State Department's $27.8M security contract for Mexico City services shows continuity with prior award

Contract Overview

Contract Amount: $27,850,483 ($27.9M)

Contractor: Inter-Con Security Systems, Inc.

Awarding Agency: Department of State

Start Date: 2011-06-16

End Date: 2014-12-31

Contract Duration: 1,294 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: THIS IS A CONTINUATION OF ANOTHER CONTRACT. THE ORIGINAL CONTRACT NUMBER IS S-MX530-09-C-0003 WHICH WAS AWARDED BY U.S. EMBASSY MEXICO CITY. INTERNAL DOS PROCEDURES CHANGED AND THE CONTRACT NUMBER WAS CHANGED TO SAQMMA11C0149 VIA M014 TO THE OLD CONTRACT NUMBER. THIS FPDS REPORT WILL ONLY REFLECT ADDITIONAL OBLIGATIONS AND CHANGES IN CONTRACT CEILING ABOVE AND BEYOND WHAT WAS RECORDED ON THE PREVIOUS CONTRACT NUMBER.

Plain-Language Summary

Department of State obligated $27.9 million to INTER-CON SECURITY SYSTEMS, INC. for work described as: THIS IS A CONTINUATION OF ANOTHER CONTRACT. THE ORIGINAL CONTRACT NUMBER IS S-MX530-09-C-0003 WHICH WAS AWARDED BY U.S. EMBASSY MEXICO CITY. INTERNAL DOS PROCEDURES CHANGED AND THE CONTRACT NUMBER WAS CHANGED TO SAQMMA11C0149 VIA M014 TO THE OLD CONTRACT NUMBER. THIS FPDS REPO… Key points: 1. Contract represents a continuation of services previously awarded under a different contract number, indicating ongoing need and established performance. 2. The fixed-price structure with economic price adjustment aims to manage cost fluctuations in a dynamic environment. 3. Competition was full and open, suggesting a robust process for selecting the contractor. 4. The contract duration of 1294 days highlights a significant, long-term commitment to security services. 5. The primary service category is security guards and patrol, a critical function for embassy operations. 6. The contractor, INTER-CON SECURITY SYSTEMS, INC., has a substantial contract value, implying significant operational capacity.

Value Assessment

Rating: good

The contract value of $27.8 million over approximately 3.5 years for security services in Mexico City appears reasonable given the scope and duration. While direct per-unit cost comparisons are not readily available without more granular data on guard hours and specific service levels, the fixed-price with economic adjustment structure suggests an attempt to control costs while accounting for potential inflation. Benchmarking against similar large-scale security contracts for diplomatic missions would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The fact that it was competed suggests that the agency sought a range of qualified providers, and the selection was based on factors including price and technical merit.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the most cost-effective solution is chosen.

Public Impact

The primary beneficiaries are the U.S. Department of State and its personnel operating at the U.S. Embassy in Mexico City, ensuring their safety and security. The services delivered include essential security guard and patrol functions, crucial for maintaining a secure diplomatic environment. The geographic impact is concentrated in Mexico City, supporting the operational integrity of the U.S. diplomatic mission there. The contract supports a significant workforce of security personnel, contributing to local employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if economic price adjustment clauses are heavily utilized without strict oversight.
Reliance on a single contractor for critical security functions could pose a risk if performance degrades or unforeseen issues arise.
The long duration of the contract may limit opportunities to re-evaluate market competitiveness or adopt newer security technologies.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract's continuation from a previous award indicates a stable and likely satisfactory performance history.
The fixed-price with economic price adjustment structure provides a degree of cost predictability while allowing for market fluctuations.

Sector Analysis

The security services sector is a large and critical component of government contracting, particularly for diplomatic and defense agencies. This contract falls within the broader security and protective services industry, which includes guard services, physical security, and related protective measures. The market for these services is competitive, with numerous established providers. The value of this contract is significant, reflecting the high stakes and extensive requirements associated with protecting U.S. diplomatic facilities abroad.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, INTER-CON SECURITY SYSTEMS, INC., is likely a large business, and its subcontracting opportunities would depend on its own procurement practices and any flow-down requirements from the government, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Department of State's contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is facilitated through contract reporting mechanisms like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Embassy Security Contracts
Protective Services Contracts
Department of State Security Operations
Global Security Services
Fixed-Price Contracts with Economic Price Adjustment

Risk Flags

Contract Continuation
Long Duration
Economic Price Adjustment Clause

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $27.9 million to INTER-CON SECURITY SYSTEMS, INC.. THIS IS A CONTINUATION OF ANOTHER CONTRACT. THE ORIGINAL CONTRACT NUMBER IS S-MX530-09-C-0003 WHICH WAS AWARDED BY U.S. EMBASSY MEXICO CITY. INTERNAL DOS PROCEDURES CHANGED AND THE CONTRACT NUMBER WAS CHANGED TO SAQMMA11C0149 VIA M014 TO THE OLD CONTRACT NUMBER. THIS FPDS REPORT WILL ONLY REFLECT ADDITIONAL OBLIGATIONS AND CHANGES IN CONTRACT CEILING ABOVE AND BEYOND WHAT WAS RECORDED ON THE PREVIOUS CONTRACT NUMBER.

Who is the contractor on this award?

The obligated recipient is INTER-CON SECURITY SYSTEMS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2011-06-16. End: 2014-12-31.

What is the historical spending pattern for security services at the U.S. Embassy in Mexico City, and how does this contract compare?

This contract (SAQMMA11C0149) is a continuation of a previous award (S-MX530-09-C-0003) by the U.S. Embassy Mexico City. The provided data only reflects additional obligations and changes in contract ceiling beyond the original contract. To fully understand the historical spending pattern, one would need to access the records for the original contract number S-MX530-09-C-0003. Without that data, a direct comparison of total historical spending is not possible. However, the current contract's ceiling of $27.85 million suggests a substantial and ongoing investment in security services for the embassy, consistent with the critical nature of such operations.

What specific security services are included under this contract, and what are the key performance indicators (KPIs)?

The contract is categorized under NAICS code 561612, which corresponds to 'Security Guards and Patrol Services.' This implies that the core services involve providing trained personnel to guard facilities, patrol premises, and respond to security incidents. While the specific KPIs are not detailed in the provided data, typical performance indicators for such contracts include response times to alarms, adherence to post orders, personnel reliability, incident reporting accuracy, and overall effectiveness in preventing unauthorized access or security breaches. The Department of State would have established specific metrics to evaluate the contractor's performance.

How does the pricing structure (Fixed Price with Economic Price Adjustment) typically impact cost certainty for the government?

A Fixed Price with Economic Price Adjustment (FP-EPA) contract aims to balance cost certainty with the need to account for fluctuating economic conditions, such as inflation in labor or material costs. For the government, it offers more certainty than a cost-reimbursement contract because the base price is fixed. However, the economic price adjustment clause allows for increases (and sometimes decreases) in the contract price based on pre-defined economic indices. This means the final cost can deviate from the initial fixed price. Effective oversight is crucial to ensure that adjustments are justified and do not lead to excessive cost growth beyond what is necessary to maintain contractor performance.

What is the track record of INTER-CON SECURITY SYSTEMS, INC. in performing similar government contracts?

INTER-CON SECURITY SYSTEMS, INC. has a history of performing security services for various government agencies. While the provided data focuses on this specific contract, a comprehensive assessment of their track record would involve reviewing their performance on other contracts, including any past performance evaluations, awards, or disputes. Their ability to secure a contract of this magnitude and duration with the Department of State suggests they possess the necessary qualifications and experience. Further due diligence would involve examining their financial stability, operational capacity, and client references for similar security contracts.

What are the potential risks associated with a long-duration contract (1294 days) for security services?

Long-duration contracts, such as this 1294-day (approximately 3.5 years) agreement, carry several potential risks. Firstly, the fixed nature of the contract may not keep pace with rapid technological advancements in security, potentially leading to the use of outdated systems or methods. Secondly, over such an extended period, there's a risk of contractor performance degradation or complacency. Thirdly, market conditions and pricing can change significantly, and a long-term contract might lock the government into a less competitive rate compared to what could be achieved in a more current procurement. Finally, changes in the geopolitical or security landscape might necessitate different approaches that are difficult to accommodate within the original contract scope.

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

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 210 S DE LACEY AVE # 200, PASADENA, CA, 91105

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,842,906

Exercised Options: $29,842,906

Current Obligation: $27,850,483

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline