State Department Awards $4.57M Contract for Embassy Security Guards in Paramaribo

Contract Overview

Contract Amount: $4,571,434 ($4.6M)

Contractor: Security Alliance LLC

Awarding Agency: Department of State

Start Date: 2023-08-01

End Date: 2026-10-31

Contract Duration: 1,187 days

Daily Burn Rate: $3.9K/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 PARAMARIBO

Plain-Language Summary

Department of State obligated $4.6 million to SECURITY ALLIANCE LLC for work described as: LOCAL GUARD SERVICES_U.S. EMBASSY PARAMARIBO Key points: 1. Contract awarded to Security Alliance LLC for local guard services. 2. The contract spans over three years, from August 2023 to October 2026. 3. Full and open competition was utilized for this procurement. 4. The total value is $4.57 million, covering security guard and patrol services. 5. This contract falls under the 'Other' sector due to its specific nature.

Value Assessment

Rating: good

The contract value of $4.57M over approximately 3 years appears reasonable for embassy security services in Paramaribo. Benchmarking against similar embassy security contracts globally would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified vendors to bid, potentially leading to competitive pricing.

Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential security services.

Public Impact

Ensures the safety and security of U.S. personnel and facilities at the Paramaribo Embassy. Supports local employment through the contracted security services. Maintains diplomatic presence and operational continuity in Suriname.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs.
Reliance on a single vendor for critical security functions.
Geopolitical risks in the region could impact service delivery.

Positive Signals

Clear contract duration and defined services.
Competitive bidding process likely secured a fair price.
Contract supports U.S. foreign policy objectives.

Sector Analysis

This contract is for security services, which can be broadly categorized under professional services. Spending benchmarks for security contracts vary significantly based on location, scope, and threat level. The value appears aligned with typical embassy security needs.

Small Business Impact

The data indicates that the awardee is Security Alliance LLC, and it is noted that small business participation was not a factor (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses.

Oversight & Accountability

The Department of State, as the contracting and awarding agency, is responsible for oversight. Contract performance monitoring and compliance checks are crucial to ensure effective service delivery and adherence to terms.

Related Government Programs

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

Risk Flags

Potential for cost creep due to Time and Materials structure.
Lack of specific performance metrics in provided data.
No indication of small business subcontracting opportunities.
Reliance on a single vendor for critical security.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.6 million to SECURITY ALLIANCE LLC. LOCAL GUARD SERVICES_U.S. EMBASSY PARAMARIBO

Who is the contractor on this award?

The obligated recipient is SECURITY ALLIANCE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-10-31.

What is the specific breakdown of costs within the $4.57M contract, and how do these align with industry standards for security personnel, equipment, and overhead?

The provided data does not detail the cost breakdown. A comprehensive analysis would require access to the contract's line-item details to compare labor rates, equipment costs, and overhead against established benchmarks for security services in similar geopolitical environments. This would reveal if the pricing is competitive or inflated.

What are the key performance indicators (KPIs) for Security Alliance LLC, and how will their performance be measured to ensure effective security and accountability?

The contract details do not specify the KPIs. Effective oversight requires clearly defined metrics such as response times, incident reporting accuracy, personnel vetting standards, and adherence to post orders. Regular performance reviews by the Department of State are essential to ensure the contractor meets all security requirements and maintains accountability.

Given the 'Time and Materials' pricing structure, what mechanisms are in place to prevent cost overruns and ensure the government only pays for necessary and reasonable expenses?

A 'Time and Materials' contract requires stringent oversight to manage costs. The Department of State must implement robust monitoring of labor hours, material costs, and task completion. Establishing clear ceilings, requiring detailed justifications for hours worked, and conducting regular audits are critical to prevent uncontrolled spending and ensure taxpayer value.

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: 19AQMM22R0115

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8323 NW 12TH ST, DORAL, FL, 33126

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,086,558

Exercised Options: $5,256,425

Current Obligation: $4,571,434

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline