State Department awards $14.1M construction guard contract to NVE, Inc. for embassy security

Contract Overview

Contract Amount: $14,128,748 ($14.1M)

Contractor: NVE, Inc

Awarding Agency: Department of State

Start Date: 2022-02-28

End Date: 2025-05-31

Contract Duration: 1,188 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CONSTRUCTION GUARD FOR EMBASSIES ETC.

Plain-Language Summary

Department of State obligated $14.1 million to NVE, INC for work described as: CONSTRUCTION GUARD FOR EMBASSIES ETC. Key points: 1. Contract focuses on security guard services for construction projects, a critical component of embassy infrastructure. 2. NVE, Inc. is the sole awardee under a full and open competition. 3. The contract duration of nearly 3 years suggests a sustained need for security services. 4. Award type is a delivery order, indicating it's part of a larger contracting vehicle. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security services.

Value Assessment

Rating: fair

The total award amount of $14.1 million over approximately 3 years for security guard services for construction sites appears reasonable given the critical nature of embassy security. Benchmarking against similar contracts for specialized security services at federal facilities is necessary for a definitive value assessment. Without specific details on the scope of services, personnel hours, and geographic locations, a precise per-unit cost comparison is challenging. However, the contract's duration and the nature of the services suggest a significant investment in maintaining secure construction environments.

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 had the opportunity to bid. The fact that it resulted in a single delivery order award indicates that NVE, Inc. was selected as the most advantageous offer. The level of competition, while open, did not necessarily result in multiple awardees for this specific delivery order, which could be due to specialized requirements or the nature of the bidding process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the ultimate value for taxpayers depends on the effectiveness of the bidding process in eliciting the best offers.

Public Impact

The primary beneficiaries are the Department of State and its personnel, ensuring the safety and security of construction projects at embassies. Services delivered include security guard and patrol functions specifically tailored to construction environments. The geographic impact is likely focused on U.S. embassy locations undergoing construction or renovation. Workforce implications include employment opportunities for security personnel employed by NVE, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data.
Potential for cost overruns if construction timelines are extended.
Dependence on a single awardee for this specific delivery order.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration indicates a stable and predictable security requirement.
Focus on critical infrastructure security aligns with national security interests.

Sector Analysis

The security services sector is a significant part of the U.S. economy, with government contracts forming a substantial portion. This contract falls within the specialized security services sub-sector, focusing on guarding sensitive government facilities during construction. Comparable spending benchmarks would involve analyzing other federal contracts for security services at construction sites or high-security government installations, which often command premium pricing due to the risks involved.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this award. The focus was on securing the best offer through full and open competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of State Construction Contracts
Federal Security Guard Services
Embassy Security Programs
Construction Site Security

Risk Flags

Potential for performance issues due to contractor reliance on personnel.
Risk of cost escalation if construction projects exceed original timelines.
Dependence on a single awardee for this specific delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.1 million to NVE, INC. CONSTRUCTION GUARD FOR EMBASSIES ETC.

Who is the contractor on this award?

The obligated recipient is NVE, INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2022-02-28. End: 2025-05-31.

What is the specific scope of work for NVE, Inc. under this contract?

The provided data indicates the contract is for 'CONSTRUCTION GUARD FOR EMBASSIES ETC.' and falls under NAICS code 561612, 'Security Guards and Patrol Services.' This suggests that NVE, Inc. is responsible for providing personnel to guard construction sites at U.S. embassies and potentially other related facilities. The scope would likely include access control, perimeter security, monitoring of construction activities, and preventing unauthorized access or theft of materials and equipment. Specific duties, post orders, and reporting requirements would be detailed in the contract's statement of work, which is not fully available in the provided summary data.

How does the $14.1 million award compare to similar security contracts for federal construction projects?

Benchmarking the $14.1 million award requires comparing it to contracts with similar scopes, durations, and security requirements for construction sites at federal facilities, particularly embassies. Contracts for high-security environments often have higher per-unit costs due to the need for highly vetted personnel, specialized equipment, and stringent operational protocols. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, given the critical nature of embassy security and the nearly three-year duration, the total award amount appears to be within a reasonable range for specialized security services in such sensitive locations. Further analysis would involve examining the number of guard posts, hours per post, and specific security technologies deployed.

What are the key performance indicators (KPIs) for NVE, Inc. under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for NVE, Inc. However, typical KPIs for security guard services contracts include metrics related to response times to incidents, adherence to post orders, incident reporting accuracy and timeliness, personnel attendance and punctuality, and the absence of security breaches or significant security-related incidents. The Department of State would have established specific performance standards and evaluation criteria within the contract's statement of work. Performance would likely be monitored through regular reports from NVE, Inc. and direct observation by government representatives.

What is the historical spending pattern for construction guard services at the Department of State?

Analyzing historical spending patterns for construction guard services at the Department of State would involve reviewing past contract awards for similar services over several fiscal years. This would help determine if the $14.1 million award represents an increase, decrease, or stable level of spending in this category. Factors influencing historical spending include the number of ongoing construction and renovation projects at embassies worldwide, changes in security threat levels, and shifts in contracting strategies. Without access to historical contract data for the Department of State, it is not possible to provide specific figures or trends for this category.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks associated with this contract include the possibility of security breaches, contractor performance issues (e.g., inadequate staffing, poor training), cost overruns due to extended construction timelines, and potential delays in service delivery. Mitigation strategies typically involve rigorous vetting of the contractor (NVE, Inc.), clearly defined performance standards and penalties in the contract, regular performance monitoring by the government, and contingency planning for unforeseen events. The full and open competition process itself serves as a risk mitigation tool by selecting a qualified and competitive vendor. The contract's duration also implies a level of confidence in the selected vendor's ability to perform.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12700 SUNRISE VALLEY DR STE 450, RESTON, VA, 20191

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,128,748

Exercised Options: $14,128,748

Current Obligation: $14,128,748

Actual Outlays: $6,448,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0128

IDV Type: IDC

Timeline