DHS awards $11.7M contract for armed detention officer transportation services to G4S Secure Solutions

Contract Overview

Contract Amount: $11,707,970 ($11.7M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-07-31

End Date: 2026-01-30

Contract Duration: 548 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PHOENIX TRANSPORTATION -ARMED DETENTION OFFICERS TRANSPORTATION SERVICES

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.7 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: PHOENIX TRANSPORTATION -ARMED DETENTION OFFICERS TRANSPORTATION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 548 days indicates a medium-term need for these services. 3. Services are concentrated in Arizona, highlighting a specific geographic focus for detention operations. 4. The North American Industry Classification System (NAICS) code 561612 points to security guard services. 5. This contract represents a significant investment in the logistical support for immigration enforcement. 6. The award to a single contractor, G4S Secure Solutions, warrants scrutiny of performance and pricing over the contract term.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The total award amount of $11.7 million over approximately 1.5 years suggests a substantial operational cost. Comparing this to similar contracts for detention services or armed guard provision would require access to more granular data on service levels, geographic coverage, and specific security requirements. The absence of a specific Product Service Code (PSC) also makes direct comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the process itself implies that multiple companies had the opportunity to compete for this requirement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive market that can drive down costs and encourage innovation among service providers.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) operations within Arizona. The contract delivers essential transportation services for individuals in federal detention. Geographic impact is focused on Arizona, supporting detention facilities and related movements. The contract supports a workforce of armed detention officers, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single provider for critical transportation services.
Ensuring consistent service quality and adherence to security protocols across all operations.
Monitoring contractor performance to prevent any lapses in security or operational efficiency.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Clear contract duration provides a defined period for service delivery.
Specific geographic focus allows for targeted oversight and resource allocation.

Sector Analysis

The security services sector, particularly for government contracts, is highly competitive. This contract falls under the broader umbrella of security guards and patrol services (NAICS 561612). Companies like G4S operate globally, providing a range of security solutions. Federal spending in this area often supports law enforcement, corrections, and border security operations. Benchmarks for similar services can vary widely based on the level of security required, personnel qualifications, and geographic location.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While G4S Secure Solutions is a large entity, the terms of the contract do not explicitly mandate subcontracting to small businesses. Further analysis would be needed to determine if G4S has its own small business subcontracting plan or if small businesses are indirectly involved in the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases, though detailed operational oversight mechanisms are typically internal to the agency.

Related Government Programs

Detention Services Contracts
Immigration and Customs Enforcement Operations
Federal Law Enforcement Support Services
Armed Guard Services Contracts

Risk Flags

Potential for service disruption due to single-source reliance.
Need for robust performance monitoring to ensure security and compliance.
Ensuring fair pricing and value over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.7 million to G4S SECURE SOLUTIONS (USA) INC.. PHOENIX TRANSPORTATION -ARMED DETENTION OFFICERS 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 $11.7 million.

What is the period of performance?

Start: 2024-07-31. End: 2026-01-30.

What is the historical spending pattern for armed detention officer transportation services by DHS or ICE?

Analyzing historical spending for armed detention officer transportation services by DHS or ICE requires access to detailed federal procurement data over multiple fiscal years. Generally, such services are critical for immigration enforcement and detention management, particularly in regions with high volumes of detainees. Spending in this category can fluctuate based on immigration policy shifts, border activity levels, and the operational capacity of federal facilities. Contracts for these services are often awarded through competitive bidding processes, but the specific amounts can vary significantly year-to-year depending on the number of contracts awarded, their duration, and the service providers involved. Without specific historical data for this exact service category, it's difficult to provide precise figures, but it is reasonable to assume consistent, substantial investment in this area to support core immigration enforcement functions.

How does the per-unit cost of this contract compare to similar services provided in other states or by different agencies?

Determining the per-unit cost for this contract is challenging as the award is based on 'labor hours' (pt: LABOR HOURS) rather than a fixed price per transport or per detainee. The total award of $11.7 million over 548 days (approximately 1.5 years) translates to roughly $21,365 per day on average. However, this daily figure represents the total potential value and not necessarily the daily expenditure, which would depend on the actual hours worked. To compare per-unit costs, one would need to know the average hourly rate for armed officers, the number of hours billed daily, and the number of transports or individuals moved. Without this granular data, direct comparison to similar contracts in other states or by different agencies is not feasible. Factors such as prevailing wage rates, local security market conditions in Arizona, and the specific security protocols required would influence pricing.

What are the key performance indicators (KPIs) used to evaluate G4S Secure Solutions' performance under this contract?

Key Performance Indicators (KPIs) for a contract involving armed detention officer transportation services typically focus on safety, security, timeliness, and compliance. Specific KPIs would be detailed within the contract's Performance Work Statement (PWS). Common KPIs might include: 1. On-time performance for scheduled transports. 2. Incident rates (e.g., escapes, injuries, use of force incidents) per number of transports or hours of service. 3. Compliance with all relevant federal regulations, ICE policies, and state/local laws. 4. Officer conduct and professionalism. 5. Timeliness and accuracy of reporting. 6. Vehicle maintenance and safety standards. The government (ICE) would monitor these KPIs, and performance would likely be assessed through regular reports, site visits, and potentially performance evaluations at defined intervals. Failure to meet critical KPIs could result in contractual remedies, including financial penalties or termination.

What is the track record of G4S Secure Solutions in providing similar transportation and security services to federal agencies?

G4S Secure Solutions (USA) Inc. is a large, established provider of security services, including those related to corrections and secure transportation, for various government agencies. They have a significant presence in the federal contracting space. Their track record typically involves managing large workforces, providing secure transport for individuals, and operating within stringent regulatory environments. Past performance evaluations, often available through federal procurement databases or agency-specific reports, would provide detailed insights into their reliability, quality of service, and compliance history. While specific details of past performance on similar ICE contracts would require deeper data dives, G4S's general profile suggests they are a capable provider for such services, though like any large contractor, they may have faced scrutiny or performance issues on specific contracts over time.

Are there any specific risks associated with relying on a single contractor, G4S, for these critical transportation services in Arizona?

Relying on a single contractor like G4S Secure Solutions for critical transportation services presents several potential risks. Firstly, there's a risk of service disruption if the contractor experiences internal issues such as labor disputes, staffing shortages, or financial difficulties. Secondly, a lack of competition could potentially lead to complacency in service quality or price increases over time, although the initial award was competitive. Thirdly, the government's leverage in enforcing contract terms or negotiating changes might be reduced compared to a scenario with multiple viable providers. Finally, ensuring consistent adherence to high security and ethical standards across all operations is crucial, and a single point of failure could have significant consequences if performance degrades or incidents occur.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CDCR24Q00000004

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1395 UNIVERSITY BLVD, JUPITER, FL, 33458

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

Financial Breakdown

Contract Ceiling: $12,914,854

Exercised Options: $12,914,854

Current Obligation: $11,707,970

Actual Outlays: $7,126,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSWA18D0075

IDV Type: FSS

Timeline