Department of State awards $6.35M contract for embassy security guard services to NVE, Inc

Contract Overview

Contract Amount: $6,353,014 ($6.4M)

Contractor: NVE, Inc

Awarding Agency: Department of State

Start Date: 2023-09-16

End Date: 2025-09-15

Contract Duration: 730 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SECURITY GUARD, SERVICES, FOR INTERNATIONAL EMBASSIES.

Plain-Language Summary

Department of State obligated $6.4 million to NVE, INC for work described as: SECURITY GUARD, SERVICES, FOR INTERNATIONAL EMBASSIES. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 730 days (2 years) provides a stable period for service delivery. 3. The North American Industry Classification System (NAICS) code 561612 indicates a focus on security guards and patrol services. 4. The award type is a delivery order, implying it's part of a larger contract vehicle. 5. The contract is for labor hours, indicating payment based on personnel time spent.

Value Assessment

Rating: fair

The total award amount is $6,353,014 over two years. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for embassy security services would be necessary to determine if the pricing is competitive. The reliance on labor hours can sometimes lead to cost overruns if not managed tightly.

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. The presence of 5 bidders suggests a moderate level of competition for this service. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

Provides essential security guard services to protect U.S. international embassies. Ensures the safety and security of diplomatic personnel and government property abroad. Supports the operational continuity of diplomatic missions. The services are geographically focused on U.S. embassy locations internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hour payment structure if not closely monitored.
Dependence on a single contractor (NVE, Inc.) for critical security functions at multiple locations.
Limited insight into the specific qualifications and vetting processes of the security personnel provided.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Contract duration of two years provides stability for service provision.
The Department of State is the contracting agency, suggesting established security requirements.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the security guards and patrol services sub-sector. The market is characterized by a mix of large, established firms and smaller, specialized providers. Government contracts for security services are common due to the need for protection of federal facilities and personnel, both domestically and abroad. Benchmarking would involve comparing this contract's value and scope to other federal security contracts.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) or specific subcontracting requirements mentioned in the provided data (sb=false). Therefore, the direct impact on the small business ecosystem is likely minimal, with opportunities primarily for the prime contractor, NVE, Inc. Further analysis of subcontracting plans would be needed to assess any indirect impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's Bureau of Diplomatic Security and its contracting officers. The contract's performance would be monitored against the Statement of Work (SOW) and performance standards. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of State Security Services Contracts
Federal Protective Service Contracts
Embassy Security Operations
Guard Services Contracts

Risk Flags

Potential for cost overruns due to labor hour payment structure.
Adequacy of contractor vetting and training for personnel in high-risk environments.
Ensuring consistent service quality across multiple international embassy locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.4 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 $6.4 million.

What is the period of performance?

Start: 2023-09-16. End: 2025-09-15.

What is the historical performance record of NVE, Inc. with the Department of State or other federal agencies?

A review of past performance information for NVE, Inc. is crucial for assessing their reliability and capability in fulfilling this contract. This would involve examining past contract awards, any documented performance issues, contractor performance assessment reporting (CPARS) scores, and any history of disputes or litigation. Agencies often use past performance as a key evaluation factor in source selection. Without specific historical data on NVE, Inc.'s performance, particularly on similar security contracts, it is difficult to definitively assess their track record for this specific award.

How does the per-hour labor cost for this contract compare to industry benchmarks for similar security services?

To benchmark the per-hour labor cost, one would need to divide the total contract value by the estimated total labor hours (if available) or by the contract duration multiplied by an estimated number of personnel. Comparing this figure to industry surveys for security guard services, adjusted for geographic location and required security clearances/training, would reveal if the pricing is competitive. For instance, if the average hourly rate significantly exceeds market rates for comparable services, it could indicate potential overpricing or a lack of sufficient competition. Conversely, a rate well below market might signal quality concerns or unrealistic bidding.

What are the specific security risks associated with providing guard services for international embassies, and how are they mitigated by this contract?

International embassies face unique security risks, including terrorism, espionage, political unrest, and localized crime. This contract aims to mitigate these risks by providing trained and vetted security personnel. Key risk mitigation factors include the contractor's screening and training protocols for guards, adherence to specific post orders and access control procedures, and the ability to respond to security incidents. The Department of State likely has stringent requirements for guard qualifications, background checks, and operational procedures to ensure effective risk management in high-threat environments.

What is the total federal spending on security guard and patrol services (NAICS 561612) over the last five fiscal years?

Analyzing total federal spending on NAICS code 561612 over the past five fiscal years provides essential context for this contract. This data, typically available through sources like the Federal Procurement Data System (FPDS), would reveal spending trends, identify major contracting agencies, and highlight the overall market size for these services. For example, a consistent increase in spending might indicate growing demand or evolving security needs, while a decrease could suggest budget constraints or shifts in procurement strategies. Understanding this broader spending landscape helps in evaluating the significance and typical scale of individual contracts like the one awarded to NVE, Inc.

How does the number of bidders (5) in this full and open competition compare to the average number of bidders for similar Department of State security contracts?

Comparing the number of bidders (5) to the average for similar Department of State security contracts provides insight into the level of market interest and potential competition. If the average is significantly higher, it might suggest that this particular solicitation was less attractive due to its scope, requirements, or timing, potentially impacting price competition. Conversely, if 5 bidders is typical or high, it indicates healthy competition. This comparison helps assess whether the government received a robust set of offers, which is generally favorable for achieving competitive pricing and optimal 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: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM21R0009

Offers Received: 5

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: $6,353,014

Exercised Options: $6,353,014

Current Obligation: $6,353,014

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