State Department Awards $55.6M for Tokyo Embassy Guard Services Under Full and Open Competition

Contract Overview

Contract Amount: $55,603,533 ($55.6M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of State

Start Date: 2010-09-18

End Date: 2016-07-31

Contract Duration: 2,143 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOCAL GUARD SERVICES US EMASSY TOKYO

Plain-Language Summary

Department of State obligated $55.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: LOCAL GUARD SERVICES US EMASSY TOKYO Key points: 1. Significant contract value for security services at a major diplomatic post. 2. Full and open competition suggests a robust market for these services. 3. Potential risk related to long contract duration and time-and-materials pricing. 4. Sector context: Government services, specifically security for diplomatic facilities.

Value Assessment

Rating: fair

The contract value is substantial, but the time-and-materials pricing structure can lead to cost overruns if not managed closely. Benchmarking against similar embassy security contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, indicating a competitive bidding process. However, the time-and-materials (T&M) contract type may limit price certainty compared to fixed-price contracts, potentially impacting the government's ability to achieve the lowest possible price.

Taxpayer Impact: While competition is positive, the T&M structure necessitates vigilant oversight to ensure taxpayer funds are used efficiently and effectively for the required security services.

Public Impact

Ensures security for U.S. personnel and assets at the Tokyo Embassy. Supports the diplomatic mission by providing essential security infrastructure. Creates jobs within the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Long contract duration
Potential for scope creep

Positive Signals

Full and open competition
Essential service provision

Sector Analysis

This contract falls within the government services sector, specifically focusing on security. Benchmarks for similar contracts would typically consider the size of the facility, threat level, and specific security requirements.

Small Business Impact

The data indicates the awardee was 'MISCELLANEOUS FOREIGN AWARDEES' and the contract was not set aside for small businesses (ss: false, sb: false). This suggests larger, potentially foreign-based companies were the primary bidders, with limited direct opportunity for U.S. small businesses on this specific award.

Oversight & Accountability

The Department of State, as the contracting agency, is responsible for oversight. The long duration and T&M nature of the contract require robust monitoring mechanisms to ensure performance standards are met and costs remain controlled.

Related Government Programs

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

Risk Flags

Time and Materials pricing structure can lead to cost uncertainty and potential overruns.
Long contract duration (over 5 years) increases exposure to changing requirements and market conditions.
Lack of specific small business set-aside may limit opportunities for smaller domestic firms.
Potential for vendor lock-in due to the specialized nature of embassy security.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $55.6 million to MISCELLANEOUS FOREIGN AWARDEES. LOCAL GUARD SERVICES US EMASSY TOKYO

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 $55.6 million.

What is the period of performance?

Start: 2010-09-18. End: 2016-07-31.

What was the average hourly rate or cost per guard under this Time and Materials contract, and how does it compare to industry benchmarks for similar roles in Tokyo?

Determining the average hourly rate or cost per guard requires access to the contract's detailed pricing structure, which is not provided in the summary data. A thorough analysis would involve comparing these rates against prevailing wages and market rates for security personnel in Tokyo, considering factors like experience, certifications, and security clearances required for embassy duty.

Given the 5-year duration and T&M structure, what mechanisms were in place to control costs and prevent potential overruns or unnecessary services?

Effective cost control under a T&M contract of this duration typically relies on strong contract administration, including detailed work requirement definitions, regular performance reviews, and established ceilings or not-to-exceed clauses. The agency's oversight team would need to diligently track labor hours, material costs, and task completion against the defined scope to mitigate risks of overspending.

How did the full and open competition process ensure that the selected vendor provided the best value, considering the inherent cost uncertainties of a T&M contract?

Full and open competition aims to maximize the pool of potential bidders, driving down prices through market forces. For T&M contracts, 'best value' is often determined by a combination of technical approach, past performance, and price, rather than solely the lowest price. The evaluation criteria would have weighed how well each offeror demonstrated their ability to manage costs effectively and deliver required security outcomes.

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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $167,633,115

Exercised Options: $63,418,423

Current Obligation: $55,603,533

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline