State Department's $56M security contract for Baghdad center shows fair value despite limited competition

Contract Overview

Contract Amount: $56,084,725 ($56.1M)

Contractor: SOC LLC

Awarding Agency: Department of State

Start Date: 2017-08-21

End Date: 2018-11-28

Contract Duration: 464 days

Daily Burn Rate: $120.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: BAGHDAD DIPLOMATIC SUPPORT CENTER WORLDWIDE PROTECTIVE SERVICES DIPLOMATIC SECURITY US DEPARTMENT OF STATEIGF::CL,CT::IGF

Plain-Language Summary

Department of State obligated $56.1 million to SOC LLC for work described as: BAGHDAD DIPLOMATIC SUPPORT CENTER WORLDWIDE PROTECTIVE SERVICES DIPLOMATIC SECURITY US DEPARTMENT OF STATEIGF::CL,CT::IGF Key points: 1. Contract value of $56.08 million for protective services represents a significant investment in diplomatic security. 2. The contract was awarded under full and open competition, suggesting a broad search for qualified bidders. 3. SOC LLC, the contractor, has a track record in providing security services, but performance context is key. 4. The delivery order structure indicates flexibility in service provision over the contract period. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. The contract duration of 464 days (approximately 15 months) is standard for this type of service.

Value Assessment

Rating: fair

The contract's total value of $56.08 million for approximately 15 months of security services in a high-risk environment appears reasonable. Benchmarking against similar large-scale protective service contracts for diplomatic missions or high-security facilities would provide a clearer picture of value for money. Without specific per-unit cost data or detailed performance metrics, a definitive assessment of cost-effectiveness is challenging, but the price seems within expected ranges for such critical services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of State sought bids from all responsible sources. With six bids received, the competition level suggests a healthy market interest for this type of specialized security service. This level of competition is generally conducive to price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The full and open competition process, with multiple bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are U.S. diplomats and personnel stationed at the Baghdad Diplomatic Support Center, ensuring their safety and security. The services delivered include protective security, guarding, and patrol, crucial for maintaining operational continuity in a challenging environment. The geographic impact is concentrated in Baghdad, Iraq, supporting U.S. diplomatic operations in a critical region. Workforce implications include the employment of security personnel, likely a mix of local and international staff, managed by SOC LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the time and materials pricing model is not tightly managed.
Dependence on a single contractor for critical security functions introduces risk if performance falters.
Geopolitical instability in Baghdad could impact service delivery and necessitate contract modifications or increased costs.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Contractor SOC LLC has experience in providing security services, suggesting a level of operational capability.
The contract aims to ensure the safety of U.S. personnel, a high-priority government objective.

Sector Analysis

The security services sector is a substantial market driven by government and private sector needs for protection against various threats. Contracts for diplomatic security, especially in high-risk overseas locations, are specialized and often awarded to firms with proven expertise and security clearances. The Department of State's spending in this area is critical for maintaining diplomatic presence and operations abroad. Comparable spending benchmarks would involve looking at other large-scale security contracts for embassies or international organizations in similar environments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The focus is on securing a large-scale diplomatic facility, which typically requires specialized capabilities and resources that may not be readily available from small businesses. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if SOC LLC engages smaller firms for specific support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of Diplomatic Security and relevant contracting officers. Accountability measures would be tied to performance metrics outlined in the contract and adherence to security protocols. Transparency is facilitated through contract award data, but detailed operational oversight reports are typically internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Worldwide Protective Services
Diplomatic Security Services
Overseas Security Contracts
Department of State Security Operations

Risk Flags

High-risk environment
Time and Materials pricing
Dependence on single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $56.1 million to SOC LLC. BAGHDAD DIPLOMATIC SUPPORT CENTER WORLDWIDE PROTECTIVE SERVICES DIPLOMATIC SECURITY US DEPARTMENT OF STATEIGF::CL,CT::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 $56.1 million.

What is the period of performance?

Start: 2017-08-21. End: 2018-11-28.

What is the track record of SOC LLC in providing similar security services for the Department of State or other federal agencies?

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 awarded numerous contracts for protective services at U.S. embassies and diplomatic missions worldwide, often in high-threat environments. Their experience includes providing armed and unarmed guards, access control, physical security, and emergency response. While specific performance details for individual contracts are often not public, their continued success in winning large-scale, critical security contracts suggests a generally satisfactory performance history in meeting government requirements. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects that are not widely publicized.

How does the per-hour or per-guard cost of this contract compare to similar security contracts awarded by the Department of State or other agencies for comparable locations?

Determining the precise per-hour or per-guard cost for this contract is challenging without a breakdown of labor categories, hours, and rates within the Time and Materials (T&M) pricing structure. The total award of $56.08 million over approximately 464 days implies an average monthly cost of roughly $1.2 million. For a high-threat environment like Baghdad, security personnel costs, including base pay, hazard pay, benefits, training, and overhead, are significantly higher than domestic rates. Benchmarking would require access to detailed pricing data from similar contracts for protective services in Iraq or other comparable high-risk posts. Anecdotal evidence suggests that costs for such specialized, high-risk security services can range from $100 to over $300 per hour per guard, depending on the specific role and threat level. Without more granular data, it's difficult to definitively state if this contract represents excellent or questionable value on a per-unit basis, but it falls within the expected range for critical overseas security operations.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include geopolitical instability in Baghdad, which could lead to increased security threats, operational disruptions, or the need for enhanced security measures, potentially driving up costs. Performance risk is another significant concern; any lapse in security could have severe consequences for personnel safety and diplomatic operations. The Time and Materials (T&M) pricing structure presents a risk of cost escalation if not rigorously managed and monitored by the government. Mitigation strategies likely include robust threat assessment and intelligence gathering by the State Department, clear performance standards and reporting requirements in the contract, active government oversight by contracting officers and technical representatives, and contingency planning by SOC LLC. The contract's duration and delivery order nature also allow for adjustments based on evolving security conditions.

What is the historical spending pattern for protective services at the Baghdad Diplomatic Support Center or similar facilities over the past five years?

Historical spending on protective services for the Baghdad Diplomatic Support Center and similar high-threat diplomatic facilities typically shows a consistent and substantial investment. The Department of State's Bureau of Diplomatic Security is mandated to protect U.S. personnel and facilities abroad, making security a non-negotiable budget item. Spending patterns are often influenced by the prevailing security environment, the size and scope of U.S. diplomatic presence, and the specific threats identified. Contracts for these services are often multi-year and can range from tens to hundreds of millions of dollars, depending on the location and scale. For Baghdad, given its persistent security challenges, annual spending on protective services has likely remained high, potentially fluctuating based on threat levels and operational requirements. This $56 million contract for a roughly 15-month period aligns with the expectation of significant, ongoing investment in security for such critical posts.

How does the competition level (6 bidders) for this contract compare to the average number of bidders for similar Department of State security contracts?

Receiving six bids for a full and open competition contract for high-level security services in a challenging overseas location like Baghdad is generally considered a healthy level of competition. The average number of bidders for Department of State security contracts can vary significantly based on the contract's size, complexity, geographic location, and perceived risk. For large, critical service contracts, especially those requiring specialized expertise and security clearances, six bidders often indicates strong market interest and a competitive landscape. In some cases, particularly for highly specialized or niche services, the number of qualified bidders might be lower. Conversely, for less complex or domestic security contracts, the number of bidders could be higher. Therefore, six bidders suggests that the Department of State successfully attracted a reasonable number of capable companies, likely contributing to competitive pricing.

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

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: $56,091,263

Exercised Options: $56,091,263

Current Obligation: $56,084,725

Actual Outlays: $1,406,422

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