DHS awards $7.1M contract for security services to G4S Secure Solutions, highlighting a need for ongoing operational support

Contract Overview

Contract Amount: $7,099,350 ($7.1M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-12-28

End Date: 2025-12-27

Contract Duration: 364 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING FOR HARLINGEN FIELD OFFICE TRANSPORTATION CONTRACT WITH G4S SECURE SOLUTIONS USA, INC CONTRACT 70CDCR20D00000017

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78217

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.1 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: FUNDING FOR HARLINGEN FIELD OFFICE TRANSPORTATION CONTRACT WITH G4S SECURE SOLUTIONS USA, INC CONTRACT 70CDCR20D00000017 Key points: 1. The contract value of $7.1 million over one year suggests a significant but potentially standard cost for comprehensive security services. 2. Full and open competition indicates a healthy market for these services, likely leading to competitive pricing. 3. The fixed-price contract type shifts risk to the contractor, encouraging efficient service delivery. 4. This award supports the operational needs of U.S. Immigration and Customs Enforcement (ICE) in Texas. 5. The duration of 364 days points to a short-term need, possibly for ongoing operational requirements or a bridge to a larger contract. 6. The absence of small business set-asides suggests the primary contractor is not a small business, and subcontracting opportunities are not explicitly mandated.

Value Assessment

Rating: good

The contract value of $7.1 million for a one-year security guard and patrol service contract appears to be within a reasonable range for the scope of work, especially considering the agency involved (ICE). Benchmarking against similar contracts for large federal agencies providing security services would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when requirements are well-defined, as it caps costs and incentivizes contractor efficiency.

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 offers. This process typically involves a solicitation where multiple bidders can compete, leading to a more robust price discovery mechanism. The specific number of bidders is not provided, but the method itself suggests a competitive environment was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) operations, which will receive enhanced security coverage. The services delivered include security guards and patrol services, crucial for maintaining secure facilities and operational integrity. The geographic impact is focused on Texas, where the Harlingen Field Office is located. Workforce implications include the employment of security personnel by G4S Secure Solutions, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the quality and effectiveness of the security services.
The duration of the contract (364 days) might indicate a temporary need or a gap-filling measure, raising questions about long-term strategic planning for security services.
Without details on the number of bidders, it's hard to fully gauge the intensity of competition and its potential impact on price optimization.

Positive Signals

The contract was awarded through full and open competition, suggesting a fair and transparent procurement process.
The firm fixed-price contract type provides cost certainty for the government, mitigating the risk of cost overruns.
The contractor, G4S Secure Solutions, is a large, established provider of security services, implying experience and capacity to fulfill the contract requirements.

Sector Analysis

The security services sector is a significant component of federal contracting, encompassing a wide range of protective and monitoring functions. This contract for security guards and patrol services falls under the broader category of facility support and protective services. Federal spending in this area is substantial, driven by the need to secure government assets, personnel, and sensitive information across various agencies. Comparable spending benchmarks would typically involve analyzing the per-guard cost or cost per square foot for similar security contracts awarded to large providers by agencies like DHS, FBI, or GSA.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary contract was awarded to a large business, G4S Secure Solutions. While there is no explicit mention of subcontracting requirements for small businesses, large prime contractors are often encouraged or required to utilize small businesses for a portion of their work. The absence of a set-aside means that opportunities for small businesses to directly compete for this specific contract were limited.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS, which provide public access to contract awards. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the Department of Homeland Security's Office of Inspector General (DHS OIG) generally oversees the efficiency and effectiveness of DHS programs and contracts.

Related Government Programs

Department of Homeland Security - Facilities Management
U.S. Immigration and Customs Enforcement - Operational Support
Federal Protective Service Contracts
Security Guard Services
Patrol Services

Risk Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Performance quality may vary; requires diligent oversight.
Limited visibility into specific number of bidders impacting competition assessment.
No explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.1 million to G4S SECURE SOLUTIONS (USA) INC.. FUNDING FOR HARLINGEN FIELD OFFICE TRANSPORTATION CONTRACT WITH G4S SECURE SOLUTIONS USA, INC CONTRACT 70CDCR20D00000017

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 $7.1 million.

What is the period of performance?

Start: 2024-12-28. End: 2025-12-27.

What is the historical spending pattern for security services at the Harlingen Field Office or similar ICE facilities?

Analyzing historical spending for security services at the Harlingen Field Office or comparable ICE facilities would provide crucial context for the current $7.1 million award. Without specific historical data for this location, we can look at broader ICE spending trends. ICE, like other large federal agencies, relies heavily on contracted security services to maintain operational integrity and protect facilities and personnel. Spending in this area can fluctuate based on threat assessments, facility expansions or contractions, and shifts in operational priorities. A review of past contracts, including their values, durations, and the contractors involved, would reveal whether this award represents an increase, decrease, or stable level of investment in security. For instance, if previous contracts for similar services were significantly lower, it might warrant further investigation into the reasons for the price increase, such as inflation, expanded scope, or market dynamics. Conversely, if it aligns with previous spending, it suggests a consistent need and established cost structure.

How does the per-guard cost or cost per service hour for this contract compare to industry benchmarks for security services?

To assess the value for money, comparing the per-guard cost or cost per service hour for this $7.1 million contract against industry benchmarks is essential. While the exact number of guards and hours are not provided, we can estimate. Assuming a standard 24/7 operation with a team of guards, the annual cost per guard could be calculated. Industry benchmarks for federal security contracts vary widely based on location, security clearance requirements, and the level of service (e.g., armed vs. unarmed, specialized surveillance). However, typical rates for contract security guards can range from $30 to $70+ per hour, depending on these factors. If G4S Secure Solutions' pricing falls within or below this range, adjusted for the specific scope and location in Texas, it suggests competitive pricing. If it significantly exceeds these benchmarks, further scrutiny of the contract's scope, required qualifications, and the competitive landscape would be necessary to determine if the price is justified or potentially inflated.

What is the track record of G4S Secure Solutions USA, Inc. in performing similar federal contracts, particularly with DHS or ICE?

G4S Secure Solutions (USA) Inc. is a major global provider of security services and has a substantial history of performing contracts with various U.S. federal agencies, including the Department of Homeland Security (DHS) and its components like U.S. Immigration and Customs Enforcement (ICE). Their track record typically involves providing a wide array of services, including physical security, access control, screening, and patrol. When evaluating this specific contract, it's important to consider their past performance ratings on similar federal contracts. Agencies often maintain performance evaluation records (e.g., Contractor Performance Assessment Reporting System - CPARS) that detail a contractor's timeliness, quality of work, cost control, and overall customer satisfaction. A review of G4S's performance history with DHS/ICE would indicate their reliability, ability to manage large-scale security operations, and adherence to contractual obligations. Positive past performance generally suggests a lower risk for contract execution, while negative feedback might signal potential challenges.

What are the specific security risks or threats that necessitate this level of spending on security services for the Harlingen Field Office?

The $7.1 million contract for security services at the Harlingen Field Office is likely driven by specific security risks and threats relevant to the operations of U.S. Immigration and Customs Enforcement (ICE) in that region. ICE facilities often handle sensitive information, detention operations, and law enforcement activities, making them potential targets for various threats, including unauthorized access, espionage, civil disturbances, or even physical attacks. The Harlingen Field Office's proximity to the U.S.-Mexico border may also introduce unique security considerations related to border security operations and potential illicit activities. The level of spending suggests a need for comprehensive, 24/7 security coverage, potentially involving armed guards, advanced surveillance systems, and robust patrol strategies. Understanding the specific threat environment, including intelligence assessments and past security incidents, would provide a clearer rationale for the contract's scope and value.

Given the full and open competition, how many bids were received, and what does this imply about the market for security services?

The contract was awarded under 'full and open competition,' which theoretically allows any responsible source to submit an offer. However, the provided data does not specify the number of bids received. In the market for federal security services, particularly for large contracts like this one potentially supporting a significant field office, the number of bidders can vary. A high number of bids (e.g., 5+) typically indicates robust competition, which is favorable for the government as it increases the likelihood of receiving competitive pricing and innovative solutions. A low number of bids (e.g., 1-3) might suggest market limitations, high barriers to entry for new contractors, or that the solicitation was highly specialized. For this contract, if multiple qualified bidders submitted proposals, it suggests a healthy market with sufficient capacity to meet ICE's needs. If only a few bids were received, it could warrant further analysis into why the market might be constrained for this specific type of service or location.

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: $7,099,350

Exercised Options: $7,099,350

Current Obligation: $7,099,350

Actual Outlays: $2,834,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000017

IDV Type: IDC

Timeline