State Department awards $648M contract for protective security services in Iraq to Triple Canopy Inc

Contract Overview

Contract Amount: $648,205,282 ($648.2M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of State

Start Date: 2016-09-30

End Date: 2022-06-27

Contract Duration: 2,096 days

Daily Burn Rate: $309.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF BAGHDAD PROTECTIVE SECURITY OFFICE OF OVERSEAS PROTECTIVE SERVICES BUREAU FOR DIPLOMATIC SECURITY US DEPARTMENT OF STATE

Plain-Language Summary

Department of State obligated $648.2 million to TRIPLE CANOPY INC for work described as: IGF::OT::IGF BAGHDAD PROTECTIVE SECURITY OFFICE OF OVERSEAS PROTECTIVE SERVICES BUREAU FOR DIPLOMATIC SECURITY US DEPARTMENT OF STATE Key points: 1. Significant contract value highlights the ongoing need for security in high-risk environments. 2. Triple Canopy Inc. is a major player in private security contracting. 3. The long duration of the contract (2016-2022) suggests sustained operational requirements. 4. The 'Security Guards and Patrol Services' NAICS code indicates a focus on personnel-based security. 5. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $648.2M over approximately 6 years is substantial for security services. Benchmarking against similar large-scale security contracts in conflict zones would be necessary for a precise assessment, but the scale suggests significant operational costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors were allowed to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Ensures the safety of U.S. diplomatic personnel and facilities in Iraq. Supports U.S. foreign policy objectives by maintaining a secure environment for diplomatic operations. Provides employment opportunities within the private security sector. Potential for contractor performance issues impacting mission success. Geopolitical stability in Iraq directly influences the need and cost of these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a high-risk environment.
Dependence on a single contractor for critical security functions.
Contract duration may not align perfectly with evolving security needs.
Performance monitoring challenges in a remote location.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for security operations.
Established contractor with experience in similar environments.
Clear definition of security services required.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to security and investigation services. Spending in this area is often driven by geopolitical events and the need to protect government assets and personnel abroad.

Small Business Impact

The data indicates this contract was awarded to Triple Canopy Inc., a large private security firm. There is no explicit indication of small business participation or subcontracting in the provided data, suggesting it may not have directly benefited small businesses.

Oversight & Accountability

Oversight would typically involve the Department of State's Bureau for Diplomatic Security, ensuring contractor compliance with performance standards and contract terms. Regular performance reviews and audits are crucial for accountability, especially given the high-risk operational environment.

Related Government Programs

Security Guards and Patrol Services
Department of State Contracting
Department of State Programs

Risk Flags

High contract value.
Long contract duration.
Operation in a high-risk environment (Iraq).
Time and Materials pricing structure.
Potential for performance issues.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $648.2 million to TRIPLE CANOPY INC. IGF::OT::IGF BAGHDAD PROTECTIVE SECURITY OFFICE OF OVERSEAS PROTECTIVE SERVICES BUREAU FOR DIPLOMATIC SECURITY US DEPARTMENT OF STATE

Who is the contractor on this award?

The obligated recipient is TRIPLE CANOPY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $648.2 million.

What is the period of performance?

Start: 2016-09-30. End: 2022-06-27.

What was the specific pricing structure (e.g., labor rates, overhead) used for this Time and Materials contract, and how did it compare to government estimates?

The Time and Materials (T&M) pricing structure for this contract implies that the government pays for direct labor hours at specified rates, plus the actual cost of materials, plus a fixed fee or percentage for overhead and profit. Without access to the detailed contract line items and the government's Independent Government Cost Estimate (IGCE), a precise comparison is impossible. However, T&M contracts carry inherent risks of cost growth, making robust oversight and negotiation of labor rates critical to ensure value for taxpayers.

What mechanisms were in place to mitigate risks associated with contractor performance and potential security breaches in a high-threat environment like Iraq?

Mitigation strategies likely included stringent background checks and vetting for contractor personnel, clearly defined performance work statements (PWS) with measurable metrics, regular performance evaluations by government representatives, and established protocols for incident reporting and response. The contract's duration and value suggest a mature relationship, potentially involving established communication channels and joint risk management efforts between the State Department and Triple Canopy Inc.

How effectively did the full and open competition process ensure the government secured the best value for these critical security services, considering the unique challenges of operating in Iraq?

Full and open competition is designed to maximize the pool of potential bidders, thereby increasing the likelihood of receiving competitive offers and identifying the best value. For services in Iraq, this process likely involved pre-qualification of firms with demonstrated experience and security clearances. The success in securing best value would depend on the clarity of the solicitation, the evaluation criteria used, and the government's ability to negotiate favorable terms, balancing cost with essential security capabilities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SAQMMA16R0340

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12018 SUNRISE VLY DR STE 140, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $1,415,497,292

Exercised Options: $1,298,903,033

Current Obligation: $648,205,282

Actual Outlays: $89,749,753

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA16D0048

IDV Type: IDC

Timeline