State Department awards $39.8M for overseas security guards, raising questions about foreign awardee transparency

Contract Overview

Contract Amount: $39,840,269 ($39.8M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of State

Start Date: 2017-08-11

End Date: 2022-08-11

Contract Duration: 1,826 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $39.8 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a potentially competitive bidding process. 2. Significant duration of 5 years indicates a long-term need for these security services. 3. Use of Time and Materials pricing could lead to cost overruns if not closely managed. 4. Lack of specific small business set-aside raises questions about opportunities for smaller domestic firms. 5. Awardee information is undisclosed, hindering assessment of contractor experience and potential conflicts of interest. 6. High dollar value suggests critical security needs in overseas locations.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the undisclosed foreign awardees and the nature of security services, which can vary greatly by location and threat level. The Time and Materials pricing structure, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Without more information on the specific services rendered and the prevailing market rates for comparable security in the regions of operation, a definitive value-for-money assessment is difficult. The lack of transparency regarding the awardees themselves is a significant concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the number of bids received and the specific details of the competition are not provided. The fact that it was competed openly is a positive sign for price discovery, but the ultimate selection of foreign, undisclosed awardees warrants further scrutiny regarding the effectiveness of the competition in securing the best value for the U.S. taxpayer.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices. However, the undisclosed nature of the foreign awardees in this instance limits the ability to confirm if the most cost-effective and capable providers were indeed selected.

Public Impact

Provides essential security services for U.S. personnel and assets in potentially high-risk overseas environments. Supports the operational continuity of the Department of State's diplomatic missions abroad. Indirectly benefits local workforces in host countries through employment opportunities for security personnel. Enhances the safety and security of U.S. diplomats and government employees stationed internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding foreign awardee identity and qualifications.
Potential for cost overruns due to Time and Materials pricing structure.
Limited insight into the specific security threats and operational requirements driving the contract.
Uncertainty about the extent of domestic small business participation or subcontracting opportunities.

Positive Signals

Awarded through full and open competition, suggesting a structured procurement process.
Long contract duration implies a recognized and sustained need for these critical services.
The contract addresses vital security needs for U.S. interests abroad.

Sector Analysis

This contract falls within the Security and Investigation Services sector, a broad category encompassing guard services, background checks, and investigative activities. The market for private security services, particularly for government agencies operating in complex international environments, is substantial. This specific award addresses a niche within the sector focused on physical security and patrol for diplomatic or governmental facilities abroad. Comparable spending benchmarks are difficult to establish without knowing the specific geographic locations and threat levels, but government contracts for overseas security are typically significant due to the inherent risks and operational demands.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or actual performance related to small businesses. This suggests that the primary awardee(s) are likely larger entities, and opportunities for small businesses to participate in this contract may be limited unless they are part of the supply chain for the undisclosed foreign awardees.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of State's contracting officers and potentially its Office of Inspector General (OIG). The long duration and significant value necessitate robust oversight to ensure performance standards are met and costs are controlled. Transparency is a key concern given the undisclosed awardees, which could complicate accountability. The effectiveness of oversight would depend on the clarity of performance metrics, reporting requirements, and the diligence of the contracting officer's representatives.

Related Government Programs

Department of State Security Services Contracts
Overseas Diplomatic Security
Private Security Contractor Services
Global Security Operations

Risk Flags

Undisclosed Foreign Awardees
Lack of Transparency in Competition Outcome
Potential for Cost Overruns (T&M Pricing)
Limited Small Business Participation Indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $39.8 million to FOREIGN AWARDEES (UNDISCLOSED). OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is FOREIGN AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $39.8 million.

What is the period of performance?

Start: 2017-08-11. End: 2022-08-11.

What specific security services are being provided under this contract, and what are the geographic locations of these services?

The contract is categorized under NAICS code 561612, which pertains to Security Guards and Patrol Services. This typically includes providing on-site security personnel for monitoring, surveillance, and protection of facilities, property, and individuals. While the contract data specifies 'OVERSEAS CONTRACT,' it does not detail the specific countries or regions where these services are deployed. The Department of State operates numerous embassies, consulates, and facilities worldwide, each with unique security requirements based on local conditions and threat assessments. Without further disclosure, the exact scope and locations remain unspecified, making it difficult to fully assess the contract's operational context and risks.

Can the identity and track record of the foreign awardees be ascertained, and what is their experience in providing similar security services?

The provided data explicitly states 'FOREIGN AWARDEES (UNDISCLOSED)' for the contractor information (co). This lack of transparency prevents any direct assessment of the awardees' identities, their corporate structures, or their specific track records in providing security guard and patrol services. While the contract was awarded through full and open competition, the inability to identify the winning entities raises significant concerns regarding due diligence, potential conflicts of interest, and the ability to verify their qualifications, past performance, and adherence to ethical standards. This opacity hinders a thorough evaluation of the contractor's reliability and suitability for such a critical security role.

How does the Time and Materials (T&M) pricing structure compare to industry standards for similar overseas security contracts, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or when unforeseen circumstances are likely. For security services, T&M can be advantageous for flexibility in staffing levels based on fluctuating threats. However, it shifts the cost risk to the government, as the final price depends on the actual labor hours and material costs incurred by the contractor. Industry best practices often favor fixed-price contracts for well-defined services to ensure cost certainty. The primary risk with T&M here is the potential for cost escalation if labor hours are not diligently monitored and controlled by the government's contracting officer's representative (COR). Without detailed performance data and oversight, it's difficult to benchmark this specific T&M application against market rates.

What was the competitive landscape for this contract, including the number of bids received and the rationale for selecting the undisclosed foreign awardees?

The contract was awarded under 'FULL AND OPEN COMPETITION' (ct), which theoretically means that all responsible sources were permitted to submit bids. However, the data does not specify the number of bids received (no: 5 is listed, but this may refer to the number of contract modifications or task orders, not initial bids). Crucially, the identity of the awardees is undisclosed, making it impossible to determine their origin or the specific rationale behind their selection beyond meeting the stated requirements. While competition existed, the lack of transparency surrounding the winning bidders prevents a full analysis of whether the competition effectively identified the most capable and cost-efficient providers for the Department of State.

What is the historical spending pattern for overseas security guard and patrol services by the Department of State, and how does this $39.8M contract compare?

Analyzing historical spending requires access to broader contract databases and budget information beyond this single award. However, the $39.8 million value over five years ($7.96 million annually on average) for overseas security guard and patrol services suggests a significant and ongoing requirement for the Department of State. This level of expenditure is consistent with the need to secure numerous diplomatic facilities in potentially volatile regions globally. Without comparative data on previous contracts for similar services, it's difficult to definitively state if this represents an increase, decrease, or stable level of spending. However, the substantial amount indicates that overseas security is a major budgetary item for the department.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

Publicly available contract data, such as the information provided, typically does not include detailed performance metrics or Key Performance Indicators (KPIs). These are usually outlined in the contract's statement of work (SOW) and performance work statement (PWS), which are often considered sensitive or proprietary. For a security contract, KPIs might include response times to incidents, adherence to post orders, personnel reliability rates, incident reporting accuracy, and compliance with security protocols. Effective oversight relies on these metrics, but their specifics are generally not disclosed in summary contract award data. The absence of this information limits the ability to assess the contractor's actual performance and the effectiveness of the services rendered.

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: SEALED BID

Solicitation ID: SAQMMA17R0053

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $55,846,262

Exercised Options: $55,846,262

Current Obligation: $39,840,269

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline