State Department awards $4.39M contract for security guards in Nairobi, Kenya, to G4S KENYA JV

Contract Overview

Contract Amount: $4,390,000 ($4.4M)

Contractor: G4S Kenya JV

Awarding Agency: Department of State

Start Date: 2023-11-01

End Date: 2026-09-30

Contract Duration: 1,064 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOCAL GUARD PROGRAM -- NAIROBI, KENYA

Plain-Language Summary

Department of State obligated $4.4 million to G4S KENYA JV for work described as: LOCAL GUARD PROGRAM -- NAIROBI, KENYA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1064 days (approx. 3 years) provides a stable period for service delivery. 3. Fixed-price contract type may offer cost certainty for the government, assuming scope is well-defined. 4. The award value of $4.39M for security services in a foreign location warrants benchmarking against similar international contracts. 5. The absence of small business set-asides indicates a focus on larger, specialized service providers. 6. The contractor, G4S KENYA JV, is a key player in the security services sector.

Value Assessment

Rating: fair

The contract value of $4.39 million for security guard services over approximately three years in Nairobi appears to be within a reasonable range for such specialized international support. Benchmarking against similar contracts for security services in comparable geopolitical regions would provide a more definitive assessment of value for money. The firm fixed-price structure suggests that the government has negotiated a set cost, which can be advantageous if the scope of work is clearly defined and unlikely to change significantly. However, without detailed breakdowns of service levels, personnel hours, and specific security requirements, a precise value-for-money comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the solicitation and the evaluation process would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing and service through a wide range of potential providers. Even with two bidders, the process encourages competitive offers, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. Department of State personnel and facilities in Nairobi, Kenya, who will receive enhanced security. The contract ensures the provision of essential security guard and patrol services, contributing to diplomatic mission safety. The geographic impact is localized to Nairobi, Kenya, supporting U.S. diplomatic operations in that region. The contract supports local employment in Kenya through the provision of security guard services by G4S KENYA JV.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not precisely managed under the firm fixed-price contract.
Dependence on a single contractor for critical security functions in a potentially high-risk environment.
Limited visibility into the specific qualifications and vetting processes of the security personnel provided.

Positive Signals

Awarded through full and open competition, indicating a structured and accessible bidding process.
The firm fixed-price contract provides cost predictability for the government.
The contractor, G4S, is a globally recognized security services provider with established operational capabilities.

Sector Analysis

The security services industry is a significant global market, encompassing a wide range of protective services. This contract falls within the 'Security Guards and Patrol Services' (NAICS 561612) category. The market for private security is driven by demand for protection of assets, personnel, and facilities, particularly in international contexts where local security infrastructure may be less robust or reliable. Spending in this sector by government agencies, especially the Department of State, is common for overseas operations and diplomatic missions. Comparable spending benchmarks would typically involve analyzing per-guard costs or total contract values for similar services in other African or developing nations.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The award to G4S KENYA JV, a likely larger entity, suggests that the requirement was not specifically tailored for small business participation. There is no information provided regarding subcontracting plans for small businesses. This means that the primary contract value will likely flow to the prime contractor, with limited direct benefit to the small business ecosystem unless G4S voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program management office within the Department of State responsible for diplomatic security in Kenya. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Department of State Diplomatic Security Services
Overseas Security Guard Contracts
International Law Enforcement Support
Global Security Services

Risk Flags

Foreign-based contract requiring services in a potentially unstable region.
Reliance on a single prime contractor for critical security functions.
Lack of specific detail on performance metrics and risk mitigation plans.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.4 million to G4S KENYA JV. LOCAL GUARD PROGRAM -- NAIROBI, KENYA

Who is the contractor on this award?

The obligated recipient is G4S KENYA JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

Start: 2023-11-01. End: 2026-09-30.

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

Information regarding G4S KENYA JV's specific track record with the U.S. Department of State is not detailed in the provided data. However, G4S is a large, multinational security company with extensive experience globally. Their performance on similar contracts would typically be assessed through past performance evaluations during the bidding process. Agencies often review contractor performance on previous awards, including timeliness, quality of service, and adherence to contract terms. For a definitive assessment, one would need to consult internal agency performance reviews or publicly available contract performance databases, if accessible. The fact that they were awarded this contract suggests they met the agency's past performance criteria to some degree.

How does the per-day or per-guard cost of this contract compare to similar security contracts in other African nations?

The provided data does not include the number of guards, hours worked, or specific service levels, making a direct per-unit cost comparison impossible. The total contract value is $4.39 million over approximately 1064 days. If we assume a constant number of guards working full-time, we could derive an approximate daily cost. However, without knowing the number of personnel or their specific duties (e.g., armed vs. unarmed, patrol vs. static post), any calculation would be speculative. To benchmark effectively, one would need to gather data on contracts for similar security guard services in comparable African capitals, looking at metrics like cost per guard per hour, cost per post per day, or total contract value relative to the size and threat level of the facility being protected.

What are the primary risks associated with providing security guard services in Nairobi, Kenya, and how are they mitigated by this contract?

Primary risks in Nairobi could include political instability, local crime rates, potential for civil unrest, and the logistical challenges of operating in a foreign environment. For the government, risks also include contractor performance failures, security breaches, and potential reputational damage. This contract attempts to mitigate these risks through the firm fixed-price structure, which incentivizes the contractor to manage costs and performance efficiently. The selection of G4S KENYA JV, a presumably experienced provider, also aims to mitigate performance risk. However, specific risk mitigation strategies detailed within the contract, such as security protocols, emergency response plans, and background checks for personnel, are not provided in the summary data. The Department of State's own security protocols and oversight would also play a crucial role.

What is the historical spending pattern for security guard services by the Department of State in Kenya or the broader region?

The provided data is limited to this single contract award and does not offer historical spending patterns. To analyze historical spending, one would need to query procurement databases (like FPDS) for all security guard and patrol service contracts awarded by the Department of State in Kenya and potentially neighboring countries over several fiscal years. This would reveal trends in contract values, number of awards, types of services procured, and the contractors frequently utilized. Such an analysis would help determine if this $4.39 million award is consistent with past spending levels, represents an increase or decrease, and whether there's a trend towards specific types of security services or contractors in the region.

What specific performance metrics or Key Performance Indicators (KPIs) are likely included in this contract to ensure service quality?

While the specific KPIs are not detailed in the provided data, typical performance metrics for security guard contracts include response times to incidents, adherence to post orders, patrol route completion, incident reporting accuracy and timeliness, personnel attendance and punctuality, and overall effectiveness in preventing unauthorized access or incidents. The firm fixed-price nature of the contract implies that the government expects a certain level of service delivery for the agreed price. Performance would likely be monitored through regular reports from the contractor, site inspections, and feedback from the personnel being protected. Failure to meet critical KPIs could result in contract modifications, penalties, or termination.

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: 19AQMM22R0160

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1395 UNIVERSITY BLVD, JUPITER, FL, 33458

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

Financial Breakdown

Contract Ceiling: $36,435,644

Exercised Options: $6,910,311

Current Obligation: $4,390,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline