DOE awards $17.4M contract for protective security services to Simmons & Golden Security LLC
Contract Overview
Contract Amount: $17,396,218 ($17.4M)
Contractor: Simmons & Golden Security LLC
Awarding Agency: Department of Energy
Start Date: 2024-07-02
End Date: 2026-07-07
Contract Duration: 735 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: PROTECTIVE FORCE SECURITY SERVICES
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $17.4 million to SIMMONS & GOLDEN SECURITY LLC for work described as: PROTECTIVE FORCE SECURITY SERVICES Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but requires careful oversight. 3. The duration of 735 days suggests a medium-term need for these security services. 4. The base of operations is Tennessee, potentially impacting local workforce and economic activity. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. The award amount of $17.4 million reflects a significant investment in protective services for the agency.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for performance-based incentives, which can drive value if managed effectively. Benchmarking against similar security guard contracts is challenging without specific service details, but the award amount appears reasonable for a multi-year, comprehensive security service contract. The agency's selection process, while competitive, will be key to ensuring optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be broad, specific circumstances led to the exclusion of some potential bidders. The number of bidders is not explicitly stated, but the 'limited' competition level implies that the price discovery might not have been as robust as in a truly unrestricted full and open competition.
Taxpayer Impact: Taxpayers benefit from a competitive process, even if limited, as it generally leads to better pricing than a sole-source award. However, the exclusion of sources warrants scrutiny to ensure no potential cost savings were foregone.
Public Impact
The primary beneficiaries are the Department of Energy facilities requiring protective security services. The services delivered include security guards and patrol services, ensuring physical safety and asset protection. The geographic impact is concentrated in Tennessee, where the contractor is based and services are likely performed. Workforce implications include the potential for job creation for security personnel in the Tennessee region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Cost Plus Award Fee structure if not closely monitored.
- The 'exclusion of sources' in the competition method raises questions about the extent of true market competition.
- Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Positive Signals
- The award was made after a competitive process, suggesting a degree of market vetting.
- The Cost Plus Award Fee structure, if managed well, can incentivize high performance and efficiency.
- The contract duration provides stability for service delivery and planning for the agency.
Sector Analysis
The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) subsector. Federal spending in this area is substantial, driven by the need to protect government facilities, personnel, and assets. Comparable spending benchmarks would typically involve analyzing contracts for similar security services at other federal agencies or for facilities of comparable size and risk profile.
Small Business Impact
The data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary contractor, Simmons & Golden Security LLC, is likely not a small business, and opportunities for small businesses may be limited unless they are direct subcontractors to the prime.
Oversight & Accountability
Oversight for this Cost Plus Award Fee contract will likely involve regular performance reviews, cost audits, and monitoring of award fee criteria by the Department of Energy. Accountability measures are built into the award fee structure, incentivizing the contractor to meet or exceed performance expectations. Transparency will depend on the agency's reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy Protective Services
- Federal Security Guard Contracts
- Cost Plus Award Fee Contracts
- Security Services for Government Facilities
Risk Flags
- Competition level is 'limited' due to exclusion of sources.
- Contract type is Cost Plus Award Fee, requiring diligent oversight.
- Specific details on contractor past performance are not provided.
Tags
security-services, protective-force, department-of-energy, tennessee, definitive-contract, cost-plus-award-fee, full-and-open-competition-after-exclusion-of-sources, naics-561612, medium-value-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $17.4 million to SIMMONS & GOLDEN SECURITY LLC. PROTECTIVE FORCE SECURITY SERVICES
Who is the contractor on this award?
The obligated recipient is SIMMONS & GOLDEN SECURITY LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $17.4 million.
What is the period of performance?
Start: 2024-07-02. End: 2026-07-07.
What is the track record of Simmons & Golden Security LLC in performing similar federal contracts?
Information regarding the specific track record of Simmons & Golden Security LLC in performing similar federal contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from previous government engagements. Without this data, it is difficult to definitively assess their capability and reliability for this specific protective force security services contract. Further due diligence would involve searching federal procurement databases and performance rating systems.
How does the awarded amount of $17.4 million compare to market rates for similar security services?
Directly comparing the $17.4 million award to precise market rates is challenging without detailed service specifications, geographic labor costs, and the specific security requirements (e.g., number of guards, hours, specialized equipment, threat level). However, for a multi-year contract (735 days) providing comprehensive protective force security services, this amount appears to be within a reasonable range for a federal agency. Benchmarking against other federal contracts for similar services, adjusted for scope and location, would provide a more robust comparison. The Cost Plus Award Fee structure also introduces variability based on performance.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for security services?
The primary risks associated with a CPAF contract for security services include potential for cost overruns if the "cost plus" component is not tightly managed and "award fee" criteria are not clearly defined and objectively measured. There's a risk that the contractor may focus on achieving award fee targets rather than overall cost efficiency. For security services, ensuring that the pursuit of award fees does not compromise the quality or completeness of essential security functions is critical. Robust oversight and clear performance metrics are essential to mitigate these risks and ensure value for money.
What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the effectiveness of the competition?
This contract clause implies that the initial intent was for full and open competition, but certain sources were excluded before the solicitation was issued or bids were evaluated. This exclusion could be due to various reasons, such as specific technical requirements, past performance issues with certain vendors, or national security considerations. While it's more competitive than a sole-source award, the exclusion of sources means the competition was not as broad as it could have been. This might limit the number of potential bidders and potentially impact the final price and innovation achieved compared to a truly unrestricted competition.
What is the historical spending pattern for protective force security services by the Department of Energy?
Historical spending patterns for protective force security services by the Department of Energy are not detailed in the provided data. To assess this, one would need to analyze previous contract awards for similar services over several fiscal years. This analysis would reveal trends in contract values, types of services procured, dominant contractors, and the overall budget allocated to security services. Understanding these patterns can help contextualize the current $17.4 million award and identify any significant increases or decreases in spending.
What are the implications of the contractor being based in Tennessee for service delivery and oversight?
The contractor's base in Tennessee has several implications. It suggests that Simmons & Golden Security LLC has a local presence or operational capacity in the region, which can be advantageous for timely service delivery and response. For oversight, it means that the Department of Energy's contracting officers and technical representatives may need to conduct site visits or engage with local management. The geographic concentration could also imply a focus on specific DOE facilities within or near Tennessee, potentially impacting the distribution of federal security spending and local employment opportunities.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89243123RSC000087
Offers Received: 8
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1230 ELSBORN RIDGE RD, MARYVILLE, TN, 37801
Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $66,423,680
Exercised Options: $26,440,437
Current Obligation: $17,396,218
Actual Outlays: $14,354,124
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-07-02
Current End Date: 2026-07-07
Potential End Date: 2029-07-07 00:00:00
Last Modified: 2026-03-27
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