State Department awards $88.6M for security services in Israel, with 6 bidders competing

Contract Overview

Contract Amount: $88,584,710 ($88.6M)

Contractor: SOC LLC

Awarding Agency: Department of State

Start Date: 2016-09-22

End Date: 2022-03-21

Contract Duration: 2,006 days

Daily Burn Rate: $44.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROTECTIVE AND SECURITY SERVICES IN JERUSALEM AND OTHER AREAS THROUGHOUT ISRAEL. IGF::OT::IGF

Plain-Language Summary

Department of State obligated $88.6 million to SOC LLC for work described as: PROTECTIVE AND SECURITY SERVICES IN JERUSALEM AND OTHER AREAS THROUGHOUT ISRAEL. IGF::OT::IGF Key points: 1. Contract value represents a significant investment in safeguarding personnel and facilities in a high-risk region. 2. Full and open competition suggests a robust market for these specialized security services. 3. The duration of the contract (over 5 years) indicates a long-term need for consistent security presence. 4. Performance period spans a critical time, potentially encompassing significant geopolitical events. 5. The award to SOC LLC positions them as a key provider for U.S. government security needs abroad. 6. The use of Time and Materials pricing requires careful monitoring to control costs.

Value Assessment

Rating: good

The total award of $88.6 million over approximately 5.5 years averages to about $16.1 million annually. Benchmarking this against similar large-scale security contracts for diplomatic missions or high-risk areas is challenging without more specific service details. However, the presence of 6 bidders suggests a competitive environment that likely pressured pricing. The contract's duration and scope imply a substantial operational footprint, making the annual cost appear reasonable if service delivery is effective and efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six distinct bidders vying for the opportunity. This level of competition is generally positive, indicating that multiple capable firms were aware of and interested in the requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions being presented to the government.

Taxpayer Impact: For taxpayers, the full and open competition suggests that the government sought the best value by allowing a broad range of qualified contractors to submit proposals, likely resulting in more cost-effective service delivery compared to a sole-source award.

Public Impact

U.S. diplomatic personnel and facilities in Jerusalem and other areas throughout Israel benefit from enhanced security. Essential protective and security services are delivered, mitigating risks to government operations and personnel. The geographic scope covers sensitive and potentially volatile regions, ensuring a consistent security posture. The contract supports a workforce of security professionals, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not closely managed.
Ensuring consistent service quality across all specified locations throughout Israel.
Managing the logistical complexities of deploying and maintaining security personnel in a challenging environment.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Contract duration suggests a stable and predictable security requirement.
The contractor, SOC LLC, likely has prior experience in providing similar services.

Sector Analysis

The security services sector is a critical component of government operations, particularly for agencies operating in high-risk environments like Israel. This contract falls within the broader professional, scientific, and technical services category, specifically focusing on security and investigation services (NAICS code 561612). The market for such services is substantial, driven by global security concerns and the need to protect government assets and personnel. Comparable spending benchmarks would typically involve analyzing other large-scale security contracts awarded by the State Department or Department of Defense in similar geopolitical contexts.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, SOC LLC, may engage small businesses as subcontractors to fulfill certain aspects of the security services requirement, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Given the sensitive nature of security services in Israel, robust oversight mechanisms are expected to be in place to ensure compliance with contract terms, performance standards, and security protocols. Transparency is typically managed through regular reporting requirements and site visits. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Worldwide Protective Services
Embassy Security Contracts
Department of State Diplomatic Security Service
Security Services for U.S. Embassies Abroad
International Security Assistance

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Geopolitical instability in the region could impact operational costs and security needs.
Ensuring consistent quality of service across diverse locations within Israel.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $88.6 million to SOC LLC. PROTECTIVE AND SECURITY SERVICES IN JERUSALEM AND OTHER AREAS THROUGHOUT ISRAEL. 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 $88.6 million.

What is the period of performance?

Start: 2016-09-22. End: 2022-03-21.

What is the historical spending pattern for protective and security services in Israel by the Department of State?

Analyzing historical spending for protective and security services in Israel by the Department of State requires access to detailed historical contract databases. However, the current award of approximately $88.6 million over 5.5 years suggests an average annual expenditure of around $16.1 million for these services. This figure can be compared to previous contracts awarded for similar services in the region. For instance, if prior contracts were significantly smaller or larger, it could indicate changes in threat assessments, operational scope, or market pricing. Understanding the trend of spending over time—whether it's increasing, decreasing, or remaining stable—provides crucial context for evaluating the current contract's value and the government's long-term commitment to security in the region.

How does the per-unit cost of security personnel under this contract compare to industry benchmarks?

Determining a precise per-unit cost for security personnel under this contract is difficult without granular data on the number of personnel, their roles, hours worked, and specific rates. The contract uses a Time and Materials (T&M) pricing structure, which means costs are based on actual labor hours and material expenses incurred. To benchmark, one would need to compare the average hourly rates for different security classifications (e.g., armed guards, supervisors) against prevailing wage data and industry surveys for security services in Israel. Given the high-risk environment and the need for specialized personnel, rates might be expected to be at the higher end of the spectrum compared to domestic security contracts. The competitive nature of the award (6 bidders) suggests that SOC LLC's proposed rates were deemed competitive among qualified firms.

What are the key performance indicators (KPIs) used to measure the effectiveness of SOC LLC's security services?

While specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, contracts of this nature typically include metrics focused on response times to incidents, successful prevention of unauthorized access, adherence to post orders, personnel training and certification, and overall incident-free operations. The Department of State's performance management process would likely involve regular reviews and assessments of SOC LLC's performance against these KPIs. Failure to meet critical KPIs could result in contractual remedies, including financial penalties or termination. The effectiveness of the services is paramount given the high-stakes environment in Israel, ensuring the safety of personnel and facilities is the primary objective.

What is the track record of SOC LLC in providing similar security services to the U.S. government in high-risk overseas locations?

SOC LLC has a significant track record in providing security services to the U.S. government, particularly in high-risk overseas locations. They have been a prominent contractor for various agencies, including the Department of State, often involved in providing protective services for diplomatic missions and personnel. Their experience typically encompasses armed and unarmed guarding, access control, physical security, and emergency response. Awards like this one, especially under full and open competition, suggest that SOC LLC has demonstrated the capability, experience, and financial stability required to meet the stringent demands of operating in complex geopolitical environments. Past performance evaluations by government agencies would have been a critical factor in their selection for this contract.

What are the potential risks associated with a Time and Materials contract for security services in Israel?

The primary risk associated with a Time and Materials (T&M) contract for security services in Israel, or any location, is the potential for cost overruns if not meticulously managed. Unlike fixed-price contracts, T&M agreements reimburse the contractor for actual labor hours and materials used, plus a fee. This structure can incentivize longer work hours or less efficient operations if oversight is lax. In a high-risk environment like Israel, unforeseen security incidents or logistical challenges could lead to increased labor and material needs, driving up costs beyond initial estimates. Effective oversight, including detailed timesheet verification, approval processes for overtime, and monitoring of material usage, is crucial to mitigate these risks and ensure the government receives good value.

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

Solicitation ID: SAQMMA16R0227

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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: $191,868,282

Exercised Options: $184,702,914

Current Obligation: $88,584,710

Actual Outlays: $8,237,662

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA16D0046

IDV Type: IDC

Timeline