DoD's $35M contract for security services in Germany awarded to POND SECURITY SERVICE GMBH

Contract Overview

Contract Amount: $35,099,718 ($35.1M)

Contractor: Pond Security Service Gmbh

Awarding Agency: Department of Defense

Start Date: 2018-06-30

End Date: 2018-12-31

Contract Duration: 184 days

Daily Burn Rate: $190.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USAG RHEINLAND PFALZ

Plain-Language Summary

Department of Defense obligated $35.1 million to POND SECURITY SERVICE GMBH for work described as: USAG RHEINLAND PFALZ Key points: 1. Contract value represents a significant investment in base security operations. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Short contract duration (184 days) may indicate a need for immediate or temporary services. 4. Fixed-price contract type shifts risk to the contractor for cost overruns. 5. Services align with essential base support functions, crucial for operational readiness. 6. The award to a single entity implies a focus on specialized security capabilities.

Value Assessment

Rating: fair

The contract value of approximately $35.1 million for a six-month period is substantial. Benchmarking this against similar contracts for security services at overseas bases is challenging without more specific data on scope and location. However, the per-day cost is high, suggesting either a large scope of services or a premium for operating in a specific geographic region. The fixed-price nature provides cost certainty for the government, but the overall value proposition depends heavily on the contractor's efficiency and the actual services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the best value. The fact that POND SECURITY SERVICE GMBH was selected suggests they offered the most advantageous proposal based on the evaluation criteria.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bids, potentially leading to lower prices and better service quality.

Public Impact

USAG Rheinland-Pfalz personnel and facilities benefit from enhanced security. Provides essential security guard and patrol services to ensure base safety and order. Geographic impact is concentrated within the Rheinland-Pfalz region of Germany. Supports local employment through the contractor's staffing of security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost per day may warrant further investigation into the scope of services.
Limited contract duration could indicate a stop-gap measure, potentially leading to future re-competition and associated transition costs.
Reliance on a single contractor for critical security functions carries inherent risk.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type provides budget predictability.
Contractor is likely experienced in providing security services in a European context.

Sector Analysis

The security services industry is a significant sector within the broader defense and government contracting landscape. This contract falls under the Security Guards and Patrol Services category (NAICS 561612). Spending on base support services, including security, is a consistent requirement for military installations worldwide. The market is competitive, with numerous domestic and international firms capable of providing these services. This specific award reflects the Department of Defense's ongoing need for security presence at overseas installations.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature and potential scale of security operations at a military installation, it is possible that larger firms would be better positioned to compete or fulfill such requirements. Further analysis would be needed to determine if small business participation was encouraged or achieved through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the Department of the Army's contracting command responsible for USAG Rheinland-Pfalz. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Physical Security Contracts
Department of Defense Security Services
Overseas Military Installation Support

Risk Flags

High Cost Per Day
Short Contract Duration
Potential for Sole Source Follow-on

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to POND SECURITY SERVICE GMBH. USAG RHEINLAND PFALZ

Who is the contractor on this award?

The obligated recipient is POND SECURITY SERVICE GMBH.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.1 million.

What is the period of performance?

Start: 2018-06-30. End: 2018-12-31.

What is the track record of POND SECURITY SERVICE GMBH with the Department of Defense?

Information regarding POND SECURITY SERVICE GMBH's specific track record with the Department of Defense is not detailed in the provided data. However, the award of a $35 million contract suggests a level of capability and experience deemed sufficient by the contracting agency. To fully assess their track record, one would need to examine past performance reviews, any history of contract disputes or terminations, and the successful completion of previous government contracts, particularly those involving similar security services and geographic locations. A deeper dive into federal procurement databases and contractor performance systems would be necessary for a comprehensive understanding.

How does the value of this contract compare to similar security contracts for overseas bases?

Direct comparison of this $35.1 million contract value for a 184-day period to similar overseas base security contracts is difficult without more granular data. The cost per day is approximately $190,759. Factors such as the size and scope of the base, the specific security threats, the required personnel, equipment, and the local labor and operating costs in Rheinland-Pfalz, Germany, significantly influence pricing. Contracts for bases in different regions or with different operational tempos could vary widely. Generally, security services at overseas locations can command higher prices due to logistical complexities and potentially higher labor costs compared to domestic contracts.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns if the fixed-price structure does not adequately account for unforeseen operational challenges, contractor performance issues leading to security gaps, and geopolitical or local regulatory changes impacting service delivery in Germany. Given the short duration, there's also a risk of discontinuity if follow-on contracts are not secured promptly. Dependence on a single contractor for critical security functions also presents a risk if the contractor fails to meet obligations. Furthermore, the high daily cost warrants scrutiny to ensure value for money and prevent potential waste.

How effective is the full and open competition process in ensuring value for this type of security contract?

The full and open competition process is designed to maximize value by encouraging a wide range of potential bidders to submit proposals, thereby fostering price competition and innovation. For a security contract of this nature, it allows the Department of Defense to solicit bids from numerous qualified firms, potentially leading to a lower overall cost and higher quality of service than a sole-source or limited competition award. The effectiveness hinges on the clarity of the solicitation requirements, the evaluation criteria used, and the number and capability of the participating bidders. A well-executed full and open competition generally provides a strong basis for achieving good value for taxpayer money.

What is the historical spending trend for security services at USAG Rheinland-Pfalz?

Historical spending data for security services specifically at USAG Rheinland-Pfalz is not provided in the current data extract. To analyze spending trends, one would need to access historical contract awards for this specific installation or for similar installations managed by the US Army in Germany. This would involve looking at contract values, durations, and types of services procured over several fiscal years. Such an analysis could reveal patterns of increasing or decreasing costs, changes in competition levels, and the overall investment in security infrastructure and personnel at the base.

What are the implications of the fixed-price contract type for government oversight?

A firm fixed-price (FFP) contract type generally simplifies government oversight concerning cost management, as the contractor assumes the primary risk for cost overruns. The government's focus shifts from monitoring costs to ensuring the contractor meets the defined scope, quality standards, and delivery schedule. Oversight activities would concentrate on performance monitoring, verifying service delivery, and ensuring compliance with contract terms. While cost oversight is reduced, the government must still actively manage the contract to ensure the contractor fulfills all obligations and provides the required level of security.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: RUCKINGER STR. 12, ERLENSEE

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Sole Proprietorship, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $35,099,718

Exercised Options: $35,099,718

Current Obligation: $35,099,718

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W564KV15D0001

IDV Type: IDC

Timeline