State Department awards $6.7M contract for security services in Amman, Jordan

Contract Overview

Contract Amount: $6,722,323 ($6.7M)

Contractor: G4S Jordan JV

Awarding Agency: Department of State

Start Date: 2024-03-12

End Date: 2027-03-11

Contract Duration: 1,094 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD SERVICES U.S. MISSION AMMAN

Plain-Language Summary

Department of State obligated $6.7 million to G4S JORDAN JV for work described as: LOCAL GUARD SERVICES U.S. MISSION AMMAN Key points: 1. Contract awarded to G4S Jordan JV for security guard services. 2. The contract has a base value of $6.7 million over a 3-year period. 3. Services are essential for protecting U.S. Mission personnel and facilities. 4. The contract type is Time and Materials, which can pose cost risks if not managed closely. 5. Awarded under full and open competition, suggesting a competitive bidding process. 6. The North American Industry Classification System (NAICS) code is 561612 for Security Guards and Patrol Services.

Value Assessment

Rating: fair

The contract value of $6.7 million for three years of security services in Amman appears to be within a reasonable range for such operations, considering the geopolitical context and the need for robust security. Benchmarking against similar contracts for embassy security or high-risk environment protection would provide a clearer picture of value for money. The Time and Materials pricing structure necessitates careful monitoring to ensure costs do not escalate beyond initial projections.

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 were likely solicited and allowed to bid. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The presence of two bidders suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings and a more efficient use of public funds.

Public Impact

The primary beneficiaries are U.S. diplomats, personnel, and government facilities in Amman, Jordan, ensuring their safety and security. The contract delivers essential security guard and patrol services. The geographic impact is localized to the U.S. Mission in Amman. The contract supports local employment in Jordan through the security services provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed and monitored.
Geopolitical instability in the region could potentially increase security needs and associated costs.
Reliance on a single awardee for critical security services in a high-risk environment warrants careful performance oversight.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract duration of three years provides stability for security operations.
The contractor, G4S, is a well-established global security provider.

Sector Analysis

The security services sector is a significant global industry, with government contracts forming a substantial portion. This contract falls within the private security services sub-sector, specifically focusing on guarding and patrol. The market for security services in diplomatic missions is often characterized by specialized requirements and high stakes, with competition driven by experience, reputation, and adherence to stringent security protocols. Comparable spending benchmarks for similar diplomatic security contracts can vary widely based on location, threat level, and scope of services.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of specific subcontracting requirements for small businesses within the provided data. The award to a joint venture suggests a focus on established entities capable of meeting the security demands.

Oversight & Accountability

Oversight for this contract would typically fall under 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, including service level agreements and security protocols. Transparency is maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Embassy Security Contracts
Worldwide Protective Services
Department of State Security Operations
Guard Services Contracts

Risk Flags

Time and Materials contract type
Limited competition (2 bidders)
Geopolitical risk in the region

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.7 million to G4S JORDAN JV. LOCAL GUARD SERVICES U.S. MISSION AMMAN

Who is the contractor on this award?

The obligated recipient is G4S JORDAN JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2024-03-12. End: 2027-03-11.

What is the historical spending pattern for security services at the U.S. Mission in Amman?

Historical spending data for security services at the U.S. Mission in Amman is not directly available in the provided data. However, understanding past expenditures on similar contracts, including those for guard services, physical security, and access control, would be crucial for benchmarking the current $6.7 million award. Analyzing trends in spending over previous contract periods, the number of bidders on prior solicitations, and the average contract values would offer insights into whether this award represents an increase, decrease, or stable level of investment in security for the mission. Without this historical context, it is challenging to definitively assess the value and efficiency of the current contract.

How does the pricing of this contract compare to similar security contracts awarded by the Department of State in other high-risk locations?

Direct comparison of pricing for this $6.7 million contract with similar security contracts in other high-risk locations is difficult without specific data on the scope of services, threat levels, and local labor costs in those comparable locations. However, the Time and Materials (T&M) pricing structure inherently allows for variability. To assess value, one would need to compare the hourly rates for different labor categories (e.g., guards, supervisors) and material markups against established benchmarks for T&M security contracts. The Department of State often uses pre-negotiated rates or established pricing models for security services in various regions. A detailed analysis would involve examining the number of labor hours and material costs incurred over the contract's life and comparing them to similar contracts awarded under similar conditions.

What are the specific risks associated with a Time and Materials contract for security services in a potentially volatile region?

Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks, especially for security services in potentially volatile regions. The primary risk is cost escalation, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage for profit and overhead. Without stringent oversight and well-defined task orders, contractors may be incentivized to extend labor hours or use more materials than strictly necessary, driving up costs. In a volatile region, unforeseen security incidents or changes in threat levels could necessitate increased security presence or specialized equipment, leading to unplanned expenditures. Effective risk mitigation requires robust monitoring of labor hours, material usage, and contractor performance, along with clear communication and defined ceilings for T&M components.

What is the track record of G4S Jordan JV in providing security services to U.S. government entities?

Information regarding the specific track record of 'G4S Jordan JV' in providing security services to U.S. government entities is not detailed in the provided data. G4S is a large, multinational security company with a global presence, and it is plausible they have experience with government contracts. However, the performance history, past performance evaluations, and any past issues or successes specifically related to this joint venture or its parent entities with U.S. government agencies would need to be thoroughly investigated. This would typically involve reviewing past performance questionnaires, contract administration records, and any available debriefings from previous solicitations to assess their reliability and capability for this critical security mission.

How does the number of bidders (two) impact the potential for competitive pricing and innovation?

A competition with only two bidders, while better than a sole-source award, suggests a potentially limited competitive landscape for this specific contract. While two bidders can still drive competitive pricing, the pressure might be less intense compared to a scenario with numerous offers. This could mean that the government may not achieve the absolute lowest price possible or benefit from the full spectrum of innovative solutions that a larger pool of bidders might offer. The Department of State likely assessed the market to determine if two bidders represented a reasonable level of competition for specialized security services in this particular geographic area. Further analysis would involve understanding why only two entities submitted proposals.

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: 19AQMM23R0001

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S CAR JV

Address: 1395 UNIVERSITY BLVD, JUPITER, FL, 33458

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,277,312

Exercised Options: $8,386,143

Current Obligation: $6,722,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline