Department of State awards $23.4M contract for security guard services to NVE, Inc. through full and open competition

Contract Overview

Contract Amount: $23,352,233 ($23.4M)

Contractor: NVE, Inc

Awarding Agency: Department of State

Start Date: 2022-04-18

End Date: 2026-07-31

Contract Duration: 1,565 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SECURITY GUARD SERVICES FOR INTERNATIONAL EMBASSIES.

Plain-Language Summary

Department of State obligated $23.4 million to NVE, INC for work described as: SECURITY GUARD SERVICES FOR INTERNATIONAL EMBASSIES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1565 days (approx. 4.3 years) indicates a long-term need for these services. 3. Services are for security guard functions at international embassies, a critical national security function. 4. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar framework. 5. NVE, Inc. is the sole awardee for this specific delivery order. 6. The contract is labor-hour based, which can offer flexibility but requires careful monitoring of hours worked.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific scope of services and locations. However, the total award amount of $23.4 million over approximately 4.3 years averages to about $5.4 million annually. This figure needs to be compared against the number of embassies protected and the specific security requirements. Without more granular data on the number of guards, hours, and specific security measures, a definitive value-for-money assessment is difficult. The labor-hour pricing structure also introduces variability.

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 a bid. This suggests a robust competitive process was intended. The number of bidders is not specified, but the 'full and open' designation generally implies multiple interested parties participated, which is a positive sign for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. This approach aims to secure the best possible price for essential security services.

Public Impact

International embassies and their personnel are the primary beneficiaries, receiving enhanced security. The services delivered include crucial security guard and patrol functions. The geographic impact is global, covering various international embassy locations. This contract supports jobs within the security services industry, potentially benefiting the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor-hour contracts can be susceptible to cost overruns if not managed tightly, as the final cost depends on the hours actually expended.
The specific performance metrics and quality control measures for NVE, Inc. are not detailed, making it hard to assess performance risk.
The long duration of the contract could lead to complacency or reduced vigilance if not actively managed and overseen.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing structure.
The contract addresses a critical national security need for embassy protection.
The long-term nature of the contract provides stability for essential security operations.

Sector Analysis

The security guard and patrol services sector (NAICS 561612) is a significant part of the private security industry. Federal agencies, particularly those with international operations like the Department of State, are major consumers of these services. The market is characterized by numerous providers, ranging from large multinational corporations to smaller, specialized firms. Federal contracts in this space often involve stringent security clearances, extensive background checks, and adherence to specific operational protocols, which can influence pricing and contractor selection.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans for small businesses. This suggests that larger, established security firms likely competed for and won this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The contract's duration and critical nature suggest regular performance reviews and audits would be in place. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State Security Services Contracts
Embassy Security Operations
Federal Protective Service Contracts
Department of Defense Security Contracts
General Services Administration (GSA) Schedule Contracts for Security

Risk Flags

Potential for cost overruns due to labor-hour pricing structure.
Lack of specific performance metrics in public data.
Dependence on contractor's internal quality control and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.4 million to NVE, INC. SECURITY GUARD SERVICES FOR INTERNATIONAL EMBASSIES.

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 $23.4 million.

What is the period of performance?

Start: 2022-04-18. End: 2026-07-31.

What is the historical spending pattern for security guard services at international embassies by the Department of State?

Analyzing historical spending requires access to detailed procurement data over multiple fiscal years. The Department of State, responsible for managing U.S. embassies worldwide, consistently requires robust security services. Spending in this category is influenced by geopolitical factors, the number of diplomatic missions, and evolving security threats. Historically, such contracts have been substantial, often awarded through competitive processes, but can also be subject to sole-source or limited competition awards in specific high-risk environments. Without specific historical data for this contract vehicle or similar embassy security contracts, it's difficult to provide precise figures. However, it's reasonable to assume consistent, multi-million dollar annual expenditures to maintain security at numerous global locations.

How does the awarded price per year for this contract compare to similar security contracts for diplomatic facilities?

The annual value of this contract is approximately $5.4 million ($23.4M / 4.3 years). Comparing this to similar contracts is challenging without knowing the exact scope, number of personnel, locations, and specific security requirements. Contracts for security at high-threat diplomatic posts often command higher prices due to increased risks, specialized personnel, and advanced technology integration. Conversely, contracts for facilities in lower-risk areas might be less expensive. To perform a robust comparison, one would need data on the number of guard posts, hours per post, required certifications, and the specific threat level of the embassies covered. General market rates for security guards vary widely by region and skill level, making a direct benchmark difficult without more context.

What are the key performance indicators (KPIs) used to evaluate NVE, Inc.'s performance under this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, typical KPIs for security guard services contracts often include metrics such as response times to incidents, adherence to post orders, guard attendance and punctuality, successful completion of patrols, incident reporting accuracy, and overall client satisfaction. For embassy security, KPIs would likely be exceptionally stringent, focusing on preventing unauthorized access, maintaining situational awareness, and effective communication with government security personnel. The Department of State would have established performance standards and evaluation procedures within the contract's statement of work.

What is the track record of NVE, Inc. in performing similar federal security contracts?

Information regarding NVE, Inc.'s specific track record on similar federal contracts is not provided in the data snippet. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous federal contracts awarded to them, and their history with the Department of State or other agencies requiring similar security services. Companies awarded large, long-term contracts like this typically have a demonstrated history of successful performance, financial stability, and the capacity to meet stringent federal requirements. Further investigation into federal procurement databases would be necessary to detail their specific performance history.

What are the potential risks associated with a labor-hour contract for security services, and how are they mitigated?

Labor-hour contracts, like this one, carry inherent risks of cost escalation if the number of hours required exceeds initial estimates or if hours are not efficiently utilized. This can lead to the total contract value increasing significantly beyond the initial award amount. Mitigation strategies employed by the government typically include robust oversight by contracting officers and program managers, detailed monitoring of hours worked, performance requirements tied to efficient service delivery, and potentially incorporating cost-plus-fixed-fee elements or award fees based on performance and cost control. Clear definitions of 'labor hour' and strict invoicing procedures are also crucial for managing this risk.

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: $23,352,233

Exercised Options: $23,352,233

Current Obligation: $23,352,233

Actual Outlays: $5,741,774

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