State Department awards $54.7M contract for professional security services to SOC LLC

Contract Overview

Contract Amount: $54,734,500 ($54.7M)

Contractor: SOC LLC

Awarding Agency: Department of State

Start Date: 2023-07-01

End Date: 2026-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROFESSIONAL SECURITY SERVICES

Plain-Language Summary

Department of State obligated $54.7 million to SOC LLC for work described as: PROFESSIONAL SECURITY SERVICES Key points: 1. Contract value represents a significant investment in safeguarding federal personnel and facilities. 2. Full and open competition suggests a robust market for security services. 3. Potential for price efficiencies due to multiple bidders. 4. Contract duration of three years allows for sustained service delivery. 5. Fixed-price contract type shifts performance risk to the contractor. 6. Services align with critical national security and diplomatic functions.

Value Assessment

Rating: good

The contract value of $54.7 million over three years for professional security services appears reasonable given the scope of protecting Department of State assets and personnel. Benchmarking against similar large-scale security contracts for federal agencies suggests this is within expected ranges. The firm fixed-price structure incentivizes contractor efficiency, potentially leading to better value than cost-reimbursable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors were allowed to bid. The presence of three bidders suggests a healthy level of competition for this significant contract. This competitive environment is generally expected to drive down prices and encourage innovation as contractors vie for the award.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by securing services at a price reflecting market rates, rather than a premium that might be charged in a less competitive scenario.

Public Impact

Benefits federal employees and diplomats by ensuring their safety and security at various locations. Delivers essential security guard and patrol services to protect sensitive government facilities and information. Geographic impact is likely nationwide and potentially international, supporting U.S. diplomatic missions. Workforce implications include the creation of numerous security guard positions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration may limit flexibility for adopting new security technologies mid-contract.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Geographic scope and potential for international deployment add complexity to oversight.

Positive Signals

Firm fixed-price contract aligns contractor incentives with cost control.
Full and open competition suggests a strong pool of qualified bidders.
Three-year term provides stability for essential security operations.
Contractor (SOC LLC) likely has prior experience in government contracting.

Sector Analysis

The professional security services sector is a substantial market driven by government and private sector demand for physical security, surveillance, and personnel protection. Federal agencies, particularly those with international operations like the Department of State, represent a significant portion of this market. Spending in this category is often characterized by long-term contracts and a focus on reliability and security clearances. Comparable contracts often range in the tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. While the prime contractor, SOC LLC, is a large entity, there may be opportunities for small businesses to participate as subcontractors, depending on the specific service requirements and the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to meet specific performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of State Diplomatic Security Service
Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services

Risk Flags

Contract duration may limit adaptability to evolving security threats.
Potential for contractor performance issues impacting critical security functions.
Reliance on a single entity for extensive security coverage.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $54.7 million to SOC LLC. PROFESSIONAL SECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is SOC LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $54.7 million.

What is the period of performance?

Start: 2023-07-01. End: 2026-06-30.

What is the track record of SOC LLC in performing similar federal security contracts?

SOC LLC has a significant history of performing federal contracts, particularly in the security services domain. They have been awarded numerous contracts by various federal agencies, including the Department of State, Department of Defense, and others, often involving physical security, guard services, and protective details. Their experience typically includes operating in complex and high-risk environments, both domestically and internationally. Reviewing past performance evaluations and contract close-outs for SOC LLC would provide a clearer picture of their reliability, quality of service, and adherence to contract terms on similar engagements. This specific contract's value and duration suggest a level of trust and proven capability by the Department of State.

How does the awarded price compare to market rates for similar security services?

The awarded value of $54.7 million over three years for professional security services, provided by SOC LLC to the Department of State, needs to be benchmarked against market rates. Given the 'full and open competition' and three bidders, the price is likely competitive. However, without specific details on the number of personnel, hours, locations, and specific security tasks (e.g., armed guards, surveillance, access control), a precise per-unit cost comparison is difficult. Generally, federal contracts for security services, especially those involving cleared personnel and international deployment, tend to be at the higher end of market rates due to stringent requirements and associated overhead. The firm fixed-price nature suggests the contractor is confident in their ability to deliver within this budget.

What are the primary risks associated with this contract and how are they mitigated?

Key risks include potential performance failures by the contractor (SOC LLC), leading to security lapses; cost overruns if the fixed-price contract is poorly managed internally by the contractor; and potential for contractor personnel misconduct. Mitigation strategies are embedded in the contract: the firm fixed-price structure incentivizes contractor efficiency and cost control. The Department of State's oversight mechanisms, including performance monitoring and quality assurance surveillance plans (QASPs), are crucial for identifying and addressing performance issues early. Contract clauses regarding termination for default or convenience, along with background checks and training requirements for contractor personnel, further mitigate risks. The competitive award process also implies a selection of a contractor deemed capable of managing these risks.

How effective is the firm fixed-price contract type in ensuring value for money in security services?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money, especially for services with well-defined requirements like security guard and patrol services. Under an FFP contract, the contractor assumes the primary risk for cost overruns, incentivizing them to manage resources efficiently and control expenses. This means the government pays a set price, regardless of the contractor's actual costs. For the Department of State, this provides budget certainty and encourages the contractor (SOC LLC) to deliver the specified services at the agreed-upon cost. The effectiveness hinges on the clarity of the contract's scope of work and performance standards; any ambiguity could lead to disputes or unmet expectations, diminishing the value.

What is the historical spending trend for professional security services by the Department of State?

Historical spending data for professional security services by the Department of State would reveal trends in demand and investment in this area. While this specific $54.7 million award is substantial, understanding if this represents an increase, decrease, or stable level of spending compared to previous years or contract cycles is important. Factors influencing historical spending could include changes in global security threats, diplomatic missions, personnel levels, and budget allocations. Analyzing past contracts, including their values, durations, and awarded contractors, would provide context for this current award and indicate the agency's long-term commitment and evolving needs in security services.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM23R0152

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3975 VIRGINIA MALLORY DR STE 200, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $136,580,774

Exercised Options: $60,143,834

Current Obligation: $54,734,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0010

IDV Type: IDC

Timeline