State Department Spends $13.6M on Local Guard Services, Awarded to Miscellaneous Foreign Awardees
Contract Overview
Contract Amount: $13,575,761 ($13.6M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of State
Start Date: 2008-07-15
End Date: 2013-07-14
Contract Duration: 1,825 days
Daily Burn Rate: $7.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: LOCAL GUARD SERVICES
Plain-Language Summary
Department of State obligated $13.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: LOCAL GUARD SERVICES Key points: 1. Spending on security guards and patrol services totals $13.6 million. 2. Awarded to miscellaneous foreign awardees, raising questions about domestic competition. 3. Contract duration of 5 years suggests a need for ongoing security services. 4. The fixed-price contract with economic price adjustment may expose taxpayers to inflation risks.
Value Assessment
Rating: questionable
The contract value of $13.6 million for security guards is substantial. Benchmarking against similar contracts is difficult without more specific details on the scope of services and geographic locations covered by the 'miscellaneous foreign awardees'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the award to 'miscellaneous foreign awardees' might indicate a lack of domestic bidders or a specific requirement that favored foreign entities.
Taxpayer Impact: The use of fixed-price contracts with economic price adjustments can lead to increased costs for taxpayers if inflation rates are higher than anticipated.
Public Impact
Taxpayers may be paying more than necessary if domestic security firms could offer comparable services at a lower cost. The reliance on foreign awardees for security services raises questions about accountability and oversight. The long contract duration could lock the government into potentially suboptimal pricing if market conditions change.
Waste & Efficiency Indicators
Waste Risk Score: 74 / 10
Warning Flags
- Award to 'miscellaneous foreign awardees' for security services.
- Fixed Price with Economic Price Adjustment contract type.
- Lack of specific details on the scope of services and geographic coverage.
Positive Signals
- Awarded under full and open competition.
- Contract addresses a clear need for security services.
Sector Analysis
Spending on security guards and patrol services falls under the broader professional, scientific, and technical services sector. Benchmarks for this specific type of service can vary widely based on location, scope, and security level required.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses. The award to 'miscellaneous foreign awardees' suggests that small businesses, particularly domestic ones, may not have been primary recipients of this contract.
Oversight & Accountability
Oversight of contracts awarded to 'miscellaneous foreign awardees' can be more challenging than for domestic contractors. The Department of State is responsible for ensuring performance and compliance, but the effectiveness of this oversight is not detailed.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for higher costs due to foreign awardees.
- Accountability and oversight challenges with foreign contractors.
- Risk of increased taxpayer burden from economic price adjustments.
- Lack of transparency regarding the specific services rendered and locations covered.
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 $13.6 million to MISCELLANEOUS FOREIGN AWARDEES. LOCAL GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $13.6 million.
What is the period of performance?
Start: 2008-07-15. End: 2013-07-14.
What was the rationale for awarding the contract to 'miscellaneous foreign awardees' instead of domestic security firms, and did this impact the final price?
The rationale for awarding to 'miscellaneous foreign awardees' is not explicitly stated in the provided data. It's possible that specific geographic requirements, specialized security needs, or a lack of competitive domestic bids led to this decision. This could potentially impact the price if domestic firms could have offered more competitive rates or if foreign awardees incurred higher operational costs.
What are the specific risks associated with using 'miscellaneous foreign awardees' for security services, particularly concerning accountability and performance monitoring?
Risks include potential challenges in enforcing contract terms, monitoring performance effectively across different jurisdictions, and ensuring adherence to U.S. security standards. Communication barriers and differing legal frameworks could also pose challenges. Accountability might be more complex to establish and enforce compared to domestic contractors.
How does the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' clause affect the overall value and taxpayer burden for these security services over the contract's duration?
This contract type aims to protect the contractor from unforeseen cost increases due to inflation, while allowing the government to benefit from a potentially lower initial price. However, it shifts the risk of inflation to the taxpayer. If inflation significantly outpaces projections, the total cost to the government could exceed that of a firm-fixed-price contract.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: SSA70007R0004
Offers Received: 3
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $46,259,292
Exercised Options: $32,783,531
Current Obligation: $13,575,761
Timeline
Start Date: 2008-07-15
Current End Date: 2013-07-14
Potential End Date: 2013-07-14 00:00:00
Last Modified: 2012-08-01
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