State Department's $397M Countermeasures Program Support contract awarded to Olgoonik Global Security, LLC

Contract Overview

Contract Amount: $397,351,226 ($397.4M)

Contractor: Olgoonik Global Security, LLC.

Awarding Agency: Department of State

Start Date: 2011-03-01

End Date: 2018-01-31

Contract Duration: 2,528 days

Daily Burn Rate: $157.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: COUNTERMEASURES PROGRAM SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $397.4 million to OLGOONIK GLOBAL SECURITY, LLC. for work described as: COUNTERMEASURES PROGRAM SUPPORT Key points: 1. Contract value of $397.4 million over its life suggests a significant investment in security systems services. 2. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the procurement process and potential for broader market engagement. 3. A long contract duration of 2528 days (approximately 7 years) indicates a sustained need for these services. 4. The 'TIME AND MATERIALS' contract type can sometimes lead to cost overruns if not closely managed. 5. The primary agency is the Department of State, highlighting the critical nature of these security services for diplomatic missions. 6. The North American Industry Classification System (NAICS) code 561621 points to specialized security systems services, excluding locksmiths.

Value Assessment

Rating: fair

The total contract value of $397.4 million is substantial for security systems services. Without specific benchmarks for 'Countermeasures Program Support,' it's difficult to definitively assess value for money. However, the 'TIME AND MATERIALS' pricing structure, coupled with a long duration, warrants careful monitoring to ensure costs remain aligned with the services delivered and market rates for similar security support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means only one vendor, Olgoonik Global Security, LLC, was considered. While sole-source awards can be justified for specialized needs or urgent requirements, they limit the government's ability to explore a wider range of solutions and potentially secure more competitive pricing through open competition.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government missed an opportunity to leverage market forces to drive down costs.

Public Impact

The primary beneficiaries are likely the Department of State and its personnel, receiving enhanced security measures for diplomatic operations. The services delivered fall under 'Security Systems Services (except Locksmiths),' implying a focus on technological and physical security infrastructure. The geographic impact is likely global, supporting U.S. diplomatic missions and personnel worldwide. Workforce implications could include the employment of security specialists, technicians, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
The 'TIME AND MATERIALS' contract type carries inherent risks of cost escalation if not rigorously managed.
The long contract duration may indicate a lack of flexibility to adapt to evolving security needs or technological advancements.

Positive Signals

The significant investment suggests a high priority placed on the security of diplomatic operations.
A single, long-term contract can provide stability and continuity of essential security services.
The award to Olgoonik Global Security, LLC, indicates a level of trust and perceived capability by the awarding agency.

Sector Analysis

The security services sector is a critical component of government contracting, encompassing a wide range of protective measures. This contract, under NAICS code 561621, falls within the specialized security systems services sub-sector. The market for such services is substantial, driven by national security needs and the protection of government assets and personnel. Comparable spending benchmarks would typically involve analyzing other large-scale security support contracts awarded by agencies like the Department of Defense or Homeland Security, though the specific 'countermeasures' focus may be unique to diplomatic security.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests no specific subcontracting goals for small businesses were mandated within this award. This means the primary contractor, Olgoonik Global Security, LLC, has the discretion to subcontract, but there's no explicit requirement to prioritize small businesses, potentially limiting opportunities for them within this large contract's ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Given the nature of security services, there may also be oversight from internal audit functions or potentially the Government Accountability Office (GAO) if specific issues or protests arise. Transparency is facilitated through contract databases like FPDS, but detailed performance metrics and spending breakdowns are often internal.

Related Government Programs

Diplomatic Security Services
Protective Services Contracts
Global Security Support
Department of State Operations

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Time and Materials contract type can lead to cost overruns if not managed.
Lack of small business subcontracting requirements may limit opportunities for small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $397.4 million to OLGOONIK GLOBAL SECURITY, LLC.. COUNTERMEASURES PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is OLGOONIK GLOBAL SECURITY, LLC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $397.4 million.

What is the period of performance?

Start: 2011-03-01. End: 2018-01-31.

What specific 'countermeasures' are included under this program support contract?

The provided data does not specify the exact 'countermeasures' covered by this program support contract. However, based on the NAICS code 561621 (Security Systems Services, except Locksmiths) and the awarding agency (Department of State), it can be inferred that these services likely encompass a range of physical and technological security solutions. This could include the installation, maintenance, and operation of surveillance systems, access control systems, alarm systems, protective barriers, and potentially specialized threat detection or mitigation technologies. The 'program support' aspect suggests that the contract may also involve related services such as risk assessments, security planning, technical support, and personnel training to ensure the effective implementation and utilization of these countermeasures across various diplomatic facilities.

How does the 'TIME AND MATERIALS' contract type compare to other contract types for similar security services?

The 'TIME AND MATERIALS' (T&M) contract type is often used when the scope of work is not clearly defined or is expected to change, making fixed-price contracts difficult to establish. For security services, T&M can be advantageous for unforeseen issues or evolving threats, allowing flexibility. However, it shifts cost risk to the government, as the final price depends on the actual labor hours and material costs incurred. Compared to fixed-price contracts, T&M can lead to higher overall costs if not managed diligently through strict oversight of labor hours and material markups. Performance-based contracts, another alternative, would tie payment more directly to achieving specific security outcomes, potentially offering better value if performance metrics are well-defined.

What is the historical spending pattern for 'Countermeasures Program Support' at the Department of State?

The provided data only details a single contract for 'COUNTERMEASURES PROGRAM SUPPORT' awarded to OLGOONIK GLOBAL SECURITY, LLC, totaling $397,351,225.93 from March 1, 2011, to January 31, 2018. This suggests that this specific contract represents the entirety of the publicly available data for this program under this designation and contractor within the given dataset. To understand broader historical spending patterns, one would need to analyze historical contract awards for similar security services procured by the Department of State over a longer period, potentially using different program names or NAICS codes that encompass related security functions. Without access to a more comprehensive database or further details on the program's evolution, it is not possible to establish a trend or pattern from this single data point.

What are the potential risks associated with a sole-source award for critical security services?

Sole-source awards for critical security services, like this 'Countermeasures Program Support' contract, carry several potential risks. Firstly, the absence of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures inherent in a competitive bidding process. Secondly, it may limit the government's access to innovative solutions or specialized expertise that other vendors might offer. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially diminishing leverage in future negotiations. Furthermore, a sole-source justification must be robust; if the justification is weak or circumstances change, it could raise concerns about fairness and efficiency in government procurement.

How does the contractor, Olgoonik Global Security, LLC, perform on other government contracts?

The provided data focuses solely on the 'Countermeasures Program Support' contract awarded by the Department of State to Olgoonik Global Security, LLC. It does not include information about the contractor's performance on other government contracts. To assess the contractor's overall track record, a broader search across federal procurement databases (such as the Federal Procurement Data System - Next Generation) would be necessary to identify and review other contracts awarded to Olgoonik Global Security, LLC, along with their associated performance evaluations and any reported issues or commendations. This would provide a more comprehensive understanding of their reliability and capabilities across different engagements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Olgoonik Corporation (UEI: 060028750)

Address: 360 W BENSON BLVD STE 302, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $397,351,226

Exercised Options: $397,351,226

Current Obligation: $397,351,226

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline