State Dept. Spends $641M on Iraqi Protective Services via Competitive Delivery Order
Contract Overview
Contract Amount: $641,246,970 ($641.2M)
Contractor: Academi Training Center LLC
Awarding Agency: Department of State
Start Date: 2006-05-08
End Date: 2009-05-07
Contract Duration: 1,095 days
Daily Burn Rate: $585.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROTECTIVE SERVICES - IRAQ
Plain-Language Summary
Department of State obligated $641.2 million to ACADEMI TRAINING CENTER LLC for work described as: PROTECTIVE SERVICES - IRAQ Key points: 1. Significant spending on security services in a high-risk environment. 2. Competition was present, but the specific impact on price is unclear. 3. Risk associated with private military contractors in conflict zones. 4. Sector is primarily security and protective services.
Value Assessment
Rating: fair
The contract value of $641M over three years is substantial. Benchmarking against similar security contracts in comparable regions is difficult without more granular data, but the price appears high given the duration and nature of the service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, suggesting multiple bids were considered. However, the specific number of bidders and the pricing strategies employed are not detailed, making it hard to assess the full extent of price discovery.
Taxpayer Impact: Taxpayer funds were used for essential security services in a volatile region. While competition was involved, the high total value warrants scrutiny to ensure efficiency.
Public Impact
Ensures security for personnel and assets in Iraq. Supports U.S. diplomatic and operational presence in a challenging environment. Potential for contractor performance issues or cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value
- Geopolitical risk in Iraq
- Reliance on private security contractors
Positive Signals
- Competitive award process
- Clear service description (Security Guards and Patrol Services)
Sector Analysis
The spending falls within the security and protective services sector, often characterized by high demand in unstable regions. Benchmarks for such services can vary widely based on location, threat level, and scope of work.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a single, likely large, entity. Further analysis would be needed to determine if subcontracting opportunities existed for smaller firms.
Oversight & Accountability
The Department of State is responsible for oversight. The competitive nature of the award suggests some level of due diligence, but ongoing monitoring of performance and costs is crucial for accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- High total contract value
- Operation in a high-risk geopolitical environment
- Potential for contractor performance issues
- Lack of detailed competition analysis
Tags
security-guards-and-patrol-services, department-of-state, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $641.2 million to ACADEMI TRAINING CENTER LLC. PROTECTIVE SERVICES - IRAQ
Who is the contractor on this award?
The obligated recipient is ACADEMI TRAINING CENTER LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $641.2 million.
What is the period of performance?
Start: 2006-05-08. End: 2009-05-07.
What was the specific threat assessment that justified this level of spending on protective services in Iraq?
The justification for $641M in protective services likely stemmed from a comprehensive threat assessment by the Department of State, considering the volatile security environment in Iraq during the contract period (2006-2009). This would have included evaluating risks to personnel, facilities, and operations from insurgent activity, terrorism, and general instability, necessitating robust security measures.
How did the competitive bidding process ensure value for money given the high total contract value?
While the award was competitive, the high total value of $641M necessitates a deeper look into the bidding process. Key factors would include the number of qualified bidders, the evaluation criteria used beyond price, and whether the chosen firm's proposal offered the best overall value considering technical capabilities, experience, and cost-effectiveness for the required security services in a high-risk zone.
What mechanisms were in place to manage performance and mitigate risks associated with private security contractors in Iraq?
Effective oversight mechanisms would typically include detailed performance work statements, regular performance reviews, clear reporting requirements, and defined penalties for non-compliance. Risk mitigation strategies might involve vetting contractor personnel, establishing strict rules of engagement, and maintaining open communication channels between the government contracting officer's representative and the contractor's management.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Constellis Holdings, LLC (UEI: 966133477)
Address: 850 PUDDIN RIDGE RD, MOYOCK, NC, 01
Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $641,246,970
Exercised Options: $641,246,970
Current Obligation: $641,246,970
Parent Contract
Parent Award PIID: SAQMPD05D1098
IDV Type: IDC
Timeline
Start Date: 2006-05-08
Current End Date: 2009-05-07
Potential End Date: 2009-05-07 00:00:00
Last Modified: 2014-09-29
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