SEC awards $2.15M contract for technical surveillance countermeasures, raising questions on competition

Contract Overview

Contract Amount: $21,500 ($21.5K)

Contractor: LP Dynamics Inc

Awarding Agency: Securities and Exchange Commission

Start Date: 2026-04-14

End Date: 2031-05-15

Contract Duration: 1,857 days

Daily Burn Rate: $12/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TECHNICAL SURVEILLANCE COUNTERMEASURE SWEEPS CONDUCTED AT THE SEC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $21,500 to LP DYNAMICS INC for work described as: TECHNICAL SURVEILLANCE COUNTERMEASURE SWEEPS CONDUCTED AT THE SEC. Key points: 1. Contract awarded without competition, potentially limiting price discovery. 2. Long performance period of over 5 years suggests significant ongoing need. 3. Fixed-price contract type offers cost certainty but may limit flexibility. 4. Services are critical for protecting sensitive government information. 5. Sole-source award warrants scrutiny for potential cost inefficiencies.

Value Assessment

Rating: questionable

The contract value of $2.15 million for technical surveillance countermeasures (TSCM) sweeps is difficult to benchmark without comparable sole-source awards. However, the lack of competition inherently raises concerns about whether the government achieved the best possible value. The fixed-price nature of the contract provides some cost predictability, but the absence of competitive bidding means there's no market validation of the pricing. Further analysis would require understanding the specific scope of services and the contractor's overhead and profit margins.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning LP Dynamics Inc. was the only vendor considered. The justification for this approach is not provided in the data, but sole-source awards typically occur when only one vendor possesses the unique capabilities or security clearances required for the service. This lack of competition means that the Securities and Exchange Commission (SEC) did not benefit from a bidding process that could have driven down prices or encouraged innovative solutions from multiple providers.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest feasible price. This contract's value could have been reduced if multiple firms had competed for the business.

Public Impact

The primary beneficiary is the Securities and Exchange Commission (SEC), which will receive enhanced security against technical surveillance threats. The services delivered include specialized sweeps to detect and mitigate eavesdropping devices and other technical security vulnerabilities. The geographic impact is focused on SEC facilities within the District of Columbia. The contract supports specialized roles within the security and counterintelligence fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Long contract duration could lock in potentially suboptimal terms.
Sole-source nature requires strong justification to ensure necessity.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Contractor LP Dynamics Inc. is being entrusted with critical security functions.
Services address a vital need for protecting sensitive financial and regulatory information.

Sector Analysis

The market for technical surveillance countermeasures (TSCM) is a specialized niche within the broader security services industry. It involves highly technical expertise and often requires specific security clearances. While the overall market size for TSCM is not readily available, it is a critical component of national security and corporate security for organizations handling sensitive information. This contract fits within the government's broader spending on protective and investigative services, aiming to safeguard critical infrastructure and information.

Small Business Impact

This contract was not competed under the Small Business Administration's programs, and there is no indication of small business set-asides or subcontracting requirements. Therefore, this specific award does not appear to directly benefit the small business ecosystem. The focus is on a specialized service likely requiring specific certifications and capabilities that may be concentrated among larger or more specialized firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Securities and Exchange Commission's contracting and security departments. The fixed-price nature of the award provides some level of financial oversight. Transparency regarding the justification for the sole-source award and the specific performance metrics would be crucial for comprehensive accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Information Security Services
Counterintelligence Support
Physical Security Services

Risk Flags

Sole-source award lacks competitive justification.
Long contract duration may not reflect evolving threats or technologies.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $21,500 to LP DYNAMICS INC. TECHNICAL SURVEILLANCE COUNTERMEASURE SWEEPS CONDUCTED AT THE SEC.

Who is the contractor on this award?

The obligated recipient is LP DYNAMICS INC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $21,500.

What is the period of performance?

Start: 2026-04-14. End: 2031-05-15.

What is the specific justification for awarding this contract on a sole-source basis to LP Dynamics Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required service. This could be due to unique technical expertise, proprietary technology, or specific security clearances held by the contractor. For this contract, the SEC would have had to document why other qualified vendors could not meet the requirement for technical surveillance countermeasures. Without this documentation, it is difficult to assess if the sole-source decision was appropriate and in the government's best interest.

How does the $2.15 million contract value compare to similar TSCM services procured by other federal agencies?

Benchmarking this $2.15 million contract value for TSCM services is challenging without access to a broader dataset of comparable sole-source or competitively awarded contracts for similar scopes of work. The duration of the contract (over five years) means the annual value is approximately $430,000. Federal agencies procure TSCM services through various contract vehicles, and pricing can vary significantly based on the complexity of the threat environment, the specific technologies used, the geographic locations covered, and the required frequency of sweeps. A competitive process would typically yield more transparent pricing data for comparison.

What are the potential risks associated with a sole-source award for critical security services like TSCM?

The primary risk of a sole-source award for critical security services like TSCM is the potential for inflated costs due to the absence of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the most cost-effective solution. Additionally, there's a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially hindering the adoption of newer, more efficient technologies or services. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks and verify that the services meet the required standards and represent fair value.

What is the expected performance period and scope of services for this contract?

The contract has a performance period extending from April 14, 2026, to May 15, 2031, spanning over five years. This extended duration suggests a continuous or recurring need for technical surveillance countermeasures (TSCM) sweeps at SEC facilities. The scope of services, while not detailed, would typically involve the detection, identification, and mitigation of technical surveillance threats, such as unauthorized listening devices, hidden cameras, and other forms of electronic eavesdropping. This includes thorough sweeps of sensitive areas to ensure the confidentiality and integrity of SEC operations and information.

How does this contract align with the SEC's overall security and information protection strategy?

This contract directly supports the SEC's critical mission of protecting sensitive financial and regulatory information. By procuring technical surveillance countermeasures, the SEC is proactively addressing potential threats to its internal communications and data security. This aligns with a comprehensive security strategy that includes physical security, cybersecurity, and counterintelligence measures. Ensuring that sensitive discussions and data are free from unauthorized electronic intrusion is paramount for maintaining market integrity and public trust, making TSCM services a vital component of the agency's protective posture.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5900 S LAKE FOREST DR STE 300, MCKINNEY, TX, 75070

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,500

Exercised Options: $21,500

Current Obligation: $21,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 50310226G0004

IDV Type: BOA

Timeline