State Dept. Spends $32.6M on Personal Security Services with Triple Canopy Inc. from 2005-2011

Contract Overview

Contract Amount: $32,639,272 ($32.6M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of State

Start Date: 2005-06-26

End Date: 2011-03-14

Contract Duration: 2,087 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PERSONAL SECURITY SERVICES

Plain-Language Summary

Department of State obligated $32.6 million to TRIPLE CANOPY INC for work described as: PERSONAL SECURITY SERVICES Key points: 1. Significant contract value of $32.6 million over six years. 2. Sole-source award raises questions about competition and potential overpricing. 3. Services fall under Security Guards and Patrol Services (NAICS 561612). 4. Contract duration was substantial, indicating long-term reliance on the vendor.

Value Assessment

Rating: questionable

The contract was awarded on a Time and Materials basis, which can lead to higher costs compared to fixed-price contracts. Without competitive bidding, it's difficult to benchmark pricing against similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition for a $32.6 million contract likely resulted in higher costs for taxpayers than if it had been competitively bid.

Public Impact

Taxpayers funded extensive personal security services for an extended period. The sole-source nature of the award limits transparency into the necessity and cost-effectiveness of the services. Reliance on a single vendor for critical security functions could pose a risk if the vendor fails to perform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the security services sector, specifically guard and patrol services. Spending benchmarks for this sector can vary widely based on the level of service and geographic location.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded to a single, likely large, entity.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to understand why competition was bypassed and if the pricing was justified.

Related Government Programs

Risk Flags

Tags

security-guards-and-patrol-services, department-of-state, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $32.6 million to TRIPLE CANOPY INC. PERSONAL SECURITY SERVICES

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 $32.6 million.

What is the period of performance?

Start: 2005-06-26. End: 2011-03-14.

What was the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically granted when only one responsible source is available or when a compelling urgency exists that precludes full and open competition. For personal security services, this might be due to highly specialized personnel, unique security requirements for specific individuals or locations, or a critical, time-sensitive need that could not be met through a competitive process.

How does the Time and Materials pricing structure compare to industry standards for similar security services?

Time and Materials (T&M) contracts can be more expensive than fixed-price contracts if not carefully managed, as they reimburse the contractor for actual labor hours and material costs, plus a fee. Without competitive bids or detailed cost breakdowns, it's challenging to determine if Triple Canopy Inc.'s T&M rates were aligned with industry benchmarks for comparable personal security services.

What was the overall effectiveness and value delivered by Triple Canopy Inc. for the $32.6 million spent?

The effectiveness and value are difficult to assess solely from the contract data. While the services were provided over a six-year period, the lack of competition and the T&M pricing structure raise concerns about whether the government received the best possible value. A thorough review of performance reports and post-contract analysis would be needed to determine true effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 2250 CORPORATE PARK DRIVE, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,639,272

Exercised Options: $32,639,272

Current Obligation: $32,639,272

Timeline

Start Date: 2005-06-26

Current End Date: 2011-03-14

Potential End Date: 2011-03-14 00:00:00

Last Modified: 2011-08-16

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