State Department Awards $8.29M Contract for Security Services in Quito, Ecuador

Contract Overview

Contract Amount: $8,289,317 ($8.3M)

Contractor: SA-593 Security JV LLC

Awarding Agency: Department of State

Start Date: 2024-07-01

End Date: 2026-10-31

Contract Duration: 852 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD UNIFORMED AND ARMED SERVICES ON BEHALF OF THE US MISSION QUITO, ECUADOR

Plain-Language Summary

Department of State obligated $8.3 million to SA-593 SECURITY JV LLC for work described as: LOCAL GUARD UNIFORMED AND ARMED SERVICES ON BEHALF OF THE US MISSION QUITO, ECUADOR Key points: 1. Contract awarded to SA-593 SECURITY JV LLC for security services. 2. Full and open competition was utilized for this award. 3. The contract is for time and materials, with a duration of 852 days. 4. This award falls under the Security Guards and Patrol Services NAICS code (561612).

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for security services in diplomatic missions is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing structure may limit price discovery and potentially lead to higher costs compared to fixed-price contracts.

Taxpayer Impact: Taxpayer funds are being used for essential security services at a US mission abroad. The Time and Materials nature of the contract warrants close monitoring to ensure cost-effectiveness.

Public Impact

Ensures security for US personnel and facilities in Quito, Ecuador. Supports diplomatic operations by providing a safe working environment. Contributes to the overall safety and security posture of US missions globally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials pricing structure
  • Potential for cost overruns
  • Lack of detailed cost breakdown for benchmarking

Positive Signals

  • Awarded under full and open competition
  • Provides essential security services
  • Supports US diplomatic mission

Sector Analysis

This contract falls within the security services sector, specifically for guarding and patrol services. Spending benchmarks for similar international security contracts can vary widely based on location, threat level, and service scope.

Small Business Impact

The contract was awarded to SA-593 SECURITY JV LLC. Further analysis would be needed to determine if this entity is a small business or a joint venture with small business participation.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Robust oversight will be crucial to manage the Time and Materials aspect and ensure value for taxpayer money.

Related Government Programs

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

Risk Flags

  • Time and Materials contract type
  • Potential for cost escalation
  • Lack of specific threat details
  • Limited small business participation information

Tags

security-guards-and-patrol-services, department-of-state, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.3 million to SA-593 SECURITY JV LLC. LOCAL GUARD UNIFORMED AND ARMED SERVICES ON BEHALF OF THE US MISSION QUITO, ECUADOR

Who is the contractor on this award?

The obligated recipient is SA-593 SECURITY JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.3 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-10-31.

What is the estimated total cost per hour for labor and materials under this Time and Materials contract?

The provided data does not include a detailed breakdown of hourly rates for labor or material costs. A Time and Materials contract typically involves billing for actual labor hours at pre-negotiated rates and the cost of materials used, plus a markup. Without these specific rates, a precise per-unit cost cannot be determined.

What specific security risks in Quito, Ecuador, necessitated this contract and how does the awarded service mitigate them?

The data does not specify the exact security risks in Quito. However, contracts for security services at US embassies and missions are generally put in place to protect personnel, facilities, and sensitive information from threats such as civil unrest, terrorism, or crime. The armed and uniformed services provided are intended to deter potential aggressors and respond to security incidents.

How will the effectiveness of the security services provided be measured and evaluated throughout the contract period?

The effectiveness of the security services will likely be measured through performance metrics outlined in the contract's Statement of Work (SOW). These could include response times, incident reporting accuracy, adherence to post orders, and overall security posture. Regular performance reviews by the Department of State contracting officer's representative (COR) are standard practice.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM24R0007

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8323 NW 12 ST, DORAL, FL, 33126

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: $26,570,073

Exercised Options: $10,438,658

Current Obligation: $8,289,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-07-01

Current End Date: 2026-10-31

Potential End Date: 2029-10-31 00:00:00

Last Modified: 2026-04-03

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