State Department awards $7.6M contract for local guard program in San Salvador, highlighting security needs

Contract Overview

Contract Amount: $7,621,021 ($7.6M)

Contractor: G4S EL Salvador JV

Awarding Agency: Department of State

Start Date: 2023-07-05

End Date: 2025-07-05

Contract Duration: 731 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SAN SALVADOR, LOCAL GUARD PROGRAM

Plain-Language Summary

Department of State obligated $7.6 million to G4S EL SALVADOR JV for work described as: SAN SALVADOR, LOCAL GUARD PROGRAM Key points: 1. Contract value appears reasonable given the duration and scope of security services required. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The definitive contract type with time and materials pricing introduces some cost variability. 4. Performance context is critical for evaluating the effectiveness of security services in a challenging environment. 5. This contract falls within the security and protective services sector, a common area for government spending. 6. The award to G4S El Salvador JV indicates a focus on established security providers.

Value Assessment

Rating: good

The contract value of $7.6 million over two years for security guard services in San Salvador seems aligned with market rates for similar protective services. Benchmarking against other State Department contracts for embassy security or personnel protection in high-risk areas would provide a more precise value-for-money assessment. The time and materials pricing structure, while flexible, warrants close monitoring to ensure costs remain within projected budgets and do not escalate unexpectedly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a healthy market for these services. This level of competition is generally favorable for price discovery and can lead to more cost-effective outcomes for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging providers to offer their best value.

Public Impact

The primary beneficiaries are personnel and facilities of the U.S. Department of State operating in San Salvador. The services delivered include security guards and patrol services to ensure a safe environment. The geographic impact is localized to San Salvador, El Salvador. Workforce implications include employment opportunities for local guards and security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials pricing can lead to cost overruns if not managed diligently.
The effectiveness of security services in a complex geopolitical environment requires continuous evaluation.
Dependence on a single contractor for critical security functions can pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, G4S, is a globally recognized security provider with extensive experience.
The contract duration of two years provides stability for security operations.

Sector Analysis

This contract operates within the security and protective services industry, a significant sector for government procurement, particularly for agencies operating abroad. The North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services encompasses a broad range of services aimed at safeguarding property and individuals. Comparable spending benchmarks for similar security contracts in Latin America or other high-risk posts would provide further context on the scale and pricing of this award.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless G4S El Salvador JV engages small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of Diplomatic Security, which is responsible for the safety and security of U.S. diplomatic missions and personnel worldwide. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through the contract award notice, but detailed performance reports are typically internal.

Related Government Programs

Department of State Diplomatic Security Services
Embassy Security Contracts
Protective Services Worldwide

Risk Flags

Cost Overrun Risk (Time and Materials Pricing)
Performance Variability in High-Risk Environments
Contractor Dependence

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $7.6 million to G4S EL SALVADOR JV. SAN SALVADOR, LOCAL GUARD PROGRAM

Who is the contractor on this award?

The obligated recipient is G4S EL SALVADOR JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2023-07-05. End: 2025-07-05.

What is the track record of G4S El Salvador JV in providing security services to the U.S. Department of State or similar government entities?

Information regarding the specific track record of G4S El Salvador JV with the U.S. Department of State is not detailed in the provided data. However, G4S is a large, multinational security company with a global presence and extensive experience in providing security services to governments, corporations, and critical infrastructure worldwide. Their ability to win a full and open competition contract with the State Department suggests they meet the required qualifications and performance standards. A deeper dive into past performance evaluations, any past disputes, or specific project successes would be necessary for a comprehensive assessment of their track record for this particular contract.

How does the awarded amount of $7.6 million compare to similar security contracts awarded by the Department of State in other Latin American countries?

Benchmarking the $7.6 million award against similar contracts requires access to a broader dataset of Department of State security procurements in the Latin American region. Factors such as the specific threat environment, the size and complexity of the facility being protected, the number of personnel required, and the duration of the contract significantly influence pricing. Without comparative data on contracts for comparable posts (e.g., embassies in Honduras, Nicaragua, or Guatemala) with similar security requirements and contract types (definitive, time and materials), it is difficult to definitively assess if this award represents superior or inferior value. However, the duration of two years for this contract suggests a consistent need for security services.

What are the primary risks associated with a time and materials contract for security services in a location like San Salvador?

The primary risk associated with a time and materials (T&M) contract for security services in San Salvador is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements allow the contractor to bill for actual labor hours and material costs incurred. If not meticulously managed and monitored by the government contracting officer, this can lead to the total cost exceeding initial estimates. In a location with potential security challenges, the demand for additional hours or resources could increase unpredictably. Effective oversight, clear task definitions, and robust reporting mechanisms are crucial to mitigate these risks and ensure the government receives good value.

What are the implications of awarding this contract through 'full and open competition' for the effectiveness of the security services provided?

Awarding the contract through 'full and open competition' generally implies that a wide range of qualified vendors had the opportunity to bid, fostering a competitive environment. This process can lead to the selection of the most capable and cost-effective provider. For the effectiveness of security services, this means the Department of State likely selected a contractor based on a combination of technical merit, past performance, and price. The presence of three bidders suggests sufficient market interest, increasing the likelihood that the chosen provider, G4S El Salvador JV, offers a strong capability to meet the security needs in San Salvador. Continuous performance monitoring remains essential regardless of the competition level.

Are there any historical spending patterns with G4S El Salvador JV or for security services in San Salvador that this contract aligns with or deviates from?

The provided data does not include historical spending patterns for G4S El Salvador JV specifically with the Department of State, nor does it offer a broader context of historical spending on security services in San Salvador. To assess alignment or deviation, one would need to analyze past contracts awarded to G4S for similar services, either by the State Department or other federal agencies, and examine the aggregate spending on security guard services in that specific geographic location over time. Without this historical data, it's impossible to determine if this $7.6 million award represents an increase, decrease, or continuation of previous spending trends.

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: 19AQMM22R0183

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1395 UNIVERSITY BLVD, JUPITER, FL, 33458

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: $15,528,205

Exercised Options: $8,055,612

Current Obligation: $7,621,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline