State Department awards $3.8M contract for security upgrades to Quality Logistics and Procurement Services Limited

Contract Overview

Contract Amount: $3,797,564 ($3.8M)

Contractor: Quality Logistics and Procurement Services Limited

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2026-04-16

Contract Duration: 563 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MARSH HARBOUR SECURITY UPGRADES

Plain-Language Summary

Department of State obligated $3.8 million to QUALITY LOGISTICS AND PROCUREMENT SERVICES LIMITED for work described as: MARSH HARBOUR SECURITY UPGRADES Key points: 1. Contract value appears reasonable for a definitive contract of this duration and scope. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract type (firm fixed price) shifts cost risk to the contractor. 4. Performance period extends over 1.5 years, allowing for phased implementation. 5. The contractor's specific experience in similar security upgrade projects is a key performance indicator. 6. The project falls under commercial and institutional building construction, a common sector for federal procurement.

Value Assessment

Rating: good

The contract value of approximately $3.8 million for security upgrades over a 563-day period seems within a reasonable range for this type of project. Benchmarking against similar government contracts for building construction and security enhancements would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government as it caps the contractor's potential earnings and transfers cost overrun risks. However, without detailed cost breakdowns or comparisons to commercial market rates for equivalent services, a definitive assessment of pricing efficiency is challenging.

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. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives fair market value for its investments.

Public Impact

The primary beneficiaries are likely personnel and assets at the Marsh Harbour facility requiring enhanced security. The services delivered include construction and installation of security upgrades. The geographic impact is localized to the Marsh Harbour location. Workforce implications may include on-site construction labor and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if security requirements are not clearly defined and managed.
Dependence on contractor's ability to procure specialized security equipment and materials.
Risk of delays due to unforeseen site conditions or permitting issues.
Ensuring the long-term effectiveness and maintainability of the installed security systems.

Positive Signals

Firm fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a fair and transparent procurement process.
Defined performance period provides a clear timeline for project completion.
The contract is awarded to a company with a name suggesting expertise in logistics and procurement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building, alteration, and repair of non-residential structures. Federal spending in this sector is substantial, covering a wide range of facilities from administrative offices to embassies and operational bases. The market is characterized by numerous small, medium, and large construction firms, with competition often driven by project size, complexity, and specific technical requirements like security enhancements. Comparable spending benchmarks would involve analyzing other government contracts for similar security infrastructure projects in diplomatic or operational facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The primary contractor, Quality Logistics and Procurement Services Limited, will likely manage the project, potentially utilizing larger subcontractors if specialized services beyond their core capabilities are needed. The absence of a small business set-aside means opportunities for small businesses would primarily arise if they are prime contractors on other, smaller contracts or if they are selected as subcontractors by the prime.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officer and the relevant program officials within the Department of State. Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through the federal procurement data system where contract awards are reported. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Department of State Facilities Management
Embassy Security Construction
Government Building Security Systems
Commercial Building Construction Services
Logistics and Procurement Services

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite FFP.
Contractor's past performance and experience with similar security projects.
Adequacy of competition level (two bidders) for optimal price discovery.
Ensuring long-term maintainability and effectiveness of installed security systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.8 million to QUALITY LOGISTICS AND PROCUREMENT SERVICES LIMITED. MARSH HARBOUR SECURITY UPGRADES

Who is the contractor on this award?

The obligated recipient is QUALITY LOGISTICS AND PROCUREMENT SERVICES LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-04-16.

What is the track record of Quality Logistics and Procurement Services Limited with the federal government, particularly on similar security upgrade projects?

A thorough review of federal procurement databases (like SAM.gov or FPDS) would be necessary to assess Quality Logistics and Procurement Services Limited's track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract disputes or terminations. Specifically, identifying previous contracts for security upgrades, construction projects, or work performed for the Department of State or similar agencies would provide crucial context. The number and value of previous contracts, along with their successful completion, would indicate the company's experience and reliability in executing government projects. Without this specific data, it's difficult to definitively assess their suitability beyond the information provided in the award notice.

How does the awarded amount of $3.8 million compare to similar security upgrade contracts awarded by the Department of State or other agencies?

To benchmark the $3.8 million award, one would need to analyze comparable federal contracts for security upgrades, construction, and facility enhancements. This involves searching procurement databases for contracts with similar scopes of work, geographic locations (if relevant), and contract types (e.g., firm-fixed-price). Key comparison points would include the total contract value, the duration of the performance period, and the specific security features or construction elements involved. For instance, contracts for hardening facilities, installing surveillance systems, or reinforcing building structures would be relevant. A higher number of bids in comparable procurements might suggest that $3.8 million represents a competitive price, while fewer bids could indicate a less competitive market or potentially higher pricing.

What are the specific security risks or vulnerabilities that this contract aims to address at the Marsh Harbour facility?

The contract notice itself does not detail the specific security risks or vulnerabilities at the Marsh Harbour facility. However, 'security upgrades' typically encompass a range of enhancements designed to protect personnel, assets, and information. This could include improvements to physical access control systems (e.g., gates, barriers, biometric scanners), surveillance and monitoring capabilities (e.g., CCTV, intrusion detection systems), perimeter security enhancements, or structural hardening of buildings to withstand potential threats. The nature of the facility (e.g., embassy, consulate, operational base) would heavily influence the types of security upgrades prioritized. A detailed risk assessment conducted by the Department of State would have informed the scope of work for this contract.

What is the expected impact of these security upgrades on the operational effectiveness and safety of the Marsh Harbour facility?

The expected impact of these security upgrades is to enhance the overall safety and operational effectiveness of the Marsh Harbour facility. By strengthening physical security measures, the upgrades aim to deter potential threats, prevent unauthorized access, and mitigate the impact of security incidents. This improved security posture can contribute to a more stable and secure environment for personnel working at or visiting the facility, thereby supporting uninterrupted operations. Enhanced surveillance and access control can also streamline entry and exit procedures while maintaining a high level of security, potentially improving operational efficiency. Ultimately, the upgrades are intended to provide a more robust defense against a range of security challenges.

Given the firm fixed-price contract type, what mechanisms are in place to ensure the contractor delivers quality work and meets all specifications?

With a firm fixed-price (FFP) contract, the contractor assumes the primary risk for cost overruns, but the government retains the right to ensure quality and adherence to specifications. Oversight mechanisms typically include regular progress meetings between the contractor and government representatives, site inspections to monitor construction quality and progress, and review of deliverables (e.g., design documents, material submittals). The contract will specify detailed performance standards, acceptance criteria, and a schedule of milestones. The government's contracting officer and technical representatives are responsible for monitoring performance against these requirements. Failure to meet quality standards or specifications could result in contract remedies, including withholding payments, requiring corrective action, or, in severe cases, termination for default.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM24R0187

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5582 CENTURY 21 BLVD 119, ORLANDO, FL, 32807

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

Financial Breakdown

Contract Ceiling: $3,797,564

Exercised Options: $3,797,564

Current Obligation: $3,797,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline