DoD's $21.8M security escort contract awarded to Olive Group North America, LLC for Iraq operations

Contract Overview

Contract Amount: $21,860,641 ($21.9M)

Contractor: Olive Group North America, LLC

Awarding Agency: Department of Defense

Start Date: 2012-11-02

End Date: 2013-11-02

Contract Duration: 365 days

Daily Burn Rate: $59.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY ESCORT TEAMS FOR SECURITY SUPPORT SERVICES - IRAQ

Plain-Language Summary

Department of Defense obligated $21.9 million to OLIVE GROUP NORTH AMERICA, LLC for work described as: SECURITY ESCORT TEAMS FOR SECURITY SUPPORT SERVICES - IRAQ Key points: 1. Contract value appears reasonable given the high-risk operational environment and specialized nature of security escort services. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have driven favorable pricing. 3. The contract duration of one year with a firm fixed-price structure indicates predictable costs for the government. 4. Performance is context-specific to security support services in Iraq, a challenging operational theater. 5. The North American Industry Classification System (NAICS) code 561612 points to security guard and patrol services. 6. No small business set-aside was applied, indicating the primary awardee is likely a larger entity.

Value Assessment

Rating: good

The contract's value of approximately $21.8 million for a one-year period of performance for security escort services in Iraq is within a reasonable range for such high-risk operations. Benchmarking against similar contracts for private security in conflict zones is challenging due to the unique nature of these services and varying threat levels. However, the firm fixed-price contract type suggests that the government secured predictable costs, and the competition level (full and open) implies that pricing was likely scrutinized against multiple offers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is moderate, suggesting that while the market isn't saturated, there was sufficient interest to foster a competitive environment.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense personnel and assets operating in Iraq, who receive essential security escort services. The services delivered include providing security details for personnel and equipment movement within the operational area. The geographic impact is concentrated within Iraq, specifically in areas where military operations require secure transit. Workforce implications include the employment of security professionals, likely with specialized military or law enforcement backgrounds, to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor personnel to operate in high-risk environments requires robust vetting and oversight.
Geopolitical instability in Iraq could impact operational continuity and security.
Dependence on a single awardee for critical security functions necessitates strong performance management.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Firm fixed-price contract type provides cost certainty for the government.
Clear performance period of one year allows for focused management and evaluation.

Sector Analysis

The private security services sector, particularly in support of government operations in conflict zones, is a specialized niche. This contract falls under security guards and patrol services (NAICS 561612). The market for such services is driven by geopolitical events and the need for specialized security solutions where government forces may be stretched or require augmentation. Comparable spending benchmarks are difficult to establish precisely due to the unique operational contexts and varying risk profiles inherent in security contracts in regions like Iraq.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements specifically for small businesses. The primary awardee, Olive Group North America, LLC, is likely a larger entity capable of fulfilling the complex security requirements. The absence of small business participation in this specific award does not preclude their involvement in other defense contracts or subcontracts within the broader security sector.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures would be tied to the firm fixed-price contract terms, requiring Olive Group North America, LLC to meet specific performance standards for security escort services. Transparency is facilitated through the contract award process and public contract databases, though detailed operational security plans are generally not disclosed.

Related Government Programs

Department of Defense Security Contracts
Private Security Company Operations in Iraq
Logistics and Security Support Services
Global Security Services

Risk Flags

High-Risk Operational Environment
Contractor Performance in Conflict Zones
Geopolitical Instability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to OLIVE GROUP NORTH AMERICA, LLC. SECURITY ESCORT TEAMS FOR SECURITY SUPPORT SERVICES - IRAQ

Who is the contractor on this award?

The obligated recipient is OLIVE GROUP NORTH AMERICA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2012-11-02. End: 2013-11-02.

What is the track record of Olive Group North America, LLC in performing similar security escort services, particularly in high-risk environments like Iraq?

Assessing the specific track record of Olive Group North America, LLC requires a deeper dive into their past performance evaluations and any documented issues on previous contracts. Companies operating in this sector often have experience in complex environments, but the quality and reliability of that experience can vary significantly. Publicly available data may not fully capture the nuances of their performance, including their ability to adapt to changing threat landscapes, manage personnel effectively, and maintain strong client relationships. Further investigation into contract award histories, any reported incidents, and client feedback would be necessary for a comprehensive assessment of their suitability for this role.

How does the awarded price of approximately $21.8 million compare to market rates for similar security escort services in Iraq during the 2012-2013 period?

Directly comparing the $21.8 million contract value to precise market rates for security escort services in Iraq during 2012-2013 is challenging due to the proprietary nature of pricing in the private security sector and the highly variable risk factors involved. However, given the operational context, the demand for specialized security personnel, and the logistical complexities of operating in Iraq, this figure appears to be within a plausible range for a year-long contract. Factors such as the number of personnel required, the specific threat assessments for the areas of operation, and the level of equipment and training provided would heavily influence the final price. Without access to detailed cost breakdowns or comparable bid data from other solicitations during that period, a definitive value-for-money assessment against market rates remains difficult.

What are the primary risks associated with this contract, and what mitigation strategies were likely employed by the Department of Defense?

The primary risks associated with this contract include the inherent dangers of operating in a conflict zone like Iraq, potential for contractor misconduct or negligence, and the possibility of mission failure due to inadequate security. Mitigation strategies likely employed by the DoD would include rigorous vetting of contractor personnel, strict adherence to rules of engagement, continuous performance monitoring by CORs, and clear contractual clauses defining liability and performance standards. Furthermore, the use of full and open competition aims to select a contractor with a proven track record and robust internal controls. Regular security briefings and intelligence updates would also be crucial for adapting to the evolving threat environment.

How effective are security escort services in enhancing the safety and operational efficiency of DoD personnel and assets in Iraq?

Security escort services are generally considered essential for enhancing the safety and operational efficiency of DoD personnel and assets in high-risk environments like Iraq. These services provide a dedicated layer of protection during transit, reducing the vulnerability of convoys and personnel to ambushes, IEDs, and other threats. By ensuring secure movement, these escorts allow military units to focus on their primary missions rather than expending significant resources on self-protection during transit. The effectiveness is contingent upon the quality of the escort personnel, their training, equipment, intelligence support, and adherence to protocols. While they cannot eliminate all risks, they significantly mitigate them, contributing to mission success and personnel well-being.

What has been the historical spending trend for security escort services by the Department of Defense in Iraq over the past decade?

Historical spending on security escort services by the Department of Defense in Iraq has been substantial, particularly during the peak years of military operations. Following the 2003 invasion, the reliance on private military contractors, including those providing security and escort services, grew significantly. Spending peaked in the late 2000s and early 2010s as troop levels increased and complex logistical operations were underway. As U.S. military presence evolved and troop levels decreased, spending on such services generally trended downwards, though specific contracts for security support in ongoing operations remained significant. This particular contract, awarded in late 2012, falls within a period where such services were still critically important, albeit potentially past the absolute peak spending years.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2010 CORPORATE RIDGE STE 700, MCLEAN, VA, 22102

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,860,641

Exercised Options: $21,860,641

Current Obligation: $21,860,641

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J11D0043

IDV Type: IDC

Timeline