State Dept. Awards $8.6M for Embassy Security Services, NVE Inc. Selected

Contract Overview

Contract Amount: $8,610,640 ($8.6M)

Contractor: NVE, Inc

Awarding Agency: Department of State

Start Date: 2024-01-01

End Date: 2028-05-31

Contract Duration: 1,612 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ESTIMATED FUNDING TO AWARD A NEW TASK ORDER PROVIDING CONSTRUCTION SECURITY SERVICES FOR INTERNATIONAL EMBASSIES.

Plain-Language Summary

Department of State obligated $8.6 million to NVE, INC for work described as: ESTIMATED FUNDING TO AWARD A NEW TASK ORDER PROVIDING CONSTRUCTION SECURITY SERVICES FOR INTERNATIONAL EMBASSIES. Key points: 1. The Department of State is awarding $8.6 million for construction security services. 2. NVE, Inc. is the selected contractor. 3. The contract is for a delivery order under a larger agreement. 4. The period of performance spans from January 2024 to May 2028.

Value Assessment

Rating: good

The estimated funding of $8.6 million for a 4-year delivery order appears reasonable for specialized security services. Benchmarking against similar contracts for international embassy security is difficult without more specific service details, but the price seems within a typical range for this type of high-risk, high-security requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition generally leads to taxpayer savings by ensuring fair pricing and preventing inflated costs that might arise from sole-source or limited competition awards.

Public Impact

Ensures security at U.S. international embassies, protecting personnel and assets. Supports diplomatic missions abroad by providing a safe working environment. The contract duration of over four years provides stability for security operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes detailed cost analysis challenging.
Potential for scope creep in long-term security contracts.
Geopolitical risks associated with international embassy security.

Positive Signals

Awarded under full and open competition.
Long-term contract provides operational continuity.
Experienced contractor likely selected.

Sector Analysis

This contract falls within the Security Guards and Patrol Services sector (NAICS 561612). Spending in this sector is driven by the need for physical security across various government agencies and facilities, particularly in high-risk environments like international embassies. Benchmarks are highly variable based on location and threat level.

Small Business Impact

The data indicates this is a delivery order under a larger agreement, and it does not specify if small businesses were involved in the subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders, including performance monitoring and payment reviews, should be in place to ensure contractor compliance and taxpayer value.

Related Government Programs

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

Risk Flags

Lack of detailed service scope.
Potential for cost overruns in long-term contracts.
Geopolitical risks impacting security needs.
Limited information on small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.6 million to NVE, INC. ESTIMATED FUNDING TO AWARD A NEW TASK ORDER PROVIDING CONSTRUCTION SECURITY SERVICES FOR INTERNATIONAL EMBASSIES.

Who is the contractor on this award?

The obligated recipient is NVE, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2024-01-01. End: 2028-05-31.

What specific security services are included in the $8.6 million task order, and how do these align with the perceived threat levels at the targeted international embassies?

The provided data lacks specific details on the security services encompassed by the $8.6 million task order. Understanding the scope, such as armed vs. unarmed guards, surveillance technology, access control, and emergency response protocols, is crucial for assessing its adequacy against the unique threat profiles of various international embassy locations. A detailed breakdown would allow for a more precise evaluation of value and risk.

How does the $8.6 million estimated funding compare to historical spending on similar construction security services for international embassies, considering inflation and evolving security needs?

Without historical data or specific benchmarks for comparable embassy security contracts, it is difficult to definitively assess the $8.6 million figure. Factors like inflation, geopolitical instability, and advancements in security technology can significantly influence costs. A comparative analysis with previous contracts, adjusted for these variables, would provide a clearer picture of whether this funding represents a fair market price or an escalation.

What performance metrics and reporting requirements are in place to ensure NVE, Inc. effectively delivers the required security services and justifies the taxpayer investment?

The effectiveness of the taxpayer investment hinges on robust performance metrics and reporting. While not detailed here, standard contract oversight would typically include requirements for regular performance reports, adherence to service level agreements, incident response times, and potentially site inspections. The Department of State's ability to monitor and enforce these metrics will be key to ensuring NVE, Inc. meets its obligations and provides value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM21R0009

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12700 SUNRISE VALLEY DR STE 450, RESTON, VA, 20191

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,610,640

Exercised Options: $8,610,640

Current Obligation: $8,610,640

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0128

IDV Type: IDC

Timeline