State Department awards $59.6M security contract for Mogadishu mission, highlighting need for robust protective services

Contract Overview

Contract Amount: $59,602,892 ($59.6M)

Contractor: SOC LLC

Awarding Agency: Department of State

Start Date: 2017-08-04

End Date: 2020-08-03

Contract Duration: 1,095 days

Daily Burn Rate: $54.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW AWARD - SECURITY SUPPORT FOR U.S. MISSION IN MOGADISHU.IGF::OT::IGF

Plain-Language Summary

Department of State obligated $59.6 million to SOC LLC for work described as: NEW AWARD - SECURITY SUPPORT FOR U.S. MISSION IN MOGADISHU.IGF::OT::IGF Key points: 1. Contract addresses critical security needs in a high-risk environment. 2. SOC LLC, a known entity in security services, is the awardee. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. Full and open competition suggests a potentially competitive bidding process. 5. The duration of the contract (3 years) indicates a long-term security requirement. 6. The award value is significant, reflecting the complexity and importance of the mission. 7. This award falls under the broader category of security and protective services.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants close monitoring to ensure cost efficiency. While T&M can offer flexibility in dynamic environments, it lacks the cost certainty of fixed-price contracts. Benchmarking against similar security support contracts for U.S. missions in challenging locations would be necessary to fully assess value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment difficult, but the significant award amount suggests a substantial scope of work.

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. This approach is generally favored for promoting competitive pricing and innovation. The number of bidders is not specified, but the competitive nature of the process is a positive signal for price discovery and potentially achieving a fair market price for the required security services.

Taxpayer Impact: Taxpayers benefit from a process designed to solicit the best possible price and service through broad market engagement.

Public Impact

Provides essential security services to protect U.S. government personnel and facilities at the U.S. Mission in Mogadishu. Ensures the continuity of diplomatic and operational functions in a challenging security environment. Supports the U.S. foreign policy objectives by maintaining a secure presence. Likely involves a significant number of security personnel, impacting the local and potentially U.S.-based workforce. Geographic impact is concentrated in Mogadishu, Somalia, a region with persistent security concerns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure may lead to cost overruns if not managed diligently.
The high-risk operating environment in Mogadishu presents inherent security and logistical challenges.
Lack of specific performance metrics in the award data makes it difficult to gauge expected outcomes.
The duration of the contract (3 years) requires sustained oversight to ensure continued effectiveness and value.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
SOC LLC has experience in providing security services, potentially bringing valuable expertise.
The contract addresses a critical need for security at a U.S. diplomatic mission.
The significant award amount indicates a comprehensive security solution is being procured.

Sector Analysis

This contract falls within the security and protective services sector, specifically focusing on guarding and patrol services (NAICS 561612). This sector is crucial for government operations, particularly in high-threat environments. The market for private security services is substantial, with government contracts forming a significant portion. Comparable spending benchmarks would involve analyzing other contracts for diplomatic security, base support, and protective services in similar geopolitical contexts.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While SOC LLC may utilize small businesses for subcontracting, the primary award does not appear to be structured to directly benefit small businesses through a set-aside. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will likely be managed by the Department of State's Bureau of Diplomatic Security and relevant contracting officers. Accountability measures would be tied to performance standards outlined in the contract's statement of work. Transparency is facilitated by the public award notice, but detailed performance reports and financial oversight mechanisms are typically internal or subject to specific reporting requirements.

Related Government Programs

Department of State Diplomatic Security Service Contracts
Worldwide Protective Services Contracts
Security Guard and Patrol Services Contracts
Base Operations Support (BOS) Contracts (where security is a component)

Risk Flags

Time and Materials Pricing
High-Risk Operating Environment
Potential for Cost Overruns
Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $59.6 million to SOC LLC. NEW AWARD - SECURITY SUPPORT FOR U.S. MISSION IN MOGADISHU.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 $59.6 million.

What is the period of performance?

Start: 2017-08-04. End: 2020-08-03.

What is SOC LLC's track record with the Department of State and other federal agencies for similar security services?

SOC LLC has a significant history of providing security services to the U.S. government, including extensive work with the Department of State. They have been a major contractor for Worldwide Protective Services (WPS) programs, which involve providing security personnel and services at U.S. embassies and consulates globally, often in high-risk locations. Their experience includes armed and unarmed guarding, access control, and security management. While specific performance details for individual contracts are often not publicly detailed, their continued selection for large-scale security contracts suggests a satisfactory performance history and capability to meet stringent government requirements. A deeper dive into contract performance reports (if accessible) and past performance evaluations would provide a more granular understanding of their track record.

How does the per-hour labor rate for security personnel under this Time and Materials contract compare to market rates for similar services in Mogadishu or comparable high-risk environments?

Determining the precise per-hour labor rate is challenging without the detailed contract line items, as the Time and Materials (T&M) structure includes direct labor, indirect costs, and fee. However, for security services in high-risk environments like Mogadishu, labor rates are expected to be significantly higher than in low-risk areas due to hazard pay, specialized training, recruitment difficulties, and retention challenges. Market rates for armed security personnel in such regions can range from $50 to over $150 per hour, depending on the specific role, qualifications, and the contractor's overhead. The Department of State typically conducts market research and establishes ceiling rates or fair and reasonable price analyses to ensure T&M costs remain within acceptable bounds. Without access to the contract's specific labor categories and rates, a direct comparison is speculative, but the overall $59.6 million award over three years suggests substantial personnel costs.

What are the primary risks associated with a Time and Materials contract for security services in a volatile region like Mogadishu?

The primary risk with a Time and Materials (T&M) contract in a volatile region like Mogadishu is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for actual labor hours and material costs incurred, plus a fee. In a dynamic environment, unforeseen security incidents, logistical challenges, or changes in operational tempo can lead to increased labor hours and material usage, driving up the total cost beyond initial estimates. Effective oversight, strict adherence to the contract's ceiling limitations, and robust performance monitoring are crucial to mitigate these risks. The government must actively manage the scope of work and ensure that all billable hours and costs are necessary and reasonable for mission accomplishment.

What performance metrics are typically used to evaluate the effectiveness of security support contracts for U.S. missions in high-risk areas?

Performance metrics for security support contracts in high-risk areas typically focus on mission assurance and risk reduction. Key Performance Indicators (KPIs) often include response times to security incidents, adherence to post orders and standard operating procedures, successful completion of security sweeps and patrols, personnel security clearance compliance, and incident reporting accuracy and timeliness. For protective services, metrics might involve the number of security breaches or successful threat mitigations. The effectiveness of the security posture is also indirectly measured by the absence of major security incidents affecting personnel or facilities. The Department of State's Bureau of Diplomatic Security usually sets stringent standards and conducts regular assessments to ensure these metrics are met.

How has the Department of State's spending on security services for overseas missions evolved over the past five years, and does this award represent a significant shift?

Spending on security services for overseas missions by the Department of State has generally remained substantial and, in some cases, has increased over the past five years, driven by persistent global security challenges and evolving threat landscapes. The Department consistently allocates significant resources to protect its personnel and facilities abroad, particularly in high-risk posts. Awards like the $59.6 million contract for Mogadishu are indicative of the ongoing need for robust security solutions in critical diplomatic locations. While this specific award is substantial for a single mission, it aligns with the overall trend of sustained, high-level investment in diplomatic security infrastructure and services. Analyzing the total budget allocated to Diplomatic Security and comparing the number and value of similar contracts awarded annually would provide context on whether this represents a significant shift or a continuation of established spending patterns.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SAQMMA17R0414

Offers Received: 1

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: $59,602,892

Exercised Options: $59,602,892

Current Obligation: $59,602,892

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