State Department Awards $5.8M Contract for Embassy Security Guards in Ljubljana
Contract Overview
Contract Amount: $5,845,843 ($5.8M)
Contractor: G4S, Dru?ba ZA Varovanje D.O.O.
Awarding Agency: Department of State
Start Date: 2023-06-01
End Date: 2026-05-31
Contract Duration: 1,095 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LOCAL GUARD SERVICES_U.S. EMBASSY LJUBLJANA
Plain-Language Summary
Department of State obligated $5.8 million to G4S, DRU?BA ZA VAROVANJE D.O.O. for work described as: LOCAL GUARD SERVICES_U.S. EMBASSY LJUBLJANA Key points: 1. Contract awarded to G4S and DRU?BA ZA VAROVANJE D.O.O. for security services. 2. The contract spans three years, from June 2023 to May 2026. 3. This is a definitive contract type, indicating a clear scope of work. 4. The service falls under the Security Guards and Patrol Services NAICS code.
Value Assessment
Rating: good
The contract value of $5.84 million over three years appears reasonable for embassy security services. Benchmarking against similar contracts for diplomatic facilities would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for essential security services.
Public Impact
Ensures the safety and security of U.S. personnel and facilities at the Embassy in Ljubljana. Supports diplomatic operations by providing a stable and secure environment. Contributes to the local economy through service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Time and Materials contract type if not closely monitored.
- Reliance on specific vendors may pose continuity risks if service quality degrades.
Positive Signals
- Full and open competition promotes fair pricing.
- Long-term contract provides stability for security operations.
- Clear service period ensures predictable resource allocation.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically security services. Spending in this area is critical for government operations abroad, with benchmarks varying significantly based on location and security requirements.
Small Business Impact
The 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
The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for federal contracts, including performance reviews and financial audits, should be in place to ensure compliance and value.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Time and Materials contract type can lead to cost overruns if not managed tightly.
- Potential for vendor lock-in or service degradation over the contract term.
- Lack of specific performance metrics in the provided data.
- No clear indication of small business participation.
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 $5.8 million to G4S, DRU?BA ZA VAROVANJE D.O.O.. LOCAL GUARD SERVICES_U.S. EMBASSY LJUBLJANA
Who is the contractor on this award?
The obligated recipient is G4S, DRU?BA ZA VAROVANJE D.O.O..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $5.8 million.
What is the period of performance?
Start: 2023-06-01. End: 2026-05-31.
What is the average cost per guard per hour under this contract, and how does it compare to industry benchmarks for similar locations?
The provided data does not detail the number of guards or hours worked, making a per-unit cost calculation impossible. To assess value, a breakdown of guard hours, rates, and any associated overhead or profit margins would be necessary. Comparing these to established benchmarks for security services in European capitals would reveal if the pricing is competitive.
What are the specific performance metrics and service level agreements (SLAs) included in the contract to mitigate risks associated with a Time and Materials award?
The contract details do not specify the performance metrics or SLAs. For a Time and Materials contract, robust SLAs are crucial to control costs and ensure quality. These should include response times, post orders adherence, incident reporting protocols, and regular performance evaluations to hold contractors accountable and prevent scope creep or unnecessary expenditures.
How effectively does the chosen competition method (full and open) ensure optimal value and service quality for embassy security compared to other potential contracting approaches?
Full and open competition is generally the most effective method for achieving value and quality by maximizing the pool of potential bidders, fostering price competition, and encouraging innovation. For essential services like embassy security, this approach helps ensure that the most capable and cost-effective providers are selected, reducing the risk of substandard service or inflated costs that might arise from limited or sole-source contracts.
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: 19AQMM22R0028
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Allied Security Holdings LLC
Address: STEGNE 21, LJUBLJANA
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $11,142,201
Exercised Options: $11,106,286
Current Obligation: $5,845,843
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-01
Current End Date: 2026-05-31
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2026-04-13
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