State Department awards $91.9M security contract to International Development Solutions LLC for Israel operations

Contract Overview

Contract Amount: $91,930,163 ($91.9M)

Contractor: International Development Solutions LLC

Awarding Agency: Department of State

Start Date: 2011-01-06

End Date: 2016-12-26

Contract Duration: 2,181 days

Daily Burn Rate: $42.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WPS: TASK ORDER 2 AWARD PLUS INCREMENTAL FUNDING (ISRAEL)

Plain-Language Summary

Department of State obligated $91.9 million to INTERNATIONAL DEVELOPMENT SOLUTIONS LLC for work described as: WPS: TASK ORDER 2 AWARD PLUS INCREMENTAL FUNDING (ISRAEL) Key points: 1. Contract value represents a significant investment in security services for U.S. interests abroad. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope creep. 3. A single award for a critical service area warrants scrutiny of contractor performance and potential single-source risks. 4. The contract duration of nearly six years suggests a long-term need for these security measures. 5. This award falls within the broader category of security and protective services, a consistent area of federal expenditure.

Value Assessment

Rating: fair

The contract value of $91.9 million over approximately six years for security services in Israel appears substantial. Benchmarking against similar contracts for security in high-risk environments is crucial. Without specific details on the scope of services (e.g., number of personnel, geographic coverage within Israel, specific security measures), a precise value-for-money assessment is difficult. However, the firm-fixed-price nature suggests an attempt to cap costs, which is a positive indicator if the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this competitive process is generally expected to yield a fair market price. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these critical security services.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it encourages multiple bids and drives down prices through market forces. This approach maximizes the chances of securing the best value for the government.

Public Impact

U.S. government personnel and facilities in Israel are the primary beneficiaries, ensuring their safety and security. The contract provides essential security guard and patrol services, contributing to the stability of U.S. diplomatic and operational presence. Geographic impact is concentrated within Israel, supporting U.S. foreign policy and national security objectives in the region. The contract likely supports a workforce of security professionals, potentially including local hires, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical security functions over an extended period.
Scope definition and management are critical to prevent cost overruns under a firm-fixed-price contract.
Ensuring consistent quality and performance of security services across all deployed personnel.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
Long-term duration indicates a stable and ongoing requirement, allowing for contractor investment in personnel and training.

Sector Analysis

The security services sector is a significant component of federal contracting, encompassing a wide range of protective and guard services. This contract falls under the 'Security Guards and Patrol Services' NAICS code (561612). Federal spending in this area is driven by the need to protect personnel, facilities, and sensitive information both domestically and abroad. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded by agencies operating in high-threat environments.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through direct subcontracting if International Development Solutions LLC chooses to engage them. The absence of set-asides means small businesses did not have a direct competitive avenue for this specific award.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Department of State, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational specifics are often sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of State Security Contracts
Overseas Security Services
Embassy Security
Protective Services Contracts
International Law Enforcement Support

Risk Flags

Potential for contractor performance issues in a critical security role.
Risk of scope creep impacting budget under firm-fixed-price contract.
Over-reliance on a single vendor for extended security operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $91.9 million to INTERNATIONAL DEVELOPMENT SOLUTIONS LLC. WPS: TASK ORDER 2 AWARD PLUS INCREMENTAL FUNDING (ISRAEL)

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL DEVELOPMENT SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $91.9 million.

What is the period of performance?

Start: 2011-01-06. End: 2016-12-26.

What specific security services are included under this contract, and how do they compare to industry standards for similar high-risk environments?

The contract specifies 'Security Guards and Patrol Services' (NAICS 561612). This typically encompasses personnel providing physical security, access control, perimeter monitoring, and response to security incidents. For high-risk environments like Israel, these services often involve highly trained personnel, potentially with specialized skills in threat assessment, emergency response, and counter-surveillance. Industry standards in such locations often mandate rigorous background checks, continuous training, and adherence to strict protocols for engagement and reporting. Without the detailed Performance Work Statement (PWS), a precise comparison is limited, but the contract value suggests a comprehensive security solution is being procured, likely exceeding basic guard services.

How does the awarded price of $91.9 million compare to similar security contracts awarded by the Department of State or other agencies in comparable regions?

Benchmarking this $91.9 million contract requires comparing it to other large-scale security service contracts awarded by the Department of State or similar agencies (e.g., Department of Defense) in regions with comparable security challenges. Factors such as the duration (nearly six years), the number of personnel required, the specific threat level, and the scope of services (e.g., static guards, mobile patrols, specialized security technology integration) heavily influence pricing. A preliminary assessment suggests that for a multi-year contract covering significant security operations in a complex environment, the total value is substantial but may be within the expected range, assuming a robust scope of work. A detailed comparison would necessitate access to the PWS and data on similar contract awards.

What is the track record of International Development Solutions LLC in performing similar large-scale security contracts for the federal government, particularly in overseas or high-risk locations?

International Development Solutions LLC (IDS) has a history of performing contracts related to security and logistics, often in challenging overseas environments. Assessing their track record for this specific $91.9 million contract requires examining past performance evaluations, any documented issues or successes on previous government contracts, and their experience in regions with security complexities similar to Israel. Information on their past performance, including client feedback and any contract disputes or awards, would be crucial for a thorough risk assessment. A review of federal procurement databases and past performance reviews would provide insights into their reliability and capability to execute this significant security task order.

Given the firm-fixed-price nature of the contract, what are the potential risks associated with scope creep or unforeseen cost increases, and how are they managed?

The firm-fixed-price (FFP) contract type aims to provide cost certainty by obligating the contractor to perform the work for a predetermined price. However, risks of scope creep—where the requirements expand beyond the original agreement—can lead to disputes or require contract modifications, potentially increasing costs. Unforeseen circumstances in a complex environment like Israel could also necessitate changes. Management of these risks relies heavily on clear initial scope definition in the Performance Work Statement (PWS), robust contract administration by the COR, and a formal change order process. The government must carefully manage taskings to ensure they align with the original PWS, while the contractor must diligently track and report any deviations or additional requirements.

What are the historical spending patterns for security services by the Department of State, and how does this contract fit within that trend?

The Department of State consistently allocates significant resources to security services, particularly for personnel and facilities in overseas posts, which often operate in challenging or high-threat environments. Historical spending patterns reflect a continuous need for guard services, physical security enhancements, and protective details. This $91.9 million contract for services in Israel aligns with the Department's ongoing commitment to ensuring the safety of its operations abroad. Analyzing past spending on similar contracts, both in duration and value, would place this award in context, indicating whether it represents a typical investment or a notable deviation from historical trends for security in that specific region or for similar mission requirements.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 TYSONS BLVD STE 1400, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $92,041,023

Exercised Options: $92,041,023

Current Obligation: $91,930,163

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0098

IDV Type: IDC

Timeline