SOC LLC awarded $53.3M for security guard services, with a 1172-day duration

Contract Overview

Contract Amount: $53,323,722 ($53.3M)

Contractor: SOC LLC

Awarding Agency: Department of State

Start Date: 2014-09-30

End Date: 2017-12-15

Contract Duration: 1,172 days

Daily Burn Rate: $45.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SECURITY GUARDS IGF::OT::IGF

Plain-Language Summary

Department of State obligated $53.3 million to SOC LLC for work described as: SECURITY GUARDS IGF::OT::IGF Key points: 1. The contract's value of $53.3M over approximately 3.2 years suggests a significant investment in security personnel. 2. Full and open competition was utilized, indicating a broad market solicitation for these services. 3. The contract type is Time and Materials, which can introduce cost variability if not closely managed. 4. Performance occurred between September 2014 and December 2017, providing a historical context for current needs. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized security services market. 6. The award was a single delivery order, suggesting it was part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

The total award amount of $53.3M for security guard services over nearly four years (1172 days) averages to approximately $13.9M annually. Benchmarking this against similar large-scale federal security contracts is challenging without more granular data on the scope of services, geographic coverage, and specific security requirements. However, the Time and Materials pricing structure warrants scrutiny to ensure efficient resource utilization and prevent cost overruns. The absence of a specific contract ceiling or detailed performance metrics makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The fact that it resulted in a single delivery order suggests that while the initial solicitation was broad, only one entity was selected for this specific tasking. The level of competition at the initial bidding stage is not detailed, but the 'full and open' designation implies an effort to maximize market participation and potentially achieve competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of providers to bid, which can lead to more competitive pricing and better service offerings. This approach aims to prevent price inflation that might occur with less competitive procurement methods.

Public Impact

The Department of State benefits from the provision of essential security guard services, likely for its facilities and personnel. These services are critical for maintaining a secure environment, supporting diplomatic missions and operations. The geographic impact is likely concentrated around the specific locations where the Department of State operates. The contract supports employment within the private security industry, providing jobs for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Limited information on the specific performance metrics makes it difficult to assess the quality of services provided.
The absence of small business subcontracting details raises questions about broader economic impact.
The contract duration of over three years necessitates ongoing oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, suggesting a robust market engagement.
The contract provided essential security services, fulfilling a critical government function.
The contractor, SOC LLC, is a known entity in the security services sector.

Sector Analysis

The security guard services sector is a significant component of the broader private security industry. This contract falls under the NAICS code 561612, which covers services such as guarding and patrol, investigation, and alarm systems. Federal spending in this area is substantial, driven by the need to protect government assets, personnel, and facilities both domestically and abroad. The market is characterized by a mix of large, established providers and smaller, specialized firms. Benchmarking requires comparing the scope, duration, and specific security requirements against similar government contracts.

Small Business Impact

The provided 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 set-aside requirement. However, the prime contractor, SOC LLC, may have its own subcontracting plans that could involve small businesses, but this information is not detailed in the provided data. The lack of a small business set-aside means the opportunity was open to all eligible contractors, potentially limiting direct opportunities for small businesses to participate as prime contractors on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of State. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

Department of State Security Services Contracts
Federal Protective Service Contracts
Department of Defense Security Contracts
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed performance metrics hinders quality assessment.
Contract duration requires sustained oversight.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $53.3 million to SOC LLC. SECURITY GUARDS IGF::OT::IGF

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 $53.3 million.

What is the period of performance?

Start: 2014-09-30. End: 2017-12-15.

What was the specific scope of services provided under this contract?

The provided data identifies the contract as being for 'Security Guards and Patrol Services' under NAICS code 561612. However, the specific details of the scope of work, such as the number of guards, hours of operation, specific locations, types of security measures (e.g., access control, surveillance, response), and any specialized security requirements (e.g., armed vs. unarmed guards, specific threat environments), are not included in the abbreviated data. This level of detail is crucial for a comprehensive understanding of the services rendered and for accurate benchmarking against other contracts.

How does the average annual cost of this contract compare to similar federal security guard contracts?

The contract's total value of $53.3M over 1172 days (approximately 3.2 years) equates to an average annual expenditure of roughly $16.7M. Comparing this to similar federal security guard contracts requires access to a broader dataset that includes contracts with comparable scopes of work, geographic coverage, security levels, and contract types. Without such comparative data, it is difficult to definitively state whether this represents a high, low, or average cost. Factors like the criticality of the locations, the threat environment, and the specific services required significantly influence pricing.

What were the key performance indicators (KPIs) and how was contractor performance measured?

The abbreviated data does not specify the key performance indicators (KPIs) or the methods used to measure SOC LLC's performance. Typically, federal contracts include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines specific deliverables, standards, and metrics. Performance is often assessed through quality assurance surveillance plans (QASPs) and contractor performance evaluation reports (CPARS). The absence of this information in the provided data limits the ability to assess the effectiveness and quality of the security services delivered.

What is the track record of SOC LLC in providing similar security services to the federal government?

SOC LLC is a well-established provider of security and risk management services, including physical security, personnel security, and protective services, to various government agencies. They have a history of performing large-scale contracts, often in complex or high-threat environments. While this specific contract award of $53.3M is significant, SOC LLC has managed contracts of comparable or larger value. Their track record generally indicates experience in meeting federal security requirements, though specific performance details on past contracts would be needed for a thorough assessment.

Were there any notable risks identified during the procurement or performance of this contract?

The provided data does not explicitly list any identified risks associated with this contract. However, general risks inherent in large security contracts include potential cost overruns due to the Time and Materials (T&M) pricing structure, challenges in maintaining consistent service quality across all deployed personnel, security breaches or incidents, and contractor performance issues. The full and open competition method aims to mitigate some risks by ensuring a broad pool of qualified bidders, but ongoing oversight is crucial to manage performance and cost risks throughout the contract lifecycle.

How does this contract fit into the Department of State's overall security spending strategy?

This contract represents a significant portion of the Department of State's spending on physical security personnel. Such contracts are essential for protecting diplomatic missions, embassies, consulates, and other sensitive facilities worldwide. The Department relies on a mix of contracted security services and its own Diplomatic Security Service (DSS) personnel. The scale of this award suggests it covered critical security functions at one or more key locations, contributing to the overall security posture necessary for the conduct of foreign policy and international relations.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $58,932,834

Exercised Options: $58,932,834

Current Obligation: $53,323,722

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0099

IDV Type: IDC

Timeline