State Department's $76M Protective Services Contract for Israel Awarded to Triple Canopy Inc

Contract Overview

Contract Amount: $76,144,563 ($76.1M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of State

Start Date: 2005-09-28

End Date: 2011-09-27

Contract Duration: 2,190 days

Daily Burn Rate: $34.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SERVICES - ISRAEL

Plain-Language Summary

Department of State obligated $76.1 million to TRIPLE CANOPY INC for work described as: PROTECTIVE SERVICES - ISRAEL Key points: 1. Contract value represents significant investment in security operations abroad. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness. 3. Performance history and contractor reliability are key risk indicators. 4. This contract falls within the broader context of diplomatic security services. 5. The security services sector is highly specialized and competitive.

Value Assessment

Rating: good

The contract value of approximately $76 million over its duration suggests a substantial commitment to protective services. Benchmarking this against similar contracts for diplomatic security in high-risk environments would provide a clearer picture of value for money. The firm fixed-price structure generally aids in cost control, but the overall pricing should be assessed against the scope and duration of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely vied for the opportunity. The presence of competition is generally positive for price discovery and can lead to more favorable terms for the government. The number of bidders and the specific competitive process details would further illuminate the strength of the competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Benefits U.S. diplomatic personnel and facilities in Israel. Ensures the continuity of essential government operations in a sensitive region. Provides employment opportunities within the private security sector. Contributes to the overall stability and security posture of U.S. interests abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or unforeseen security challenges increasing costs.
Reliance on a single contractor for critical security functions carries inherent risks.
Geopolitical instability in the region could impact service delivery and costs.

Positive Signals

Firm fixed-price contract provides cost certainty.
Competitive award suggests potential for good value.
Established contractor likely has experience in similar environments.

Sector Analysis

The private security services industry is a significant sector supporting government operations, particularly in areas requiring specialized security expertise. This contract fits within the broader market for protective services, which is often characterized by a mix of large, established firms and smaller niche providers. Spending in this sector can fluctuate based on global security needs and government priorities.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting goals, was not explicitly detailed in the provided data. Analysis would require further investigation into the contract's specific clauses and the contractor's subcontracting plan to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of State's contracting officers and relevant security management personnel. Accountability measures are embedded within the contract terms, performance standards, and payment schedules. Transparency is generally maintained through contract award databases, though specific operational details are often sensitive.

Related Government Programs

Department of State Protective Services
Overseas Security Operations
Diplomatic Security Contracts

Risk Flags

Geopolitical Risk
Contractor Performance
Security Incident Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $76.1 million to TRIPLE CANOPY INC. PROTECTIVE SERVICES - ISRAEL

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 $76.1 million.

What is the period of performance?

Start: 2005-09-28. End: 2011-09-27.

What is the track record of Triple Canopy Inc. in providing protective services for government contracts, particularly in high-risk environments?

Triple Canopy Inc. has a notable history of providing security services to government agencies, including extensive work in Iraq and Afghanistan. Their experience encompasses a wide range of security operations, from personal protection to base security. While they have a significant operational footprint, like many large security contractors, they have also faced scrutiny and challenges related to performance and conduct in past contracts. A thorough review would involve examining specific performance evaluations, any past disputes or contract terminations, and their overall reputation within the industry and among government oversight bodies for delivering on complex security requirements.

How does the per-unit cost of security personnel under this contract compare to similar contracts awarded by the Department of State or other agencies for protective services in comparable regions?

Without specific details on the number of personnel, their roles, and the exact service hours, a precise per-unit cost comparison is challenging. However, the total contract value of approximately $76 million over roughly six years suggests an average annual expenditure of about $12.7 million. To benchmark effectively, one would need to compare this to contracts for similar security services (e.g., armed guards, close protection) in regions with comparable threat levels. Factors such as local labor costs, required security clearances, equipment, and the specific threat environment significantly influence per-unit costs. A detailed analysis would involve normalizing these costs based on the scope of services and the operational context.

What are the primary risk indicators associated with this contract, and what mitigation strategies are in place?

Key risk indicators include the volatile geopolitical environment in Israel, the potential for unforeseen security incidents requiring rapid response, and the contractor's ability to maintain consistent performance and personnel quality over the contract's duration. Mitigation strategies likely involve robust performance monitoring by the Department of State, clearly defined escalation procedures, contingency planning for emergencies, and contractual clauses that allow for adjustments or penalties based on performance failures. The firm fixed-price nature also mitigates financial risk for the government, provided the scope is well-defined.

How effective has Triple Canopy Inc. been in fulfilling its contractual obligations for protective services, based on past performance data?

Assessing the effectiveness requires access to specific performance reports and contract close-out data for Triple Canopy Inc.'s previous government contracts. Generally, large security firms like Triple Canopy are awarded subsequent contracts based on a perceived ability to perform. However, past performance reviews can be mixed, with some contracts receiving positive ratings and others facing criticism or investigations. For this specific contract, the Department of State would have conducted a past performance evaluation as part of the competitive process. Without that specific evaluation, it's difficult to definitively state their effectiveness, but their continued award of significant contracts suggests a generally acceptable level of performance.

What is the historical spending trend for protective services in Israel by the Department of State, and how does this contract align with those patterns?

Historical spending on protective services in Israel by the Department of State would likely show a consistent need for security due to the region's geopolitical significance and security challenges. This $76 million contract, spanning several years, represents a substantial but potentially consistent level of investment aligned with ongoing security requirements for diplomatic missions. To provide a precise alignment, one would need to compare this contract's value and duration against previous contracts for similar services in Israel, looking for trends in contract size, duration, and the number of awarded contracts over time.

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: COMPETITIVE DELIVERY ORDER

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Constellis Holdings, LLC (UEI: 966133477)

Address: 600 KNIGHTSBRIDGE PKWY, LINCOLNSHIRE, IL, 60069

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $125,053,892

Exercised Options: $125,053,892

Current Obligation: $76,144,563

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD05D1100

IDV Type: IDC

Timeline