State Department's $22.4M Embassy Guard Contract Awarded to SOS Security Inc. for Jamaica Operations

Contract Overview

Contract Amount: $22,369,162 ($22.4M)

Contractor: SOS Security Incorporated

Awarding Agency: Department of State

Start Date: 2011-03-31

End Date: 2017-04-30

Contract Duration: 2,222 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SERVICE CONTRACT FOR LOCAL GUARD SERVICES AT U.S. EMBASSY JAMAICA, BASE YEAR AND FOUR OPTION YEARS

Plain-Language Summary

Department of State obligated $22.4 million to SOS SECURITY INCORPORATED for work described as: SERVICE CONTRACT FOR LOCAL GUARD SERVICES AT U.S. EMBASSY JAMAICA, BASE YEAR AND FOUR OPTION YEARS Key points: 1. The contract's total value of $22.4 million over its potential 5-year period suggests a significant investment in security infrastructure. 2. Awarded under full and open competition, the contract indicates a market where multiple vendors could potentially bid. 3. The use of a definitive contract type with labor hours points to a need for flexible service delivery. 4. The contract duration of 2222 days (approximately 6 years) provides a stable security presence but may limit agility. 5. The North American Industry Classification System (NAICS) code 561612 categorizes this as Security Guards and Patrol Services, a common requirement for federal facilities. 6. The base year plus four option years structure allows for phased commitment and potential adjustments based on performance or evolving needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the prevailing market rates for security personnel in Jamaica. However, the total award of $22.4 million over approximately six years averages to roughly $3.7 million annually. This figure needs to be compared against the cost of similar security contracts at other U.S. embassies or government facilities of comparable size and risk profile. Without specific details on guard numbers, hours, and required qualifications, a precise value-for-money assessment is challenging. The use of labor hours can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the Department of State solicited bids from all responsible sources. The presence of 6 bidders indicates a reasonably competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process, such as the evaluation criteria and the number of proposals received, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive marketplace, driving down prices and encouraging efficiency among service providers.

Public Impact

U.S. Embassy in Jamaica benefits from enhanced physical security and personnel protection. Provides essential security guard and patrol services to safeguard diplomatic personnel, visitors, and government property. The contract ensures a consistent security posture at the embassy, contributing to the safety of U.S. interests abroad. Supports local employment in Jamaica through the hiring of security personnel by the contractor, SOS Security Incorporated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to the labor hours contract type if not closely monitored.
Dependence on a single contractor for critical security functions over an extended period.
Ensuring consistent quality and performance across all shifts and personnel requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract structure with option years allows for flexibility and continuity of essential services.
The contractor, SOS Security Incorporated, is likely experienced in providing security services to government facilities.

Sector Analysis

The security services sector is a significant component of the federal contracting landscape, encompassing a wide range of protective services. This contract falls within the security guards and patrol services sub-sector, which is characterized by a mix of large, established firms and smaller, specialized providers. Federal agencies, particularly diplomatic missions, represent a substantial market for these services due to the critical need for secure facilities and personnel. Benchmarks for similar contracts would typically consider the number of guards, hours of service, geographic location, and specific security requirements.

Small Business Impact

This contract was awarded to SOS Security Incorporated and does not indicate any specific small business set-aside provisions or subcontracting requirements mentioned in the provided data. Therefore, the direct impact on the small business ecosystem appears limited unless SOS Security Incorporated engages small businesses for subcontracting opportunities, which is not detailed here. Further investigation into the contractor's subcontracting plan would be necessary to assess its impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of State's contracting officers and security personnel at the U.S. Embassy in Jamaica. Accountability measures would be embedded in the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is generally maintained through contract award databases, though specific operational details of security services are often sensitive. The Inspector General of the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Embassy Security Contracts
Protective Services Contracts
Department of State Contracts
Global Security Services
Federal Security Guard Services

Risk Flags

Potential for cost overruns due to labor hour contract type.
Ensuring consistent quality of service across all shifts and personnel.
Dependence on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.4 million to SOS SECURITY INCORPORATED. SERVICE CONTRACT FOR LOCAL GUARD SERVICES AT U.S. EMBASSY JAMAICA, BASE YEAR AND FOUR OPTION YEARS

Who is the contractor on this award?

The obligated recipient is SOS SECURITY INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2011-03-31. End: 2017-04-30.

What is the historical spending pattern for security services at the U.S. Embassy in Jamaica prior to this contract?

Analyzing historical spending for security services at the U.S. Embassy in Jamaica prior to this contract (awarded in 2011) would involve reviewing previous contract awards for similar services. This would likely reveal trends in contract values, durations, and awarded vendors. For instance, if previous contracts were significantly smaller or awarded to different companies, it might indicate an increase in security needs or a shift in market dynamics. Understanding past spending helps contextualize the $22.4 million award, assessing whether it represents a substantial increase, a consistent investment, or a response to changing geopolitical or security environments. Without access to historical contract databases specific to this embassy, a precise historical spending analysis is not possible with the provided data.

How does the per-guard cost under this contract compare to industry benchmarks for security personnel in similar international postings?

Determining the per-guard cost requires knowing the number of guards, their hours, and their pay rates, which are not explicitly detailed in the provided data. The total contract value of $22.4 million over approximately 2222 days (roughly 6 years) averages to about $3.7 million per year. If we assume, for example, 50 guards working 12-hour shifts, 7 days a week, the annual cost per guard would be around $140,000. This figure needs to be benchmarked against industry standards for security personnel in Jamaica, considering factors like local labor costs, required certifications, and the specific security threat level. International postings often command higher rates due to logistical challenges and risk premiums. A detailed comparison would necessitate access to specific guard deployment numbers and wage data within the contract.

What specific performance metrics were used to evaluate SOS Security Incorporated's service delivery throughout the contract period?

The provided data does not specify the exact performance metrics used to evaluate SOS Security Incorporated. However, typical performance metrics for security guard contracts include response times to incidents, adherence to post orders, guard attentiveness and professionalism, incident reporting accuracy, and overall effectiveness in preventing unauthorized access or disturbances. The Department of State likely had a Performance Work Statement (PWS) outlining these requirements and a Quality Assurance Surveillance Plan (QASP) to monitor compliance. Contract close-out documentation or performance reviews, if publicly available, would detail how SOS Security Incorporated's performance was measured and whether it met the government's expectations.

Were there any significant contract modifications or change orders issued to SOS Security Incorporated during the contract's lifespan?

The provided data does not detail any contract modifications or change orders issued to SOS Security Incorporated for this contract. Contract modifications can occur for various reasons, such as changes in scope, adjustments to contract duration, or modifications to pricing based on unforeseen circumstances or evolving requirements. Significant modifications would typically be documented and publicly accessible through contract databases. The absence of this information in the summary data suggests either that there were no major modifications or that such details are not included in this specific data extract. Further research into the contract's official record would be needed to confirm.

What is the track record of SOS Security Incorporated in fulfilling federal contracts, particularly those involving embassy security?

SOS Security Incorporated has a history of performing federal contracts, including security services. While the provided data focuses on this specific contract for the U.S. Embassy in Jamaica, a broader assessment of their track record would involve examining other contracts they have held with various federal agencies. Key aspects to consider include their performance history on similar security contracts, any past performance issues or disputes, their ability to manage large-scale security operations, and their compliance with federal acquisition regulations. Information on their past performance can often be found in federal contract databases and through sources like the Contractor Performance Assessment Reporting System (CPARS), if available.

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: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1915 US HWY 46 STE 1, PARSIPPANY, NJ, 07054

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

Financial Breakdown

Contract Ceiling: $24,369,645

Exercised Options: $24,369,645

Current Obligation: $22,369,162

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline