DOE awards $17.6M for site security services, with Diversified Protection Corp securing the contract
Contract Overview
Contract Amount: $17,565,800 ($17.6M)
Contractor: Diversified Protection Corp
Awarding Agency: Department of Energy
Start Date: 2020-02-01
End Date: 2025-07-31
Contract Duration: 2,007 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SITE SECURITY SERVICES FOR THE DEPARTMENT OF ENERGY (DOE) / NATIONAL ENERGY TECHNOLOGY LABORATORY (NETL) AT THE ALBANY, OREGON; MORGANTOWN, WEST VIRGINIA; AND PITTSBURGH, PENNSYLVANIA FACILITIES.
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $17.6 million to DIVERSIFIED PROTECTION CORP for work described as: SITE SECURITY SERVICES FOR THE DEPARTMENT OF ENERGY (DOE) / NATIONAL ENERGY TECHNOLOGY LABORATORY (NETL) AT THE ALBANY, OREGON; MORGANTOWN, WEST VIRGINIA; AND PITTSBURGH, PENNSYLVANIA FACILITIES. Key points: 1. Contract value of $17.6 million over its period of performance. 2. Services include site security for multiple Department of Energy facilities. 3. The contract was awarded through full and open competition. 4. Diversified Protection Corp is the sole awardee. 5. The contract has a duration of over 5 years. 6. The North American Industry Classification System (NAICS) code is 561612 for Security Guards and Patrol Services.
Value Assessment
Rating: good
The contract value of $17.6 million for over five years of security services appears reasonable given the scope of protecting multiple federal facilities. Benchmarking against similar contracts for comprehensive security services at government installations suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. The government's decision to use full and open competition suggests confidence in the market's ability to provide suitable security solutions.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of qualified contractors to bid, potentially driving down costs and improving service delivery.
Public Impact
The primary beneficiaries are the Department of Energy and its National Energy Technology Laboratory, ensuring the security of their facilities. Services delivered include physical security, access control, and potentially surveillance and response. Geographic impact covers facilities in Albany, Oregon; Morgantown, West Virginia; and Pittsburgh, Pennsylvania. Workforce implications include the employment of security personnel by Diversified Protection Corp.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for over-reliance on a single contractor for critical security functions.
- Limited insight into the specific performance metrics and quality assurance processes.
- The firm fixed-price nature might disincentivize contractors from exceeding basic service requirements without additional compensation.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Long-term contract duration provides stability and continuity of essential security services.
- Clear definition of services and locations ensures focused operational execution.
Sector Analysis
The security services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The market for government security services is substantial, with numerous private companies competing for federal contracts. This specific award represents a portion of the government's overall spending on facility protection and personnel security, which is a consistent requirement across various federal agencies.
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 for small businesses stemming from a small business set-aside. The primary contractor, Diversified Protection Corp, will be responsible for fulfilling the contract requirements, and any subcontracting would be at their discretion, not mandated by a set-aside provision.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Energy. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Energy Facility Security Contracts
- National Energy Technology Laboratory Operations
- Federal Security Guard Services
- Physical Security for Government Facilities
Risk Flags
- Contract duration exceeds 5 years, requiring sustained performance monitoring.
- Sole awardee may limit options if performance issues arise.
- Firm Fixed Price contract places cost risk on contractor, potentially impacting service quality if margins are too thin.
Tags
sector-other, agency-department-of-energy, geography-oregon, geography-west-virginia, geography-pennsylvania, contract-type-delivery-order, size-category-large, competition-level-full-and-open, service-type-security-services, naics-561612
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $17.6 million to DIVERSIFIED PROTECTION CORP. SITE SECURITY SERVICES FOR THE DEPARTMENT OF ENERGY (DOE) / NATIONAL ENERGY TECHNOLOGY LABORATORY (NETL) AT THE ALBANY, OREGON; MORGANTOWN, WEST VIRGINIA; AND PITTSBURGH, PENNSYLVANIA FACILITIES.
Who is the contractor on this award?
The obligated recipient is DIVERSIFIED PROTECTION CORP.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $17.6 million.
What is the period of performance?
Start: 2020-02-01. End: 2025-07-31.
What is the track record of Diversified Protection Corp with federal contracts, particularly with the Department of Energy?
Diversified Protection Corp has a history of federal contracting, though specific details on their performance with the Department of Energy (DOE) require deeper analysis of contract databases. Generally, federal agencies vet contractors based on past performance, financial stability, and technical capabilities before awarding significant contracts. For this specific contract, the award suggests that Diversified Protection Corp met the DOE's requirements. A review of their contract history might reveal previous awards for similar security services, their performance ratings on those contracts, and any past issues or commendations. Understanding their experience with the DOE specifically would provide further context on their suitability for this role.
How does the awarded amount compare to similar site security contracts for federal facilities of comparable size and scope?
The awarded amount of approximately $17.6 million over a period of roughly 5.5 years (February 2020 to July 2025) translates to an average annual cost of about $3.2 million. Benchmarking this against similar contracts for comprehensive site security services at federal facilities of comparable size and complexity is crucial. Factors such as the number of personnel required, the level of security clearance, the specific technologies employed (e.g., surveillance systems, access control), and the geographic dispersion of the facilities all influence cost. Without specific data on comparable contracts, it's challenging to definitively state if this is high or low, but the full and open competition suggests the government sought the best value available in the market.
What are the key performance indicators (KPIs) used to measure the success of Diversified Protection Corp's services under this contract?
While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, typical KPIs for site security contracts include response times to alarms and incidents, adherence to post orders, effectiveness of access control procedures, reduction in security breaches or incidents, and personnel reliability (e.g., attendance, training completion). The contract likely includes a performance work statement (PWS) that outlines these requirements and the metrics by which performance will be evaluated. The government's quality assurance personnel would monitor these KPIs, and performance would be formally assessed, potentially impacting future contract awards or options.
What is the historical spending pattern for site security services at the NETL facilities covered by this contract?
Analyzing historical spending patterns for site security at the National Energy Technology Laboratory (NETL) facilities in Albany, Morgantown, and Pittsburgh would provide valuable context. This involves examining previous contracts awarded for these services, their values, durations, and the contractors involved. Significant year-over-year increases or decreases in spending could indicate changes in security requirements, contract scope, or market pricing. Understanding this history helps assess whether the current $17.6 million award represents a continuation of established spending levels, an increase due to expanded needs, or a decrease reflecting cost efficiencies or reduced scope.
Are there any identified risks associated with the contractor's ability to deliver consistent and effective security services over the contract's duration?
Potential risks associated with any long-term security contract include contractor performance degradation over time, unforeseen security threats requiring enhanced measures beyond the contract scope, and personnel turnover impacting service quality. For Diversified Protection Corp, risks might be assessed based on their financial stability, management capacity, and track record with similar contracts. The government's oversight mechanisms, including performance reviews and the ability to implement corrective actions, are designed to mitigate these risks. The firm fixed-price nature also places some risk on the contractor to manage costs and maintain service levels.
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: 89243318RFE000004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 109 RIVER LANDING DR STE 300, DANIEL ISLAND, SC, 29492
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,565,800
Exercised Options: $17,565,800
Current Obligation: $17,565,800
Actual Outlays: $14,567,120
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS07F120GA
IDV Type: FSS
Timeline
Start Date: 2020-02-01
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-07-31
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