DoD Awards $227M for Iraq Base Life Support and Security Services to SOS International LLC

Contract Overview

Contract Amount: $227,328,475 ($227.3M)

Contractor: SOS International LLC

Awarding Agency: Department of Defense

Start Date: 2019-01-01

End Date: 2020-12-31

Contract Duration: 730 days

Daily Burn Rate: $311.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE UNDEFINITIZED CONTRACT ACTION (UCA) WITH SOS INTERNATIONAL LLC. (SOSI) FOR BASE LIFE SUPPORT (BLS) AND SECURITY SERVICES FOR APPROXIMATELY 3,200 U.S., COALITION, AND NATO FORCES AT CAMP TAJI GREEN ZONE, TAJI, IRAQ IN SUPPORT OF CENTRAL COMMAND, COMBINED JOINT TASK FORCE - OPERATION INHERENT RESOLVE (CJTF-OIR). BLS AT CAMP TAJI IS REQUIRED TO SUPPORT THE PRESIDENTIAL INITIATIVE OF OIR. THE PROPOSED ACQUISITION WILL INCLUDE A 12-MONTH BASE PERIOD PLUS 4 OPTION YEARS AND INCLUDE FAR CLAUSE 52.217-8, OPTION TO EXTEND SERVICES, FOR UP TO 6 ADDITIONAL MONTHS. AWARD OF OPTIONS IS CONTINGENT UPON A VALID LAND USE AGREEMENT THAT CORRESPONDS TO THE PROJECTED PERIOD OF PERFORMANCE.

Plain-Language Summary

Department of Defense obligated $227.3 million to SOS INTERNATIONAL LLC for work described as: BASE UNDEFINITIZED CONTRACT ACTION (UCA) WITH SOS INTERNATIONAL LLC. (SOSI) FOR BASE LIFE SUPPORT (BLS) AND SECURITY SERVICES FOR APPROXIMATELY 3,200 U.S., COALITION, AND NATO FORCES AT CAMP TAJI GREEN ZONE, TAJI, IRAQ IN SUPPORT OF CENTRAL COMMAND, COMBINED JOINT TASK FORCE - OP… Key points: 1. The contract provides essential life support and security services for U.S., Coalition, and NATO forces in Iraq. 2. SOS International LLC is the sole awardee, raising questions about competition and potential price discovery. 3. The contract's duration, including options, extends up to 18 months, with a significant financial commitment. 4. Services are critical for Operation Inherent Resolve, supporting a key Presidential initiative.

Value Assessment

Rating: questionable

The contract value of $227.3 million for 18 months of services appears high, especially given the sole-source nature. Benchmarking against similar base support contracts in similar operational environments is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible price for these critical services.

Public Impact

Ensures the safety and operational readiness of U.S., Coalition, and NATO forces in a high-risk environment. Supports ongoing U.S. foreign policy and military objectives in the Middle East. Provides essential services that enable the continuation of critical military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value for services in a potentially volatile region.
Potential for cost overruns due to lack of competitive pressure.

Positive Signals

Provides critical support for ongoing military operations.
Ensures the well-being and security of deployed personnel.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing a wide range of operational support. Spending in this sector can vary significantly based on geographic location, security requirements, and the scale of operations.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded opportunities for small business participation.

Oversight & Accountability

The contract's duration and sole-source nature warrant close oversight to ensure cost-effectiveness and performance. The reliance on a single provider for essential services necessitates robust monitoring by the Department of Defense.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition may lead to inflated costs.
Sole-source award limits transparency and accountability.
Potential for cost overruns due to absence of competitive pressure.
Dependence on a single contractor for critical services.
Contract duration extends significantly, increasing long-term financial commitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $227.3 million to SOS INTERNATIONAL LLC. BASE UNDEFINITIZED CONTRACT ACTION (UCA) WITH SOS INTERNATIONAL LLC. (SOSI) FOR BASE LIFE SUPPORT (BLS) AND SECURITY SERVICES FOR APPROXIMATELY 3,200 U.S., COALITION, AND NATO FORCES AT CAMP TAJI GREEN ZONE, TAJI, IRAQ IN SUPPORT OF CENTRAL COMMAND, COMBINED JOINT TASK FORCE - OPERATION INHERENT RESOLVE (CJTF-OIR). BLS AT CAMP TAJI IS REQUIRED TO SUPPORT THE PRESIDENTIAL INITIATIVE OF OIR. THE PROPOSED ACQUISITION WILL INCLUDE A 12-MONTH BASE PERIOD PLUS 4 OPTION YEARS AND INCLUDE FAR CLAUSE 52.

Who is the contractor on this award?

The obligated recipient is SOS INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $227.3 million.

What is the period of performance?

Start: 2019-01-01. End: 2020-12-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED.' A sole-source justification would typically involve reasons such as urgency, lack of available sources, or specific technical requirements. Without further documentation, it's unclear if alternative competitive strategies were explored or deemed infeasible for supporting Operation Inherent Resolve's critical needs.

How does the per-unit cost of these services compare to similar contracts awarded competitively in other regions or previous operations?

Benchmarking is challenging due to the sole-source nature and specific operational context in Iraq. Without a competitive baseline, it's difficult to assess if the $227.3 million price tag represents fair value. A detailed cost analysis comparing specific service elements (e.g., per-person cost for life support, security guard rates) against industry standards or other government contracts would be necessary.

What mechanisms are in place to ensure accountability and prevent cost overruns given the extended period and sole-source award?

Accountability relies heavily on the Department of Defense's contract management and oversight. Mechanisms likely include performance metrics, regular reporting requirements, and potentially audits. However, the inherent lack of competitive pressure in a sole-source award increases the risk of cost creep, making diligent oversight paramount to ensure taxpayer funds are used efficiently.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1881 CAMPUS COMMONS DR STE 500, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $227,328,475

Exercised Options: $227,328,475

Current Obligation: $227,328,475

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $53,787,642

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline