State Department spent $17.1M on Madrid security services, awarded via full and open competition

Contract Overview

Contract Amount: $17,098,657 ($17.1M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of State

Start Date: 2009-06-09

End Date: 2014-09-30

Contract Duration: 1,939 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MADRID, SPAIN LOCAL GUARD SECURITY SERVICES

Plain-Language Summary

Department of State obligated $17.1 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: MADRID, SPAIN LOCAL GUARD SECURITY SERVICES Key points: 1. Value for money appears reasonable given the 5-year duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. Risk indicators are low, with a clear service delivery requirement. 4. Performance context is within standard security services for an embassy. 5. Sector positioning is within the broader government contracting for security services.

Value Assessment

Rating: good

The contract value of $17.1 million over approximately five years for security services in Madrid appears to be within a reasonable range for such a requirement. Benchmarking against similar contracts for security services at U.S. embassies or consulates in comparable European cities would provide a more precise value assessment. The pricing structure, likely influenced by local labor costs and the specific security needs of the location, needs to be evaluated against market rates for comparable services in Madrid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 4 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: Taxpayers likely benefited from competitive pricing due to the open bidding process, which encourages contractors to offer their best terms to secure the award.

Public Impact

U.S. Embassy in Madrid personnel and facilities are protected. Ensures a secure environment for diplomatic operations. Supports local employment in Madrid through the contracted security personnel. Contributes to the overall safety and security of U.S. government interests abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep in time and materials contracts if not closely managed.
Reliance on a single contractor for critical security functions carries inherent risks.

Positive Signals

Awarded through full and open competition, indicating a robust vetting process.
Clear service requirements and performance standards are expected for security contracts.
Contract duration provides stability for service delivery.

Sector Analysis

The security services sector for government contracts is substantial, encompassing a wide range of protective services for federal facilities and personnel both domestically and abroad. This contract falls within the niche of providing physical security and guard services, a segment that is consistently in demand by agencies operating overseas. Comparable spending benchmarks would involve looking at other contracts for similar security services awarded by the Department of State or other agencies at diplomatic missions in major European capitals.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Analysis of subcontracting opportunities for small businesses would require further investigation into the prime contractor's subcontracting plan, if one was required and submitted. The absence of a set-aside suggests the primary focus was on securing the most capable and competitive offer from any responsible source.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's Bureau of Diplomatic Security and the contracting officer's representative (COR) at the U.S. Embassy in Madrid. Accountability measures would include performance reviews, adherence to service level agreements, and financial audits. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Department of State Diplomatic Security Services
Embassy Security Contracts
Foreign Affairs Security
Guard Services Contracts

Risk Flags

Time and Materials contract type requires close monitoring to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $17.1 million to MISCELLANEOUS FOREIGN AWARDEES. MADRID, SPAIN LOCAL GUARD SECURITY 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 $17.1 million.

What is the period of performance?

Start: 2009-06-09. End: 2014-09-30.

What was the specific scope of security services provided under this contract?

The contract, NAICS code 561612 (Security Guards and Patrol Services), indicates the provision of security guard and patrol services. This typically includes personnel to monitor premises, control access, deter unauthorized entry, respond to incidents, and maintain a visible security presence. For an embassy in Madrid, this would encompass protecting personnel, facilities, and sensitive information against threats such as theft, vandalism, espionage, and terrorism. The exact number of guards, hours of operation, and specific post orders would have been detailed in the contract's statement of work.

How does the $17.1 million contract value compare to similar security contracts for U.S. embassies in Europe?

Benchmarking the $17.1 million contract value requires comparing it to similar contracts for security services at U.S. embassies or consulates in comparable European cities over a similar timeframe (approximately five years). Factors influencing cost include the size and complexity of the facility, the threat environment, local labor rates, and the specific security requirements (e.g., armed vs. unarmed guards, specialized surveillance). Without specific data on comparable contracts, it's difficult to definitively state if this represents excellent, fair, or concerning value. However, given the duration and the nature of security services, the amount is not inherently excessive but warrants comparison to peer contracts.

What are the potential risks associated with a Time and Materials contract for security services?

Time and Materials (T&M) contracts, like the one indicated here (PT: TIME AND MATERIALS), can pose risks of cost overruns if not managed diligently. The government pays for the actual labor hours and materials used, plus a fixed fee or profit. This structure can incentivize contractors to extend labor hours or use more expensive materials if oversight is lax. For security services, risks include inflated labor hours, unnecessary material usage, and potential scope creep. Effective oversight, detailed record-keeping, and clear task definitions are crucial to mitigate these risks and ensure value for money.

What does the number of bidders (4) suggest about the competition for this contract?

Having 4 bidders for this contract suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower costs for the government, 4 bidders indicate that the requirement was sufficiently attractive and accessible to multiple capable firms. This number is often considered a reasonable baseline for effective competition, suggesting that the Department of State likely received a range of proposals and pricing, allowing for a competitive award.

What is the historical spending pattern for security services at the U.S. Embassy in Madrid?

To assess historical spending patterns, one would need to examine previous contracts awarded for security services at the U.S. Embassy in Madrid. This analysis would involve looking at contract values, durations, types of services, and competition levels over time. Understanding past spending can reveal trends, identify potential increases or decreases in costs, and highlight any shifts in contracting strategies. Without access to historical contract data specific to this location, it is impossible to provide a detailed analysis of past spending patterns.

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: 4

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

Financial Breakdown

Contract Ceiling: $35,395,252

Exercised Options: $30,773,243

Current Obligation: $17,098,657

Timeline