DoD awards $51.1M contract for global security support services to GardaWorld Federal Services LLC

Contract Overview

Contract Amount: $51,112,837 ($51.1M)

Contractor: Gardaworld Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-14

End Date: 2026-03-30

Contract Duration: 715 days

Daily Burn Rate: $71.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY SUPPORT SERVICES-GLOBAL

Plain-Language Summary

Department of Defense obligated $51.1 million to GARDAWORLD FEDERAL SERVICES LLC for work described as: SECURITY SUPPORT SERVICES-GLOBAL Key points: 1. Contract value of $51.1M over approximately two years suggests a significant investment in security operations. 2. Full and open competition indicates a potentially competitive bidding process, which can drive better pricing. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. GardaWorld Federal Services LLC is the sole awardee, highlighting their success in the competitive process. 5. The duration of 715 days (approx. 2 years) allows for sustained security presence and operational continuity. 6. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard and patrol services.

Value Assessment

Rating: good

The contract value of $51.1M for approximately two years of global security support appears reasonable given the scope. Benchmarking against similar large-scale security contracts would provide a more precise value-for-money assessment. The Firm Fixed Price structure is generally favorable for the government, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and ultimately securing the best value for public funds.

Public Impact

The Department of Defense benefits from enhanced global security and protection of assets and personnel. Services delivered likely include guarding facilities, patrolling areas, and responding to security incidents worldwide. The geographic scope is global, implying a broad impact on various operational theaters. Workforce implications include the potential for significant employment opportunities for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess service quality.
Global operations present inherent logistical and oversight challenges.
Dependence on a single contractor for critical security functions could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
Firm Fixed Price contract type aligns cost expectations and transfers risk to the contractor.
Contract duration of nearly two years allows for stability in security operations.

Sector Analysis

This contract falls within the private security services sector, a critical component of national defense and infrastructure protection. The global nature of the award suggests a need for specialized security solutions that can operate in diverse and potentially high-risk environments. Spending in this sector is often driven by geopolitical factors and the need to safeguard government interests abroad.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is not a primary focus for this specific award, as both are false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary awardee, GardaWorld Federal Services LLC, is likely a large business, and the contract may not be structured to significantly benefit the small business ecosystem directly through this particular award.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are inherent in the Firm Fixed Price contract type, with penalties or non-renewal possible for non-performance. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Department of Defense Security Contracts
Global Security Services
Private Security Industry Contracts
Government Security Guard Services

Risk Flags

Potential for geopolitical instability impacting service delivery.
Challenges in managing global logistics and personnel.
Need for robust oversight to ensure service quality and compliance.
Risk of contractor performance issues in remote or high-threat environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.1 million to GARDAWORLD FEDERAL SERVICES LLC. SECURITY SUPPORT SERVICES-GLOBAL

Who is the contractor on this award?

The obligated recipient is GARDAWORLD FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $51.1 million.

What is the period of performance?

Start: 2024-04-14. End: 2026-03-30.

What is GardaWorld Federal Services LLC's track record with similar government contracts?

GardaWorld Federal Services LLC has a history of performing security services for various government agencies. While specific details on past performance for contracts of this exact scale and global scope require deeper investigation into federal procurement databases like SAM.gov and FPDS, their presence in the federal contracting space suggests experience. Analyzing past performance reviews, any documented disputes, or contract modifications on previous awards would provide a clearer picture of their reliability and capability in delivering complex security solutions. Their ability to secure this significant DoD contract implies a satisfactory track record, but a thorough review of past performance is crucial for a complete assessment.

How does the per-unit cost of security personnel compare to market rates or similar contracts?

Determining a precise per-unit cost for security personnel under this $51.1M contract is challenging without detailed breakdowns of labor categories, hours, and geographic locations. However, the contract's Firm Fixed Price nature suggests that the contractor has factored in labor, overhead, and profit into their overall bid. To benchmark, one would need to compare the average daily or hourly rate implied by the total contract value against publicly available data for similar security guard services in comparable regions, considering factors like threat levels, required certifications, and experience. Given the global and potentially high-risk nature of the services, rates might be expected to be at the higher end of the spectrum compared to domestic, low-risk security contracts.

What are the primary risks associated with providing global security support services?

Providing global security support services entails several significant risks. These include geopolitical instability in operating regions, which can escalate threats and disrupt operations; logistical challenges in deploying and maintaining personnel and equipment across diverse international locations; varying legal and regulatory environments in different countries; potential for cultural misunderstandings or conflicts; and the inherent risks associated with security operations, such as physical danger to personnel and potential for use of force. Furthermore, managing a globally dispersed workforce requires robust communication, training, and HR infrastructure. The contractor must also navigate potential supply chain disruptions for essential security equipment and supplies.

How effective is the Firm Fixed Price contract type in managing costs for this type of service?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs for services like global security support because it places the primary cost risk on the contractor. The contractor is obligated to perform the specified work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control expenses. For the government, FFP provides cost certainty, making budgeting more predictable. However, if the scope of work is not clearly defined or if unforeseen circumstances significantly impact the contractor's costs beyond their control, there could be pressure to reduce service quality or seek contract modifications, though the FFP structure aims to prevent this.

What is the historical spending trend for similar security services by the Department of Defense?

Historical spending by the Department of Defense (DoD) on security services, particularly for global operations, has been substantial and often fluctuates based on global security postures and operational requirements. The DoD consistently procures a wide range of security support, from guarding installations to providing specialized protective services in conflict zones. Annual spending can run into billions of dollars across various contracts. Trends often show an increase in demand for security services during periods of heightened international engagement or when specific threats emerge. Analyzing historical data reveals a consistent need for these services, with contract values often reflecting the scale and complexity of the operational environment.

What are the potential implications of this contract on the global private security market?

A contract of this magnitude awarded by the Department of Defense can have notable implications for the global private security market. It signifies a significant revenue stream for the awardee, GardaWorld Federal Services LLC, potentially bolstering their market position and capacity. Such large government contracts can also serve as a strong reference point, enhancing the awardee's credibility and competitiveness for future opportunities. Furthermore, it may influence market dynamics by setting benchmarks for service scope, pricing, and performance expectations. The demand generated by this contract could also stimulate job creation within the security sector and potentially drive investment in training and technology among service providers.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BC Partners LLP

Address: 1700 N MOORE ST STE 1875, ARLINGTON, VA, 22209

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: $51,112,837

Exercised Options: $51,112,837

Current Obligation: $51,112,837

Actual Outlays: $9,488,597

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J19D0001

IDV Type: IDC

Timeline