State Department awards $19.6M for construction surveillance, exceeding initial estimates by 48%

Contract Overview

Contract Amount: $19,631,449 ($19.6M)

Contractor: Coastal International Security, Inc

Awarding Agency: Department of State

Start Date: 2012-09-06

End Date: 2023-10-31

Contract Duration: 4,072 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSTRUCTION SURVEILLANCE SERVCIES

Plain-Language Summary

Department of State obligated $19.6 million to COASTAL INTERNATIONAL SECURITY, INC for work described as: CONSTRUCTION SURVEILLANCE SERVCIES Key points: 1. Value for money appears fair given the long duration and specialized nature of the services. 2. Competition dynamics indicate a healthy bidding environment for this type of security service. 3. Risk indicators are moderate, primarily related to performance continuity over a long contract term. 4. Performance context shows a consistent need for surveillance services across multiple years. 5. Sector positioning places this contract within the broader security and protective services industry.

Value Assessment

Rating: fair

The total award of $19.6 million over approximately 11 years suggests an average annual spend of around $1.78 million. Benchmarking against similar long-term construction surveillance contracts is challenging due to the specific nature of the requirements and the extended period. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if managed effectively. The initial award value was $4.82 million, with subsequent modifications and delivery orders bringing the total to $19.63 million, indicating significant scope expansion or price adjustments over time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 3 bids indicates a reasonable level of competition for this service. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The fact that it was competed openly is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the most cost-effective solution for essential construction surveillance services.

Public Impact

The primary beneficiaries are government construction projects requiring continuous security monitoring. Services delivered include physical security, access control, and monitoring of construction sites. Geographic impact is likely concentrated around specific construction project locations managed by the State Department. Workforce implications include employment for security personnel and administrative staff supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or unmanaged cost increases over the long contract duration.
Ensuring consistent service quality and performance across different project sites and over many years.
Dependence on a single contractor for critical security functions over an extended period.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type shifts cost overrun risk to the contractor.
Long-term nature of the contract suggests a sustained and critical need for these services.

Sector Analysis

This contract falls within the security and protective services sector, a significant segment of the federal contracting market. This sector encompasses a wide range of services, from guard services to advanced surveillance systems. The total federal spending on security services is substantial, with numerous contracts awarded annually across various agencies. This specific contract addresses the need for physical security during construction phases, a critical but often specialized niche within the broader industry.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor engages small businesses for specialized support services.

Oversight & Accountability

Oversight is typically managed by the contracting officer's representative (COR) within the Department of State, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the firm-fixed-price structure and performance metrics. Transparency is facilitated through contract award databases, though specific performance details may be sensitive.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) for Security and Protection Services
Department of Defense (DoD) security contracts
Department of Homeland Security (DHS) protective services

Risk Flags

Potential for cost escalation over long contract duration
Ensuring consistent service quality and performance
Adaptability to evolving technology and security threats

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $19.6 million to COASTAL INTERNATIONAL SECURITY, INC. CONSTRUCTION SURVEILLANCE SERVCIES

Who is the contractor on this award?

The obligated recipient is COASTAL INTERNATIONAL SECURITY, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.6 million.

What is the period of performance?

Start: 2012-09-06. End: 2023-10-31.

What was the initial estimated cost or ceiling for this contract, and how did the final award value compare?

The initial award value, or base amount, for this contract was $4,821,000. The total obligated amount, representing the final award value, reached $19,631,449.06. This indicates that the final value was approximately 4.07 times higher than the initial award, representing a significant increase of over 300%. This substantial difference could be attributed to factors such as option periods being exercised, scope expansions, or adjustments in service requirements over the contract's extended duration.

How does the per-unit cost of surveillance services compare to industry benchmarks?

Determining a precise per-unit cost for surveillance services is complex without specific details on the units of measure (e.g., per guard hour, per camera system, per square foot monitored). The contract's total value of $19.6 million over approximately 11 years averages to about $1.78 million annually. This annual figure needs to be contextualized against the scale and intensity of surveillance required. Without more granular data on service delivery, direct comparison to industry benchmarks for specific surveillance tasks is not feasible. However, the firm-fixed-price nature suggests that the government has a defined cost for the defined scope of work.

What is the track record of Coastal International Security, Inc. with federal contracts, particularly for surveillance services?

Coastal International Security, Inc. has a history of performing federal contracts, primarily within the security and protective services domain. While specific details on their performance for this particular State Department contract require deeper investigation into performance reports and any past performance evaluations, their continued engagement in federal contracting suggests a baseline level of capability. Analyzing their broader federal contract portfolio, including contract values, agencies served, and any reported issues or awards, would provide a more comprehensive understanding of their track record.

What are the primary risks associated with a long-duration contract for construction surveillance?

Long-duration contracts for construction surveillance present several risks. Firstly, there's the risk of 'contractor lock-in,' where the government becomes heavily reliant on a single provider, potentially reducing leverage for future negotiations. Secondly, technology and security needs can evolve rapidly; a contract spanning over a decade might not adequately adapt to new surveillance technologies or changing threat landscapes without costly modifications. Thirdly, maintaining consistent service quality and personnel reliability over such an extended period can be challenging. Finally, the potential for scope creep or unforeseen cost increases, despite the firm-fixed-price structure, remains a concern if not meticulously managed.

How does the level of competition (3 bidders) impact the government's ability to secure favorable pricing?

Having three bidders for this contract generally indicates a healthy level of competition, which is favorable for the government. A competitive environment encourages bidders to offer their best pricing and terms to win the contract. With three offers, the government has a basis for comparison and negotiation, reducing the likelihood of paying an inflated price. While more bidders could potentially drive prices lower, three offers suggest that the market is sufficiently contestable for this specialized service, allowing for reasonable price discovery and value for taxpayer money.

What is the historical spending trend for construction surveillance services by the Department of State?

Analyzing the historical spending trend for construction surveillance services by the Department of State requires examining contract data over multiple fiscal years. This specific contract, awarded in 2012 and ending in 2023, represents a significant portion of spending in this category during that period. To understand the broader trend, one would need to aggregate spending on similar surveillance and security services for construction projects across the Department's history. This would reveal whether spending has been consistent, increasing, or decreasing, and whether this contract represents a typical or outlier investment.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Akal Security, Inc. (UEI: 017711888)

Address: 8198 TERMINAL RD STE 204, LORTON, VA, 22079

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

Financial Breakdown

Contract Ceiling: $19,662,806

Exercised Options: $19,662,806

Current Obligation: $19,631,449

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0066

IDV Type: IDC

Timeline