The obligated recipient is NVE, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2022-02-28. End: 2026-01-31.

What is the average hourly rate being paid under this contract, and how does it compare to industry benchmarks for similar security services in the specified regions?

The provided data does not specify the average hourly rate. To assess value, this information would need to be obtained and compared against prevailing market rates for security guards with comparable qualifications and responsibilities in the geographic areas where the embassies are located. Differences could indicate overpayment or exceptional service quality.

What are the specific security threats and risk mitigation strategies associated with these embassy locations that justify the contract's scope and value?

The specific threats and risk mitigation strategies are not detailed in the provided data. Embassy security is inherently high-risk due to geopolitical factors, terrorism, and espionage. The contract's value likely reflects the need for robust, 24/7 security presence, advanced surveillance, access control, and potentially specialized security personnel trained to handle diverse threats.

How will the effectiveness of NVE, Inc.'s security services be measured and evaluated throughout the contract period to ensure optimal protection?

The effectiveness measurement and evaluation process is not detailed. Typically, government contracts include Key Performance Indicators (KPIs) related to response times, incident reporting accuracy, personnel adherence to post orders, and successful prevention of security breaches. Regular performance reviews and client feedback from the Department of State are essential for ongoing evaluation.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12700 SUNRISE VALLEY DR STE 450, RESTON, VA, 20191

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,377,884

Exercised Options: $14,377,884

Current Obligation: $14,377,884

Actual Outlays: $4,379,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0128

IDV Type: IDC

Timeline