State Dept. Awards $647M for Overseas Security Guards, Highlighting Long-Term Contract Needs

Contract Overview

Contract Amount: $647,309,074 ($647.3M)

Contractor: Gardaworld Federal Services LLC

Awarding Agency: Department of State

Start Date: 2017-09-29

End Date: 2023-09-30

Contract Duration: 2,192 days

Daily Burn Rate: $295.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $647.3 million to GARDAWORLD FEDERAL SERVICES LLC for work described as: OVERSEAS CONTRACT Key points: 1. Significant contract value of $647.3M awarded to GardaWorld Federal Services LLC. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans over six years, indicating a long-term need for these services. 4. The sector is primarily security services, crucial for overseas operations.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The awarded amount is substantial, and the duration suggests a significant need, but the pricing structure warrants close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, which is generally positive for price discovery. However, the Time and Materials pricing model can sometimes obscure true value compared to fixed-price contracts.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. The long duration and significant value mean efficient management is key to maximizing taxpayer benefit.

Public Impact

Ensures security for U.S. personnel and assets in potentially high-risk overseas locations. Supports diplomatic missions and government operations abroad through essential security services. Provides employment opportunities within the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty.
Long contract duration may mask potential inefficiencies over time.
Lack of specific performance metrics in provided data.

Positive Signals

Full and open competition utilized.
Significant contract value indicates a critical need.
Long-term commitment provides stability for service provision.

Sector Analysis

This contract falls within the security and protective services sector, which is vital for government operations, especially in overseas environments. Benchmarks for similar long-term, high-value security contracts are difficult to ascertain without more specific service details.

Small Business Impact

The data indicates the primary awardee is GardaWorld Federal Services LLC, a large business. There is no explicit information on small business participation or subcontracting within this award.

Oversight & Accountability

The Department of State is the contracting and administrative agency. Oversight would typically involve contract performance monitoring, financial reviews, and ensuring compliance with contract terms to manage risks and costs.

Related Government Programs

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

Risk Flags

Contract type (T&M) poses cost control challenges.
Long duration (6 years) increases exposure to changing needs and potential inefficiencies.
Overseas operations inherently carry higher risks.
Limited insight into specific performance metrics and oversight mechanisms.
No clear indication of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $647.3 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 $647.3 million.

What is the period of performance?

Start: 2017-09-29. End: 2023-09-30.

What specific security threats or requirements necessitate such a long-term, high-value contract for overseas security?

The extensive duration and significant funding suggest the contract addresses persistent and complex security challenges in various overseas locations. This likely includes protection against terrorism, crime, and political instability, requiring continuous presence and adaptable security measures tailored to diverse geopolitical environments and evolving threat landscapes.

How does the Time and Materials pricing structure mitigate risks associated with fluctuating operational costs and personnel needs?

While T&M contracts offer flexibility for unpredictable requirements, they inherently carry a risk of cost escalation. Mitigation strategies likely involve stringent oversight, defined labor categories with capped rates, and clear guidelines on billable hours and materials. The agency must actively manage and scrutinize invoices to prevent overcharging and ensure costs remain reasonable relative to the services rendered.

What performance metrics are in place to ensure the effectiveness and efficiency of GardaWorld's security services over the contract's six-year period?

Effective oversight typically involves establishing Key Performance Indicators (KPIs) related to response times, incident prevention rates, personnel qualifications, and adherence to security protocols. Regular performance reviews and feedback mechanisms are crucial for ensuring the contractor meets or exceeds expectations, allowing for corrective actions if performance falters and ensuring the security objectives are met.

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

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

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: $656,349,711

Exercised Options: $656,349,711

Current Obligation: $647,309,074

Actual Outlays: $22,266,825

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