DoD's $27.2M Embassy Security Group Facilities contract awarded to ARGO SYSTEMS, LLC shows fair value with 15 bidders

Contract Overview

Contract Amount: $27,200,222 ($27.2M)

Contractor: Argo Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2013-02-28

End Date: 2016-07-21

Contract Duration: 1,239 days

Daily Burn Rate: $22.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P621 EMBASSY SECURITY GROUP FACILITIES

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to ARGO SYSTEMS, LLC for work described as: P621 EMBASSY SECURITY GROUP FACILITIES Key points: 1. The contract demonstrates a competitive landscape with 15 bids, suggesting potential for price discovery. 2. While ARGO SYSTEMS, LLC secured the award, the number of bidders indicates a healthy market. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of 1239 days suggests a substantial project scope. 5. Performance context is limited without specific delivery metrics, but the award itself is a positive signal. 6. The sector positioning is within commercial and institutional building construction, a common area for federal procurement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable projects. However, the presence of 15 bidders suggests that the pricing was likely competitive. The firm fixed-price nature of the award also indicates that the government secured a defined cost for the services, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, with 15 bids received. This high number of bidders suggests a robust competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award like this means taxpayers likely benefited from a more efficient allocation of resources, as the government was able to select from multiple qualified offerors, driving down costs.

Public Impact

The Department of Defense is the primary beneficiary, receiving services related to embassy security facilities. The contract supports the maintenance and construction of critical infrastructure for diplomatic missions. The geographic impact is likely concentrated around U.S. embassy locations, though specific sites are not detailed. Workforce implications include employment opportunities for construction and security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's track record beyond winning the bid.
The specific nature of 'embassy security' could involve sensitive information, limiting public transparency.
The contract's duration and value could indicate a significant undertaking, increasing the potential impact of any performance issues.

Positive Signals

The award was made under full and open competition, indicating a fair and transparent bidding process.
The firm fixed-price contract type reduces financial risk for the government.
The receipt of 15 bids suggests a healthy market and strong interest from qualified contractors.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is a significant part of the federal procurement landscape, encompassing a wide range of construction and maintenance services for government facilities. Federal spending in this area often supports infrastructure projects, renovations, and new construction for various agencies, including defense and diplomatic operations.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless ARGO SYSTEMS, LLC engages in significant subcontracting.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially the Department of Defense's Inspector General. Transparency is assessed through the availability of contract award data. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns for the contractor.

Related Government Programs

Department of State Embassy Construction and Maintenance
General Services Administration Public Buildings Service
Department of Defense Facilities Engineering

Risk Flags

Contract awarded after exclusion of sources, requiring justification for not considering all potential offerors.
Long contract duration (1239 days) increases potential for scope changes and performance risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to ARGO SYSTEMS, LLC. P621 EMBASSY SECURITY GROUP FACILITIES

Who is the contractor on this award?

The obligated recipient is ARGO SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $27.2 million.

What is the period of performance?

Start: 2013-02-28. End: 2016-07-21.

What is the specific nature of the 'Embassy Security Group Facilities' services provided under this contract?

The contract data indicates the service category as 'Commercial and Institutional Building Construction' (NAICS 236220). While the specific title 'Embassy Security Group Facilities' suggests a focus on security-related infrastructure and potentially maintenance or construction of facilities integral to embassy security, the precise scope of work is not detailed in the provided data. This could encompass physical security enhancements, construction of secure areas, maintenance of security systems, or general facility upgrades aimed at improving the security posture of embassy grounds and buildings. Further details would likely be found in the contract's statement of work.

How does the awarded price of $27.2 million compare to similar embassy security facility contracts?

Direct comparison of the $27.2 million award to similar embassy security facility contracts is difficult without access to a comprehensive database of comparable projects, including their scope, duration, and specific security requirements. However, the fact that this contract received 15 bids under full and open competition suggests that the market perceived the opportunity as viable and potentially profitable at the awarded price point. The firm fixed-price nature also implies that the government negotiated a ceiling cost, which is a positive indicator for value. A more precise benchmark would require detailed analysis of other contracts for similar security infrastructure projects at diplomatic facilities.

What are the key risk indicators associated with this contract for ARGO SYSTEMS, LLC and the Department of Defense?

For ARGO SYSTEMS, LLC, risks include potential cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges or material price fluctuations, and performance risks if the project encounters delays or quality issues. For the Department of Defense, risks involve potential underperformance by the contractor leading to compromised embassy security, and the possibility that the competitive bidding process, while robust, may not have yielded the absolute lowest possible price if market conditions were not fully favorable. The long duration also increases the risk of scope creep or changes in security requirements over time.

What is the historical spending pattern for 'Embassy Security Group Facilities' or similar services by the Department of Defense?

The provided data only pertains to a single contract award of $27.2 million to ARGO SYSTEMS, LLC. To understand historical spending patterns, one would need to analyze a broader dataset of contracts awarded by the Department of Defense (and potentially the Department of State, which manages embassies) for embassy security facilities and related construction services over several fiscal years. This would involve looking at the total annual expenditure, the number and value of contracts awarded, the primary contractors, and the types of services procured. Without this broader context, it's impossible to ascertain if this $27.2 million contract represents a typical, increased, or decreased level of spending for such services.

How effective was the competition in ensuring a fair price for these embassy security facilities?

The presence of 15 bidders in a full and open competition is a strong indicator of effective competition, which generally leads to fair pricing. A larger pool of bidders increases the likelihood that the government receives competitive offers, pushing contractors to submit their best possible pricing to win the contract. While it's impossible to definitively state the 'fairest' price without knowing the contractor's exact costs and profit margins, the high number of bids suggests that the market was sufficiently contested to prevent price gouging and encourage efficiency. The firm fixed-price structure further supports the idea of a fair price being established upfront.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: N4008012R0216

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1362 MELLON RD STE 100, HANOVER, MD, 21076

Business Categories: Category Business, Emerging Small Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,200,222

Exercised Options: $27,200,222

Current Obligation: $27,200,222

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline