State Dept. awards $803.6M for Baghdad Embassy Security Services to SOC LLC under full and open competition

Contract Overview

Contract Amount: $803,560,396 ($803.6M)

Contractor: SOC LLC

Awarding Agency: Department of State

Start Date: 2010-09-29

End Date: 2017-01-20

Contract Duration: 2,305 days

Daily Burn Rate: $348.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: Other

Official Description: WORLDWIDE PROTECTIVE SERVICES PROGRAM: BAGHDAD EMBASSY SECURITY SERVICES.

Plain-Language Summary

Department of State obligated $803.6 million to SOC LLC for work described as: WORLDWIDE PROTECTIVE SERVICES PROGRAM: BAGHDAD EMBASSY SECURITY SERVICES. Key points: 1. The contract value of $803.6 million over approximately 6.5 years indicates significant investment in embassy security. 2. SOC LLC, a known security provider, secured this award through full and open competition. 3. The primary risk involves potential geopolitical instability impacting service delivery and cost. 4. The security services sector is highly competitive, with numerous firms capable of providing these services.

Value Assessment

Rating: good

The contract value of $803.6 million for approximately 6.5 years suggests a substantial but potentially reasonable price for extensive security services in a high-risk environment. Benchmarking against similar large-scale embassy security contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process likely contributed to achieving a fair market price for the services rendered.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, although the overall cost reflects the high-risk operational environment.

Public Impact

Ensures the safety and security of U.S. personnel and facilities at the Baghdad Embassy. Supports diplomatic operations by providing a secure environment for State Department activities. Contributes to the stability and security of U.S. interests in Iraq. Creates jobs within the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Iraq
Potential for contract scope creep
Reliance on a single contractor for critical security

Positive Signals

Awarded through full and open competition
Experienced contractor selected
Long-term contract provides stability

Sector Analysis

This contract falls within the security and protective services sector, specifically focusing on guard and patrol services for high-risk government facilities. Spending in this sector can fluctuate based on global security needs and government priorities.

Small Business Impact

While the primary awardee is SOC LLC, a large corporation, the contract may involve subcontracting opportunities for smaller businesses in areas such as logistics, equipment supply, or specialized support services.

Oversight & Accountability

The Department of State is responsible for overseeing this contract to ensure the contractor meets all security requirements and performance standards. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Security Guards and Patrol Services
Department of State Contracting
Department of State Programs

Risk Flags

High-risk operational environment (Baghdad)
Potential for geopolitical instability impacting service delivery
Contract value is substantial, requiring diligent oversight
Reliance on a single entity for critical security functions

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $803.6 million to SOC LLC. WORLDWIDE PROTECTIVE SERVICES PROGRAM: BAGHDAD EMBASSY SECURITY SERVICES.

Who is the contractor on this award?

The obligated recipient is SOC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $803.6 million.

What is the period of performance?

Start: 2010-09-29. End: 2017-01-20.

What was the specific pricing structure (e.g., fixed-price, cost-plus) and how did it compare to industry benchmarks for similar services in high-threat environments?

The contract utilized a 'Labor Hours' pricing structure (PT: LABOR HOURS). This structure can be flexible but also carries risks of cost overruns if not managed tightly. A detailed comparison to industry benchmarks for similar security services in high-threat environments would be needed to fully assess value for money. Without specific benchmark data, it's difficult to definitively state if the $803.6 million was optimal.

What risk mitigation strategies were in place to address the inherent security and geopolitical risks associated with operating in Baghdad?

While the data indicates the contract was for security services in Baghdad, specific risk mitigation strategies employed by both the State Department and SOC LLC are not detailed. Effective strategies would typically include robust intelligence gathering, contingency planning for security breaches or political unrest, personnel vetting, and secure communication protocols to manage the volatile environment.

How effectively did the full and open competition process ensure the best value and performance for these critical security services?

The full and open competition process is designed to foster a competitive environment, theoretically leading to better value and performance. SOC LLC's selection suggests they offered a compelling proposal. However, the true effectiveness can only be assessed by reviewing the performance metrics, any contract modifications, and post-award evaluations to confirm sustained quality and cost-efficiency throughout the contract's duration.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: DAY & Zimmermann Group Inc., the (UEI: 007913486)

Address: 15002 NORTHRIDGE DR STE 100, 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: $824,505,734

Exercised Options: $803,560,396

Current Obligation: $803,560,396

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0099

IDV Type: IDC

Timeline