State Dept. Awards $375.6M Overseas Security Installation Services Contract to Xator LLC
Contract Overview
Contract Amount: $375,638,911 ($375.6M)
Contractor: Xator LLC
Awarding Agency: Department of State
Start Date: 2013-05-23
End Date: 2020-01-14
Contract Duration: 2,427 days
Daily Burn Rate: $154.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 14
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONTRACT TO PROVIDE OVERSEAS SECURITY INSTALLATION SERVICES. IGF::CT::IGF
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $375.6 million to XATOR LLC for work described as: CONTRACT TO PROVIDE OVERSEAS SECURITY INSTALLATION SERVICES. IGF::CT::IGF Key points: 1. Contract awarded to Xator LLC for overseas security installation services. 2. Significant value of $375.6 million over its period of performance. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Sector is Electrical Contractors and Other Wiring Installation Contractors.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value is substantial, making cost control critical.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, but with an exclusion of sources, suggesting a specific reason for limiting the initial pool. This method can impact price discovery if the exclusion was not fully justified.
Taxpayer Impact: The substantial award value means taxpayer funds are significantly committed. Effective oversight is crucial to ensure value for money.
Public Impact
Ensures security at overseas installations, a critical government function. Supports jobs within the electrical contracting and security services industries. Potential for cost overruns due to the Cost Plus Fixed Fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Exclusion of sources in competition requires careful justification.
- Long duration of the contract (2427 days) increases risk of scope creep or changing requirements.
Positive Signals
- Awarded under full and open competition, indicating a broad search for qualified vendors.
- Contract supports essential overseas security infrastructure.
Sector Analysis
The sector involves electrical contractors and wiring installation, crucial for infrastructure development and maintenance. Spending benchmarks in this sector vary widely based on project scope and location, but a contract of this magnitude suggests a large-scale, complex operation.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The contract was awarded by the Department of State, which has established oversight mechanisms. However, the long duration and complexity of overseas installations necessitate robust and continuous oversight to ensure performance and cost control.
Related Government Programs
- Electrical Contractors and Other Wiring Installation Contractors
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Risk of vendor lock-in if source exclusion was overly restrictive.
- Complexity of managing overseas contracts.
- Long contract duration increases exposure to changing geopolitical or security landscapes.
Tags
electrical-contractors-and-other-wiring-, department-of-state, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $375.6 million to XATOR LLC. CONTRACT TO PROVIDE OVERSEAS SECURITY INSTALLATION SERVICES. IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is XATOR LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $375.6 million.
What is the period of performance?
Start: 2013-05-23. End: 2020-01-14.
What was the justification for excluding specific sources during the full and open competition phase?
The justification for excluding sources during a 'full and open competition after exclusion of sources' typically relates to specific technical requirements, security clearances, or unique capabilities that only a limited number of entities possess. Without further details, it's difficult to assess if this exclusion was necessary and if it ultimately limited competitive pricing or innovation.
How effectively has the Cost Plus Fixed Fee structure been managed to control costs for this contract?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation as the contractor is reimbursed for actual costs plus a fixed fee. Effective management requires stringent oversight, detailed cost tracking, and clear performance metrics to prevent unnecessary spending and ensure the fixed fee remains appropriate for the work performed.
What is the long-term value proposition of this contract given the significant investment and potential risks?
The long-term value proposition hinges on the sustained effectiveness of the security installations and the Department of State's ability to manage the contract efficiently. If the installations provide reliable security and the contract is executed within reasonable cost parameters, it represents a significant investment in protecting personnel and assets abroad.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 14
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4471 LEGENDARY DR STE 200, DESTIN, FL, 32541
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $532,741,120
Exercised Options: $444,043,106
Current Obligation: $375,638,911
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-23
Current End Date: 2020-01-14
Potential End Date: 2020-01-14 00:00:00
Last Modified: 2022-12-22
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