State Department Awards $6.26M Contract for Luxembourg Guard Services, Lacking Competition

Contract Overview

Contract Amount: $6,255,078 ($6.3M)

Contractor: G4S Luxembourg JV

Awarding Agency: Department of State

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $8.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: US MISSION LUXEMBOURG LOCAL GUARD SERVICES

Plain-Language Summary

Department of State obligated $6.3 million to G4S LUXEMBOURG JV for work described as: US MISSION LUXEMBOURG LOCAL GUARD SERVICES Key points: 1. Contract awarded to G4S LUXEMBOURG JV for security guard services. 2. Significant spending of $6.26 million over two years. 3. No competition was involved in the award process. 4. Services fall under the Security Guards and Patrol Services NAICS code.

Value Assessment

Rating: questionable

The contract's value of $6.26 million for 729 days of service appears high given the lack of competitive bidding. Benchmarking against similar contracts for guard services is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This likely resulted in less price discovery and potentially a higher price than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of a competitive bidding process for these essential security services.

Public Impact

Ensures security for the US Mission in Luxembourg. Potential for overpayment due to lack of competition. Limited transparency on the justification for non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited justification for sole-source award

Positive Signals

Essential security services provided
Contract duration aligns with mission needs

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically security services. Spending benchmarks for guard services vary widely based on location, scope, and security levels.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight is primarily the responsibility of the Department of State. The lack of competition raises questions about the effectiveness of oversight in ensuring fair pricing and value for taxpayer money.

Related Government Programs

Security Guards and Patrol Services
Department of State Contracting
Department of State Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Limited transparency on award justification
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.3 million to G4S LUXEMBOURG JV. US MISSION LUXEMBOURG LOCAL GUARD SERVICES

Who is the contractor on this award?

The obligated recipient is G4S LUXEMBOURG JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

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

What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?

The provided data states the contract was 'NOT COMPETED' and awarded as a 'DEFINITIVE CONTRACT' under a 'LIMITED' competition category. Without further documentation, the specific justification for avoiding full and open competition and the methodology used to determine price reasonableness remain unclear. This lack of transparency hinders a full assessment of value for money.

What are the risks associated with awarding a security contract without competition?

The primary risk is paying an inflated price due to the absence of competitive pressure. Other risks include potentially receiving substandard services if the vendor is not incentivized to perform at their best, and a lack of innovation that might come from a competitive environment. It also raises concerns about fairness and equal opportunity for other qualified vendors.

How effective is this contract in ensuring the security of the US Mission in Luxembourg?

Assuming G4S LUXEMBOURG JV provides adequate services, the contract is likely effective in meeting the basic security requirements. However, the effectiveness in terms of achieving the best possible security outcomes at the best possible price is questionable due to the non-competitive nature of the award. True effectiveness would be better measured through performance metrics and competitive benchmarking.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM24R0021

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1395 UNIVERSITY BLVD, JUPITER, FL, 33458

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,459,212

Exercised Options: $6,459,212

Current Obligation: $6,255,078

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline