State Department awards $8.67M contract for local guard services in Thailand, emphasizing full and open competition

Contract Overview

Contract Amount: $8,673,125 ($8.7M)

Contractor: Securitas Thailand - Scis JV

Awarding Agency: Department of State

Start Date: 2023-07-01

End Date: 2026-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THAILAND, LOCAL GUARD PROGRAM

Plain-Language Summary

Department of State obligated $8.7 million to SECURITAS THAILAND - SCIS JV for work described as: THAILAND, LOCAL GUARD PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The award value of $8.67 million over three years indicates a significant investment in security services. 4. The contractor is a joint venture, potentially indicating a specialized capability or a strategic partnership. 5. The North American Industry Classification System (NAICS) code 561612 points to a focus on security guard services. 6. The contract duration of 1095 days allows for sustained service delivery but requires ongoing performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The Time and Materials pricing structure, while flexible, can lead to higher costs if not carefully managed and monitored. Comparing this to similar guard services contracts globally or within the State Department's portfolio would be necessary for a more precise value assessment. The award value of approximately $2.89 million per year for security services in Thailand appears substantial, suggesting a need for robust security measures in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of three bidders (no=3) suggests a reasonable level of competition for this specific requirement. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions. The joint venture nature of the awardee might have influenced the competitive landscape.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that government funds are used efficiently for essential services like security.

Public Impact

The primary beneficiaries are the U.S. Department of State personnel and facilities in Thailand, ensuring their safety and security. The contract delivers essential security guard and patrol services, crucial for maintaining operational continuity and protecting assets. The geographic impact is localized to U.S. diplomatic missions and facilities within Thailand. The contract supports local employment in Thailand through the provision of security guard services by the joint venture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly managed and if labor hours are not closely monitored.
The joint venture structure, while potentially bringing specialized skills, can sometimes introduce complexities in management and accountability.
The specific security needs and threat landscape in Thailand are critical factors influencing the effectiveness and cost of these services.

Positive Signals

Awarded through full and open competition, which generally leads to better pricing and value.
The contract duration allows for stable and consistent security coverage for the specified period.
The contractor is a joint venture, potentially indicating a strong capability to meet complex security requirements.

Sector Analysis

The security services sector is a significant component of government contracting, encompassing a wide range of protective services. This contract falls within the Security Guards and Patrol Services sub-sector. The global market for private security is substantial, driven by increasing security concerns and the need to protect personnel and assets. Government agencies, particularly diplomatic missions, rely heavily on such services to maintain safety in diverse geopolitical environments. Comparable spending benchmarks would involve analyzing other State Department contracts for similar services in different regions or contracts for security services awarded by other federal agencies.

Small Business Impact

The provided data indicates that small business participation (sb=false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The awardee is a joint venture, which may or may not include small business entities within its structure, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms. The Inspector General of the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of State Diplomatic Security Service Contracts
Overseas Security Guard Services
Federal Protective Service Contracts
Department of Defense Security Contracts

Risk Flags

Time and Materials contract type requires diligent oversight to prevent cost overruns.
Geopolitical stability and specific security threats in Thailand could impact service delivery and costs.
Performance of a joint venture requires clear lines of responsibility and effective management.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.7 million to SECURITAS THAILAND - SCIS JV. THAILAND, LOCAL GUARD PROGRAM

Who is the contractor on this award?

The obligated recipient is SECURITAS THAILAND - SCIS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2023-07-01. End: 2026-06-30.

What is the track record of SECURITAS THAILAND - SCIS JV in performing similar security guard services for the U.S. government?

Information regarding the specific track record of the joint venture 'SECURITAS THAILAND - SCIS JV' in performing similar security guard services for the U.S. government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes from previous government contracts held by this specific joint venture or its constituent entities. Without this data, it is difficult to definitively assess their past performance reliability and capability for this specific requirement. Further investigation into federal procurement databases and past performance information repositories would be necessary.

How does the annual cost of this contract compare to similar security guard services provided by the State Department in other high-risk regions?

The annual cost of this contract is approximately $2.89 million ($8.67M / 3 years). Comparing this to similar security guard services provided by the State Department in other high-risk regions requires access to detailed data on those specific contracts, including scope of work, number of personnel, threat levels, and contract type. Without such comparative data, it is difficult to definitively benchmark this contract's cost-effectiveness. However, security services in politically sensitive or high-threat environments generally command higher prices due to increased operational complexities and risks. A thorough analysis would involve identifying comparable contracts and adjusting for regional cost-of-living and specific security requirements.

What are the primary risks associated with the Time and Materials (T&M) contract type for this security guard service, and how are they mitigated?

The primary risk associated with a Time and Materials (T&M) contract type for security guard services is the potential for cost overruns if labor hours and material usage are not rigorously monitored and controlled. Contractors may have less incentive to control costs compared to fixed-price contracts. Mitigation strategies typically involve strong contract administration by the government, including detailed tracking of labor hours, verification of work performed, and potentially incorporating cost ceilings or CLINs (Contract Line Item Numbers) with not-to-exceed values for specific labor categories or materials. Clear performance standards and regular reporting requirements are also crucial for managing T&M contracts effectively.

What is the expected impact of this contract on the local Thai economy and workforce?

This contract is expected to have a positive impact on the local Thai economy and workforce by creating employment opportunities for Thai citizens to serve as security guards. The joint venture, SECURITAS THAILAND - SCIS JV, will likely hire and train local personnel to fulfill the security guard duties. This not only provides direct employment but also contributes to the local economy through wages and associated spending. The presence of U.S. government security contracts can also indirectly boost confidence for other international businesses operating in the region, potentially leading to further economic activity.

How does the competition level (3 bidders) for this contract influence the pricing and value for the taxpayer?

A competition level of three bidders suggests a moderate degree of competition for this contract. While more bidders generally lead to more competitive pricing, three bidders still provide a basis for price discovery and comparison. This level of competition likely pressured the joint venture to offer a competitive price to secure the award. For taxpayers, this means that the price paid is likely closer to a fair market value than it would be in a sole-source or limited competition scenario. However, a deeper analysis of the bids received and the specific nature of the security services required would be needed to fully assess the value achieved.

What are the key performance indicators (KPIs) that will be used to measure the success of the security guard services provided under this contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for security guard services, typical KPIs often include response times to incidents, adherence to post orders, patrol effectiveness, incident reporting accuracy and timeliness, personnel attendance and punctuality, and overall client satisfaction. The contract's performance work statement (PWS) would outline these specific metrics, along with acceptable performance levels and any associated award or incentive fees, or conversely, penalties for non-performance. Regular performance reviews would assess the contractor's adherence to these KPIs.

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: 19AQMM21R0368

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13900 LINCOLN PARK DR STE 370, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $14,063,883

Exercised Options: $8,744,791

Current Obligation: $8,673,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline