State Department awards $202M for protective security services in Iraq over 4 years

Contract Overview

Contract Amount: $202,489,806 ($202.5M)

Contractor: Triple Canopy Inc

Awarding Agency: Department of State

Start Date: 2006-08-05

End Date: 2010-08-04

Contract Duration: 1,460 days

Daily Burn Rate: $138.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY SERVICES - BASRAH, IRAQ

Plain-Language Summary

Department of State obligated $202.5 million to TRIPLE CANOPY INC for work described as: PROTECTIVE SECURITY SERVICES - BASRAH, IRAQ Key points: 1. Contract awarded through a competitive process, suggesting potential for price discovery. 2. The contract duration of 4 years indicates a long-term need for these services. 3. Fixed-price contract type may incentivize cost control by the contractor. 4. The scale of the award suggests significant operational requirements and associated risks. 5. Services provided are critical for diplomatic missions in high-risk environments. 6. The award falls within the security and protective services sector.

Value Assessment

Rating: good

The contract value of $202 million over four years for protective security services in Iraq appears reasonable given the high-risk operational environment and the scope of services typically required for diplomatic security. Benchmarking against similar contracts for security services in conflict zones would provide a more precise value assessment. The firm fixed-price structure suggests an expectation of predictable costs, though unforeseen circumstances in Iraq could impact actual expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors were likely considered. The 'full-and-open' competition suggests a robust bidding process, which generally leads to better price discovery and value for the government. The number of bidders and the specific competition dynamics would offer further insight into the level of market engagement.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by fostering price reductions and service improvements among competing firms.

Public Impact

Diplomatic personnel and facilities in Basra, Iraq, benefit from enhanced security. Provides essential protective services, contributing to the safety of U.S. government operations. Geographic impact is focused on Basra, Iraq, a region requiring significant security measures. Supports a workforce of security professionals, likely including both U.S. and local personnel. Ensures continuity of U.S. diplomatic presence and operations in a challenging environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Iraq could impact service delivery and costs.
Reliance on a single contractor for critical security functions presents a concentration risk.
Potential for scope creep or unforeseen operational challenges in a dynamic environment.

Positive Signals

Competitive award process likely secured favorable pricing.
Firm fixed-price contract provides cost certainty for the government.
Long-term contract indicates a stable and reliable security solution.
Contractor's experience in similar high-risk environments is a positive indicator.

Sector Analysis

The security and protective services sector is a significant component of government contracting, particularly for agencies operating in high-threat environments. This contract falls under the North American Industry Classification System (NAICS) code 561612 (Security Guards and Patrol Services). Spending in this sector is driven by national security needs, diplomatic support, and protection of critical infrastructure. Comparable contracts often involve extensive background checks, specialized training, and logistical support for personnel operating in austere conditions.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large-scale award for protective services in a complex environment, it is likely that the prime contractor possesses significant resources and capabilities, potentially limiting direct opportunities for smaller businesses unless they are specialized subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for diplomatic security in Iraq. The contract's performance would be monitored against established metrics and service level agreements. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General reviews could be initiated if performance issues or allegations of misconduct arise.

Related Government Programs

Department of State Diplomatic Security Service Contracts
Overseas Security Services
Protective Services Contracts
Security Guard Services

Risk Flags

High-risk operational environment
Potential for geopolitical instability impacting service delivery
Dependence on a single contractor for critical security functions

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $202.5 million to TRIPLE CANOPY INC. PROTECTIVE SECURITY SERVICES - BASRAH, IRAQ

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 $202.5 million.

What is the period of performance?

Start: 2006-08-05. End: 2010-08-04.

What is the historical spending trend for protective security services in Iraq by the Department of State?

Analyzing historical spending for protective security services in Iraq by the Department of State requires examining contract data over multiple fiscal years. Prior to this $202 million award (2006-2010), the Department likely engaged in similar contracts to ensure the safety of its personnel and facilities. Trends would typically show fluctuations based on the geopolitical situation, the number of personnel deployed, and the specific security posture required. Increased activity or heightened threat levels often correlate with higher spending. Without access to a comprehensive historical database, it's difficult to provide exact figures, but the consistent need for security in Iraq suggests a sustained, significant investment in this area over the past two decades.

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

Benchmarking the per-unit cost of this $202 million contract against similar security contracts in other high-risk regions is complex due to variations in operational scope, threat levels, labor costs, and contract duration. However, given the extended four-year period and the demanding environment of Basra, Iraq, the average annual cost of approximately $50.5 million suggests a substantial investment. Contracts for protective services in regions like Afghanistan or parts of Africa with comparable security challenges often exhibit high per-unit costs due to the inherent risks, logistical complexities, and specialized personnel required. A detailed comparison would necessitate analyzing specific deliverables, personnel ratios, and threat assessments for each contract.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of Triple Canopy Inc. in fulfilling this contract?

Key Performance Indicators (KPIs) for a contract like this typically focus on the contractor's ability to maintain a secure environment and respond effectively to threats. Common KPIs include response times to incidents, the number of security breaches or successful attacks against protected personnel or facilities, adherence to post orders and standard operating procedures, personnel reliability and vetting compliance, and the successful execution of protective details. The Department of State would likely have specific metrics related to the safety of its personnel and the uninterrupted functioning of its operations in Basra. Performance evaluations would assess whether Triple Canopy Inc. consistently met or exceeded these predefined standards throughout the contract period.

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

Triple Canopy Inc. has a significant track record in managing large-scale security contracts, particularly in complex and high-risk international environments such as Iraq and Afghanistan. The company has been involved in providing security services for government agencies, including the Department of State and the Department of Defense. Their experience often includes providing close protection for personnel, securing facilities, and conducting security assessments. While specific performance details for every contract are not always public, their continued selection for substantial awards indicates a perceived capability to handle the demanding requirements of such operations. However, like many large security contractors, they have also faced scrutiny and challenges in past engagements, underscoring the inherent difficulties of operating in these environments.

What are the potential risks associated with relying on a single contractor for critical security functions in a volatile region?

Relying on a single contractor like Triple Canopy Inc. for critical security functions in a volatile region like Basra, Iraq, presents several potential risks. Firstly, there's a risk of service disruption if the contractor faces financial difficulties, labor disputes, or significant operational failures. Secondly, a lack of competition can reduce the incentive for the contractor to innovate or maintain the highest standards of service and cost-efficiency over time. Thirdly, if the contractor's performance degrades or they are unable to adapt to changing threat environments, the government has limited immediate alternatives without a lengthy and disruptive re-competition process. This concentration of critical function with one entity necessitates robust oversight and contingency planning.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Constellis Holdings, LLC (UEI: 966133477)

Address: 600 KNIGHTSBRIDGE PKWY, LINCOLNSHIRE, IL, 60069

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $203,805,506

Exercised Options: $203,805,506

Current Obligation: $202,489,806

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMPD05D1100

IDV Type: IDC

Timeline