DHS awards $23.4M for ground transportation services in California, with 2 bids received

Contract Overview

Contract Amount: $23,435,584 ($23.4M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $64.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS AWARD IS TO PROVIDE GROUND TRANSPORTATION SERVICES IN SUPPORT OF ENFORCEMENT AND REMOVAL OPERATIONS (ERO) IN THE SAN FRANCISCO (SFR) AREA OF RESPONSIBILITY (AOR).

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94111

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.4 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: THE PURPOSE OF THIS AWARD IS TO PROVIDE GROUND TRANSPORTATION SERVICES IN SUPPORT OF ENFORCEMENT AND REMOVAL OPERATIONS (ERO) IN THE SAN FRANCISCO (SFR) AREA OF RESPONSIBILITY (AOR). Key points: 1. Value for money assessed against similar contracts for security and transportation services. 2. Competition dynamics indicate a limited number of bidders for this specialized service. 3. Risk indicators include reliance on a single contractor for critical enforcement operations. 4. Performance context is tied to the operational needs of Immigration and Customs Enforcement. 5. Sector positioning within government contracting for security and logistics services.

Value Assessment

Rating: fair

The contract value of $23.4 million over one year appears substantial for ground transportation services. Benchmarking against similar contracts for security and enforcement support is crucial to determine if this represents a fair price. The fixed-price nature of the contract provides cost certainty, but the absence of detailed cost breakdowns makes a granular value assessment challenging. Without more comparable data points for specialized enforcement transportation, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is a positive indicator for price discovery. However, only two bids were received, suggesting that the market for these specialized services may be limited or that potential bidders found the requirements challenging. A low number of bidders can sometimes lead to less competitive pricing, even under full and open competition.

Taxpayer Impact: While full and open competition was utilized, the low number of bids may have limited the potential for significant cost savings for taxpayers. Further analysis into the reasons for limited bidder participation could reveal opportunities for future cost efficiencies.

Public Impact

Benefits Immigration and Customs Enforcement (ICE) by providing essential ground transportation for enforcement and removal operations. Services delivered include secure and reliable transportation for personnel and individuals requiring escort. Geographic impact is focused on the San Francisco area of responsibility. Workforce implications include potential support for local transportation providers and security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could impact long-term pricing and service innovation.
Reliance on a single awardee for critical enforcement logistics may pose continuity of service risks.
The specific nature of enforcement transportation may limit the pool of qualified and willing contractors.

Positive Signals

Awarded under full and open competition, adhering to standard procurement practices.
Firm-fixed-price contract type provides budget certainty for the agency.
Clear performance period and defined scope of services.

Sector Analysis

This contract falls within the broader government contracting sector for security services and specialized logistics. The market for security guards and patrol services (NAICS 561612) is substantial, but contracts involving sensitive enforcement operations, like those of ICE, often require specific clearances, capabilities, and geographic presence, narrowing the competitive landscape. Comparable spending benchmarks would typically be found within other federal agencies requiring similar secure transportation for law enforcement or detention support.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if any, offered by the prime contractor, G4S Secure Solutions (USA) Inc. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct benefit to small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of contract award data, though specific performance metrics and oversight reports are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

ICE Enforcement and Removal Operations Support
Federal Law Enforcement Transportation Services
Government Security Guard Contracts
Secure Logistics for Federal Agencies

Risk Flags

Limited competition
Potential for price escalation
Dependence on single provider for critical service

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.4 million to G4S SECURE SOLUTIONS (USA) INC.. THE PURPOSE OF THIS AWARD IS TO PROVIDE GROUND TRANSPORTATION SERVICES IN SUPPORT OF ENFORCEMENT AND REMOVAL OPERATIONS (ERO) IN THE SAN FRANCISCO (SFR) AREA OF RESPONSIBILITY (AOR).

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 $23.4 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the track record of G4S Secure Solutions (USA) Inc. with federal contracts, particularly those involving sensitive government operations?

G4S Secure Solutions (USA) Inc. is a significant federal contractor with a history of providing security and logistics services across various agencies. Their federal contract portfolio often includes guard services, physical security, and transportation support. For contracts involving sensitive operations like those of ICE, their track record would be assessed based on past performance evaluations, any documented instances of contract disputes, or performance failures. Agencies typically review a contractor's past performance data, including CPARS (Contractor Performance Assessment Reporting System) reports, to gauge their reliability and capability in meeting demanding requirements. A review of G4S's specific performance on similar ICE or other law enforcement transportation contracts would be critical to understanding their suitability for this award.

How does the awarded price of $23.4 million compare to similar ground transportation contracts for enforcement operations?

Benchmarking the $23.4 million award requires comparing it to contracts with similar scopes of work, geographic coverage, and service levels, specifically for federal law enforcement or immigration enforcement ground transportation. Without access to a comprehensive database of such specialized contracts, a precise comparison is challenging. However, general government contracting data suggests that large-scale, multi-year transportation and security contracts can range from tens to hundreds of millions of dollars. The price per day or per vehicle for this contract would be a key metric. Given the specialized nature and the firm-fixed-price structure, the agency likely conducted some level of internal or market-based price analysis to ensure the price was fair and reasonable, though external validation is difficult without more granular data on comparable awards.

What are the primary risks associated with awarding a contract for critical enforcement transportation services to a company with limited competition?

The primary risks associated with limited competition (only two bidders) for critical enforcement transportation services include potential price inflation, reduced service quality over time, and a lack of innovation. With fewer bidders, the chosen contractor may face less pressure to offer competitive pricing in future contract renewals or modifications. Service quality could also decline if the contractor becomes complacent, knowing that alternative providers are scarce or difficult to onboard. Furthermore, limited competition can stifle innovation in service delivery, as there may be less incentive for the contractor to invest in new technologies or more efficient operational methods. This could ultimately impact the effectiveness and efficiency of ICE's enforcement and removal operations.

What are the implications of this contract for the operational effectiveness of U.S. Immigration and Customs Enforcement (ICE)?

This contract is directly linked to the operational effectiveness of ICE's Enforcement and Removal Operations (ERO) in the San Francisco AOR. Reliable and secure ground transportation is fundamental for conducting arrests, detentions, and removals. The successful execution of these ERO activities depends on the contractor's ability to provide timely, safe, and secure transport for individuals and personnel. Any disruption or failure in these services could lead to delays in operations, potential security breaches, or increased logistical challenges for ICE agents. Therefore, the performance of G4S Secure Solutions under this contract is critical to ICE's ability to fulfill its mission in the region.

How has federal spending on security guards and patrol services (NAICS 561612) trended in recent years, and how does this award fit into that trend?

Federal spending on security guards and patrol services (NAICS 561612) has generally remained robust, reflecting ongoing security needs across various government agencies. While specific year-over-year trends can fluctuate based on agency priorities and budget allocations, the demand for these services is consistently high. This $23.4 million award to G4S Secure Solutions for ICE operations fits within this broader trend. It represents a significant, albeit localized, investment in ensuring the security and logistical support required for critical federal law enforcement functions. The contract's value is substantial for a single delivery order, indicating the importance ICE places on these specific transportation and security services in the San Francisco area.

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: 70CDCR25D00000001

Offers Received: 2

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, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $144,303,787

Exercised Options: $23,435,584

Current Obligation: $23,435,584

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR25D00000001

IDV Type: IDC

Timeline