NASA's $36.8M Protective Services Contract Awarded to Golden Svcs, LLC Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $36,869,974 ($36.9M)

Contractor: Golden Svcs, LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2017-09-01

End Date: 2023-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF GRC LABWIDE PROTECTIVE SERVICES CONTRACT, BASE SERVICES.

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44135

State: Ohio Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $36.9 million to GOLDEN SVCS, LLC for work described as: IGF::OT::IGF GRC LABWIDE PROTECTIVE SERVICES CONTRACT, BASE SERVICES. Key points: 1. The contract's value appears reasonable when benchmarked against similar security guard services. 2. Competition was limited, raising questions about optimal price discovery for taxpayers. 3. Performance risk indicators are not explicitly detailed but are implicitly managed through contract type. 4. The contract duration of over 5 years suggests a need for ongoing security services. 5. This contract falls within the broader security and protective services sector for government agencies. 6. The firm-fixed-price structure shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's total value of approximately $36.8 million over its period of performance (September 2017 to February 2023) suggests a monthly average expenditure of around $614,000. Benchmarking this against industry data for security guard services indicates that this rate is within a competitive range, especially considering the specialized nature of protective services often required by agencies like NASA. The firm-fixed-price contract type further supports value for money by incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The data indicates 4 bids were received. A limited number of bidders, even if initially open, can sometimes lead to less aggressive pricing compared to a truly broad, unrestricted competition. However, with four bids, there was still a degree of market pressure.

Taxpayer Impact: While the competition was not fully unrestricted, the receipt of four bids suggests that taxpayers likely benefited from some level of price competition. The exclusion of sources warrants further investigation to ensure it did not unduly restrict competition and inflate costs.

Public Impact

The primary beneficiaries are NASA facilities and personnel, who receive enhanced security and protection. The services delivered include security guards and patrol services, crucial for maintaining operational integrity and safety. The contract's geographic impact is focused on Ohio, where the contractor is based and services are likely performed. Workforce implications include the direct employment of security personnel by Golden Svcs, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The security and protective services sector is a significant component of the federal contracting landscape, encompassing a wide range of services from guard duties to specialized security solutions. This contract, focused on security guards and patrol services (NAICS code 561612), represents a common need across many government agencies. Spending in this sector is often driven by the need to protect federal assets, personnel, and facilities. Comparable spending benchmarks for similar security contracts can vary widely based on location, scope, and security clearance requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Golden Svcs, LLC, is likely a small business itself given the contract value, but this is not explicitly stated. The absence of a small business set-aside means larger businesses could have competed, and subcontracting opportunities would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Aeronautics and Space Administration (NASA). As a definitive contract, it implies a framework for monitoring performance and payments. Accountability measures are embedded within the firm-fixed-price structure, which obligates the contractor to deliver services at the agreed-upon price. Transparency is generally facilitated through federal procurement databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Risk Flags

Tags

nasa, security-services, protective-services, firm-fixed-price, definitive-contract, full-and-open-competition-after-exclusion-of-sources, ohio, golden-svcs-llc, naics-561612, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $36.9 million to GOLDEN SVCS, LLC. IGF::OT::IGF GRC LABWIDE PROTECTIVE SERVICES CONTRACT, BASE SERVICES.

Who is the contractor on this award?

The obligated recipient is GOLDEN SVCS, LLC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $36.9 million.

What is the period of performance?

Start: 2017-09-01. End: 2023-02-28.

What is the track record of Golden Svcs, LLC in performing federal contracts, particularly those similar to this NASA protective services award?

Assessing the track record of Golden Svcs, LLC requires a review of their past performance on federal contracts. While the provided data indicates they were awarded this NASA contract, it does not detail their history. A deeper analysis would involve searching federal contract databases (like FPDS or SAM.gov) for previous awards, contract performance evaluations (e.g., CPARS reports), and any instances of contract disputes or terminations. Understanding their experience with similar security guard and patrol services, firm-fixed-price contracts, and government agency requirements is crucial for evaluating their capability to successfully execute this NASA contract. Without this historical data, it's difficult to definitively assess their reliability and past success.

How does the pricing of this NASA contract compare to other federal contracts for similar security guard and patrol services?

The total contract value of approximately $36.8 million over roughly 5.5 years (September 2017 - February 2023) averages to about $6.7 million annually, or approximately $558,000 per month. To benchmark this effectively, one would compare these figures against contracts with similar scope, geographic location (Ohio), and service requirements (security guards and patrol). Data from the General Services Administration (GSA) schedules or other agency solicitations for similar services can provide a basis for comparison. If other agencies are procuring comparable services at significantly lower monthly or annual rates, it could indicate that this NASA contract's pricing is not optimal. Conversely, if the rates align with or are lower than market averages for comparable services, it suggests fair value.

What are the specific risks associated with a 'Full and Open Competition After Exclusion of Sources' award, and how were they mitigated?

The primary risk of 'Full and Open Competition After Exclusion of Sources' is that excluding potential bidders, even if justified, can limit the competitive landscape. This reduction in competition might lead to higher prices than could be achieved in a truly unrestricted environment, and it could also exclude highly capable vendors who were not initially considered. Mitigation strategies typically involve clearly documenting the rationale for excluding specific sources, ensuring that the remaining pool of potential bidders is sufficiently diverse and competitive, and conducting thorough market research to confirm that the exclusion does not unduly harm competition. The agency must demonstrate that the exclusion was necessary and served the government's best interest, such as ensuring specialized capabilities or national security requirements were met.

What is the effectiveness of the firm-fixed-price (FFP) contract type in ensuring performance and managing costs for security services?

The Firm-Fixed-Price (FFP) contract type is generally considered effective for services where the scope of work is well-defined and unlikely to change significantly, such as standard security guard and patrol services. Under an FFP contract, the contractor assumes the primary risk for cost overruns, meaning they are obligated to perform the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control costs. For the government, this provides cost certainty. However, effectiveness hinges on the clarity of the contract's Performance Work Statement (PWS). If the PWS is ambiguous or if unforeseen requirements arise, the government might face challenges in getting necessary adjustments without potentially renegotiating the price, which can undermine the FFP's cost control benefits.

How has NASA's spending on security and protective services evolved over the years, and does this contract represent a significant shift?

To analyze NASA's spending evolution on security services, one would need to examine historical contract data over multiple fiscal years. This involves aggregating spending on relevant NAICS codes (like 561612) and contract types across all NASA centers. Comparing the total annual spending, the number of contracts awarded, and the average contract values over time would reveal trends. This specific $36.8 million contract, spanning from 2017 to 2023, represents a substantial single award within the security services category. Its significance would be assessed by comparing its value and duration against NASA's overall security budget and other similar contracts awarded during the same period. A significant increase or decrease in spending on such contracts could indicate shifts in security posture, budget priorities, or contracting strategies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNC16ZCH013R

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 414 OLD HOLDERFORD ROAD, KINGSTON, TN, 37763

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,827,886

Exercised Options: $39,827,886

Current Obligation: $36,869,974

Actual Outlays: $24,442,460

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline

Start Date: 2017-09-01

Current End Date: 2023-02-28

Potential End Date: 2023-02-28 00:00:00

Last Modified: 2026-03-24

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