DOE awards $170M contract for protective services to National Strategic Protective Services, LLC
Contract Overview
Contract Amount: $170,446,350 ($170.4M)
Contractor: National Strategic Protective Services, LLC
Awarding Agency: Department of Energy
Start Date: 2013-01-22
End Date: 2019-07-31
Contract Duration: 2,381 days
Daily Burn Rate: $71.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: DOE OAK RIDGE OFFICE PROTECTIVE FORCE SERVICES IGF::CT::IGF
Place of Performance
Location: OAK RIDGE, KNOX County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $170.4 million to NATIONAL STRATEGIC PROTECTIVE SERVICES, LLC for work described as: DOE OAK RIDGE OFFICE PROTECTIVE FORCE SERVICES IGF::CT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial at 2381 days, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 561612 points to security guard and patrol services, a critical function for government facilities. 5. The contract was awarded to a single entity, National Strategic Protective Services, LLC, highlighting the specialized nature of the services required. 6. The contract was awarded in Tennessee, indicating a specific geographic focus for the protective services.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Award Fee contract is challenging without detailed performance metrics and award fee payouts. The total award amount of $170.4 million over approximately 6.5 years suggests an average annual spend of around $26 million. This figure needs to be compared against similar protective service contracts at other Department of Energy (DOE) facilities or comparable federal installations to assess if it represents a reasonable cost for the level of security provided. The Cost Plus Award Fee structure implies that the contractor's profit is tied to performance, which can be a positive indicator if performance is consistently high, but it also carries the risk of increased costs if award fees are frequently maximized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders (no) suggests a moderate level of competition for this specialized security service. While multiple bidders participated, the ultimate award to a single entity implies that National Strategic Protective Services, LLC was deemed the most advantageous offer based on the evaluation criteria. The level of competition is a positive sign for price discovery, but the specific details of the evaluation process would be needed to fully assess its impact on achieving the best value.
Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service quality. The fact that five companies bid on this contract suggests that taxpayers likely received a more competitive price than they would have under a sole-source award.
Public Impact
The primary beneficiaries are the Department of Energy and its Oak Ridge Office, receiving essential protective force services. The services delivered include security guard and patrol functions, crucial for maintaining the safety and security of federal facilities and personnel. The geographic impact is concentrated in Tennessee (TN), specifically at the Oak Ridge facility. The contract supports jobs within the security services sector, contributing to the local and national workforce in specialized protective services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can incentivize higher costs if award criteria are met through increased spending.
- Long contract duration (2381 days) may limit flexibility to adapt to changing security needs or market conditions.
- Reliance on a single contractor for critical protective services could pose a risk if performance degrades or the contractor faces financial instability.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The Cost Plus Award Fee structure, if managed effectively, can drive high performance and efficiency.
- The contract addresses a critical need for protective services at a significant federal facility.
Sector Analysis
The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the NAICS code 561612 (Security Guards and Patrol Services). The federal government is a major consumer of security services, contracting for protection at numerous facilities nationwide. Comparable spending benchmarks would involve analyzing the per-guard cost, cost per square foot protected, or total security budget as a percentage of facility operating costs for similar federal installations. The market for federal protective services is competitive, with numerous large and small businesses vying for these contracts.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is National Strategic Protective Services, LLC, the subcontracting opportunities for small businesses are not detailed in this summary. Federal contracts often include provisions for small business subcontracting, and the extent to which this contract adheres to or exceeds those goals would impact the small business ecosystem. Further review of the contract's subcontracting plan would be necessary to assess its full impact.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The Cost Plus Award Fee structure necessitates robust performance monitoring to ensure that award fees are justified. Inspector General jurisdiction would apply, allowing for audits and investigations into potential fraud, waste, or abuse. Transparency is typically facilitated through contract award databases and reporting requirements, though specific performance metrics and award fee decisions may not always be publicly disclosed.
Related Government Programs
- Department of Energy Protective Services Contracts
- Federal Security Guard Services
- Oak Ridge National Laboratory Security
- Cost-Plus Contract Management
- Federal Law Enforcement Support Services
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight to manage costs.
- Long contract duration may limit adaptability to future needs.
- Performance metrics for award fee determination are not publicly detailed.
Tags
department-of-energy, protective-services, security-guards, cost-plus-award-fee, full-and-open-competition, definitive-contract, tennessee, national-strategic-protective-services-llc, large-contract, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $170.4 million to NATIONAL STRATEGIC PROTECTIVE SERVICES, LLC. DOE OAK RIDGE OFFICE PROTECTIVE FORCE SERVICES IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is NATIONAL STRATEGIC PROTECTIVE SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $170.4 million.
What is the period of performance?
Start: 2013-01-22. End: 2019-07-31.
What is the historical spending trend for protective services at the DOE Oak Ridge Office?
Analyzing the historical spending trend for protective services at the DOE Oak Ridge Office requires access to prior contract data. Without specific historical figures, it's difficult to establish a trend. However, the current award of $170.4 million over approximately 6.5 years suggests a consistent and significant investment in security. If previous contracts were also awarded through competitive processes and for similar durations, it would indicate a stable, long-term requirement for these services. Fluctuations in spending could be attributed to changes in security threat levels, facility expansion or contraction, or shifts in contracting strategies. A detailed analysis would involve comparing the annual average spend of this contract ($~26 million) with previous contract periods to identify any increases, decreases, or consistent spending patterns.
How does the per-guard cost for National Strategic Protective Services, LLC compare to industry benchmarks?
Determining the precise per-guard cost requires knowing the number of guards employed under the contract and the total contract value allocated to labor. The provided data does not include the number of personnel. However, the total contract value of $170.4 million over roughly 2381 days (approx. 6.5 years) averages to about $26.2 million annually. If we assume a typical guard wage plus overhead and profit, industry benchmarks for federal security contracts can range significantly based on location, required certifications, and threat levels. For instance, a rough estimate might place per-guard costs (including all overhead and profit) anywhere from $70,000 to $120,000 annually. Without the specific number of guards, a direct comparison is speculative, but the overall contract value suggests a substantial security operation.
What are the key performance indicators (KPIs) used to determine the award fee for this contract?
The specific Key Performance Indicators (KPIs) used to determine the award fee for this Cost Plus Award Fee (CPAF) contract are not detailed in the provided summary. Typically, for protective services contracts, KPIs would focus on metrics such as response times to incidents, successful prevention of unauthorized access, adherence to post orders, officer conduct and professionalism, training completion rates, and incident reporting accuracy. The Department of Energy would have established a Performance Work Statement (PWS) outlining these requirements and the associated metrics. The award fee structure incentivizes the contractor to meet or exceed these KPIs, with higher fees awarded for superior performance. Without the PWS, the exact criteria remain unknown.
What is the track record of National Strategic Protective Services, LLC with federal contracts, particularly with the Department of Energy?
Information regarding the specific track record of National Strategic Protective Services, LLC with federal contracts, especially with the Department of Energy, is not provided in the summary data. To assess their track record, one would need to examine their past performance evaluations on federal contracts (e.g., through the Federal Awardee Performance and Integrity Information System -FAPIIS), review any past contract awards and their values, and investigate any history of contract disputes, terminations, or performance issues. A company's history with similar types of services (protective forces, security) and at comparable facilities would be particularly relevant for evaluating their suitability and past performance.
What are the potential risks associated with a long-term Cost Plus Award Fee contract for security services?
Long-term Cost Plus Award Fee (CPAF) contracts for security services present several potential risks. Firstly, the 'cost-plus' nature means the government reimburses the contractor's allowable costs, which can lead to cost growth if not rigorously managed and controlled. The 'award fee' component incentivizes performance, but it can also inadvertently encourage the contractor to incur higher costs to achieve performance targets that maximize their fee. Secondly, the long duration (2381 days) can reduce flexibility. The government might be locked into a specific service provider and approach, making it difficult to adapt to evolving security threats, technological advancements, or changes in operational requirements without potentially costly contract modifications. Finally, ensuring consistent oversight and performance management over an extended period requires sustained resources and attention from the contracting agency.
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-0003552
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 6858 OLD DOMINION DR STE 307, MCLEAN, VA, 22101
Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $211,819,260
Exercised Options: $211,819,260
Current Obligation: $170,446,350
Actual Outlays: $1,049,511
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-01-22
Current End Date: 2019-07-31
Potential End Date: 2019-07-31 00:00:00
Last Modified: 2024-09-11
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