State Department spent $20.6M on security guards, with 98% of contract value awarded to miscellaneous foreign entities

Contract Overview

Contract Amount: $20,569,353 ($20.6M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of State

Start Date: 2006-02-01

End Date: 2011-10-31

Contract Duration: 2,098 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SECURITY GUARDS AND PATROL SERVICES

Plain-Language Summary

Department of State obligated $20.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: SECURITY GUARDS AND PATROL SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a broad search for qualified vendors. 2. Significant portion of spending directed towards foreign awardees, raising questions about domestic economic impact. 3. Contract duration of nearly 7 years indicates a long-term need for these security services. 4. Services provided under a Time and Materials (T&M) pricing structure, which can pose cost control challenges. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. No small business set-aside was utilized, indicating the primary awardee was not a small business.

Value Assessment

Rating: fair

Benchmarking the value for security guard services is complex due to varying geographic locations, threat levels, and service specifics. The total contract value of $20.6 million over nearly seven years averages approximately $3 million annually. Without specific details on the scope of services, personnel required, and operational environments, a precise value-for-money assessment is difficult. However, the substantial portion awarded to foreign entities warrants scrutiny regarding potential cost efficiencies or specific operational needs met by these awardees.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data does not specify the number of bids received, but the 'full and open' designation generally implies a competitive process. This approach is intended to foster price discovery and ensure the government obtains services at competitive rates by allowing a wide range of potential contractors to participate.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential bidders, increasing the likelihood of receiving competitive pricing and innovative solutions.

Public Impact

Provides essential security guard and patrol services, likely safeguarding U.S. personnel, facilities, and interests abroad. Benefits U.S. diplomatic missions and government personnel operating in potentially high-risk environments. The geographic impact is global, as the Department of State operates numerous embassies and consulates worldwide. Supports a workforce of security personnel, though the majority of the contract value went to foreign awardees, suggesting a significant portion of the workforce may be foreign nationals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High concentration of contract value awarded to 'miscellaneous foreign awardees' could indicate a lack of domestic capacity or preference for foreign security firms, potentially impacting U.S. businesses.
Time and Materials (T&M) contract type can lead to cost overruns if not closely managed, as the government pays for actual labor hours and material costs incurred.
Lack of specific details on performance metrics or service level agreements makes it difficult to assess the quality and effectiveness of the security services provided.
The contract's long duration (nearly 7 years) might suggest a lack of flexibility to adapt to changing security needs or to re-compete for potentially better pricing or services.

Positive Signals

Awarded through 'full and open competition,' which typically ensures a broad search for qualified vendors and promotes competitive pricing.
The contract addresses a critical need for security services for the Department of State, essential for protecting personnel and assets.
The existence of a contract for these services indicates established processes for ensuring security in various operational environments.

Sector Analysis

The security services industry is diverse, encompassing physical security, cybersecurity, and risk management. NAICS code 561612 specifically covers security guards and patrol services. This contract falls within the broader government contracting sector for professional services, where security is a critical component for agencies operating globally. Comparable spending benchmarks are difficult without knowing the specific locations and threat levels, but government contracts for security personnel are common across many agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all eligible offerors, including large businesses and potentially foreign entities. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. The primary awardees being 'miscellaneous foreign awardees' further implies limited direct benefit to U.S. small businesses through this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The contract type (Time and Materials) necessitates diligent oversight to monitor labor hours, material costs, and ensure services are delivered as required. Transparency is generally facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are not publicly detailed in this data.

Related Government Programs

Department of State Diplomatic Security Service
General Services Administration (GSA) Federal Supply Schedule contracts for security services
Department of Defense security contracts
Department of Homeland Security security contracts

Risk Flags

High concentration of award value to foreign entities.
Use of Time and Materials contract type requires close monitoring for cost control.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $20.6 million to MISCELLANEOUS FOREIGN AWARDEES. SECURITY GUARDS AND PATROL SERVICES

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2006-02-01. End: 2011-10-31.

What specific types of security services were provided under this contract, and what were the key performance indicators?

The provided data indicates the contract was for 'SECURITY GUARDS AND PATROL SERVICES' under NAICS code 561612. However, it does not detail the specific types of services (e.g., armed vs. unarmed guards, surveillance, access control, emergency response) or the key performance indicators (KPIs) used to measure service quality and effectiveness. Such details are typically found in the contract's statement of work (SOW) and performance work statement (PWS), which are not included in the provided data. Without this information, it's challenging to assess the contract's performance beyond its basic description.

How does the average annual spending of approximately $3 million compare to similar security contracts awarded by the Department of State or other federal agencies?

Comparing the average annual spending of approximately $3 million for this contract requires context regarding the scope, location, and threat level of the security services. The Department of State operates in diverse and often high-risk environments globally, necessitating varied security measures. Contracts for security guards can range from tens of thousands to tens of millions of dollars annually, depending on the number of personnel, their qualifications, and the operational complexity. Without specific details on the number of guards, hours, and locations covered by this $20.6 million contract, a direct comparison to other contracts is speculative. However, $3 million annually for security services is a substantial but not necessarily outlier figure for a large federal agency with global operations.

What are the potential risks associated with awarding a significant portion of this contract to 'miscellaneous foreign awardees'?

Awarding a significant portion of the contract value to 'miscellaneous foreign awardees' presents several potential risks. These include challenges in oversight and accountability, as enforcing U.S. labor laws, quality standards, and security protocols on foreign entities can be more complex. There may also be currency exchange rate fluctuations impacting costs, and potential geopolitical risks associated with relying on foreign entities for critical security functions. Furthermore, it raises questions about whether U.S. small businesses or domestic security firms were adequately considered or if there were specific reasons (e.g., cost, specialized expertise, local presence) for prioritizing foreign awardees. This concentration could also limit the U.S. government's leverage in contract disputes or performance issues.

What does the Time and Materials (T&M) contract type imply about the management and cost control of this security service?

The Time and Materials (T&M) contract type implies that the government pays the contractor for the actual cost of direct labor (at specified hourly rates) and materials, plus a fee or profit. This structure is often used when the scope of work is not clearly defined or is expected to change. For cost control, T&M contracts require robust government oversight to monitor labor hours, ensure efficiency, and validate material costs. Without strict controls, T&M contracts can lead to cost overruns because the contractor is reimbursed for all hours worked and materials used, regardless of the total project cost. This necessitates diligent administration by the contracting officer's representative (COR) to manage performance and prevent excessive spending.

Given the contract's duration of nearly 7 years, what is the historical spending pattern for security guard services by the Department of State?

The provided data covers a specific contract awarded from February 1, 2006, to October 31, 2011, with a total value of $20.6 million. This represents an average annual expenditure of approximately $3 million over its duration. To understand the historical spending pattern, one would need to analyze multiple contracts for similar services over a longer period. This single contract suggests a consistent need for security guard services over that nearly seven-year span. However, without data on prior or subsequent contracts, it's impossible to determine if this represents an increasing, decreasing, or stable trend in the Department of State's overall spending on such services.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $26,617,624

Exercised Options: $24,442,185

Current Obligation: $20,569,353

Timeline