State Department's $392.6M security contract with Triple Canopy Inc. shows significant spending on guard services

Contract Overview

Contract Amount: $392,612,143 ($392.6M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of State

Start Date: 2009-03-31

End Date: 2011-05-07

Contract Duration: 767 days

Daily Burn Rate: $511.9K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY PERSONNEL

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $392.6 million to TRIPLE CANOPY INC for work described as: SECURITY PERSONNEL Key points: 1. The contract represents a substantial investment in private security personnel, highlighting the reliance on external contractors for critical functions. 2. Analysis of the contract's value-for-money requires benchmarking against similar security service contracts and assessing the cost per guard. 3. Competition dynamics for this contract are not immediately clear from the provided data, necessitating further investigation into the procurement process. 4. Risk indicators could include contractor performance history, the scope of services, and the geopolitical environment in which services were rendered. 5. Performance context is crucial, as the effectiveness of security services directly impacts personnel safety and mission success. 6. This contract falls within the broader sector of private security services, a growing market driven by global security needs.

Value Assessment

Rating: fair

The total award of over $392 million for security personnel over approximately two years suggests a high per-unit cost or a very large scope of services. Without specific details on the number of personnel or hours provided, a direct comparison to similar contracts is difficult. However, the sheer scale of the award warrants scrutiny to ensure it represents a fair price for the services rendered, considering potential market rates for security guards in relevant regions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. Understanding whether it was a full and open competition, a limited solicitation, or a sole-source award is critical. The number of bidders and the nature of the solicitation process directly influence price discovery and the potential for cost savings. If competition was limited, it could indicate higher prices than might be achieved in a more open market.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices, ensuring that taxpayer funds are used more efficiently. Limited competition may result in higher costs for the government.

Public Impact

The primary beneficiaries of this contract are the personnel and assets protected by the security services, likely including U.S. diplomats and facilities in potentially high-risk areas. The services delivered include security guard and patrol functions, essential for maintaining a safe operating environment. The geographic impact is likely concentrated in areas where the Department of State operates, potentially including embassies and consulates abroad. Workforce implications include the employment of numerous security personnel, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on competition level could mask inefficiencies or inflated costs.
The significant dollar amount necessitates rigorous oversight to ensure effective service delivery and prevent waste.
Performance metrics and quality assurance details are not provided, making it difficult to assess the contractor's effectiveness.
Potential for scope creep or contract modifications could increase the final cost beyond initial estimates.

Positive Signals

The contract addresses a critical need for security, indicating proactive measures to protect government personnel and interests.
A large contract award suggests the contractor has the capacity and experience to handle significant security operations.
The firm fixed-price nature of the contract can provide cost certainty if the scope is well-defined.

Sector Analysis

The private security services sector is a significant global industry, driven by increasing security concerns and the outsourcing of non-core functions by governments and corporations. This contract falls within the 'Security Guards and Patrol Services' NAICS code (561612), a segment characterized by a mix of large, established firms and smaller, specialized providers. Benchmarking this contract's value would involve comparing its per-guard cost and overall expenditure against similar government contracts for diplomatic security or base support services.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the award was made to Triple Canopy Inc., a large firm, and the 'sb' (small business) flag is false. There is no information on subcontracting plans or set-asides for small businesses. This suggests that the contract likely did not prioritize small business engagement, potentially limiting opportunities for smaller firms in this specific procurement.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of State's contracting officers and program managers responsible for ensuring service delivery and compliance. Accountability measures would be tied to contract performance clauses and payment schedules. Transparency assessment is limited by the available data; however, the contract's existence and award amount are publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of State Diplomatic Security Service
Global Security Support Contracts
Private Military and Security Company Contracts
Federal Law Enforcement Support Services

Risk Flags

Potential for high cost per service without clear competition data.
Lack of detailed performance metrics makes effectiveness assessment difficult.
Contract duration and value suggest significant reliance on a single provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $392.6 million to TRIPLE CANOPY INC. SECURITY PERSONNEL

Who is the contractor on this award?

The obligated recipient is TRIPLE CANOPY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $392.6 million.

What is the period of performance?

Start: 2009-03-31. End: 2011-05-07.

What was the specific geographic location and threat level associated with the services provided under this contract?

The provided data does not specify the geographic locations or the precise threat levels for which Triple Canopy Inc. provided security services under this contract. However, given the Department of State as the contracting agency, it is highly probable that these services were rendered in high-risk or politically sensitive environments abroad, such as embassies, consulates, or other diplomatic facilities. The nature of security personnel contracts with the State Department often implies operations in regions requiring robust protection due to political instability, terrorism threats, or civil unrest. Understanding the specific locations and threat assessments would be crucial for a comprehensive evaluation of the contract's necessity, scope, and associated costs.

How does the per-guard cost of this contract compare to industry benchmarks for similar security services in comparable regions?

The provided data does not include the number of personnel or hours worked, making a direct per-guard cost calculation impossible. Therefore, a precise comparison to industry benchmarks is not feasible with the current information. To conduct such an analysis, one would need to determine the total labor hours or the average number of guards deployed over the contract period and divide the total contract value by this figure. Subsequently, this calculated rate would be benchmarked against publicly available data or government cost estimates for security personnel in similar operational environments (e.g., high-threat posts). Without these details, assessing the value-for-money based on unit cost remains speculative.

What were the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how was contractor performance measured?

The available data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) established for this contract with Triple Canopy Inc. Typically, security contracts of this magnitude include stringent performance metrics related to response times, incident reporting accuracy, personnel conduct, adherence to post orders, and overall effectiveness in preventing security breaches. Performance measurement would likely involve regular reviews by Department of State contracting officers' representatives (CORs), site visits, incident reports analysis, and potentially formal performance evaluations at contract milestones or completion. The absence of this information limits the ability to assess the contractor's actual performance and the effectiveness of the security services provided.

Were there any significant contract modifications, overruns, or disputes associated with this award?

The provided data does not indicate whether there were significant contract modifications, cost overruns, or disputes related to this $392.6 million award to Triple Canopy Inc. Large, multi-year contracts, especially those in complex environments, often undergo modifications to adjust scope, duration, or pricing based on evolving requirements or unforeseen circumstances. Information regarding such changes, along with any formal disputes or claims filed by the contractor or the government, would typically be found in contract modification records or official dispute resolution logs. Without access to these records, it's impossible to determine if the final cost deviated significantly from the initial award or if there were contractual challenges.

What is the historical spending trend for security personnel services by the Department of State over the past decade?

The provided data focuses on a single contract award and does not offer historical spending trends for security personnel services by the Department of State. To analyze historical spending, one would need to access broader contract databases (like FPDS or USASpending) and aggregate spending data for relevant NAICS codes (e.g., 561612) and agencies (Department of State) over multiple fiscal years. Such an analysis would reveal patterns in overall expenditure, identify major contractors, and potentially highlight fluctuations in demand for security services, possibly correlated with global events or policy changes. This single contract represents a snapshot, not a trend.

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

Contractor Details

Parent Company: Constellis Holdings, LLC (UEI: 966133477)

Address: 600 KNIGHTSBRIDGE PKWY, LINCOLNSHIRE, IL, 60069

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $393,668,448

Exercised Options: $393,668,448

Current Obligation: $392,612,143

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD05D1100

IDV Type: IDC

Timeline