State Department awards $8.7M contract for local guard program in Madrid, Spain

Contract Overview

Contract Amount: $8,668,838 ($8.7M)

Contractor: Securitas Seguridad Espana/Scis UTE

Awarding Agency: Department of State

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD PROGRAM -- US MISSION MADRID, SPAIN

Plain-Language Summary

Department of State obligated $8.7 million to SECURITAS SEGURIDAD ESPANA/SCIS UTE for work described as: LOCAL GUARD PROGRAM -- US MISSION MADRID, SPAIN Key points: 1. Contract awarded to SECURITAS SEGURIDAD ESPANA/SCIS UTE for security guard services. 2. Service period spans two years, from June 2024 to May 2026. 3. Contract type is Time and Materials, indicating flexibility in service delivery. 4. Competition was full and open, suggesting a robust bidding process. 5. The contract is a definitive contract, typically used for straightforward services. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $8.7 million over two years for security services in Madrid appears to be within a reasonable range for a government contract of this nature. However, without specific benchmarks for security services in that geographic region or detailed breakdowns of labor rates and overhead, a precise value-for-money assessment is challenging. The Time and Materials pricing structure necessitates careful monitoring to ensure costs remain controlled and do not exceed expectations.

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 bids received, the competition level suggests a degree of market interest. However, the specific number of bidders does not inherently guarantee the lowest possible price, as other factors like contract requirements and market conditions play a role.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to cost savings compared to less competitive procurement methods.

Public Impact

Provides essential security services for the U.S. Mission in Madrid, Spain. Ensures the safety and security of personnel and facilities at the diplomatic mission. Supports local employment in Spain through the contracted security firm. Contributes to the overall operational effectiveness of the U.S. diplomatic presence abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Limited public information on specific performance metrics or quality assurance.
Geographic concentration of services in Madrid may limit broader applicability.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contract duration of two years provides stability for service provision.
Services directly support critical diplomatic mission security.

Sector Analysis

This contract falls within the security and protective services sector, a critical component of government operations, particularly for diplomatic missions abroad. The market for security services is highly competitive, with numerous domestic and international providers. Government contracts for security often involve stringent requirements regarding personnel vetting, training, and operational procedures. Benchmarking this contract's value would require comparison with similar security contracts awarded by the State Department or other agencies for overseas posts, considering factors like local labor costs and specific security needs.

Small Business Impact

This contract did not include a small business set-aside. The award went to a joint venture, SECURITAS SEGURIDAD ESPANA/SCIS UTE, which may or may not be considered a small business depending on its structure and revenue. There is no explicit indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational oversight information is generally not publicly disclosed for security contracts.

Related Government Programs

Overseas Security Services
Diplomatic Security
Guard Services
Department of State Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed performance metrics in public data.
Limited information on contractor's specific past performance for this JV.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.7 million to SECURITAS SEGURIDAD ESPANA/SCIS UTE. LOCAL GUARD PROGRAM -- US MISSION MADRID, SPAIN

Who is the contractor on this award?

The obligated recipient is SECURITAS SEGURIDAD ESPANA/SCIS UTE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What is the historical spending pattern for local guard programs at U.S. Missions abroad, and how does this contract compare?

Historical spending on local guard programs at U.S. Missions abroad varies significantly based on the size of the mission, the security threat level of the host country, and the specific services required. Contracts can range from tens of thousands to millions of dollars annually. For instance, larger embassies in high-threat regions often require extensive security measures, including armed guards, advanced surveillance, and perimeter security, leading to higher costs. Smaller consulates or missions in lower-risk areas may have more modest security budgets. This $8.7 million contract over two years for the U.S. Mission in Madrid suggests a moderate to significant investment, likely reflecting the importance of the mission and the security environment in Spain. A comprehensive comparison would require analyzing spending data for similar-sized missions in comparable geopolitical locations over the past several years to establish a relevant benchmark.

What are the specific performance metrics and quality assurance measures for this security guard contract?

The provided data does not detail the specific performance metrics or quality assurance measures for this contract. However, standard government contracts for security services typically include requirements related to guard presence, response times, incident reporting, adherence to post orders, and personnel qualifications (e.g., background checks, training). Quality assurance is usually managed through regular inspections, performance reviews by the contracting officer's representative (COR), and feedback mechanisms. The Time and Materials (T&M) nature of this contract implies that the government will pay for the actual labor hours and materials used, making diligent oversight crucial. The COR would be responsible for verifying that the services rendered align with the contract's objectives and that costs are reasonable and allocable to the contract.

How does the pricing structure (Time and Materials) compare to other contract types for similar security services, and what are the associated risks?

Time and Materials (T&M) contracts, like this one, are often used when the extent or duration of the work cannot be predetermined. For security services, T&M can offer flexibility if guard requirements fluctuate due to changing threat levels or mission activities. However, T&M contracts carry inherent risks for the government, primarily the potential for cost overruns, as the contractor is reimbursed for actual labor hours and material costs. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. To mitigate these risks, government oversight is critical, including detailed tracking of hours, verification of material costs, and establishing ceiling prices. Other contract types, such as Firm-Fixed-Price (FFP), provide greater cost certainty but may be less adaptable to changing needs. Hybrid approaches or Cost-Plus contracts are also possibilities depending on the specific circumstances.

What is the track record of SECURITAS SEGURIDAD ESPANA/SCIS UTE with the Department of State or other federal agencies?

Information regarding the specific track record of the joint venture SECURITAS SEGURIDAD ESPANA/SCIS UTE with the Department of State or other federal agencies is not detailed in the provided data. However, Securitas is a large, multinational security services company with a significant presence globally, including in Spain. It is highly probable that Securitas, individually or through its subsidiaries, has held numerous contracts with various government entities. To assess their track record thoroughly, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past performance reviews, contract awards, and any reported issues or disputes associated with this specific joint venture or its parent entities on government contracts.

What is the estimated number of security personnel or hours this contract is expected to cover?

The provided data does not explicitly state the estimated number of security personnel or hours this contract is expected to cover. However, given the total contract value of $8.7 million over a 729-day period (approximately 24 months), one can infer a substantial requirement. If we assume an average loaded labor rate (including wages, benefits, overhead, and profit) for security personnel in Spain, we could estimate the total hours. For example, if the average loaded hourly rate were $30-$50, the contract could cover approximately 174,000 to 290,000 labor hours. This would translate to a significant number of guards working various shifts, potentially around-the-clock coverage, depending on the specific staffing model employed by the contractor.

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: 19AQMM23R0062

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13900 LINCOLN PARK DR STE 370, HERNDON, VA, 20171

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,064,406

Exercised Options: $9,396,626

Current Obligation: $8,668,838

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline