State Department awards $39.7M contract for embassy security in Ukraine, highlighting critical geopolitical needs

Contract Overview

Contract Amount: $39,677,802 ($39.7M)

Contractor: Gardaworld Federal Services LLC

Awarding Agency: Department of State

Start Date: 2022-11-14

End Date: 2026-11-13

Contract Duration: 1,460 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROFESSIONAL SECURITY SERVICES U.S. EMBASSY UKRAINE

Plain-Language Summary

Department of State obligated $39.7 million to GARDAWORLD FEDERAL SERVICES LLC for work described as: PROFESSIONAL SECURITY SERVICES U.S. EMBASSY UKRAINE Key points: 1. Contract value represents a significant investment in safeguarding diplomatic personnel and assets in a high-risk environment. 2. The award to GardaWorld Federal Services LLC indicates a focus on experienced providers for sensitive security operations. 3. The duration of the contract suggests a long-term commitment to maintaining security posture. 4. Fixed-price contract type aims to control costs and provide budget certainty for the Department of State. 5. The need for these services underscores the ongoing geopolitical challenges and security requirements in Ukraine.

Value Assessment

Rating: good

The contract value of approximately $39.7 million over four years for professional security services in Ukraine appears reasonable given the high-risk operational environment and the critical nature of protecting a U.S. embassy. Benchmarking against similar contracts for embassy security in other challenging regions would provide further context, but the scale of the award suggests a comprehensive security solution is required. The firm fixed-price structure helps manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of multiple bidders suggests a healthy market for these specialized security services, although specific details on the number of bids received are not provided.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure high-quality security services at a fair market price, preventing potential overpayment for critical national security functions.

Public Impact

U.S. diplomatic personnel and facilities in Ukraine are the primary beneficiaries, ensuring their safety and operational continuity. The contract delivers essential security guard and patrol services, crucial for maintaining a secure environment. Geographic impact is concentrated in Ukraine, specifically around the U.S. Embassy. The contract supports a specialized workforce in the security sector, potentially including personnel with specific security clearances and training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor personnel to face risks associated with operating in a conflict zone.
Ensuring consistent quality of security personnel and adherence to strict protocols over the contract's duration.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting of potential providers.
Firm fixed-price contract provides cost certainty for the government.
Long contract duration indicates a stable and reliable security presence.

Sector Analysis

This contract falls within the professional security services sector, specifically focusing on guard and patrol services (NAICS code 561612). This sector is critical for government operations, particularly in high-threat environments like Ukraine. The market for such services is competitive, with numerous private security firms capable of deploying personnel globally. The value of this contract is substantial, reflecting the unique demands and risks associated with protecting a U.S. embassy in a geopolitical hotspot.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While GardaWorld Federal Services LLC is a large business, there is no information provided on subcontracting plans to small businesses. Further analysis would be needed to determine if small businesses are participating in the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is generally maintained through contract award databases, but specific performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Embassy Security Contracts
Department of State Security Operations
Overseas Security Services
Security Services for High-Risk Environments

Risk Flags

High-Risk Operational Environment
Geopolitical Instability
Contractor Performance Risk
Logistical Challenges in Conflict Zone

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $39.7 million to GARDAWORLD FEDERAL SERVICES LLC. PROFESSIONAL SECURITY SERVICES U.S. EMBASSY UKRAINE

Who is the contractor on this award?

The obligated recipient is GARDAWORLD FEDERAL SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.7 million.

What is the period of performance?

Start: 2022-11-14. End: 2026-11-13.

What is the track record of GardaWorld Federal Services LLC in providing similar security services for U.S. government facilities, particularly in high-risk overseas locations?

GardaWorld Federal Services LLC has a documented history of providing security services to various U.S. government agencies, including the Department of State and Department of Defense. Their experience often includes protective services, physical security, and personnel security in challenging environments. While specific details on past performance in Ukraine are not immediately available from this data, their broader portfolio suggests they possess the requisite experience for such operations. A deeper dive into past performance evaluations and any past issues or commendations would be necessary for a comprehensive assessment of their track record in similar high-risk deployments.

How does the per-unit cost of security personnel under this contract compare to similar contracts awarded by the Department of State for embassy security in other regions?

Direct per-unit cost comparison is challenging without detailed breakdowns of personnel roles, security levels, and geographic cost-of-living adjustments. However, the total contract value of approximately $39.7 million over 1460 days (4 years) suggests an average annual value of roughly $9.9 million. This breaks down to approximately $828,000 per month. Given the high operational tempo, security requirements, and potential hazard pay associated with Ukraine, this figure is likely within the expected range for specialized overseas security. Benchmarking against contracts in similarly volatile regions would be the most accurate method for a value assessment.

What are the primary risk indicators associated with this contract, and what mitigation strategies are likely in place?

Key risk indicators include the volatile geopolitical situation in Ukraine, potential for direct or indirect threats to personnel and facilities, and the logistical challenges of operating in a conflict zone. Other risks involve contractor personnel performance, adherence to security protocols, and potential for equipment failure or loss. Mitigation strategies likely include rigorous background checks and training for security personnel, robust communication and emergency response plans, close coordination with the U.S. Embassy and local authorities, and potentially specialized insurance and risk management protocols tailored to the operational environment.

How effective is the firm fixed-price contract type in ensuring value for money for this specific security service requirement in Ukraine?

The firm fixed-price (FFP) contract type is generally effective in controlling costs and providing budget certainty, as the contractor assumes most of the risk for cost overruns. For a well-defined service like security guard and patrol operations, FFP is often suitable. It incentivizes the contractor to perform efficiently to maximize profit. However, in a highly dynamic environment like Ukraine, there might be unforeseen circumstances requiring scope adjustments, which could lead to change orders. The effectiveness hinges on the clarity of the initial scope and the contractor's ability to manage operational costs within the fixed price.

What is the historical spending pattern for professional security services by the Department of State, and how does this award fit within that trend?

The Department of State has consistently allocated significant funds towards security services for its diplomatic missions worldwide, especially in high-threat posts. Historical spending data would likely show a steady or increasing trend in security budgets due to evolving global security challenges. This $39.7 million award for Ukraine is substantial and reflects the heightened security needs in that specific region, aligning with the Department's overall commitment to protecting its personnel and assets abroad. It represents a significant, but likely necessary, investment within the broader context of State Department security expenditures.

What are the implications of the contract duration (4 years) on the stability and cost-effectiveness of security provision?

A four-year contract duration provides significant stability for both the government and the contractor. For the government, it ensures a consistent and reliable security presence without the administrative burden of frequent re-competition. For the contractor, it allows for better resource planning, investment in specialized training and equipment, and potentially economies of scale, which can translate into more competitive pricing over the long term. This extended period helps maintain institutional knowledge and operational continuity, contributing to overall effectiveness and potentially cost savings compared to shorter, more frequent contracts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM22R0279

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BC Partners LLP

Address: 1760 OLD MEADOW RD STE 400, MCLEAN, VA, 22102

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: $279,095,763

Exercised Options: $184,728,059

Current Obligation: $39,677,802

Actual Outlays: $9,039,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0008

IDV Type: IDC

Timeline