DHS awards $26.9M for transportation security services, with G4S Secure Solutions securing the contract

Contract Overview

Contract Amount: $26,936,458 ($26.9M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-28

End Date: 2024-12-27

Contract Duration: 365 days

Daily Burn Rate: $73.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION YEAR 3 ERO SNA TRANSPORTATION SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78217

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.9 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: OPTION YEAR 3 ERO SNA TRANSPORTATION SERVICES Key points: 1. The contract value represents a significant investment in ensuring secure transportation for federal operations. 2. Competition dynamics for this contract are crucial for assessing price efficiency and service quality. 3. Risk indicators will be monitored to ensure consistent service delivery and adherence to security protocols. 4. Performance context is vital, as transportation security directly impacts operational continuity and safety. 5. This contract positions G4S within the critical security services sector for federal agencies.

Value Assessment

Rating: good

The awarded amount of $26.9 million for one year of transportation security services appears reasonable when benchmarked against similar large-scale security contracts. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests a predictable cost for the government. Further analysis would involve comparing the scope of services and geographic coverage to other DHS or similar agency contracts to confirm optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of a competitive process generally leads to better pricing and service offerings as contractors vie for the award. The specific number of bidders is not detailed, but the 'full and open' designation suggests a robust market response.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of qualified providers, ensuring the government receives competitive pricing.

Public Impact

This contract directly benefits the Department of Homeland Security by ensuring the secure and efficient transportation of personnel and assets. Services delivered include critical security measures for transportation operations, safeguarding federal interests. The geographic impact is focused on Texas, where the services will be primarily rendered. Workforce implications include the potential for job creation within the security services sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Ensuring consistent adherence to evolving security protocols.
Managing contract scope creep and associated cost increases.

Positive Signals

Award to a known entity with established security capabilities.
Competitive bidding process likely secured favorable pricing.
Clear contract duration provides planning stability.

Sector Analysis

The security services sector is a substantial part of the federal contracting landscape, with significant spending allocated to guard and patrol services. This contract falls within the NAICS code 561612 (Security Guards and Patrol Services). Benchmarking against similar contracts within this sector would involve examining the total value and scope of services provided by other government entities for comparable security needs.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, it is important to assess subcontracting opportunities. Large prime contractors like G4S often engage small businesses for specialized services or to meet subcontracting goals, which can provide valuable contract experience and revenue streams for the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Transportation Security
GSA Schedule Contracts for Security Services

Risk Flags

Potential for service disruption
Need for robust quality assurance
Adherence to evolving security protocols

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.9 million to G4S SECURE SOLUTIONS (USA) INC.. OPTION YEAR 3 ERO SNA TRANSPORTATION SERVICES

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 $26.9 million.

What is the period of performance?

Start: 2023-12-28. End: 2024-12-27.

What is the historical spending pattern for transportation security services by U.S. Immigration and Customs Enforcement?

Analyzing historical spending for transportation security services by U.S. Immigration and Customs Enforcement (ICE) requires reviewing past contract awards. While this specific contract is for $26.9 million, understanding ICE's broader spending trends in this area involves looking at prior years' obligations and contract values for similar services. This includes identifying if there has been a consistent need for such services, whether spending has increased or decreased, and the typical contract durations and awardees. For instance, if ICE has consistently awarded multi-million dollar contracts for transportation security over the past five years, it suggests a sustained operational requirement. Conversely, a sudden spike or drop in spending could indicate a change in mission, operational tempo, or contracting strategy. Accessing historical contract data from sources like USASpending.gov or agency-specific reports would provide the necessary context to assess if this current award aligns with established patterns or represents a significant deviation.

How does the awarded price compare to the baseline estimate or previous contract values for similar services?

To assess how the awarded price of $26.9 million compares to baseline estimates or previous contract values, one would need access to the government's independent government cost estimate (IGCE) or the details of any prior, similar contracts. If the IGCE was, for example, $25 million, then this award at $26.9 million might be considered slightly above estimate but potentially within acceptable variance given market conditions. If a previous contract for a similar scope of services was awarded for $20 million, then this new award represents a significant increase, prompting questions about the reasons for the escalation. Factors such as inflation, expanded scope, changes in service requirements, or increased competition levels could explain such a difference. Without direct comparison data, it's challenging to definitively state if the price is advantageous, but the firm-fixed-price nature suggests the government has locked in a cost.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured?

Key Performance Indicators (KPIs) for a transportation security services contract typically revolve around service reliability, security effectiveness, and compliance. Specific KPIs might include response times to security incidents, the number of security breaches or unauthorized access incidents, adherence to transportation schedules, personnel punctuality and professionalism, and successful completion of security checks. Contractor performance is usually measured through a Quality Assurance Surveillance Plan (QASP) managed by the government. This plan outlines how the government will monitor the contractor's performance against the contract's requirements and KPIs. Performance evaluations are often documented through Contractor Performance Assessment Reporting System (CPARS) reports, which provide a standardized way to assess contractor past performance, influencing future award decisions.

What is the track record of G4S Secure Solutions (USA) Inc. in performing similar federal contracts?

G4S Secure Solutions (USA) Inc. has a significant track record in providing security services to various federal agencies. Their past performance can be assessed through publicly available contract databases and performance evaluation systems like CPARS. Reviewing these records would reveal their history with contracts of similar size, scope, and complexity, including their on-time delivery rates, quality of service, and any instances of contract disputes or terminations. For example, if G4S has successfully managed multiple large-scale security contracts for agencies like DHS, DoD, or GSA, it indicates a capacity to handle such requirements. Conversely, a history of performance issues or contract modifications due to contractor fault would raise concerns. Understanding their past performance provides insight into their reliability and capability to meet the demands of this specific transportation security contract.

Are there any identified risks associated with the contractor or the nature of the services being provided?

Risks associated with this contract can be categorized into contractor-related risks and service-related risks. Contractor-related risks might include potential financial instability, workforce turnover, or a history of performance issues, although G4S is a large, established provider. Service-related risks are inherent in transportation security, such as the potential for security breaches during transit, accidents, or the need to adapt to evolving threat landscapes. The government mitigates these risks through robust contract oversight, clear performance standards, background checks for personnel, and contingency planning. The firm-fixed-price contract structure also shifts some financial risk to the contractor. Continuous monitoring and proactive risk management by the contracting agency are essential to ensure the security and integrity of the transportation services.

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: $26,936,458

Exercised Options: $26,936,458

Current Obligation: $26,936,458

Actual Outlays: $26,936,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000017

IDV Type: IDC

Timeline