DOD Spends $28M on Security Guards in Germany via Full and Open Competition

Contract Overview

Contract Amount: $28,003,147 ($28.0M)

Contractor: Pond Security Service Gmbh

Awarding Agency: Department of Defense

Start Date: 2019-06-29

End Date: 2019-12-31

Contract Duration: 185 days

Daily Burn Rate: $151.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USAG RHEINLAND PFALZ

Plain-Language Summary

Department of Defense obligated $28.0 million to POND SECURITY SERVICE GMBH for work described as: USAG RHEINLAND PFALZ Key points: 1. Contract awarded to POND SECURITY SERVICE GMBH for $28M. 2. Security Guards and Patrol Services sector. 3. Full and open competition was utilized. 4. Firm fixed price contract type. 5. High value contract for the Department of the Army.

Value Assessment

Rating: good

The contract value of $28M for security services appears reasonable given the duration and scope. Benchmarking against similar large-scale security contracts for military installations would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition generally leads to taxpayer savings by ensuring the government receives the best possible price through market forces.

Public Impact

Ensures security for USAG Rheinland-Pfalz installations. Supports military operations and personnel safety in Germany. Provides employment opportunities within the local German economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Geopolitical risks affecting service delivery in Germany.

Positive Signals

Successful competition achieved.
Clear contract scope and duration.
Firm fixed price mitigates cost overrun risk.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically security and investigation services. Spending in this area is critical for maintaining operational security and safety at government facilities.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the prime contractor is POND SECURITY SERVICE GMBH. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The contract was awarded via a delivery order under a larger contract vehicle, suggesting some level of pre-competition or established framework. Oversight would focus on performance monitoring and adherence to contract terms.

Related Government Programs

Security Guards and Patrol Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract duration is relatively short (6 months).
Potential for price escalation in follow-on contracts.
Dependence on a single provider for critical security functions.
Geographic concentration of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 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 $28.0 million.

What is the period of performance?

Start: 2019-06-29. End: 2019-12-31.

What was the benchmarked cost per guard or per hour for this service?

The provided data does not include a per-unit cost breakdown for security guards or hourly rates. To assess value effectively, a comparison with industry benchmarks for similar security services in Germany, considering factors like guard qualifications and operational hours, would be necessary.

What are the specific risks associated with relying on a single prime contractor for security in a foreign installation?

Relying on a single prime contractor, even after full and open competition, carries risks such as potential service disruptions due to contractor performance issues, labor disputes, or financial instability. Geopolitical factors in Germany could also impact service continuity, requiring robust contingency planning and oversight.

How effectively did the full and open competition process ensure optimal pricing and service quality?

The full and open competition process is designed to foster competitive pricing and encourage high service quality by allowing multiple qualified vendors to bid. The success in achieving optimal pricing and quality depends on the clarity of the solicitation, the responsiveness of bidders, and the evaluation criteria used by the contracting agency.

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: $28,003,147

Exercised Options: $28,003,147

Current Obligation: $28,003,147

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W564KV15D0001

IDV Type: IDC

Timeline