State Department awards $139M security contract for U.S. Embassy Baghdad to SOC LLC
Contract Overview
Contract Amount: $139,052,319 ($139.1M)
Contractor: SOC LLC
Awarding Agency: Department of State
Start Date: 2017-01-21
End Date: 2018-01-20
Contract Duration: 364 days
Daily Burn Rate: $382.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF STATIC SECURITY SERVICES AT U.S. EMBASSY BAGHDAD, IRAQ
Plain-Language Summary
Department of State obligated $139.1 million to SOC LLC for work described as: IGF::OT::IGF STATIC SECURITY SERVICES AT U.S. EMBASSY BAGHDAD, IRAQ Key points: 1. The contract value of $139M is significant for security services. 2. SOC LLC is a major player in private security contracting. 3. The lack of competition presents a potential risk to pricing. 4. This falls under the security and protective services sector.
Value Assessment
Rating: questionable
The contract was awarded as Time and Materials, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about taxpayer value and the potential for inflated costs.
Public Impact
Ensures security for U.S. personnel and facilities in a high-risk environment. Supports diplomatic operations by providing a safe working environment. Significant expenditure on private security services abroad.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Time and Materials pricing
- High contract value
Positive Signals
- Essential service provided
- Established contractor
Sector Analysis
This contract falls under the Security Guards and Patrol Services (NAICS 561612) sector. Spending in this sector can vary widely based on geopolitical factors and the specific needs of government facilities.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The lack of competition and the sole-source nature of this award warrant close oversight to ensure the services are necessary and priced appropriately. Further review of the justification for sole-sourcing is recommended.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for overpricing due to sole-source award.
- Risk of cost escalation with Time and Materials contract.
- Lack of transparency in the procurement process.
- No small business participation noted.
Tags
security-guards-and-patrol-services, department-of-state, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $139.1 million to SOC LLC. IGF::OT::IGF STATIC SECURITY SERVICES AT U.S. EMBASSY BAGHDAD, IRAQ
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 $139.1 million.
What is the period of performance?
Start: 2017-01-21. End: 2018-01-20.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not include the specific justification for the sole-source award. Typically, such justifications would cite reasons like urgent need, unique capabilities of the contractor, or lack of other responsible sources. A thorough review would require accessing the contract file and associated documentation.
How does the Time and Materials pricing structure compare to fixed-price contracts for similar security services?
Time and Materials (T&M) contracts generally carry higher risk for the government compared to fixed-price contracts, as costs can escalate if labor hours or material costs are not carefully controlled. For security services, fixed-price contracts often provide better cost certainty, assuming the scope of work is well-defined.
What measures were in place to ensure the effectiveness and quality of security services provided by SOC LLC?
While the data confirms the award to SOC LLC, it does not detail the performance metrics or quality assurance measures. Government contracts typically include performance standards and surveillance plans to monitor service delivery. The effectiveness would be assessed through contract performance reports and oversight.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $139,052,319
Exercised Options: $139,052,319
Current Obligation: $139,052,319
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-01-21
Current End Date: 2018-01-20
Potential End Date: 2018-01-20 00:00:00
Last Modified: 2019-09-05
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