DoD awards $82M for security services at FOB Dwyer and FOB Delaram II, with 12 bids received

Contract Overview

Contract Amount: $81,955,278 ($82.0M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-05-31

End Date: 2015-11-30

Contract Duration: 1,278 days

Daily Burn Rate: $64.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BASE YEAR AWARD FOR FORWARD OPERATING BASE (FOB) DWYER. IN ADDITION, THE BASE YEAR EVALUATED OPTION FOR FOB DELARAM II WILL BE EXERCISED AT TIME OF AWARD.

Place of Performance

Location: MOYOCK, CURRITUCK County, NORTH CAROLINA, 27958

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $82.0 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: BASE YEAR AWARD FOR FORWARD OPERATING BASE (FOB) DWYER. IN ADDITION, THE BASE YEAR EVALUATED OPTION FOR FOB DELARAM II WILL BE EXERCISED AT TIME OF AWARD. Key points: 1. The contract's value appears reasonable given the scope of security services for two forward operating bases. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The duration of the contract (over 3 years) indicates a long-term need for these security services. 5. The award was made by the Defense Contract Management Agency, suggesting a focus on contract execution and oversight. 6. The North Carolina location for the awardee is noted, though specific base locations are overseas.

Value Assessment

Rating: good

The base year award of $81.96 million for security services at two forward operating bases is substantial. Benchmarking this against similar contracts for overseas base security is challenging due to the unique operational environments and specific service requirements. However, the firm-fixed-price structure suggests that the government has negotiated a set price for the defined scope, which is generally a positive indicator for value if the scope is well-defined and achievable within the price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 12 bids received. This indicates a robust competitive environment for security services at overseas bases. A higher number of bidders generally suggests that multiple capable contractors are interested and able to perform, which can drive down prices and improve service quality as contractors vie for the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. The presence of 12 bidders suggests that the government received a range of proposals, allowing for selection of the best value.

Public Impact

The primary beneficiaries are the U.S. military personnel stationed at Forward Operating Base Dwyer and Forward Operating Base Delaram II, who receive enhanced security. The services delivered include security guards and patrol services, crucial for maintaining operational security and force protection in potentially volatile regions. The geographic impact is focused on the operational areas surrounding FOB Dwyer and FOB Delaram II, likely in Afghanistan. Workforce implications include the employment of security personnel, potentially both U.S. citizens and local nationals, depending on the contractor's staffing model.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the awarded contractor(s) makes it difficult to assess past performance.
The remote and potentially high-risk locations of the bases could introduce unforeseen operational challenges and costs.
The firm-fixed-price nature requires careful scope management to avoid change orders that could increase costs.

Positive Signals

Awarded under full and open competition with a significant number of bidders (12), indicating a competitive market.
Firm-fixed-price contract type transfers performance risk to the contractor.
The contract duration suggests a stable, long-term requirement, allowing for contractor planning and investment.

Sector Analysis

This contract falls within the security and protective services sector, a critical component of defense operations, particularly in overseas deployments. The market for these services is competitive, with numerous firms specializing in providing security solutions for government and military installations. Spending in this sector is often driven by geopolitical conditions and the need for force protection. Comparable spending benchmarks would typically involve analyzing other large-scale security contracts for similar operational environments.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (SS: false, SB: false). While the prime contractor(s) are undisclosed, the scale of this award suggests it is likely a large business prime. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity for small business engagement in providing support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contract compliance and performance. Accountability measures are inherent in the firm-fixed-price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is facilitated by the contract award process itself, though specific details about the winning contractor are undisclosed.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Force Protection Services
Security Guard Services
Overseas Contingency Operations

Risk Flags

Undisclosed Awardee
Potential for Scope Creep in FFP Contract
Geopolitical Risk in Operating Environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.0 million to DOMESTIC AWARDEES (UNDISCLOSED). BASE YEAR AWARD FOR FORWARD OPERATING BASE (FOB) DWYER. IN ADDITION, THE BASE YEAR EVALUATED OPTION FOR FOB DELARAM II WILL BE EXERCISED AT TIME OF AWARD.

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $82.0 million.

What is the period of performance?

Start: 2012-05-31. End: 2015-11-30.

What is the specific nature of the security services required at FOB Dwyer and FOB Delaram II?

The contract specifies 'Security Guards and Patrol Services' (NAICS code 561612). This typically encompasses a range of activities including manned guarding of facilities, perimeter patrols, access control, response to security incidents, and potentially escort services for personnel and vehicles. Given the nature of forward operating bases, these services are critical for maintaining a secure environment, protecting personnel and assets, and ensuring the uninterrupted flow of operations. The exact scope would be detailed in the contract's Performance Work Statement (PWS), which outlines specific duties, post orders, reporting requirements, and performance standards the contractor must meet.

How does the $81.96 million award compare to historical spending on security services for similar overseas bases?

Direct comparison is difficult without knowing the specific locations and threat levels of FOB Dwyer and FOB Delaram II, as well as the exact period of performance for historical data. However, security services for overseas bases, especially in conflict zones, are inherently expensive due to factors like personnel costs (often including hazard pay, living allowances, and transportation), specialized equipment, and the need for rapid deployment and sustained operations. The $81.96 million over approximately three years (1278 days) suggests an average annual cost of roughly $27.3 million. This figure needs to be contextualized against the size of the bases, the number of personnel supported, and the prevailing security environment at the time of award (around 2012-2015).

What are the potential risks associated with a firm-fixed-price contract for overseas security services?

While firm-fixed-price (FFP) contracts are generally preferred for shifting risk to the contractor, they carry specific risks in complex overseas environments. The primary risk is that unforeseen events—such as significant escalations in threat levels, changes in local regulations, unexpected logistical challenges, or difficulties in sourcing qualified personnel—could make it difficult or impossible for the contractor to perform within the fixed price. This could lead to contractor default, requests for equitable adjustments or contract modifications (which can negate the fixed-price benefit), or performance deficiencies if the contractor cuts corners to stay within budget. Robust contract administration and clear definition of the Performance Work Statement (PWS) are crucial to mitigate these risks.

What does the undisclosed nature of the domestic awardees imply for transparency and accountability?

The fact that the domestic awardees are undisclosed is unusual for a contract of this magnitude and raises questions about transparency. Typically, major contract awards are publicly announced, including the name of the winning contractor. Undisclosed awardees could stem from various reasons, including national security sensitivities, specific agency policies, or data redaction for competitive reasons. However, it complicates independent analysis of the contractor's track record, past performance, and potential conflicts of interest. For accountability, the contracting officer and the Defense Contract Management Agency (DCMA) remain responsible for oversight, regardless of public disclosure.

How does the duration of the contract (1278 days) impact the overall value and risk assessment?

The contract duration of 1278 days (approximately 3.5 years) is significant and suggests a stable, long-term requirement for security services at these bases. From a value perspective, a longer duration can allow the contractor to achieve economies of scale, potentially leading to better pricing than multiple shorter-term contracts. It also provides stability for the workforce. However, a longer duration also increases the contractor's exposure to risks associated with changing geopolitical conditions, evolving threats, and economic fluctuations over the contract period. For the government, it locks in a provider for an extended period, which could be a disadvantage if market conditions or requirements change significantly.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W560MY12R0005

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,955,278

Exercised Options: $81,955,278

Current Obligation: $81,955,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline