Triple Canopy Inc. awarded $205M for security services at U.S. Consulate in Basrah, Iraq

Contract Overview

Contract Amount: $205,241,995 ($205.2M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of State

Start Date: 2013-09-09

End Date: 2018-10-16

Contract Duration: 1,863 days

Daily Burn Rate: $110.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SECURITY SERVICES - U. S. CONSULATE BASRAH, IRAQ. OTHER FUNCTIONS IGF::OT::IGF

Plain-Language Summary

Department of State obligated $205.2 million to TRIPLE CANOPY INC for work described as: SECURITY SERVICES - U. S. CONSULATE BASRAH, IRAQ. OTHER FUNCTIONS IGF::OT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Duration of over 1800 days indicates a long-term need for security services. 3. Services provided fall under security guards and patrol, a critical function for diplomatic missions. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 5. No small business set-aside was utilized, indicating the primary awardee was not a small business. 6. The agency is the Department of State, responsible for foreign affairs and diplomatic security.

Value Assessment

Rating: fair

The total award amount of $205 million over approximately five years for security services in a high-risk environment like Basrah, Iraq, requires careful benchmarking. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money. However, the duration and scope suggest a significant operational requirement. The Time and Materials contract type, while flexible, necessitates robust oversight to prevent cost overruns and ensure fair pricing against labor and material costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates six offers were received, suggesting a reasonable level of competition for this specialized service in a challenging geographic location. A competitive process generally helps in price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price than a sole-source or limited competition award, potentially saving taxpayer dollars by leveraging market forces.

Public Impact

U.S. Department of State personnel and facilities at the Consulate in Basrah, Iraq, are the primary beneficiaries, receiving essential security protection. The contract ensures the continuity of diplomatic operations by maintaining a secure environment. Geographic impact is concentrated in Basrah, Iraq, a region requiring specialized security protocols. The contract supports a workforce of security personnel, likely including both U.S. citizens and local nationals, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to unpredictable costs if not closely monitored.
Operating in a high-risk environment like Iraq presents inherent security and logistical challenges.
The large contract value necessitates stringent oversight to ensure accountability and prevent waste.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The long contract duration suggests a stable and ongoing need, potentially leading to economies of scale.
The Department of State's involvement implies adherence to established security standards for diplomatic facilities.

Sector Analysis

This contract falls within the security and protective services sector, specifically focusing on guarding and patrol services. The market for private security in high-risk overseas locations is specialized and often dominated by a few experienced contractors. The size of this contract, over $200 million, places it among significant government procurements for such services, reflecting the substantial security needs of U.S. diplomatic missions abroad.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary awardee, Triple Canopy Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data, which could be a missed opportunity for small business participation in a contract of this magnitude.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Department of State's Bureau of Diplomatic Security and relevant contracting officers. Given the overseas location and the nature of security services, there is likely a significant emphasis on performance monitoring and compliance. Inspector General oversight from the Department of State would also be applicable to ensure accountability and investigate any potential fraud, waste, or abuse.

Related Government Programs

Department of State Diplomatic Security Services
Overseas Security Contracts
Private Security Company Contracts
Security Guards and Patrol Services

Risk Flags

High-risk operational environment
Time and Materials contract type
Large contract value requiring significant oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $205.2 million to TRIPLE CANOPY INC. SECURITY SERVICES - U. S. CONSULATE BASRAH, IRAQ. OTHER FUNCTIONS IGF::OT::IGF

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 $205.2 million.

What is the period of performance?

Start: 2013-09-09. End: 2018-10-16.

What is the historical spending pattern for security services at the U.S. Consulate in Basrah, Iraq, prior to this award?

Analyzing historical spending for security services at the U.S. Consulate in Basrah prior to this $205 million award would provide crucial context. Without specific prior contract data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending. However, the significant value of this contract suggests a sustained and substantial requirement for security. Understanding previous contract durations, award amounts, and the contractors involved would help identify trends, potential cost efficiencies or escalations, and the evolution of security needs in the region over time. This historical perspective is vital for assessing the long-term financial commitment and the effectiveness of past security strategies.

How does the per-unit cost of security personnel under this contract compare to similar contracts in other high-risk overseas locations?

Benchmarking the per-unit cost of security personnel under this $205 million contract against similar services in other high-risk overseas locations is essential for value assessment. Factors such as the specific threat level in Basrah, the required skill sets of personnel, labor costs in the region, and logistical complexities all influence pricing. If comparable data were available, it would reveal whether Triple Canopy Inc.'s pricing is competitive or elevated. For instance, if costs per guard per hour are significantly higher than in comparable posts like Baghdad or Kabul, it might indicate potential inefficiencies or higher risk premiums. Conversely, if costs are in line or lower, it suggests effective price negotiation or competitive market conditions.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate Triple Canopy Inc.'s service delivery?

The specific performance metrics and Key Performance Indicators (KPIs) for this contract are critical for evaluating the effectiveness and value of the security services provided by Triple Canopy Inc. While not detailed in the provided data, typical KPIs for such contracts include response times to incidents, adherence to post orders, personnel training and certification levels, incident reporting accuracy, and overall security posture effectiveness. The Department of State would likely have a robust system for tracking these metrics, potentially including regular performance reviews and site assessments. The success of the contract hinges on meeting or exceeding these KPIs, ensuring the safety of personnel and facilities.

What is the track record of Triple Canopy Inc. in managing large-scale security contracts in complex environments like Iraq?

Triple Canopy Inc. has a significant track record in managing large-scale security contracts, particularly in complex and high-risk environments such as Iraq. The company has been involved in providing security services for U.S. government facilities and personnel in various conflict zones. Evaluating their past performance, including any past incidents, contract disputes, or commendations, is crucial. Their experience in navigating the logistical, political, and security challenges inherent in operating in Iraq suggests a level of capability. However, a thorough assessment would involve reviewing specific contract histories, client feedback, and any publicly available reports on their operational effectiveness and compliance.

What are the potential risks associated with a Time and Materials contract for security services in a volatile region?

A Time and Materials (T&M) contract for security services in a volatile region like Basrah, Iraq, carries inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and materials used, plus a fee. This structure can lead to cost uncertainty and potential overruns if not managed diligently. Risks include inflated labor hours, unnecessary material purchases, and a reduced incentive for the contractor to optimize efficiency. For the government, it necessitates robust oversight, detailed record-keeping, and strong negotiation skills to ensure fair pricing and prevent contractor inefficiencies from driving up costs beyond the anticipated 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: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Constellis Holdings, LLC

Address: 2250 CORPORATE PARK DR, STE 300, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $205,241,995

Exercised Options: $205,241,995

Current Obligation: $205,241,995

Actual Outlays: $3,249,515

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0104

IDV Type: IDC

Timeline