State Department Awards $66.5M for Local Guard Services to Foreign Entities, Lacking Competition
Contract Overview
Contract Amount: $66,555,105 ($66.6M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of State
Start Date: 2014-04-01
End Date: 2020-09-30
Contract Duration: 2,374 days
Daily Burn Rate: $28.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LOCAL GUARD SERVICES CONTRACT AWARD IGF::OT::IGF
Plain-Language Summary
Department of State obligated $66.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: LOCAL GUARD SERVICES CONTRACT AWARD IGF::OT::IGF Key points: 1. Significant award value of $66.5 million over six years. 2. Contract awarded to 'Miscellaneous Foreign Awardees' suggests limited visibility into specific vendors. 3. Lack of competition raises concerns about price discovery and potential overpayment. 4. The sector is Security Guards and Patrol Services, a common government need.
Value Assessment
Rating: questionable
The contract's total value is substantial. Without competitive bidding, it's difficult to assess if the pricing represents fair market value compared to similar security contracts. The 'Time and Materials' pricing structure can also lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a limited competition approach. This likely means the agency identified a specific need or vendor without exploring broader market options, potentially hindering price discovery and leading to less favorable terms.
Taxpayer Impact: The absence of competition for a $66.5 million contract means taxpayers may not have received the best possible price, as market forces were not leveraged to drive down costs.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Limited transparency on the specific foreign awardees makes oversight challenging. The long duration of the contract (over 6 years) locks in current pricing without market adjustments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Foreign Awardees (Limited Visibility)
- Time and Materials Pricing
Positive Signals
- Essential Service Provided
- Long-Term Contract (Potential Stability)
Sector Analysis
The security services sector is critical for government operations, but often faces scrutiny regarding cost-effectiveness. Benchmarks for similar contracts are hard to establish without competitive data, especially for foreign-based services.
Small Business Impact
The data indicates the contract was not awarded to small businesses (ss: false, sb: false). This contract did not provide opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status and award to 'MISCELLANEOUS FOREIGN AWARDEES' suggest potential weaknesses in oversight. Further investigation is needed to understand why competition was limited and to ensure accountability for the funds expended.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Vendor Transparency
- Long Contract Duration
- Time and Materials Pricing Structure
Tags
security-guards-and-patrol-services, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $66.6 million to MISCELLANEOUS FOREIGN AWARDEES. LOCAL GUARD SERVICES CONTRACT AWARD IGF::OT::IGF
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 $66.6 million.
What is the period of performance?
Start: 2014-04-01. End: 2020-09-30.
What was the justification for not competing this significant security services contract, and were alternative solutions explored?
The justification for not competing this $66.5 million contract is not provided in the data. Typically, non-competitive awards are made under specific circumstances, such as urgent needs or sole-source capabilities. Without this justification, it's impossible to assess if alternative solutions were adequately explored or if this was the most responsible approach to fulfilling the requirement.
How can the Department of State ensure fair pricing and effective service delivery from 'Miscellaneous Foreign Awardees' without competitive benchmarks?
Ensuring fair pricing and effective service delivery from 'Miscellaneous Foreign Awardees' without competitive benchmarks is challenging. The Department should implement rigorous performance monitoring, establish clear service level agreements, and potentially conduct post-award audits. Seeking independent cost analyses or market research, even after the award, could provide some level of assurance.
What is the potential risk of cost escalation with a Time and Materials contract awarded non-competitively over a six-year period?
The risk of cost escalation with a non-competitively awarded Time and Materials contract over six years is significant. Without competitive pressure, there's less incentive for the contractor to control labor hours or material costs. The 'Time and Materials' structure inherently allows costs to fluctuate based on effort, making it susceptible to increases, especially over a long duration without market checks.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1800 F ST NW, WASHINGTON, DC, 20405
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $81,713,006
Exercised Options: $81,713,006
Current Obligation: $66,555,105
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-04-01
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2021-02-17
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