DoD awards $11.6M for armed security in Somalia, raising questions on value and competition

Contract Overview

Contract Amount: $11,630,086 ($11.6M)

Contractor: Gardaworld Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-12

End Date: 2026-05-29

Contract Duration: 2,208 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED SECURITY GUARDS FOR MOGADISHU INTERNATIONAL AIRPORT, SOMALIA.

Plain-Language Summary

Department of Defense obligated $11.6 million to GARDAWORLD FEDERAL SERVICES LLC for work described as: ARMED SECURITY GUARDS FOR MOGADISHU INTERNATIONAL AIRPORT, SOMALIA. Key points: 1. Contract value appears high for security services in a challenging environment. 2. Limited public information on performance metrics makes value assessment difficult. 3. Sole-source or limited competition could inflate costs. 4. Geopolitical instability in Somalia presents inherent risks. 5. Contract duration extends over multiple years, requiring sustained oversight. 6. The specific nature of armed security services necessitates stringent vetting and accountability.

Value Assessment

Rating: questionable

Benchmarking the value of armed security services in a high-risk, remote location like Mogadishu is challenging due to unique operational costs and risks. The contract's total value of over $11.6 million over its duration suggests a significant investment. Without detailed performance metrics or comparisons to similar contracts in comparable environments, it is difficult to definitively assess if this represents good value for money. The firm-fixed-price structure aims to control costs, but the overall price point warrants scrutiny given the specialized nature of the service and location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the number of bids received (5) is moderate, and without knowing the specific requirements and the pool of qualified contractors, it's hard to gauge the intensity of the competition. A moderate number of bidders can sometimes suggest that the market for such specialized services in this specific, high-risk location might be limited, potentially impacting price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to bid, potentially driving down prices. However, the actual savings depend on the number and capability of bidders and the specific market dynamics for security services in Somalia.

Public Impact

Provides essential security services to protect personnel and assets at Mogadishu International Airport. Supports the U.S. Department of Defense's mission in Somalia. Ensures the continuity of operations for critical U.S. government activities in the region. Contributes to the safety and stability of a key logistical hub in East Africa. Likely involves the employment of security personnel, potentially including local hires, impacting the regional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High-risk operational environment in Somalia presents security and logistical challenges.
Potential for mission creep or scope expansion given the nature of security contracts.
Ensuring consistent quality and accountability of armed security personnel over a long contract duration.
Geopolitical shifts could impact the necessity or scope of services required.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type helps manage cost certainty.
Long contract duration allows for stable service provision and potential economies of scale.
Specific NAICS code (561612) indicates a defined service category.

Sector Analysis

The security and guard services sector is a significant part of the broader professional, scientific, and technical services industry. This contract falls under NAICS code 561612 (Security Guards and Patrol Services). The market for private security, especially in high-risk international locations, is specialized and often involves companies with extensive experience in security operations, risk management, and personnel vetting. Spending in this area is driven by government requirements for protecting personnel and assets in volatile regions, often exceeding standard domestic security service costs due to increased risk premiums and logistical complexities.

Small Business Impact

This contract was not awarded as a small business set-aside. Given the specialized nature and high-risk environment of providing armed security services in Somalia, it is likely that only a limited number of large, experienced contractors possess the necessary capabilities and clearances. There is no indication of specific subcontracting requirements for small businesses within the provided data, suggesting limited direct opportunities for small businesses to participate in this particular contract's execution.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense, likely through contracting officers' representatives (CORs) and program managers. The firm-fixed-price nature of the contract provides some cost control, but the effectiveness of oversight hinges on rigorous performance monitoring, site visits, and adherence to security protocols. Transparency is facilitated by the contract award data, but detailed operational oversight mechanisms and Inspector General involvement specifics are not publicly detailed.

Related Government Programs

Department of Defense Security Contracts
International Security Assistance Programs
U.S. Embassy Security Contracts
Logistics and Base Support Services

Risk Flags

High-risk operational environment
Potential for personnel misconduct
Geopolitical instability
Long contract duration requires sustained oversight
Limited competition may impact price

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to GARDAWORLD FEDERAL SERVICES LLC. ARMED SECURITY GUARDS FOR MOGADISHU INTERNATIONAL AIRPORT, SOMALIA.

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 $11.6 million.

What is the period of performance?

Start: 2020-05-12. End: 2026-05-29.

What is the track record of GardaWorld Federal Services LLC in performing similar armed security contracts in high-risk overseas environments?

GardaWorld Federal Services LLC has a history of providing security services globally, including in challenging environments. Their experience often includes protective services, secure transportation, and base security for government clients. Assessing their specific track record for armed security in a location as complex as Somalia would require reviewing past performance evaluations, any documented incidents, and their success in meeting stringent security requirements and compliance standards. Information on their past performance on similar contracts, particularly those involving armed personnel in high-threat areas, is crucial for understanding their capability and reliability in fulfilling this DoD contract effectively and safely.

How does the per-unit cost or hourly rate for these armed security guards compare to similar services in other high-risk overseas locations?

Determining a precise per-unit or hourly cost benchmark for armed security guards in Mogadishu is difficult without access to the contract's detailed pricing structure and specific service level agreements. However, security services in high-risk, austere environments typically command significantly higher rates than those in stable, domestic locations. Factors contributing to higher costs include hazard pay, specialized training, insurance, logistical support (housing, transportation, equipment), and the limited pool of qualified personnel willing and able to serve in such areas. Comparisons would need to be made with contracts for similar services in regions like Afghanistan, Iraq, or other areas with comparable security challenges to provide a meaningful benchmark.

What are the primary risks associated with this contract, beyond the inherent security challenges of the location?

Beyond the obvious security risks in Somalia, other significant risks include potential for mission creep, where the scope of services expands beyond the original intent without commensurate adjustments in cost or oversight. There's also the risk of personnel-related issues, such as vetting failures, misconduct, or high turnover, which can impact service quality and security. Contract performance risks include logistical failures, equipment malfunctions, and challenges in maintaining consistent service delivery over the contract's multi-year duration. Furthermore, geopolitical instability or changes in U.S. foreign policy could lead to abrupt changes in mission requirements or contract termination, posing strategic risks.

How effective are the oversight mechanisms in place to ensure accountability and prevent misuse of force by armed security personnel?

Effective oversight for armed security contracts in high-risk zones relies on a multi-layered approach. This typically includes rigorous pre-deployment vetting of personnel, clear rules of engagement (ROE), continuous on-site supervision by government representatives (CORs), regular performance reviews, and robust incident reporting and investigation procedures. The firm-fixed-price nature of the contract incentivizes performance but does not inherently guarantee accountability. The Department of Defense and Department of the Army would have established protocols, likely involving contracting officer representatives (CORs) and potentially military police or investigative units, to monitor adherence to ROE, prevent excessive force, and ensure compliance with all contract terms and legal obligations.

What is the historical spending trend for security services in Somalia or similar high-risk environments by the Department of Defense?

Historical spending by the Department of Defense (DoD) on security services in high-risk environments like Somalia has been substantial, particularly during periods of heightened military and diplomatic engagement. For instance, significant funds were allocated to private security contractors in Iraq and Afghanistan for base security, personal protection, and logistical support. While specific figures for Somalia may vary, the overall trend indicates a reliance on contracted security services to supplement military and diplomatic personnel in volatile regions. This spending is often driven by the need for specialized capabilities that may not be readily available within the military or are more cost-effective to contract out, though cost-effectiveness in such high-risk zones is often debated.

What are the implications of a 5-year contract duration for service quality and cost management?

A 5-year contract duration (from May 2020 to May 2025, with potential extensions) offers benefits such as service continuity and potential for economies of scale for the contractor, which could translate into more stable pricing. It allows the contractor to invest in personnel and equipment, potentially leading to higher service quality over time. However, it also presents risks. Long durations can lead to complacency if oversight is not rigorous. Market conditions, technology, and threat assessments can change significantly over five years, potentially making the contracted services or pricing less optimal compared to current market rates or evolving needs. Continuous monitoring and potential contract modifications are essential to manage these risks and ensure ongoing value.

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: 5

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: $15,789,345

Exercised Options: $11,630,086

Current Obligation: $11,630,086

Actual Outlays: $260,385

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J19D0003

IDV Type: IDC

Timeline