Use of contractors for protective diplomatic security

The State Department clearly spells out its policy for the use of contractors in its Worldwide Personal Protective Service (WPPS) contracts under which Blackwater operates in Iraq. The following document, titled "Diplomatic Security - Use of Contractors for Protective Security," explains the policy by the State Department's Bureau of Diplomatic Security. The document is available from the House Committee on Oversight and Government Reform.

Diplomatic Security – Use of Contractors for Protective Security

Justification:

[State Department] Diplomatic Security is a relatively small force of approximately 1,450 Special Agents with a worldwide mission to provide a safe and secure environment for the conduct of our nation’s foreign policy. In furtherance of that mission, the Bureau of Diplomatic Security uses a contracting mechanism, the Worldwide Personal Protective Services contract that permits the Department to expand its capability in order to meet changing missions in the absence of additional full time staff without the delay of recruiting and training personnel. Diplomatic Security has contracted overseas guard services for decades to protect our personnel, facilities, and residential neighborhoods.

Contractor Roles and Missions:

Private security firms provide personal protective and guard services under various contracts for the Department of State. The services are provided in support of the Worldwide Personal Protective Services and Local Guard Programs.

Worldwide Personal Protective Services (WPPS) Program

Under the Diplomatic and Antiterrorism Act of 1986, the Bureau of Diplomatic Security (DS) of the Department of State (DOS) has a broad range of responsibilities that include protection of personnel and facilities both domestic and abroad. The WPPS initiative is an effort by the Department of State to pre-plan, organize, set up, deploy and operate contractor protective service details for the protection of U.S. and/or certain foreign government high-level officials whenever the need arises. In certain circumstances, and when directed, contractors may be required to recruit, evaluate, and train, local foreign government or third-country foreign nationals in established personal protective security procedures, to conduct protective security operations overseas with them, and to provide trained protective security personnel for short or long-term special domestic security situations. Over the past ten years, the Bureau of Diplomatic Security has become increasingly involved in providing protective services for high-level U.S. officials and certain designated foreign leaders in several areas of the world. As a result of conflicts, wars, political unrest, and more recently, terrorist activity, these areas have become extremely dangerous places in which to live and work. The return of a democratic government to Haiti in October 1994, the continual turmoil in the Middle East, and the post-war stabilization efforts by the United States Government in Bosnia, Afghanistan, and Iraq are all types of world events that require priority deployment of contractor protective services teams on a long-term basis.

Local Guard Program

The policy of the U.S. Government requires we take all reasonable and appropriate steps to reduce the risk of terrorism and crime affecting our employees. To this end, and to ensure our Embassies and Consulates have secure environments from which to pursue our diplomatic missions, we provide contract guard services, under our Local Guard Program. An Embassy or Consulate, supported by one of these performance-based contracts, is provided guard services to prevent unauthorized access, protect life, maintain order, deter criminal attacks against employees, dependents and property, prevent terrorist acts against all U.S. assets, and preclude damage to Government property. The guard service contractors furnish managerial, administrative and direct labor personnel to accomplish all work required by this contract. A contractor's employees are permitted on‑site only for contractual duties and not for any other business or purposes.

Types of Contractor Services:

Contractors provide a high degree of specialization, which greatly assists DS in fulfilling its protective mandate. A number of the common specialties are reflected below:

• Guard


• Protective Security Specialist, to include medics, firearms instructors, etc.


• Administrative/Logistical Support Specialist


• Armorers


• Designated Defensive Marksman


• Intelligence Analysts


• Armor Vehicle Mechanics


• Aviation Package, to include pilots, co-pilots, door gunners/crew members, and aviation mechanics


• Explosive Detection Dog Teams (Handler and Dogs)

WPPS Background/History:

Worldwide Personal Protective Services I Background – In 1995, Diplomatic Security began using contract protective security specialists in the former Yugoslavia to assist agents in protecting three U.S. ambassadors monitoring the peace agreement. In March 2000, the first Worldwide Personal Protective Services contract was awarded to DynCorp International to continue providing protective services in the former Yugoslavia and allow similar missions to be performed around the world. The Worldwide Personal Protective Services I contract vehicle was subsequently used for personal protective services deployments in the Palestinian Territories beginning in July 2002, and in Afghanistan for the Karzai Protective Operation in November 2002. The program continued to expand to provide Personal Protective Services staff in Kabul for the Ambassador’s Protective Detail and for the Afghan Reconstruction Group in early 2004. In 2005, the program began operating in Haiti protecting the president of the country and U.S. Embassy personnel.

In early 2004, additional task orders were added the Worldwide Personal Protective Services contract to provide PSS support for Embassy Baghdad when it opened on July 1, 2004. DynCorp was unable to meet the full requirements of the expanding mission and a second service provider was established through a sole source contract with Blackwater while the Department drafted and released a competitive contract for an ever increasing requirement for protective services throughout the world. Blackwater was selected because it was already operating in Baghdad under a Coalition Provisional Authority contract protecting Ambassador Bremer. Another company, Triple Canopy was subsequently awarded a sole-source contract to protect the Regional Embassy Office in Basrah, Iraq.

Daily management of Worldwide Personal Protective Services was originally dispersed throughout several Diplomatic Security offices, even as the contract grew exponentially. By March 2004 the recently created High Threat Protection Division assumed responsibility along with Acquisitions Management Contracting Officers, for all operational, financial, contractual and administrative oversight of the Worldwide Personal Protective Services contractors, as well as daily on the ground oversight by the RSO staffs.

Worldwide Personal Protective Services II Background: In July 2005, DynCorp, Blackwater, and Triple Canopy were awarded contracts under Worldwide Personal Protective Services II, after full and open competition. The Worldwide Personal Protective Services II contract was executed due to the difficulty in managing the dramatic growth of the program with the Worldwide Personal Protective Services I contracts, and the need to move it to a firm-fixed priced contract with fewer cost reimbursement item. The total price of each contract is not fixed; however, the daily rate for each labor category is fixed. Therefore, the individual contract price may increase as additional requirements are added to each Task Order. Personnel qualifications, training, equipment, and management requirements were substantially upgraded under the new contract due to ever changing requirements in a combat environment such as Iraq. From the summer of 2005 through the summer of 2006, the program transitioned from Worldwide Personal Protective Services I to Worldwide Personal Protective Services II.

There are currently seven active task orders under Worldwide Personal Protective Services II: Jerusalem, Kabul, Bosnia, Baghdad, REO Basrah, REO Al Hillah, and REO Kirkuk (including USAID Erbil). Task Order 1 covers the contractors’ local program management offices in the Washington DC area. The Haiti task order closed in April 2006.

Vetting - Personnel who work on the Worldwide Personal Protective Services undergo an extensive background check as outlined in Attachment 1. For example, personnel in key management positions undergo an employment and record check by the contractor, a screening by Diplomatic Security’s High Threat Protections Operation staff for verification of qualification prior to undergoing security clearance investigation. Final clearance is granted after completion of the clearance investigation and the file is reviewed by the Department’s Personnel Security and Suitability Division. Only individuals who may obtain a Secret Clearance are permitted to work in management or personnel security specialist positions. All Third Country National Personnel assigned to this contract are required to have at a minimum a favorable Moderate Risk Public Trust determination issued by the Department of State.

Staffing – Currently working under the Worldwide Personal Protective Services contracts are a total of 1,502 personnel excluding sub-contractors. Of that total, 830 work as personal security specialists, 490 as guards, and 182 as support personnel. In Iraq alone, there are 785 personal security specialists, 465 guards, and 158 support personnel.

Costs – The approximate current annual costs under Worldwide Personal Protective Services II contracts for all areas of operation (Afghanistan, Bosnia, Israel, and Iraq) are as follows:

Blackwater $339,573,391
DynCorp 47,145,172
Triple Canopy 15,550,133
[Total] $402,268,696

The approximate total costs for Iraq only, inclusive of all contractors is $350,119,545.11.

Work Related Casualties and Injuries – Since the inception of the Worldwide Personal Protective Services contracts there have been a total of 36 casualties and 60 work-related injuries. Of the 36 casualties, 33 occurred in Iraq.

General Contractor Performance, Cooperation, and Coordination:

Contactors providing services under a Local Guard Program (LGP) and/or a Worldwide Personal Protective Services (WPPS) contract are expected to be cooperative with the government and meet all contract requirements. In general, the Department of State has found these private security firms to be professional, cordial, and sincere about providing the requisite level of security to protect personnel and property at our overseas facilities and missions. This has been accomplished for the most part by both parties working extremely hard to foster a partnering relationship with each party striving for excellence. While both parties have not always agreed on all issues arising in the daily performance of duties in a hostile environment, each has strived to find a way to ensure that the contract requirements were met with no compromise in the security posture. Senior management personnel from the Department of State routinely meet with their counterparts in each private security company under contract to ensure an open dialogue between the requiring activity and the service provider. This action has ensured that issues and/or problems with contract performance have been identified, clarified, and resolved in a timely, efficient, and effective manner.

Attachments:

(1) Vetting Process
(2) Contractor Standards for Employment by DOS
(3) Qualification and Training Standards
(4) Five Examples of Superior/Heroic Performance

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.