State Department awards $85.4M contract for overseas security guards, highlighting need for global protection

Contract Overview

Contract Amount: $85,383,712 ($85.4M)

Contractor: Gardaworld Federal Services LLC

Awarding Agency: Department of State

Start Date: 2017-09-28

End Date: 2018-12-07

Contract Duration: 435 days

Daily Burn Rate: $196.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $85.4 million to GARDAWORLD FEDERAL SERVICES LLC for work described as: OVERSEAS CONTRACT Key points: 1. Contract value of $85.4M indicates significant investment in safeguarding U.S. interests abroad. 2. Full and open competition suggests a robust market for security services, potentially driving competitive pricing. 3. The contract's duration and scope point to ongoing, critical security requirements in overseas locations. 4. Focus on security guard services underscores the persistent risks faced by personnel and assets in high-threat environments. 5. The use of a firm-fixed-price contract aims to provide cost certainty for the government.

Value Assessment

Rating: good

The contract value of $85.4 million for security guard services appears reasonable given the scope of protecting overseas operations. Benchmarking against similar large-scale security contracts for government agencies, this award falls within expected ranges for comprehensive global security solutions. The firm-fixed-price structure helps manage cost predictability, although detailed cost breakdowns are not provided to assess specific value-for-money at a granular level. The number of bids received (6) suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Six bids were received, demonstrating a healthy level of interest and participation from the private security sector. This competitive process is designed to ensure that the government receives the best possible value by encouraging multiple companies to offer their services and pricing.

Taxpayer Impact: A competitive bidding process for security services helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

U.S. diplomatic missions and personnel stationed overseas benefit from enhanced security. The contract provides essential security guard services, contributing to the safety of U.S. government operations. Geographic impact is global, covering various overseas locations where U.S. personnel and assets require protection. The contract supports jobs within the private security industry, both domestically and potentially in overseas locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on contractor personnel in critical security functions.
Ensuring consistent quality and vetting of guards across diverse and potentially remote overseas locations can be challenging.
Geopolitical instability in deployment areas could impact service continuity and increase operational risks.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The award to a single contractor for a defined period indicates a structured approach to meeting security needs.

Sector Analysis

The private security services industry is a significant sector supporting government operations, particularly in areas requiring physical security and personnel protection. This contract falls within the broader security and protective services market, which is characterized by a mix of large multinational corporations and smaller specialized firms. The demand for such services is often driven by government requirements for overseas operations, diplomatic security, and base support, making it a critical segment for federal procurement.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, GARDAWORLD FEDERAL SERVICES LLC, is a large entity. However, large prime contractors often utilize small businesses for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contract administration office within the Department of State. Performance monitoring, quality assurance checks, and compliance with contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Overseas Contingency Operations (OCO)
Diplomatic Security Service Contracts
Global Security Support Services
Department of State Security Contracts

Risk Flags

Potential for performance issues in remote or high-risk overseas locations.
Ensuring consistent guard quality and training across diverse cultural and operational environments.
Geopolitical instability impacting service delivery and personnel safety.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $85.4 million to GARDAWORLD FEDERAL SERVICES LLC. OVERSEAS CONTRACT

Who is the contractor on this award?

The obligated recipient is GARDAWORLD FEDERAL SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $85.4 million.

What is the period of performance?

Start: 2017-09-28. End: 2018-12-07.

What is the historical spending trend for overseas security guard services by the Department of State?

Historical spending data for overseas security guard services by the Department of State reveals a consistent and significant investment in protecting U.S. personnel and facilities abroad. While specific figures fluctuate year-to-year based on global security needs and operational requirements, the overall trend indicates a sustained reliance on contracted security personnel. For instance, prior to this $85.4 million award, the Department has consistently awarded multi-million dollar contracts for similar services, often spanning several years and covering numerous high-risk locations. This pattern suggests that overseas security is a core, enduring requirement for the State Department, necessitating substantial and ongoing budgetary allocations. The data indicates that the need for these services has not diminished, and in some periods, has even increased due to evolving geopolitical landscapes.

How does the per-unit cost of security guards under this contract compare to industry benchmarks?

Determining the precise per-unit cost of security guards under this $85.4 million contract is challenging without access to the detailed pricing structure and specific labor rates negotiated. However, the contract's firm-fixed-price nature suggests that the government aimed for cost predictability. Industry benchmarks for security guard services vary widely based on location (e.g., high-threat vs. low-threat areas), required qualifications (e.g., armed vs. unarmed, specialized training), and the level of service provided. Given the overseas and potentially high-risk nature of this contract, the per-guard cost is likely to be at the higher end of the spectrum compared to domestic, non-specialized guard services. The fact that six bids were received under full and open competition suggests that the pricing offered was competitive within the market for such specialized global security solutions.

What are the primary risks associated with relying on contracted security personnel for overseas operations?

Relying on contracted security personnel for overseas operations presents several key risks. Firstly, there's the risk of inconsistent quality and vetting; ensuring that all guards meet stringent standards, possess the necessary training, and undergo thorough background checks across diverse international locations can be difficult. Secondly, contractor performance can be affected by factors beyond the government's direct control, such as labor disputes, recruitment challenges in local markets, or the contractor's financial stability. Thirdly, there's the potential for mission creep or over-reliance, where contractors assume responsibilities beyond their defined scope, potentially blurring lines of authority and accountability. Finally, geopolitical instability in deployment areas can impact contractor availability and operational continuity, posing a risk to the security mission itself. Effective contract management and robust oversight are crucial to mitigating these risks.

What is the track record of GARDAWORLD FEDERAL SERVICES LLC in providing similar security services to the U.S. government?

GARDAWORLD FEDERAL SERVICES LLC has a notable track record in providing security services to various U.S. government agencies, including the Department of State. The company has been awarded numerous contracts for security guard services, protective services, and related security solutions, both domestically and internationally. Their experience often includes supporting diplomatic missions, federal facilities, and other government installations requiring robust security measures. Past performance evaluations and contract histories available through federal procurement databases generally indicate their capacity to fulfill large-scale security requirements. However, as with any large contractor, specific performance details, including any past issues or commendations, would require a deeper dive into individual contract performance reports and agency assessments.

How does the scope of this contract align with the Department of State's overall security mission?

This contract for overseas security guards directly aligns with the Department of State's core mission of protecting U.S. diplomats, personnel, and facilities abroad. The State Department operates in numerous challenging and often high-threat environments globally, making the provision of reliable, professional security services paramount. The contract's focus on 'Security Guards and Patrol Services' (NAICS code 561612) addresses the fundamental need for physical security, access control, and surveillance at diplomatic posts and other designated locations. By outsourcing these essential functions to a qualified contractor through a competitive process, the Department can ensure consistent security coverage, leverage specialized expertise, and allow its own personnel to focus on diplomatic and foreign policy objectives. The substantial value and duration of the award underscore its critical importance to the Department's operational security posture.

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: SAQMMA17R0153

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BC Partners LLP

Address: 1760 OLD MEADOW RD STE 400, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $536,676,487

Exercised Options: $85,383,712

Current Obligation: $85,383,712

Actual Outlays: $186,357

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA16D0042

IDV Type: IDC

Timeline