State Department's $14.5M Embassy Manila Guard Contract Awarded to G4S International Logistics

Contract Overview

Contract Amount: $14,532,108 ($14.5M)

Contractor: G4S International Logistics (USA), Inc.

Awarding Agency: Department of State

Start Date: 2010-03-09

End Date: 2015-01-31

Contract Duration: 1,789 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD SERVICES, US EMBASSY MANILA

Plain-Language Summary

Department of State obligated $14.5 million to G4S INTERNATIONAL LOGISTICS (USA), INC. for work described as: LOCAL GUARD SERVICES, US EMBASSY MANILA Key points: 1. Contract awarded for security guard services at the US Embassy in Manila. 2. G4S International Logistics (USA), Inc. secured the contract. 3. The contract value is $14,532,108.46 over approximately 5 years. 4. The primary NAICS code is 561612 for Security Guards and Patrol Services. 5. This contract falls under the broader category of security services.

Value Assessment

Rating: fair

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for embassy security services is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing structure may limit price discovery and potentially lead to higher costs than fixed-price contracts.

Taxpayer Impact: Taxpayers bear the cost of security services for diplomatic missions abroad. The competitive nature of the award aims to ensure reasonable pricing, but the T&M structure warrants careful monitoring.

Public Impact

Ensures the physical security and safety of US personnel and facilities at the Embassy in Manila. Supports diplomatic operations by providing a secure environment for staff and visitors. Contributes to the overall US foreign policy and national security objectives. Provides employment opportunities within the Philippines for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation.
Lack of detailed cost breakdown makes precise value assessment difficult.
Contract duration is substantial, increasing exposure to potential cost increases.

Positive Signals

Awarded under full and open competition.
Provides essential security for a critical diplomatic facility.
Contract duration aligns with long-term security needs.

Sector Analysis

This contract falls within the security services sector, specifically focusing on guard and patrol services. Spending in this sector is driven by the need for physical security at government facilities, embassies, and private institutions. Benchmarks for similar contracts can vary widely based on location, scope, and security requirements.

Small Business Impact

The data indicates that the prime contractor is G4S International Logistics (USA), Inc., a large corporation. There is no explicit information provided regarding subcontracting to small businesses for this specific contract.

Oversight & Accountability

The Department of State is responsible for overseeing this contract to ensure the effective delivery of security services and adherence to contract terms. Regular performance reviews and financial oversight are crucial, especially given the T&M pricing structure.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited transparency in cost breakdown.
Long contract duration increases long-term cost risk.
Reliance on a single large contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.5 million to G4S INTERNATIONAL LOGISTICS (USA), INC.. LOCAL GUARD SERVICES, US EMBASSY MANILA

Who is the contractor on this award?

The obligated recipient is G4S INTERNATIONAL LOGISTICS (USA), INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2010-03-09. End: 2015-01-31.

What was the specific rationale for choosing a Time and Materials contract type over a fixed-price alternative for embassy security?

The choice of a Time and Materials (T&M) contract for embassy security might stem from the unpredictable nature of security needs and potential unforeseen circumstances that could arise in a foreign diplomatic environment. T&M allows for flexibility in adapting to changing threats or operational requirements without the need for constant contract modifications. However, it places a greater burden on the government to closely monitor labor hours and material costs to prevent overspending and ensure fair pricing.

How does the cost of this contract compare to similar embassy security contracts in other high-threat regions?

Direct comparison of this $14.5 million contract to similar embassy security contracts in other high-threat regions is challenging without standardized reporting metrics and detailed cost breakdowns. Factors such as local labor rates, specific threat assessments, required security technology, and the overall size and complexity of the embassy compound significantly influence contract costs. A comprehensive analysis would require access to detailed pricing data and a comparative study of geopolitical risk levels.

What mechanisms are in place to ensure the effectiveness and quality of security services provided by G4S International Logistics?

The Department of State likely employs several mechanisms to ensure the effectiveness and quality of security services. These typically include performance work statements (PWS) with clearly defined deliverables and standards, regular performance evaluations by government representatives, site inspections, and potentially key performance indicators (KPIs) that the contractor must meet. Contract clauses may also allow for remedies or penalties if service quality falls below agreed-upon standards.

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: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: BLDG 75 JFK INTERNATIONAL AIRPORT, JAMAICA, NY, 11430

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

Financial Breakdown

Contract Ceiling: $16,466,956

Exercised Options: $16,187,664

Current Obligation: $14,532,108

Contract Characteristics

Cost or Pricing Data: NO

Timeline