Department of Energy's $49.8M contract for security support services awarded to Protection Strategies Inc
Contract Overview
Contract Amount: $49,767,120 ($49.8M)
Contractor: Protection Strategies Inc
Awarding Agency: Department of Energy
Start Date: 2008-10-27
End Date: 2016-09-26
Contract Duration: 2,891 days
Daily Burn Rate: $17.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SECURITY RELATED TECHNICALAND ADMINISTRATIVE SUPPORT SERVICES RESULTING FROM REQUEST FOR PROPOSAL NUMBER DE-RP01-08HS07014
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $49.8 million to PROTECTION STRATEGIES INC for work described as: SECURITY RELATED TECHNICALAND ADMINISTRATIVE SUPPORT SERVICES RESULTING FROM REQUEST FOR PROPOSAL NUMBER DE-RP01-08HS07014 Key points: 1. Contract value of nearly $50 million over its 8-year period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control risks. 4. The contractor, Protection Strategies Inc., has a track record with this agency. 5. Services provided are categorized under 'Other Scientific and Technical Consulting Services'. 6. The contract was awarded by the Department of Energy, with the agency also performing the function. 7. The contract duration was substantial, spanning nearly 8 years.
Value Assessment
Rating: fair
The contract's total value of nearly $50 million over an 8-year period suggests a significant investment in security-related technical and administrative support. Benchmarking this against similar contracts is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, can lead to cost overruns if not managed diligently. The number of bids received (6) suggests some level of competition, but the ultimate value for money depends heavily on the efficiency and effectiveness of the services delivered and the contractor's ability to manage costs within the T&M framework.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the agency sought proposals from all responsible sources but may have excluded certain entities based on specific criteria. Six bids were received, suggesting a moderate level of competition. While full and open competition is generally preferred, the 'after exclusion of sources' clause warrants further investigation into the reasons for exclusion and whether it limited the competitive landscape.
Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome than a sole-source award.
Public Impact
The primary beneficiaries are the Department of Energy and its facilities, which receive enhanced security and administrative support. Services delivered include technical and administrative support crucial for maintaining security protocols. The contract's geographic impact is likely concentrated around the Department of Energy facilities where these security services are deployed, primarily in Maryland. Workforce implications include the employment of personnel by Protection Strategies Inc. to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to unpredictable costs and potential overruns if not closely monitored.
- The 'after exclusion of sources' clause in the competition type may have limited the pool of potential bidders.
- The long duration of the contract (nearly 8 years) could reduce flexibility to adapt to changing security needs or market innovations.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- The contractor, Protection Strategies Inc., has prior experience with the Department of Energy.
- The contract addresses critical security-related technical and administrative support needs.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically 'Other Scientific and Technical Consulting Services.' This broad category encompasses a wide range of specialized expertise. The market for security-related consulting and support services is substantial, driven by government and private sector needs for physical security, cybersecurity, and administrative support functions. The Department of Energy, with its critical infrastructure and sensitive information, represents a significant client within this sector.
Small Business Impact
The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the direct impact on small businesses through set-aside goals is likely minimal. However, Protection Strategies Inc. may engage small businesses as subcontractors, which would be a secondary avenue for small business involvement. Further analysis of subcontracting plans would be needed to fully assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy contracting officers and program managers. The Time and Materials nature of the contract necessitates rigorous oversight of labor hours and material costs to ensure value for money. Transparency is facilitated through contract award data, but detailed performance metrics and oversight reports are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy Security Services
- Technical and Administrative Support Contracts
- Federal Security Consulting Services
- Other Scientific and Technical Consulting Services Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Limited transparency on specific service deliverables and performance metrics.
- Uncertainty regarding the impact of 'exclusion of sources' on competition breadth.
- Long contract duration may limit adaptability to evolving security needs.
Tags
department-of-energy, security-services, technical-support, administrative-support, consulting-services, time-and-materials, full-and-open-competition, maryland, definitive-contract, other-scientific-and-technical-consulting-services, protection-strategies-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $49.8 million to PROTECTION STRATEGIES INC. SECURITY RELATED TECHNICALAND ADMINISTRATIVE SUPPORT SERVICES RESULTING FROM REQUEST FOR PROPOSAL NUMBER DE-RP01-08HS07014
Who is the contractor on this award?
The obligated recipient is PROTECTION STRATEGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $49.8 million.
What is the period of performance?
Start: 2008-10-27. End: 2016-09-26.
What is the track record of Protection Strategies Inc. with the Department of Energy prior to this contract?
Protection Strategies Inc. has a history of working with the Department of Energy. While this specific contract (DE-RP01-08HS07014) was awarded in October 2008 and ended in September 2016, the company's engagement with the agency likely extends beyond this single award. Analyzing previous contracts, performance reviews, and any past issues or commendations would provide a more comprehensive understanding of their reliability and effectiveness in serving the Department of Energy's needs. Without access to a detailed contract history database, it's difficult to quantify their prior involvement precisely, but the award of a significant, long-term contract suggests a degree of established performance and trust.
How does the value of this contract compare to similar security support services contracts awarded by the Department of Energy or other federal agencies?
The total contract value of approximately $49.8 million over nearly 8 years places this contract in the mid-to-large size category for specialized security and technical support services. Comparing it directly requires identifying contracts with similar scope, duration, and service complexity. For instance, contracts for physical security, technical security system maintenance, or specialized administrative support for critical infrastructure could be comparable. However, the 'Other Scientific and Technical Consulting Services' NAICS code is broad. A more precise comparison would involve looking at contracts with similar pricing structures (Time and Materials) and specific service deliverables. Given the duration and value, it represents a substantial commitment by the Department of Energy.
What are the primary risks associated with a Time and Materials contract of this nature and duration?
The primary risk with a Time and Materials (T&M) contract, especially one spanning nearly eight years and valued at nearly $50 million, is the potential for cost escalation and lack of defined cost ceiling. Unlike fixed-price contracts, T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if not rigorously monitored. For the Department of Energy, risks include overspending if work is not efficiently performed, difficulty in forecasting final costs, and potential for scope creep without adequate controls. Effective oversight, detailed reporting, and clear task definitions are crucial to mitigate these risks.
How effective was the competition process, given the 'after exclusion of sources' clause?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that while the solicitation was open to all responsible sources, certain entities were excluded based on specific justifications. Receiving six bids suggests a reasonable level of competition was achieved. However, the effectiveness hinges on the rationale for exclusion. If the exclusions were narrowly defined and justified by unique capabilities or requirements, the competition might still be considered effective. If the exclusions were broad or potentially arbitrary, it could have artificially limited the competitive landscape, potentially impacting price discovery and value for taxpayers. A deeper dive into the justification for exclusion would be needed for a definitive assessment.
What are the implications of the 'Other Scientific and Technical Consulting Services' classification for the type of work performed?
The classification 'Other Scientific and Technical Consulting Services' (NAICS code 541690) is very broad and suggests that the contract encompassed a wide range of specialized consulting and technical support activities that did not fit into more specific categories. For this Department of Energy contract, it likely included services related to security policy development, risk assessments, technical security system analysis, administrative procedures for security operations, and potentially other specialized scientific or engineering consulting related to security. This broad classification means the specific deliverables could vary significantly, making direct comparisons to other contracts challenging without more detailed statements of work.
What is the historical spending pattern for security-related services at the Department of Energy?
Analyzing historical spending patterns for security-related services at the Department of Energy is crucial for context. This $49.8 million contract represents a significant, long-term investment. Understanding how this amount compares to previous years' spending on similar services, or how it fits within the agency's overall security budget, would provide valuable insight. For example, has spending increased or decreased? Are there trends in contract types (e.g., shift from T&M to fixed-price)? Without access to historical budget and spending data for the Department of Energy's security functions, it's difficult to establish these patterns, but this contract's value suggests a sustained need for these services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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: DE-RP01-08HS07014
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2300 9TH ST S STE 503, ARLINGTON, VA, 22204
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $84,666,291
Exercised Options: $55,278,298
Current Obligation: $49,767,120
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-10-27
Current End Date: 2016-09-26
Potential End Date: 2016-09-26 00:00:00
Last Modified: 2017-05-02
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