DHS awards $64M for mission support, raising questions on competition and value for security services

Contract Overview

Contract Amount: $64,042,630 ($64.0M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-04

End Date: 2020-03-31

Contract Duration: 393 days

Daily Burn Rate: $163.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF TASK ORDER FOR 4 WEEKS WORTH OF MISSION SUPPORT BASE OPERATIONS, ANY AUTHORIZED TRAVEL AND FUEL

Place of Performance

Location: JUPITER, PALM BEACH County, FLORIDA, 33458

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $64.0 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: IGF::CL::IGF TASK ORDER FOR 4 WEEKS WORTH OF MISSION SUPPORT BASE OPERATIONS, ANY AUTHORIZED TRAVEL AND FUEL Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined cost parameters. 2. Significant duration of 393 days suggests a substantial operational requirement. 3. Awarded to a single vendor, G4S Secure Solutions (USA) Inc., without open competition. 4. Geographic focus on Florida (ST: FL, SN: FLORIDA) for base operations and security. 5. The service falls under Security Guards and Patrol Services (NA: 561612). 6. No small business set-aside was utilized for this contract. 7. The contract type is a Delivery Order under a larger agreement.

Value Assessment

Rating: questionable

The total award of $64,042,629.85 for a 393-day period for mission support base operations and security services appears high, especially given the lack of competitive bidding. Without comparable contract data or a clear benchmark for similar services in Florida, it is difficult to definitively assess value for money. The firm-fixed-price structure offers some cost certainty, but the absence of competition limits the potential for price discovery and may have resulted in a higher-than-market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a 'NOT COMPETED' delivery order, indicating a sole-source or limited competition procurement. The specific reasons for not competing are not detailed in the provided data. A sole-source award means only one vendor was considered, which typically occurs when a unique capability is required or in emergency situations. This lack of competition limits the government's ability to explore alternative solutions and potentially secure better pricing through a bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a bidding process, there is less assurance that the price reflects the most economical option available in the market.

Public Impact

Benefits U.S. Customs and Border Protection (CBP) by providing essential mission support and base operations. Ensures the continuity of critical security services at a base in Florida. Supports the operational readiness of border security personnel and assets. Indirectly impacts the workforce by potentially employing security personnel managed by G4S Secure Solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and reduced value for taxpayer funds.
The substantial dollar amount awarded without competition warrants further scrutiny into the necessity and justification for a sole-source award.
Absence of small business participation noted, potentially limiting opportunities for smaller security firms.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
The contract duration of over a year suggests a stable and ongoing need for these critical security services.
Awarded to an established vendor, G4S Secure Solutions, which may indicate a level of trust in their capability to deliver.

Sector Analysis

The security services sector is a significant component of federal contracting, encompassing a wide range of protective and support functions. This contract falls under the Security Guards and Patrol Services category, which is a common requirement across various federal agencies, particularly those with physical assets and operational missions like Homeland Security. The market for these services is generally competitive, making the sole-source nature of this award notable. Comparable spending benchmarks for similar base operations and security contracts would typically be established through competitive solicitations.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'sb': false. Consequently, there is no direct subcontracting requirement for small businesses mandated by this specific award. The absence of a set-aside means that opportunities for small businesses in the security services sector to participate in this particular contract were not actively pursued through this procurement vehicle. This could represent a missed opportunity for small business growth and participation in federal contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically U.S. Customs and Border Protection (CBP). As a delivery order under a larger contract, the terms and performance are subject to the oversight mechanisms of the parent contract. Transparency is limited by the sole-source nature of the award; however, contract performance reviews and financial audits would be standard oversight measures. The Inspector General for DHS would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Homeland Security Base Operations Support
Federal Security Guard Contracts
Customs and Border Protection Services
Mission Support Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $64.0 million to G4S SECURE SOLUTIONS (USA) INC.. IGF::CL::IGF TASK ORDER FOR 4 WEEKS WORTH OF MISSION SUPPORT BASE OPERATIONS, ANY AUTHORIZED TRAVEL AND FUEL

Who is the contractor on this award?

The obligated recipient is G4S SECURE SOLUTIONS (USA) INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $64.0 million.

What is the period of performance?

Start: 2019-03-04. End: 2020-03-31.

What is the justification for awarding this contract on a sole-source basis to G4S Secure Solutions (USA) Inc.?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source or limited competition award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when urgency, national security, or specific technical requirements necessitate it. Without further documentation from the agency (Department of Homeland Security, U.S. Customs and Border Protection), the precise justification remains unknown. Typically, agencies must publish justifications for sole-source awards above certain dollar thresholds. The absence of competition raises concerns about whether alternative vendors could have met the requirements or if a more competitive process could have yielded better value for the government.

How does the $64 million cost compare to similar mission support and security contracts awarded by DHS or CBP?

Directly comparing this $64 million contract for 393 days of mission support and security services to similar contracts is challenging without access to a broader dataset of federal procurements, particularly those awarded on a sole-source basis. However, for context, federal spending on security guard services alone often runs into billions annually across all agencies. The average cost per day for this contract is approximately $162,958 ($64,042,629.85 / 393 days). If this contract were competed, agencies would benchmark against existing contracts for similar services to ensure fair and reasonable pricing. The lack of competition here makes such benchmarking difficult and suggests the possibility of a non-competitive price being accepted.

What are the specific services included under 'mission support base operations' and 'security guards and patrol services' for this contract?

The data provides a high-level description: 'IGF::CL::IGF TASK ORDER FOR 4 WEEKS WORTH OF MISSION SUPPORT BASE OPERATIONS, ANY AUTHORIZED TRAVEL AND FUEL'. This suggests the contract covers a broad range of support functions necessary for the base's operation, beyond just physical security. This could include logistical support, facility maintenance coordination, administrative tasks, and potentially personnel support. The 'Security Guards and Patrol Services' (NAICS 561612) component specifically refers to services provided by guards to protect people and property, deter crime, and enforce rules on the premises. This likely involves personnel providing access control, surveillance, patrols, and response to incidents at the CBP facility in Florida.

What is the track record of G4S Secure Solutions (USA) Inc. with federal contracts, particularly with DHS and CBP?

G4S Secure Solutions (USA) Inc. is a large, established provider of security services and has a significant history of contracting with the U.S. federal government, including the Department of Homeland Security (DHS) and its components like U.S. Customs and Border Protection (CBP). Publicly available contract databases show numerous awards to G4S across various agencies for security, detention, and related support services. While their extensive experience suggests a capacity to perform, the specific performance history on past DHS/CBP contracts, including any quality issues, cost overruns, or disputes, would require a deeper dive into contract performance reports and agency records. This particular award, being a sole-source delivery order, implies a pre-existing relationship or capability that the agency deemed necessary.

Are there any identified risks or concerns associated with the performance of this contract by G4S Secure Solutions?

The primary risk identified stems from the sole-source nature of the award, which inherently carries a risk of inflated pricing and reduced incentive for optimal performance compared to a competitive environment. Beyond the procurement method, specific performance risks would depend on the detailed statement of work and G4S's execution. General risks in security contracts can include personnel turnover, inadequate training, failure to respond effectively to incidents, and breaches of security protocols. Without specific performance data or Inspector General reports related to this contract, these remain potential, rather than confirmed, risks. The contract's duration and value suggest that any performance failures could have significant operational impacts for CBP.

What is the historical spending pattern for mission support and security services by U.S. Customs and Border Protection?

U.S. Customs and Border Protection (CBP), as a major component of DHS, expends significant funds on a wide array of operational support and security services. Historical spending patterns reveal a consistent need for base operations, personnel support, and physical security across its numerous ports of entry, border sectors, and administrative facilities nationwide. While specific figures for 'mission support base operations' can vary widely depending on the facility and its function, CBP's overall budget includes substantial allocations for contracting these types of services. Analyzing CBP's historical contract awards database would show a trend of utilizing both competitive and sole-source mechanisms, with security services being a recurring expenditure category, often awarded to large, established security firms.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1395 UNIVERSITY BLVD, JUPITER, FL, 33458

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $64,042,630

Exercised Options: $64,042,630

Current Obligation: $64,042,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B03C19D00000003

IDV Type: IDC

Timeline