DHS awards $28M contract for security services, raising questions about value and competition

Contract Overview

Contract Amount: $27,980,520 ($28.0M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-28

End Date: 2023-12-27

Contract Duration: 364 days

Daily Burn Rate: $76.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION TWO TASK ORDER FOR TRANSPORTATION SERVICES FOR SAN ANTONIO FIELD OFFICE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78217

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.0 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: OPTION TWO TASK ORDER FOR TRANSPORTATION SERVICES FOR SAN ANTONIO FIELD OFFICE Key points: 1. The contract's value appears high relative to the duration and scope of services. 2. Limited public information makes it difficult to assess the true market rate for these services. 3. The reliance on a single task order for a significant amount suggests potential for cost overruns. 4. The contractor has a history of providing similar services, but performance metrics are not readily available. 5. This contract falls within the security services sector, a competitive but often high-cost area. 6. The fixed-price nature of the contract offers some cost certainty, but doesn't guarantee value.

Value Assessment

Rating: fair

The contract value of $27,980,520.04 for a 364-day period for security guard services appears substantial. Benchmarking against similar contracts for security services in Texas or for federal agencies of similar size is challenging without more granular data on the specific services provided (e.g., number of guards, hours, specific security measures). The base contract value of $76,870 suggests this task order represents a significant expansion or a primary service delivery mechanism. Further analysis would be needed to determine if the per-guard cost or overall service cost aligns with industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the details of the bidding process, including the number of proposals received and the evaluation criteria, are not publicly available. A full and open competition is generally expected to yield competitive pricing, but the final price is determined by the specific needs of the task order and the proposals submitted. Without knowing how many bids were received and the range of proposed prices, it's difficult to definitively assess the effectiveness of the competition in driving down costs for this specific award.

Taxpayer Impact: A full and open competition is positive for taxpayers as it theoretically allows for the best possible pricing through market forces. However, the ultimate benefit depends on the rigor of the solicitation and evaluation process to ensure that the lowest price technically acceptable or best value proposal is selected.

Public Impact

The contract directly benefits the Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement (ICE), by providing essential security services for their San Antonio Field Office. The primary service delivered is security guard and patrol services, ensuring the physical safety and security of federal facilities and personnel. The geographic impact is localized to San Antonio, Texas, supporting federal operations within that region. The contract supports jobs for security personnel employed by G4S Secure Solutions (USA) Inc., contributing to the local workforce in the San Antonio area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if the scope of services expands beyond initial expectations without adequate oversight.
Dependence on a single contractor for critical security functions could pose a risk if performance issues arise.
Limited transparency on the specific metrics used to evaluate contractor performance and ensure value for money.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract is firm-fixed-price, providing cost certainty for the government.
The contractor, G4S Secure Solutions, is an established provider of security services.

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 sub-sector (NAICS 561612). The federal government is a major consumer of security services, with spending often concentrated in areas requiring physical security for facilities, personnel, and sensitive information. While specific market size data for federal security guard contracts is not readily available, the overall security services market is substantial. This contract represents a portion of the Department of Homeland Security's operational budget allocated to ensuring the security of its field offices.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from this particular award. The primary contractor, G4S Secure Solutions (USA) Inc., is a large corporation. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract are limited to potential subcontracting roles, if any, determined by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security. Accountability measures would be defined by the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated by the Federal Procurement Data System (FPDS), which reports contract awards. However, detailed performance reports, cost breakdowns, and specific oversight activities are not typically made public. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Immigration and Customs Enforcement Support Contracts
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

High contract value for a one-year period may warrant further scrutiny for cost-effectiveness.
Lack of publicly detailed performance metrics makes independent assessment of value difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.0 million to G4S SECURE SOLUTIONS (USA) INC.. OPTION TWO TASK ORDER FOR TRANSPORTATION SERVICES FOR SAN ANTONIO FIELD OFFICE

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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

Start: 2022-12-28. End: 2023-12-27.

What is the historical spending pattern for security services at the San Antonio Field Office?

Analyzing historical spending for security services at the San Antonio Field Office would provide crucial context for the current $27.98 million award. Without access to historical data specific to this location, it's difficult to determine if this contract represents a significant increase, decrease, or continuation of previous spending levels. Understanding past contract values, durations, and awarded vendors could reveal trends in service needs, pricing fluctuations, and contractor performance over time. For instance, if previous contracts were significantly smaller or shorter in duration, this current award might indicate an expanded scope of services, increased security requirements, or a change in pricing dynamics. Conversely, if it aligns with previous large awards, it might suggest a consistent need for extensive security measures at this facility. A detailed historical analysis would be essential for a comprehensive value assessment.

How does the per-guard cost of this contract compare to industry benchmarks for similar services in Texas?

Determining the per-guard cost requires knowing the number of guards, hours worked, and the total contract value allocated to guard labor. Assuming this $27.98 million contract covers approximately 364 days of 24/7 security coverage, it would necessitate a substantial number of guards. Industry benchmarks for security guard services can vary widely based on location, level of security clearance required, specific duties, and the experience of the guards. In Texas, average hourly rates for unarmed security guards can range from $15 to $30+, with armed guards commanding higher rates. If this contract averages significantly above these ranges, it could indicate a potential overpayment or the inclusion of specialized services not captured by basic benchmarks. Conversely, if it falls within or below the expected range, it suggests competitive pricing. Without specific details on guard deployment and rates, a precise comparison is not feasible, but the overall contract value suggests a significant operational scale.

What specific security risks or threats does this contract aim to mitigate for ICE in San Antonio?

This contract is intended to mitigate a range of security risks and threats relevant to U.S. Immigration and Customs Enforcement (ICE) operations at the San Antonio Field Office. These likely include unauthorized access to sensitive facilities and information, protection of government property, ensuring the safety of federal employees and visitors, and maintaining order within and around the premises. Given ICE's mission, potential threats could encompass protests, demonstrations, or attempts to disrupt operations. The presence of security guards and patrol services acts as a deterrent to criminal activity and provides a rapid response capability in case of security incidents. The specific nature of the threats would inform the required level of security, the number of personnel, and the types of security protocols implemented under this contract.

What is G4S Secure Solutions (USA) Inc.'s track record with similar federal contracts, particularly with DHS?

G4S Secure Solutions (USA) Inc. is a large, established provider of security services with a significant history of contracting with various U.S. federal agencies, including the Department of Homeland Security (DHS). They have held numerous contracts for physical security, guard services, and related security solutions across different departments and agencies. Their track record typically involves providing services at federal buildings, airports, and other sensitive locations. While specific performance details for individual contracts are not always publicly accessible, G4S's continued success in winning federal bids suggests a generally satisfactory performance history. However, like any large contractor, they may have faced scrutiny or performance issues on specific contracts, which would be detailed in contract performance databases or IG reports if significant. A thorough review of their contract history with DHS would be necessary for a complete assessment.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

Publicly available information on specific Key Performance Indicators (KPIs) for this contract is limited. Federal contracts typically include performance standards and metrics outlined in the Performance Work Statement (PWS) or Statement of Work (SOW). These KPIs are crucial for evaluating the contractor's effectiveness in delivering the required security services. Common metrics for security guard contracts might include response times to incidents, adherence to post orders, guard attendance and punctuality, incident reporting accuracy, and overall effectiveness in preventing unauthorized access or disruptions. While the contract award itself is public, the detailed performance evaluations and specific KPIs used to monitor G4S Secure Solutions (USA) Inc. under this task order are generally not disclosed to the public due to security sensitivities and the proprietary nature of contract management. Access to such data would typically require specific Freedom of Information Act (FOIA) requests or be available through internal agency reporting.

What is the potential impact of this contract on the local small business security ecosystem in San Antonio?

As this contract was awarded under full and open competition and does not appear to have small business set-aside provisions, its direct positive impact on the local small business security ecosystem in San Antonio is likely minimal. The primary beneficiary is the large prime contractor, G4S Secure Solutions (USA) Inc. While G4S may utilize local resources or hire personnel from the San Antonio area, this does not equate to direct contracting opportunities for small businesses. There is a possibility that G4S might subcontract a portion of the work to local small businesses, but this is not mandated by the contract terms as presented. Without specific subcontracting plans or goals included in the award documentation, the ripple effect on small businesses in the San Antonio security sector is likely to be indirect, primarily through potential employment opportunities rather than direct business-to-business contracts.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $27,980,520

Exercised Options: $27,980,520

Current Obligation: $27,980,520

Actual Outlays: $27,980,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000017

IDV Type: IDC

Timeline