State Department's $82.3M security guard contract awarded to Triple Canopy Inc. shows fair value

Contract Overview

Contract Amount: $82,332,354 ($82.3M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of State

Start Date: 2014-08-01

End Date: 2018-05-01

Contract Duration: 1,369 days

Daily Burn Rate: $60.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF PERSONAL SECURITY GUARD SERVICES

Plain-Language Summary

Department of State obligated $82.3 million to TRIPLE CANOPY INC for work described as: IGF::CT::IGF PERSONAL SECURITY GUARD SERVICES Key points: 1. Contract value represents a significant investment in personnel security services. 2. Competition dynamics suggest a potentially competitive bidding environment for this service. 3. Performance risk appears manageable given the nature of security guard services. 4. Contract duration of over three years provides stability for service delivery. 5. Sector positioning aligns with essential government functions requiring physical security. 6. The contract's Time and Materials pricing structure warrants careful cost monitoring.

Value Assessment

Rating: good

The contract's total value of $82.3 million over its period of performance suggests a substantial commitment to security services. Benchmarking against similar contracts for guard services is challenging without more specific details on scope and location. However, the pricing appears within a reasonable range for comprehensive security operations, especially considering the duration and potential geographic spread. The Time and Materials (T&M) pricing model, while flexible, necessitates diligent oversight to ensure costs remain aligned with the value delivered and market rates.

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 were likely considered. This approach generally fosters a competitive environment, encouraging providers to offer competitive pricing and robust service offerings to win the award. The specific number of bidders is not provided, but the designation suggests a broad solicitation process, which is beneficial for price discovery and ensuring the government receives the best value.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of qualified contractors, potentially leading to cost savings.

Public Impact

Benefits the Department of State by ensuring the security of personnel and facilities. Provides essential security guard services across various locations managed by the State Department. Supports a workforce of security professionals, contributing to employment in the security sector. Enhances the safety and operational continuity of diplomatic missions and government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not closely managed.
Ensuring consistent service quality across all deployed guard personnel.
Managing contractor performance over a multi-year contract duration.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration provides stability and allows for established performance.
Service type (security guards) is a core government function with established best practices.

Sector Analysis

The security guard services sector is a critical component of the broader private security industry, supporting government agencies, commercial enterprises, and critical infrastructure. This contract falls within the professional, scientific, and technical services category. Spending in this area is often driven by the need for physical security, access control, and surveillance. Comparable spending benchmarks would typically be assessed against the number of posts, hours of coverage, and specific security requirements, which are not detailed here but are implied by the contract's substantial value.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded to Triple Canopy Inc., a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting is not detailed, but large prime contracts often involve a network of smaller service providers, potentially including small businesses for specialized support or localized guard services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of State. Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Defense Security Services
General Services Administration Schedules for Security Services
Department of Homeland Security Guard Contracts

Risk Flags

Time and Materials pricing requires diligent oversight to control costs.
Contract duration necessitates ongoing performance monitoring.
Potential for scope creep in security service requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $82.3 million to TRIPLE CANOPY INC. IGF::CT::IGF PERSONAL SECURITY GUARD SERVICES

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 $82.3 million.

What is the period of performance?

Start: 2014-08-01. End: 2018-05-01.

What is the historical spending trend for security guard services by the Department of State?

Analyzing historical spending trends for security guard services by the Department of State requires access to detailed budget and contract databases over multiple fiscal years. Without specific historical data for this contract or similar service categories, it's difficult to provide a precise trend. However, general trends in federal security spending often reflect evolving geopolitical landscapes, increased security requirements post-9/11, and fluctuating budget allocations. Contracts for guard services are typically recurring due to the ongoing need for physical security at embassies, consulates, and other government facilities. Increases in spending could be attributed to expanded missions, new facility requirements, or inflation, while decreases might reflect consolidation of services, improved technology integration, or budget constraints. A comprehensive analysis would involve comparing annual obligations for guard services over a significant period to identify patterns, significant deviations, and the impact of policy changes or global events.

How does the per-hour cost of security guards under this contract compare to market rates for similar services?

Determining the precise per-hour cost of security guards under this contract is challenging without knowing the exact number of hours worked and the total value attributed to labor versus other direct costs within the Time and Materials (T&M) structure. The contract's total value is $82.3 million over 1369 days (approximately 3.75 years). If we assume a simplified scenario where all costs are labor and estimate 24/7 coverage for a single post, the calculation becomes complex due to varying shift lengths, guard levels (unarmed vs. armed), and geographic locations, each impacting hourly rates. Market rates for unarmed security guards can range widely, from $25-$60 per hour, while armed guards can command higher rates, potentially $40-$80+ per hour, depending on the region, experience required, and specific duties. Without a breakdown of labor hours and rates from the contractor, a direct comparison to market benchmarks is speculative. However, the full and open competition suggests the government aimed to secure competitive rates within this T&M framework.

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

The provided data does not specify the exact performance metrics or Key Performance Indicators (KPIs) used to evaluate Triple Canopy Inc.'s service delivery under this contract. However, for security guard services contracts, typical KPIs often include metrics related to guard presence and punctuality (e.g., "on-post" rates, response times to incidents), incident reporting accuracy and timeliness, adherence to post orders, customer satisfaction surveys from facility managers, and compliance with training and certification requirements. The Department of State, as the contracting agency, would have established a Performance Work Statement (PWS) outlining these requirements and the methods for measuring performance. Failure to meet these KPIs could result in contract remedies, including financial penalties or termination, underscoring the importance of robust performance monitoring by the government.

Has Triple Canopy Inc. had any past performance issues or disputes on similar federal contracts?

Assessing Triple Canopy Inc.'s past performance on similar federal contracts requires access to contractor performance evaluation databases, such as the Contractor Performance Assessment Reporting System (CPARS). The provided summary data does not include information on past performance issues or disputes. Triple Canopy has been a significant contractor for various government agencies, including the Department of Defense and the Department of State, often for security services. While specific issues are not detailed here, any large contractor operating over many years and multiple contracts may encounter performance challenges or disputes. A thorough due diligence process by the government during the award phase would typically involve reviewing past performance records to identify any red flags or areas requiring close management attention during the execution of this contract.

What is the potential impact of this contract on the overall security services market for federal agencies?

This $82.3 million contract awarded to Triple Canopy Inc. represents a significant portion of federal spending on security guard services, particularly for the Department of State. Its award through full and open competition signals a healthy, competitive market for these essential services. The scale of the contract can influence market dynamics by setting benchmarks for pricing and service delivery expectations. It also indicates the government's reliance on large, established providers for critical security functions. For other federal agencies seeking similar services, this contract's terms and pricing (once fully analyzed) could serve as a reference point. Furthermore, the success or challenges encountered in managing this contract could inform future procurement strategies and contractor selection processes within the federal government's security services domain.

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: 1

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: $82,332,354

Exercised Options: $82,332,354

Current Obligation: $82,332,354

Actual Outlays: $3,474,942

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