State Department security contract awarded to joint venture for over $57.6 million

Contract Overview

Contract Amount: $57,686,162 ($57.7M)

Contractor: Sicuritalia - Securitas Critical Infrastructure Services Inc JV

Awarding Agency: Department of State

Start Date: 2015-01-01

End Date: 2020-12-31

Contract Duration: 2,191 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF

Plain-Language Summary

Department of State obligated $57.7 million to SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV for work described as: IGF::OT::IGF Key points: 1. Contract value exceeds $57.6 million over its five-year term. 2. Awarded via full and open competition, indicating broad market engagement. 3. Contract type is Time and Materials, which can pose cost control challenges. 4. The contractor is a joint venture, potentially indicating specialized capabilities or risk mitigation. 5. The contract duration is substantial, spanning 2191 days. 6. The North American Industry Classification System (NAICS) code is 561612 for Security Guards and Patrol Services.

Value Assessment

Rating: fair

The total award amount of $57.6 million over five years averages to approximately $11.5 million annually. Benchmarking this against similar large-scale security contracts for federal agencies is challenging without more granular data on the specific services provided and geographic coverage. However, the Time and Materials pricing structure, while flexible, carries inherent risks of cost overruns if not meticulously managed and monitored. The absence of a fixed price component suggests a potential for higher-than-anticipated expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The presence of 5 bids indicates a reasonable level of competition for this service. This competitive process is generally expected to drive prices towards market rates and encourage efficiency among bidders. However, the specific details of the bidding process and the evaluation criteria are not provided, which limits a deeper assessment of the competitive dynamics.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically leads to better pricing and service quality compared to sole-source or limited competition scenarios. It ensures that taxpayer funds are used more efficiently by leveraging market forces.

Public Impact

Provides critical security services to the Department of State, safeguarding personnel and facilities. Benefits federal employees and potentially foreign dignitaries requiring secure environments. Geographic impact is likely global, supporting State Department operations worldwide. Workforce implications include employment for security personnel employed by the joint venture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Joint venture structure may introduce complexity in accountability and performance oversight.
Long contract duration requires sustained vigilance to ensure ongoing value and performance.
Limited public information on specific performance metrics makes independent assessment difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Multiple bids received indicate market interest and potential for competitive pricing.
The contractor is a joint venture, potentially bringing together specialized expertise.
The contract supports essential government functions related to security.

Sector Analysis

The security services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The market for federal security services is substantial, with numerous private companies competing for government contracts. Spending in this area is driven by the need to protect federal assets, personnel, and sensitive information across various agencies and locations, both domestically and abroad. Comparable spending benchmarks would typically involve analyzing the average cost per guard, per facility, or per square foot protected for similar government contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the joint venture structure itself might involve small businesses as partners, or the prime contractor may voluntarily engage small businesses for subcontracting opportunities. Without further details on the joint venture's composition or the prime's subcontracting plan, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Time and Materials nature of the contract necessitates rigorous oversight to control costs and prevent scope creep. Transparency is facilitated through contract award databases, but detailed performance reports and Inspector General audits, if any, are not publicly detailed in the provided data. The Inspector General of the Department of State would have jurisdiction for audits and investigations.

Related Government Programs

Department of State Security Contracts
Federal Security Guard Services
Time and Materials Contracts
Joint Venture Federal Contracts
Government Security Services

Risk Flags

Time and Materials pricing structure carries inherent cost overrun risk.
Joint venture structure may complicate performance oversight and accountability.
Long contract duration requires sustained vigilance for performance and value.
Limited public data on specific performance metrics hinders independent assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $57.7 million to SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.7 million.

What is the period of performance?

Start: 2015-01-01. End: 2020-12-31.

What is the historical spending pattern for security services by the Department of State?

Historical spending on security services by the Department of State is substantial and has generally trended upwards over the past decade, reflecting increased global security needs and the expansion of U.S. diplomatic missions. While specific figures for security guards and patrol services vary annually, the Department consistently allocates significant resources to protect its personnel, facilities, and information worldwide. Factors influencing this spending include geopolitical events, the number and location of diplomatic posts, and evolving security threats. Analyzing past contract awards, including their values, durations, and competition levels, reveals a consistent demand for these services, often awarded through competitive processes but also including sole-source or limited competition contracts for specialized or urgent requirements. The trend suggests a long-term commitment to maintaining robust security infrastructure.

How does the awarded amount compare to other similar federal security contracts?

The awarded amount of $57.6 million over five years, averaging approximately $11.5 million annually, places this contract within the mid-to-large tier for federal security service agreements. Comparable contracts often involve providing security guards, patrol services, and access control for federal buildings, embassies, and sensitive sites. For instance, contracts for the General Services Administration (GSA) or the Department of Homeland Security (DHS) for similar services can range from a few million to tens of millions of dollars annually, depending on the scope, location, and duration. The Time and Materials (T&M) pricing structure of this contract, however, makes direct cost-per-unit comparisons difficult without detailed labor rates and material costs. Contracts with fixed-price components or performance-based metrics might offer clearer value benchmarks.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk associated with a Time and Materials (T&M) contract of this magnitude ($57.6 million) is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, meaning the government pays for the actual labor hours and materials used, plus a markup. This structure can incentivize contractors to extend work or use more resources than strictly necessary, especially if oversight is lax. For the Department of State, risks include unexpected increases in labor rates, overtime, and material costs, potentially exceeding initial budget projections. Effective risk mitigation requires robust contract administration, detailed tracking of all hours and materials, clear definitions of work, and strong oversight from contracting officers to ensure efficiency and prevent contractor inefficiency from driving up costs.

What is the track record of SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV?

Information regarding the specific track record of the joint venture 'SICURITALIA - SECURITAS CRITICAL INFRASTRUCTURE SERVICES INC JV' is not detailed in the provided data. However, both SICURITALIA and SECURITAS are established entities in the security services industry. SECURITAS, in particular, is a global security company with extensive experience in providing security solutions to various sectors, including government clients. The formation of a joint venture suggests a strategic alliance to combine specific capabilities, resources, or market access to meet the requirements of large contracts like this one. A thorough assessment of the JV's track record would typically involve reviewing past performance on similar government contracts, client satisfaction surveys, and any history of disputes or performance issues. Without specific data on the JV's prior performance, it's assumed their capabilities were deemed sufficient during the competitive bidding process.

How does the competition level impact the value for taxpayers?

The fact that this contract was awarded under 'full and open competition' with five bids received is a positive indicator for taxpayer value. A competitive environment generally forces bidders to offer their best pricing and most efficient service offerings to win the contract. This process helps ensure that the government is not overpaying for the services rendered, as multiple companies vie for the business. The presence of several bidders suggests that the market has adequate capacity and interest in providing these security services, preventing a situation where a single provider could dictate terms and prices. While the Time and Materials nature of the contract introduces some cost uncertainty, the competitive award process provides a foundational level of assurance that the initial rates and proposed efficiencies are market-driven.

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

Solicitation ID: SAQMMA14R0179

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6850 VERSAR CENTER, STE 400, SPRINGFIELD, VA, 22151

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

Financial Breakdown

Contract Ceiling: $62,664,800

Exercised Options: $59,763,183

Current Obligation: $57,686,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline