Contractor standards of employment

This document, by the Bureau of Diplomatic Security and on file with the House Committee on Oversight and Government Reform, describes the State Department's contractor standards for services under the Local Guard Program (LGP).

Contractor Standards for Employment by DOS [Department of State]
(Attachment 2)

Standards for Security Firms Providing Guard Services Under Local Guard Program (LGP) Contracts

General Requirements: The Department of State (DOS) requires private security firms to provide information concerning their technical ability to fulfill their roles and accomplish their missions for DOS as well as provide a record of their past performance on other security related contracts. This documentation is referred to as the Technical proposal. DOS also requires each private security firm to provide a Business Management Plan to demonstrate that they have adequate financial resources or the ability to obtain adequate resources to meet all fiscal requirements necessary to ensure satisfactory performance.

Specific Requirements:

First, DOS requires, as part of the Technical Proposal, each private security firm to provide a complete management plan showing how the company will meet the requirements of the contract. The management plan defines how the private security firm will ensure timely, professional and high quality performance and achievement of deadlines. Elements of the private security firm’s technical ability that must be addressed in the management plan are: (1) organization and management, (2) the company’s inspection system, (3) key personnel, (4) training plan, (5) surveillance detection, (6) personnel action prevention, (7) experience in the use and maintenance of the property used in performance of this contract.

The management plan describes the organization of the guard force to include the number of personnel to be used, and the inspection system specifying how the private security firm will ensure all services required by the contract are performed. The management plan provides detailed résumés of key personnel who will perform on the contract, highlighting the experience the private security firm can bring to the Department. The private security firm’s management plan also addresses all elements of the training program that each individual, employed as a security professional, receives. The private security firm’s management plan will also address the requirements for surveillance detection operations and equipment if this requirement is to be included. The management plan also details contingency plans to deal with organized actions by direct labor personnel, to include (but not limited to) strikes, labor unrest, and disruption of operations. And finally the plan includes detailed, written maintenance, use, and inventory programs for all property, equipment, and materials used in performance of the contract.

Second, DOS requires all private security firms, prior to being employed by the Department of State, to addresses past performance and experience providing similar work. For guard services being performed in Iraq and Afghanistan, each contractor had to substantiate that it had performed similar guard services in a high-threat environment. Prior to award of any contract, the Department validates the past performance records submitted by the contractor as well as uses past performance information obtained from other sources to substantiate the contractor has had a satisfactory performance record on similar contracts.

DOS requires each private security firm to list all contracts and subcontracts the firm (or each partner in the joint venture) has held over the past three years for the same or similar work. Private security firms provide the following information for each contract and subcontract:

• Customer's name, address, and telephone numbers of customer's lead contract and technical personnel;
• Contract number and type;
• Date of the contract, place(s) of performance, and delivery dates or period of performance;
• Contract size (number of personnel employed by contract year per labor category) and dollar value;
• Brief description of the work, including responsibilities;
• Comparability to the work required under this solicitation;
• Brief discussion of any technical problems and their resolutions;
• Brief discussion of any terminations (partial or complete) and the type (convenience or default) as well as any show-cause notices or cure notices (provide explanatory details); and
• Record of deductions taken under any listed contracts, with explanatory details and resolution.

Third, DOS requires private security firms to submit a business management proposal prior to beginning work with the Department. The business management proposal describes the security firm’s financial condition and capability. This proposal includes a statement as to what percentage of the company's estimated total business the work required by the U.S. Government will represent. DS requires each private security firm to provide a current statement of financial condition, certified by a third party that includes: (1) an income statement, (2) a balance sheet, (3) a cash flow statement, (4) and a compensation plan. The income statement shows profitability for the past three years. The balance sheet shows the assets owned and the claims against those assets, that is: what a firm owns and what it owes. The cash flow statement shows the firm’s sources and uses of cash during the most recent accounting period. This information allows the Government to assess a firm’s ability to pay its obligations. The Government also requires proof that each private security firm will properly and fairly compensate its employees. Included in the compensation plan each private security firm submits for review will be a spreadsheet or chart showing the salaries and fringe benefits proposed for the employees who will provide direct labor under the contract.

Last, DOS requires private security firms to obtain all necessary permits, licenses and insurance in the country that they are conducting business in prior to beginning work with our agency. A notice to proceed (NTP) is not issued by the DOS Contracting Officer to a firm to begin performance under the contract until the Contracting Officer has reviewed a copy of each permit, license, and insurance policy and made a determination that the contractor has meet all necessary requirements.


Standards for Security Firms Providing Protective Services Under Worldwide Personal Protective Services (WPPS) Program Contracts

General Requirements: DOS requires private security firms, working under WPPS, to provide information concerning their technical ability to complete their roles and missions for DOS. DOS further requires private security firms to provide a record of their past performance on other security related contracts. DOS also requires each private security firm to provide its business management plan to demonstrate that the firm is a viable business partner.

Specific Requirements:

First, DOS requires, as part of the Technical Management Proposal, that each private security firm address all elements of their technical and management proposal. The key elements that each firm must are address include:

• the ability to recruit, screen, select, train and deploy personnel with the ability to provide and operate needed protective service details
• the ability to provide intelligence data support
• the ability to provide translator/interpreter services, medical support services, guard services, Explosive Ordnance Detection services, and logistic support services

Each private security firm must demonstrate how it will satisfy each of the requirements detailed in the Performance-Based Statement of Work (PBSOW). For each requirement, the firm must specifically address its approach, methods, personnel, initial performance and risk management strategies, and other considerations. The private security firm must clearly outline the general plan of work that will be employed to implement the contract performance standards. The firm must describe in detail the methodologies they will use in order to meet the performance standards specified in the contract. Private security firms must describe the experience and qualifications of personnel who will be assigned for direct work in meeting the performance standards. The firm must indicate the percentage of time that technical supervisors and key technical personnel will devote to WPPS. The firm must provide résumés for all key personnel. Each private security firm also provides a schedule for beginning performance and identifies any type of event that might impair the firm’s ability to execute its proposed approach in a timely manner. In addition, each firm presents its strategy to ensure these potentially impairing events do not occur. Furthermore, each private security firm must include any factors not otherwise addressed that support its approach to meeting the measurements and standards set forth in the Performance-Based Statement of Work.

Second, DOS requires that each private security firm provide a complete management plan. The management plan must contain:

• proposed lines of responsibility, authority, and communication;
• proposed organizational structure;
• identification of the policies and procedures for vetting applications for security clearances;
• description of plans that identify and resolve problems;
• an augmentation plan that demonstrates the ability to respond to workload fluctuation in a timely manner.

The U.S. Government further requires each private security firm to include, as part of the management plan: (1) a workload management plan, (2) a client relationship management plan, (3) a sub-contract management plan, (4) a quality control plan, (5) a schedule plan, (6) a management information system (MIS) plan, (7) a government resource usage plan, and (8) a transition plan. The management plan defines how the private security firm will ensure timely, professional and high quality performance and the achievement of deadlines. The workload management plan indicates how the firm will meet foreseeable fluctuations in workload and how it will address workload surges. The client relationship management plan describes the firm’s approach to maintaining effective communication with the U.S. Government. The sub-contract management plan provides proposed subcontractor selection and management processes. The quality control plan provides a summary of the quality processes and minimum controls that will be used to ensure full compliance with all performance objectives and standards. The schedule plan provides indicators that the firm’s management will monitor to determine if/when there is a need to adjust the work schedule. The management information system plan describes what MIS systems the firm uses in controlling work. The government resource usage plan documents the processes to be used for managing and controlling Government furnished facilities, equipment, and materials. The transition plan describes how the work will be transitioned from one private security firm (incumbent) to another (new awardee).

Third, DOS requires all private security firms, prior to being employed by the Department, to address past performance and experience of similar scope, size, complexity, context, and relevancy that demonstrates experience in performing work similar to that described in the Performance-Based Statement of Work (PBSOW). DOS requires each private security firm to list five contracts and/or subcontracts the company (or each partner in the joint venture) has held over the past five years for the same or similar work.

Private security firms provide the following information for each supporting past-performance contract and/or subcontract:

• Customer's name, address, and telephone numbers of customer's lead contract and technical personnel;
• Contract number and type;
• Date of the contract, place(s) of performance, and delivery dates or period of performance;
• Contract size (number of personnel employed by contract year per labor category) and dollar value;
• Brief description of the work, including responsibilities;
• Comparability to the work required under this solicitation;
• Brief discussion of any technical problems and their resolutions;
• Brief discussion of any terminations (partial or complete) and the type (convenience or default) as well as any show-cause notices or cure notices (with explanatory details); and
• Record of deductions taken under any listed contracts, with explanatory details and resolution.

Fourth, The Department of State requires private security firms to submit a business management proposal prior to beginning work with the Department. The business management proposal describes the security firm’s financial condition and capability. Within this proposal, the firm must state what percentage of the company's estimated total business the work required by the U.S. Government will represent. The Department of State requires each private security firm to provide a current statement of financial condition, certified by a third party that includes: (1) an income statement, (2) a balance sheet, (3) a cash flow statement, (4) and a compensation plan. The income statement shows profitability for the past three years. The balance sheet shows the assets owned and the claims against those assets, or what a firm owns and what it owes. The cash flow statement documents the firm’s sources and uses of cash during the most recent accounting period. This information allows the Government to assess a firm’s ability to pay its obligations. Included in the compensation plan, the Government requires proof that each private security firm will properly and fairly compensate its employees. Each private security firm must submit a spreadsheet or chart showing the salaries and fringe benefits proposed for the employees who will provide direct labor under the contract.

Last, The Department of State requires all private security firms to obtain all necessary permits, licenses and insurance in the country that they are conducting business in prior to beginning work with our Bureau. A notice to proceed (NTP) is not issued by the Contracting Officer to a security firm to begin performance under the contract until the Contracting Officer has reviewed a copy of each permit, license, and insurance policy and made a determination that the candidate security firm has meet all requirements.