State Dept. Spends $200M on Worldwide Protective Services II, Task Order 09 for Erbil Consulate

Contract Overview

Contract Amount: $200,341,651 ($200.3M)

Contractor: Acuity - Janus Global, LLC

Awarding Agency: Department of State

Start Date: 2017-09-29

End Date: 2023-06-20

Contract Duration: 2,090 days

Daily Burn Rate: $95.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DIPLOMATIC SECURITY - OFFICE OF OVERSEAS PROTECTIVE OPERATIONS - WORLDWIDE PROTECTIVE SERVICES II - TASK ORDER 09 - ERBIL CONSULATE IGF::OT::IGF

Plain-Language Summary

Department of State obligated $200.3 million to ACUITY - JANUS GLOBAL, LLC for work described as: DIPLOMATIC SECURITY - OFFICE OF OVERSEAS PROTECTIVE OPERATIONS - WORLDWIDE PROTECTIVE SERVICES II - TASK ORDER 09 - ERBIL CONSULATE IGF::OT::IGF Key points: 1. Significant investment in security services for a critical diplomatic post. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. Contract type is 'Time and Materials', which can pose cost control challenges. 4. Services provided are Security Guards and Patrol, a core function for diplomatic missions.

Value Assessment

Rating: fair

The total award amount is $200.34M over approximately 5.8 years. Without specific benchmarks for similar large-scale, long-term security contracts at consulates, assessing value is difficult. The Time and Materials pricing structure warrants scrutiny for potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing model may limit the effectiveness of price discovery compared to fixed-price contracts, especially for long-duration requirements.

Taxpayer Impact: Taxpayers are funding essential security for diplomatic operations abroad. The Time and Materials structure requires careful monitoring to ensure funds are used efficiently and effectively.

Public Impact

Ensures safety and security for U.S. personnel and facilities at the Erbil Consulate. Supports diplomatic relations and operations in a potentially volatile region. Provides employment opportunities within the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model
Long contract duration
Potential for cost creep

Positive Signals

Full and open competition
Essential service provision
Supports diplomatic mission

Sector Analysis

The security services sector is highly competitive, with numerous firms offering guard and patrol services. Spending benchmarks for large, multi-year contracts like this are difficult to establish due to the unique nature of diplomatic security requirements and geographic locations.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation or set-asides within the provided data. Larger prime contractors may subcontract, but direct small business awards are not evident.

Oversight & Accountability

Oversight would typically involve the Department of State's contracting officers and program managers ensuring performance standards are met and costs are reasonable. The long duration and T&M nature necessitate robust oversight to manage risks.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may obscure performance issues.
Lack of specific small business participation data.
Geopolitical risks associated with operating in Erbil.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $200.3 million to ACUITY - JANUS GLOBAL, LLC. DIPLOMATIC SECURITY - OFFICE OF OVERSEAS PROTECTIVE OPERATIONS - WORLDWIDE PROTECTIVE SERVICES II - TASK ORDER 09 - ERBIL CONSULATE IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ACUITY - JANUS GLOBAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $200.3 million.

What is the period of performance?

Start: 2017-09-29. End: 2023-06-20.

What specific metrics were used to evaluate the value proposition of ACUITY - JANUS GLOBAL, LLC's bid under the Time and Materials structure?

The provided data does not detail the specific metrics used for bid evaluation beyond the award amount and contract type. For Time and Materials contracts, agencies often assess past performance, proposed labor rates, and estimated material costs. However, the ultimate value is realized through effective service delivery and cost control throughout the contract's life, which requires ongoing monitoring.

How does the risk of cost overruns in this Time and Materials contract compare to similar security contracts awarded under fixed-price models?

Time and Materials contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts because the final cost is not predetermined. If labor hours or material costs exceed initial estimates, the government pays the actual costs incurred. Robust oversight, clear task definitions, and efficient contractor performance are crucial to mitigate this risk.

What is the effectiveness of 'Full and Open Competition' in ensuring optimal pricing for specialized security services like those provided at the Erbil Consulate?

Full and Open Competition is designed to maximize the pool of potential bidders, theoretically driving down prices through market forces. For specialized services, its effectiveness depends on the clarity of the requirement and the ability of diverse firms to meet stringent security and operational demands. While it promotes competition, the Time and Materials structure can still lead to higher-than-expected costs if not managed diligently.

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: SAQMMA17R0374

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10701 PARKRIDGE BLVD STE 200, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $262,599,053

Exercised Options: $262,599,053

Current Obligation: $200,341,651

Actual Outlays: $72,322,400

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA16D0047

IDV Type: IDC

Timeline