DOE's $250M Protective Force Services Contract Awarded to SOC LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $250,724,690 ($250.7M)

Contractor: SOC LLC

Awarding Agency: Department of Energy

Start Date: 2017-07-01

End Date: 2023-06-18

Contract Duration: 2,178 days

Daily Burn Rate: $115.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL,CT::IGF PROTECTIVE FORCE SERVICES (PFS) FOR THE DOE/NNSA NEVADA FIELD OFFICE

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89193

State: Nevada Government Spending

Plain-Language Summary

Department of Energy obligated $250.7 million to SOC LLC for work described as: IGF::CL,CT::IGF PROTECTIVE FORCE SERVICES (PFS) FOR THE DOE/NNSA NEVADA FIELD OFFICE Key points: 1. Contract awarded to SOC LLC for security guard and patrol services. 2. The contract utilized a full and open competition approach. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. The duration of the contract is substantial, spanning over 2000 days. 5. The North American Industry Classification System (NAICS) code is 561612, indicating a focus on security services. 6. The contract was awarded by the Department of Energy's Nevada Field Office. 7. The contract value is significant, exceeding $250 million. 8. The contract was not set aside for small businesses.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost efficiency. While T&M can offer flexibility for evolving security needs, it also presents a higher risk of cost overruns compared to fixed-price contracts if not managed diligently. Benchmarking the per-hour rates against similar government security contracts would be crucial to assess value for money. The substantial contract value suggests a need for robust oversight to prevent unnecessary expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit an offer. The presence of two bidders suggests a moderate level of competition for this significant security services contract. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and foster greater innovation.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially leading to more cost-effective service delivery.

Public Impact

The primary beneficiaries are the Department of Energy and the National Nuclear Security Administration (NNSA) Nevada Field Office, receiving essential protective force services. The contract ensures the security and safety of critical government facilities and personnel at the Nevada Field Office. The geographic impact is concentrated in Nevada, specifically at the Nevada Field Office locations. The contract supports a workforce of security personnel, contributing to local employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns without diligent oversight.
Moderate competition (2 bidders) may not have yielded the absolute lowest price.
The long contract duration requires sustained vigilance for performance and cost management.
Lack of small business set-aside means limited direct opportunities for smaller security firms.

Positive Signals

Awarded through full and open competition, maximizing potential for qualified bidders.
Contract ensures critical security services for a key federal facility.
SOC LLC's experience in protective services is likely a positive factor in performance.

Sector Analysis

The security services industry is a significant sector within government contracting, encompassing a wide range of protective and investigative services. This contract falls under the security guards and patrol services sub-sector (NAICS 561612). Government spending in this area is consistently high due to the need for facility protection, personnel security, and asset safeguarding across various agencies. Comparable contracts often involve extensive background checks, specialized training, and adherence to strict federal regulations, influencing overall cost structures.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to directly participate in providing these protective force services were limited. While the prime contractor, SOC LLC, may engage small businesses as subcontractors, the absence of a formal set-aside or explicit subcontracting goals reduces the direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The contract's Time and Materials nature necessitates close monitoring of labor hours, material costs, and adherence to the statement of work to ensure accountability and prevent cost creep. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Energy Protective Services
Federal Security Guard Contracts
NNSA Security Operations
Government Facility Protection Services
Time and Materials Contract Management

Risk Flags

Time and Materials Pricing
Moderate Competition Level
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $250.7 million to SOC LLC. IGF::CL,CT::IGF PROTECTIVE FORCE SERVICES (PFS) FOR THE DOE/NNSA NEVADA FIELD OFFICE

Who is the contractor on this award?

The obligated recipient is SOC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $250.7 million.

What is the period of performance?

Start: 2017-07-01. End: 2023-06-18.

What is SOC LLC's track record with federal protective services contracts?

SOC LLC has a significant history of providing protective services to various government agencies, including the Department of State, Department of Defense, and Department of Energy. Their experience often involves providing armed and unarmed security personnel, access control, perimeter security, and emergency response services for sensitive government facilities and personnel both domestically and internationally. Analyzing their past performance on similar large-scale contracts, including any past performance issues or commendations, would provide further insight into their capabilities and reliability for the DOE/NNSA Nevada Field Office contract. This includes reviewing any contract disputes, termination for default records, or significant performance deficiencies reported in federal contract databases.

How does the $250.7 million contract value compare to similar protective force services contracts?

The $250.7 million contract value for protective force services at the DOE/NNSA Nevada Field Office is substantial and falls within the upper range for large-scale security contracts awarded by federal agencies. Comparable contracts for similar services at other major federal installations, such as military bases, national laboratories, or high-security agency headquarters, can also reach hundreds of millions of dollars over their performance periods. For instance, contracts for security at large Department of Defense installations or NASA centers often exceed this value. The specific cost per guard or per facility protected would be a key metric for comparison. Without detailed cost breakdowns and service level agreements, a precise benchmark is difficult, but the overall value indicates a significant security requirement and a major contract award.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risks associated with a Time and Materials (T&M) contract of this magnitude, like the $250.7 million protective force services contract, revolve around cost control and contractor performance. T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials plus a fee or profit. This structure inherently carries a higher risk of cost overruns if the scope of work is not well-defined or if the contractor does not manage labor hours efficiently. For taxpayers, this means potential for the final cost to exceed initial estimates. Effective oversight, including detailed tracking of hours, verification of material costs, and robust performance metrics, is crucial to mitigate these risks and ensure value for money. Without such controls, the government may end up paying more than necessary for the services rendered.

How effective is full and open competition in ensuring value for money for security services?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for security services. By allowing all responsible sources to compete, it fosters a competitive environment that encourages bidders to offer their best pricing and most efficient service delivery models to win the contract. This process increases the likelihood that the government will receive high-quality services at a fair and reasonable price. In the case of the DOE/NNSA Nevada Field Office contract, the fact that it was competed fully and openly suggests that the agency sought to maximize competition. However, the actual value achieved also depends on the clarity of the solicitation requirements, the evaluation criteria used, and the number of qualified bidders that ultimately submit proposals. A moderate number of bidders, as seen here, still provides a competitive dynamic.

What are the implications of the contract duration (2178 days) on oversight and performance?

A contract duration of 2178 days (approximately 6 years) for protective force services has significant implications for oversight and performance management. Such a long duration necessitates a sustained and consistent oversight effort from the contracting agency to ensure ongoing compliance with contract terms, performance standards, and evolving security requirements. It allows for the development of a long-term relationship between the contractor and the agency, potentially leading to greater efficiency and institutional knowledge. However, it also increases the risk of complacency on both sides and requires proactive contract management to address any performance degradation or cost inefficiencies that may arise over time. Regular performance reviews, contract modifications as needed, and vigilant monitoring of the contractor's financial stability and operational effectiveness are critical throughout the contract's life cycle.

How does the NAICS code 561612 (Security Guards and Patrol Services) define the scope of this contract?

The North American Industry Classification System (NAICS) code 561612, 'Security Guards and Patrol Services,' defines the primary scope of this contract as providing on-site security personnel to protect people and property from such hazards as theft, fire, and unauthorized access. This typically includes services like patrolling premises, controlling access to facilities, operating surveillance equipment, and responding to alarms or emergencies. Contracts under this code often require personnel to be licensed and trained in security procedures, use of force, and emergency response. The specific services provided under this DOE/NNSA contract would be detailed in the Statement of Work (SOW), but the NAICS code indicates a core focus on manned guarding and physical security presence rather than electronic security systems installation or investigation services, although these may be complementary.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DE-SOL-0009373

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $254,800,229

Exercised Options: $254,800,229

Current Obligation: $250,724,690

Actual Outlays: $141,424,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline