State Department awards $11.1M contract for security services at U.S. Embassy in The Hague

Contract Overview

Contract Amount: $11,098,567 ($11.1M)

Contractor: G4S Netherlands JV

Awarding Agency: Department of State

Start Date: 2024-02-01

End Date: 2027-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD UNIFORMED AND ARMED SERVICES ON BEHALF OF THE US AMERICAN MISSION THE HAGUE, NETHERLANDS AND CONSULATES IN AMSTERDAM, WHICH REQUIRES THE CONTRACTOR TO PREVENT LOSS OR INJURY TO U.S. PERSONNEL, DEPENDENTS, PROPERTY DESTRUCTION OF ASSETS

Plain-Language Summary

Department of State obligated $11.1 million to G4S NETHERLANDS JV for work described as: LOCAL GUARD UNIFORMED AND ARMED SERVICES ON BEHALF OF THE US AMERICAN MISSION THE HAGUE, NETHERLANDS AND CONSULATES IN AMSTERDAM, WHICH REQUIRES THE CONTRACTOR TO PREVENT LOSS OR INJURY TO U.S. PERSONNEL, DEPENDENTS, PROPERTY DESTRUCTION OF ASSETS Key points: 1. Contract provides essential security services for U.S. personnel and assets in the Netherlands. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration of three years allows for stable service provision. 4. Services include preventing loss or injury to personnel and protecting property. 5. The contractor, G4S Netherlands JV, will be responsible for armed and uniformed security. 6. This contract supports diplomatic missions and national security interests abroad.

Value Assessment

Rating: good

The contract value of $11.1 million over three years averages approximately $3.7 million annually. Benchmarking this against similar security contracts for diplomatic missions is challenging without more specific service level details. However, the full and open competition suggests that pricing was likely scrutinized by multiple bidders, potentially leading to a fair market value. The definitive contract type with time and materials pricing indicates flexibility for varying security needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The open competition is a positive indicator for price discovery and value for taxpayer money.

Taxpayer Impact: Full and open competition increases the likelihood that the government secured competitive pricing, ensuring taxpayer funds are used efficiently for these critical security services.

Public Impact

U.S. diplomatic personnel and their dependents stationed in The Hague and Amsterdam will benefit from enhanced security. The contract ensures the physical security of U.S. government property and assets at the Embassy and Consulates. Services are geographically focused on the Netherlands, supporting U.S. foreign policy and diplomatic operations. The contract may have implications for the local security workforce in the Netherlands, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if time and materials pricing is not closely managed.
Reliance on a single contractor for critical security functions could pose a risk if performance issues arise.

Positive Signals

Full and open competition suggests a robust vetting of potential providers.
The contractor, G4S, is a large, established security firm with global experience.
Clear objectives for preventing loss, injury, and property destruction are defined.

Sector Analysis

This contract falls within the security and protective services sector, specifically focusing on guard and patrol services. The global market for private security services is substantial, driven by increasing security concerns for diplomatic missions, corporate facilities, and critical infrastructure. This contract represents a portion of the U.S. government's spending on securing its overseas presence, which is a critical component of its foreign policy and national security apparatus. Comparable spending benchmarks would typically be found within Department of State contracts for similar protective services at other diplomatic posts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, G4S Netherlands JV, is likely a large entity, and their subcontracting practices would be determined by their internal policies rather than a specific set-aside requirement for this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's Bureau of Diplomatic Security and the contracting officer's representative (COR). The contract's performance will be monitored against the terms and conditions outlined in the definitive contract. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of State Diplomatic Security Services
Overseas Security Contracts
Embassy and Consulate Security
Guard and Patrol Services

Risk Flags

Potential for cost creep due to Time and Materials pricing.
Need for robust oversight to ensure contractor performance meets security standards.
Compliance with Dutch regulations regarding armed security personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.1 million to G4S NETHERLANDS JV. LOCAL GUARD UNIFORMED AND ARMED SERVICES ON BEHALF OF THE US AMERICAN MISSION THE HAGUE, NETHERLANDS AND CONSULATES IN AMSTERDAM, WHICH REQUIRES THE CONTRACTOR TO PREVENT LOSS OR INJURY TO U.S. PERSONNEL, DEPENDENTS, PROPERTY DESTRUCTION OF ASSETS

Who is the contractor on this award?

The obligated recipient is G4S NETHERLANDS JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2024-02-01. End: 2027-01-31.

What is the historical spending pattern for security services at the U.S. Embassy in The Hague?

Analyzing historical spending for security services at the U.S. Embassy in The Hague requires access to detailed procurement data over multiple contract periods. Without specific historical data for this location, it's difficult to provide a precise pattern. However, generally, the Department of State aims for stable, multi-year contracts for essential services like security to ensure continuity and leverage economies of scale. Spending can fluctuate based on geopolitical conditions, changes in threat assessments, and evolving security requirements. The current $11.1 million contract over three years suggests an average annual expenditure of approximately $3.7 million. Future spending will depend on the renewal terms, any scope adjustments, and the competitive landscape at the time of re-procurement.

How does the pricing structure (Time and Materials) compare to fixed-price contracts for similar security services?

Time and Materials (T&M) contracts, like the one awarded here, offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure is often used when the scope of work is not clearly defined or is expected to change. While it allows for adaptability, it carries a higher risk of cost overruns for the government if not managed diligently, as the final cost is not fixed upfront. Fixed-price contracts, conversely, establish a set price for a defined scope of work, providing greater cost certainty for the government but offering less flexibility. For routine, well-defined security services, fixed-price contracts might be more cost-effective. However, for dynamic environments or evolving security needs at diplomatic posts, T&M can be justified if robust oversight is in place to control labor hours and material costs.

What are the key performance indicators (KPIs) used to evaluate G4S Netherlands JV's performance under this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided award data, typical KPIs for security guard contracts include response times to incidents, adherence to post orders, incident reporting accuracy and timeliness, personnel reliability (e.g., attendance, background checks), and the successful prevention of unauthorized access or security breaches. The contract likely specifies performance standards and metrics that the contractor must meet. Failure to meet these KPIs could result in contractual remedies, such as financial penalties or even termination of the contract. The Department of State's Bureau of Diplomatic Security would be responsible for monitoring these KPIs and ensuring the contractor's compliance.

What is the track record of G4S Netherlands JV in providing security services to U.S. government facilities abroad?

G4S is a large, multinational security company with extensive experience providing security services globally, including to government facilities. While this specific award is to 'G4S NETHERLANDS JV', indicating a joint venture likely operating within the Netherlands, the parent company's broader track record is relevant. G4S has a history of holding significant government contracts, including those with the U.S. Department of Defense and other federal agencies for security, logistics, and facilities management. Assessing the specific track record of the 'Netherlands JV' entity would require deeper investigation into its past performance on similar contracts within the region. However, the award itself suggests they met the qualifications and demonstrated capability required by the Department of State.

Are there any specific risks associated with using an armed and uniformed security force in a European capital?

Deploying an armed and uniformed security force in a European capital like The Hague involves several considerations. Potential risks include the perception of heightened security presence, which could be viewed differently by the local population or government compared to less visible security measures. There are also strict regulations regarding firearms and the carrying of weapons by private security personnel in the Netherlands, requiring adherence to local laws and licensing. Furthermore, the presence of armed guards necessitates rigorous training, vetting, and clear rules of engagement to prevent incidents and maintain positive community relations. The joint venture structure might also introduce complexities in management and accountability if not clearly defined.

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: 19AQMM23R0066

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $32,701,923

Exercised Options: $25,833,877

Current Obligation: $11,098,567

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline