State Department awards $720M+ for overseas security services, highlighting long-term contract needs

Contract Overview

Contract Amount: $720,426,496 ($720.4M)

Contractor: International Development Solutions LLC

Awarding Agency: Department of State

Start Date: 2012-03-21

End Date: 2019-02-09

Contract Duration: 2,516 days

Daily Burn Rate: $286.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $720.4 million to INTERNATIONAL DEVELOPMENT SOLUTIONS LLC for work described as: OVERSEAS CONTRACT Key points: 1. Contract value exceeds $720 million over its lifecycle, indicating significant investment in overseas security. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. A long performance period (2012-2019) implies a sustained need for these security services. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The primary contractor, INTERNATIONAL DEVELOPMENT SOLUTIONS LLC, secured a substantial portion of the award. 6. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services.

Value Assessment

Rating: good

The total award of over $720 million for security guard services is substantial. Benchmarking this against similar large-scale overseas security contracts is challenging without more specific service details. However, the duration and scope suggest a significant operational requirement. The Time and Materials pricing model, while flexible, warrants close monitoring to ensure cost-effectiveness and prevent scope creep. The number of delivery orders (8) indicates a structured approach to tasking within the larger contract.

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 bids. The presence of 8 delivery orders suggests a well-defined need that was met through this competitive process. A fully competed contract generally fosters price discovery and encourages competitive pricing among bidders, potentially leading to better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and service offerings for essential overseas security operations.

Public Impact

Provides critical security services to protect U.S. personnel and interests at overseas diplomatic facilities. Ensures the safety and operational continuity of U.S. government operations abroad. Supports the U.S. Department of State's mission in potentially high-risk environments. The contract likely supports a significant number of security personnel, impacting the workforce in various overseas locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not meticulously managed and monitored.
The long duration of the contract (over 6 years) might indicate a lack of agile procurement or potential for vendor lock-in.
Reliance on a single primary contractor for such a critical and extensive service raises concerns about contingency planning if the contractor fails.

Positive Signals

Awarded through full and open competition, maximizing the potential for competitive pricing and best value.
The contract structure with multiple delivery orders suggests a phased or task-based approach to service delivery.
The substantial value indicates a critical and sustained need for these security services, reflecting the importance of protecting overseas assets.

Sector Analysis

The security services sector is a large and diverse market, encompassing physical security, cybersecurity, and consulting. This contract falls within the physical security sub-sector, specifically focusing on guard and patrol services for government facilities abroad. The market is characterized by both large multinational corporations and smaller specialized firms. Government contracts for overseas security are often substantial due to the complex and high-risk environments in which they operate, requiring robust and reliable service providers.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on small businesses. However, large prime contracts often have subcontracting requirements, which could potentially flow down to small businesses if the prime contractor utilizes them for specific services or support roles.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of State. The contract's duration and value suggest regular performance reviews and financial oversight would be in place. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Overseas Contingency Operations (OCO)
Diplomatic Security Service Contracts
Global Security Services
Department of State Facilities Management

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may limit flexibility and competition over time.
Concentration of critical security services with one primary contractor.
Lack of explicit small business subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $720.4 million to INTERNATIONAL DEVELOPMENT SOLUTIONS LLC. OVERSEAS CONTRACT

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 $720.4 million.

What is the period of performance?

Start: 2012-03-21. End: 2019-02-09.

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

The contract, identified by NAICS code 561612, specifically covers Security Guards and Patrol Services. This typically includes providing trained personnel to guard government facilities, monitor access, patrol premises, respond to incidents, and maintain a secure environment at overseas locations. The exact scope would be detailed in the individual delivery orders issued under the base contract, potentially varying based on the specific risks and requirements of each diplomatic post or facility.

How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar security services?

Time and Materials (T&M) contracts offer flexibility, allowing the government to pay for the actual labor hours and material costs incurred. This can be advantageous for services where the scope is uncertain or likely to change. However, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts, as the final cost is not predetermined. For security services, fixed-price contracts might be preferred for predictable, routine guard duties, while T&M could be used for more specialized, evolving, or emergency response security needs where the exact effort is difficult to define upfront. Effective oversight is crucial with T&M to control costs.

What is the typical track record of INTERNATIONAL DEVELOPMENT SOLUTIONS LLC on government contracts of this scale?

Information regarding the specific track record of INTERNATIONAL DEVELOPMENT SOLUTIONS LLC on contracts of this scale (over $720 million) is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on similar large-value government procurements. Federal procurement databases and past performance reviews would be the primary sources for evaluating their reliability, quality of service, and adherence to contract terms on comparable projects.

What were the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) used for this contract. Typically, for security guard services, KPIs would include metrics such as response times to incidents, adherence to post orders, personnel reliability (e.g., attendance, background checks), incident reporting accuracy, and overall effectiveness in preventing security breaches. The Department of State's Performance Work Statement (PWS) would outline these specific requirements and how the contractor's performance would be measured and evaluated throughout the contract period.

How does the $720M+ spending on overseas security compare to historical trends for the Department of State?

The $720 million+ awarded over the contract's lifecycle represents a significant investment in overseas security services for the Department of State. To compare this to historical trends, one would need to analyze the Department's total spending on security services over multiple fiscal years, looking at the average contract values, the number of security contracts awarded, and the overall proportion of the budget allocated to security. This figure suggests a sustained and substantial commitment to protecting diplomatic personnel and facilities abroad, potentially reflecting evolving geopolitical risks or an expansion of U.S. diplomatic presence.

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: 8

Pricing Type: TIME AND MATERIALS (Y)

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: $796,132,928

Exercised Options: $775,426,386

Current Obligation: $720,426,496

Actual Outlays: $82,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0098

IDV Type: IDC

Timeline