DoD Awards $80M for Iraq Security Services Amidst Limited Competition
Contract Overview
Contract Amount: $80,220,465 ($80.2M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2007-11-01
End Date: 2008-01-15
Contract Duration: 75 days
Daily Burn Rate: $1.1M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: {PIIN: W91GDW08C4003} PROVIDE SECURITY SERVICES THROUGHTOUT IRAQ
Plain-Language Summary
Department of Defense obligated $80.2 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GDW08C4003} PROVIDE SECURITY SERVICES THROUGHTOUT IRAQ Key points: 1. Significant contract value for security services in a high-risk environment. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with operating in Iraq requires robust security measures. 4. Spending falls within administrative management and consulting services sector.
Value Assessment
Rating: good
The contract value of $80.2M for a 75-day period is substantial. Benchmarking against similar security contracts in conflict zones is difficult due to unique operational risks and requirements, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of security services in Iraq may limit the number of qualified bidders, potentially impacting the extent of price discovery.
Taxpayer Impact: The firm fixed-price contract aims to control costs, but the overall taxpayer impact depends on the efficiency and effectiveness of the security services provided in a challenging operational theater.
Public Impact
Ensures security for personnel and assets in Iraq. Supports ongoing military and diplomatic operations. Potential for job creation for security personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability in Iraq.
- Potential for cost overruns if security needs escalate.
- Dependence on a single awardee for critical services.
Positive Signals
- Firm fixed-price contract limits cost uncertainty.
- Full and open competition can drive value.
- Clear contract duration.
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services, specifically focusing on security operations. Spending benchmarks for such services in conflict zones are highly variable due to unique risks and operational demands.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to 'MISCELLANEOUS FOREIGN AWARDEES', suggesting large, potentially foreign, entities were the primary bidders.
Oversight & Accountability
Oversight would focus on ensuring the contractor meets all security requirements, adheres to operational protocols, and provides services within the agreed-upon budget and timeframe, especially given the sensitive nature of operations in Iraq.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High-risk operational environment.
- Potential for scope creep or increased security needs.
- Dependence on foreign awardees.
- Short contract duration may indicate urgent need or interim solution.
Tags
administrative-management-and-general-ma, department-of-defense, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.2 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GDW08C4003} PROVIDE SECURITY SERVICES THROUGHTOUT IRAQ
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $80.2 million.
What is the period of performance?
Start: 2007-11-01. End: 2008-01-15.
What specific security threats were anticipated to justify this level of expenditure for a 75-day period?
The anticipated security threats likely included a range of risks inherent to operating in Iraq, such as terrorism, insurgency, civil unrest, and criminal activity. The substantial funding suggests a need for comprehensive security measures covering personnel protection, facility security, convoy security, and potentially intelligence gathering to ensure the safety of DoD personnel and assets during the contract period.
How effectively did the full and open competition process identify and secure the most capable and cost-efficient security providers for the Iraqi environment?
While full and open competition is designed to maximize options, the unique demands and risks of operating in Iraq may have limited the pool of truly qualified bidders. The effectiveness hinges on whether the bidding process attracted sufficient competition from specialized firms with proven track records in high-threat environments, ensuring both capability and competitive pricing were achieved.
What mechanisms are in place to ensure the quality and accountability of security services provided under this contract, given the potential risks?
Accountability is typically managed through detailed performance work statements, regular progress reports, site inspections, and clear penalties for non-performance. Given the high-risk environment, robust oversight by the contracting officer's representative (COR) and adherence to strict security protocols are crucial to ensure the contractor delivers effective services and taxpayer funds are used appropriately.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: MISCELLANEOUS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $80,220,465
Exercised Options: $80,220,465
Current Obligation: $80,220,465
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2007-11-01
Current End Date: 2008-01-15
Potential End Date: 2008-01-15 00:00:00
Last Modified: 2011-04-13
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