DOJ's $25M security contract with G4S: A decade of services with mixed value indicators

Contract Overview

Contract Amount: $24,926,330 ($24.9M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Justice

Start Date: 2004-10-01

End Date: 2010-01-31

Contract Duration: 1,948 days

Daily Burn Rate: $12.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $24.9 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: SECURITY GUARD SERVICES Key points: 1. The contract's duration of 1948 days (over 5 years) suggests a long-term need for security services. 2. The firm fixed-price contract type provides cost certainty for the government. 3. With 4 bidders, the competition level indicates a moderately contested market for these services. 4. The contract was awarded to G4S Secure Solutions (USA) Inc., a large, established provider. 5. The absence of small business set-aside flags suggests a focus on larger prime contractors. 6. The contract's value of approximately $25 million over its term warrants scrutiny for cost-effectiveness.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The firm fixed-price nature offers predictability, but the overall cost of $25 million over nearly six years requires comparison to similar security contracts awarded by the Department of Justice or other federal agencies. Without more granular data on the scope of services provided and the specific security needs met, it's difficult to definitively assess if this represents excellent value for money. However, the presence of multiple bidders suggests some level of market price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed among multiple potential offerors. With 4 bidders participating, the competition level suggests a reasonably healthy market for security guard services. This level of competition is generally beneficial for price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The competitive nature of this award is positive for taxpayers, as it likely resulted in a more efficient use of funds by driving down prices through market forces. A moderate number of bidders helps ensure that the government is not overpaying for essential security services.

Public Impact

The primary beneficiaries are the Department of Justice and its component agencies, such as the Drug Enforcement Administration, which receive essential security guard services. These services ensure the safety and security of federal facilities, personnel, and sensitive information. The contract's impact is primarily concentrated in Virginia, where the services were likely performed. The contract supports jobs within the security services industry, contributing to the local and national workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expanded beyond initial estimates, despite fixed-price nature.
Risk of service quality degradation over a long contract duration if not actively managed and monitored.
Dependence on a single large contractor could limit flexibility in adapting to changing security needs.
The lack of specific performance metrics makes it hard to gauge the true effectiveness and value delivered.

Positive Signals

Firm fixed-price contract provides budget certainty for the agency.
Competitive award process suggests a reasonable market price was likely achieved.
Long contract duration indicates a stable, ongoing need for these critical security services.
Award to an established provider like G4S may indicate reliability and experience in delivering security solutions.

Sector Analysis

The North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services represents a significant segment of the private security industry. This sector is characterized by a mix of large national providers and numerous smaller regional firms. Federal spending in this area is substantial, driven by the need to protect government assets and personnel across various agencies. The market is generally competitive, with pricing influenced by labor costs, geographic location, and the specific security requirements. This contract fits within the broader federal strategy of outsourcing non-core functions like physical security to specialized private sector entities.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false) and the prime contractor, G4S Secure Solutions (USA) Inc., is a large corporation. This suggests that small businesses were likely not the primary focus for the prime contract award. However, it is possible that G4S engaged small businesses as subcontractors to fulfill parts of the contract requirements, which is a common practice to meet subcontracting goals. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program managers within the Drug Enforcement Administration. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS-NG, which provide basic award information. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose during the contract's lifecycle. The firm fixed-price nature simplifies some aspects of financial oversight but requires robust performance monitoring.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services
Department of Defense Security Contracts

Risk Flags

Long contract duration may increase risk of scope creep or performance degradation if not actively managed.
Lack of detailed performance metrics makes objective value assessment difficult.
Potential for contractor personnel issues (turnover, training) impacting service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24.9 million to G4S SECURE SOLUTIONS (USA) INC.. SECURITY GUARD 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 Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2004-10-01. End: 2010-01-31.

What was the specific scope of security services provided under this contract?

The contract falls under NAICS code 561612, 'Security Guards and Patrol Services.' This typically includes providing uniformed security personnel for access control, patrolling premises, monitoring surveillance systems, and responding to security incidents. For the Drug Enforcement Administration (DEA), these services would likely be crucial for protecting sensitive facilities, evidence storage, personnel, and operational integrity. The exact number of guards, hours of coverage, specific post orders, and any specialized security requirements (e.g., armed guards, background checks) would define the detailed scope, but this information is not explicitly provided in the summary data.

How does the per-year cost of this contract compare to similar security contracts for federal agencies?

The contract's total value is approximately $24.9 million over a period of 1948 days (roughly 5.3 years). This averages to about $4.7 million per year. Comparing this to similar contracts requires access to a benchmark database of federal security contracts, considering factors like geographic location, level of security required (e.g., armed vs. unarmed guards, facility type), and the specific agency's needs. Without such a benchmark, it's difficult to definitively state if $4.7 million annually is high or low. However, for a large federal agency like the DOJ/DEA, this annual figure appears within a plausible range for comprehensive security services, though a detailed cost-benefit analysis would be needed for a definitive assessment.

What is G4S Secure Solutions (USA) Inc.'s track record with federal contracts, particularly with the Department of Justice?

G4S Secure Solutions (USA) Inc. is a major global provider of security services and has a significant history of holding federal contracts across various agencies, including the Department of Justice. Their track record generally involves providing a wide range of security solutions, from physical guarding to technology-based security systems. While specific performance details for individual contracts are not publicly detailed in summary data, their continued success in winning competitive federal bids suggests a generally satisfactory performance history. However, like any large contractor, they may have faced past performance issues or disputes on certain contracts, which would typically be documented in agency performance evaluations.

What were the key performance indicators (KPIs) used to evaluate the success of this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, for security guard services, KPIs might include metrics such as response times to incidents, adherence to post orders, guard attendance rates, successful access control, reduction in security breaches, and client satisfaction surveys. The effectiveness of oversight and performance management by the Drug Enforcement Administration would be crucial in ensuring these KPIs were met and that the contractor delivered the required level of service throughout the contract's duration.

How has federal spending on security guard services evolved over the period this contract was active (2004-2010)?

Federal spending on security guard services generally saw an upward trend during the period of this contract (2004-2010), influenced by heightened security concerns post-9/11 and ongoing global security challenges. Agencies like the Department of Justice consistently require robust physical security measures for their facilities and personnel. While specific aggregate spending figures for this exact category over those years require detailed analysis of historical federal procurement data, it's reasonable to assume that spending remained substantial and potentially increased as security requirements evolved. This contract represents a portion of that broader federal expenditure on security.

Were there any notable risks or challenges associated with this contract, and how were they managed?

Potential risks for a contract of this nature and duration include contractor performance issues, unexpected cost increases (though mitigated by fixed-price), changes in security requirements, and personnel-related challenges (e.g., guard turnover, training). The management of these risks would depend on the agency's contract administration and oversight. For instance, regular performance reviews, clear communication channels, and defined procedures for addressing deviations from the contract would be essential. The competitive nature of the award and the established reputation of G4S might have been considered risk-mitigation factors during the selection process.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 4200 WACKENHUT DR STE 100, PALM BEACH GARDENS, FL, 21

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,926,330

Exercised Options: $24,926,330

Current Obligation: $24,926,330

Parent Contract

Parent Award PIID: GS07F0382K

IDV Type: FSS

Timeline