DOJ's $126.7M guard services contract awarded to G4S Secure Solutions, a firm fixed-price delivery order

Contract Overview

Contract Amount: $126,660,295 ($126.7M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Justice

Start Date: 2003-10-01

End Date: 2011-04-30

Contract Duration: 2,768 days

Daily Burn Rate: $45.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $126.7 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: GUARD SERVICES Key points: 1. Contract value represents significant investment in security services for the Department of Justice. 2. Firm fixed-price structure shifts cost risk to the contractor, potentially stabilizing government expenditure. 3. The contract was awarded as a competitive delivery order, suggesting a degree of market vetting. 4. Security guard services are essential for maintaining operational integrity and physical safety across DOJ facilities. 5. The long duration of the contract (2768 days) indicates a sustained need for these services. 6. The award to a single entity, G4S Secure Solutions, highlights potential market concentration in this niche.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data on the scope and duration of security services provided. However, the total award of over $126 million over approximately 7.5 years suggests a substantial investment. The firm fixed-price nature of the contract implies that the government agreed to a set price, which can be advantageous if costs are well-managed by the contractor, but could lead to overpayment if market rates decrease or the contractor's costs are lower than anticipated. Without detailed performance metrics or comparisons to similar contracts for equivalent services, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which implies that it was competed under a broader contract vehicle that allowed for full and open competition. The specific details of the competition, such as the number of bidders and the evaluation process, are not provided in the summary data. However, the designation suggests that multiple vendors had the opportunity to bid, which generally promotes price discovery and potentially leads to more favorable pricing for the government.

Taxpayer Impact: A competitive award process, even for a delivery order, generally benefits taxpayers by fostering a more competitive environment that can drive down costs and improve service quality.

Public Impact

The Department of Justice and its various components benefit from enhanced physical security and operational continuity. Services delivered include the provision of security guards and patrol services to protect federal facilities and personnel. The geographic impact is concentrated in the District of Columbia, where the contract was awarded. The contract supports jobs within the security services industry, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment if contractor's actual costs are significantly lower than the fixed price.
Risk of service quality degradation if contractor prioritizes cost savings over performance.
Limited flexibility to adapt to changing security needs due to fixed-price nature.
Dependence on a single contractor for critical security functions.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Competitive award process suggests potential for good value and service.
Long contract duration indicates a stable and predictable security posture for DOJ.

Sector Analysis

The security guard services sector is a significant component of the broader private security industry, which provides a range of services including physical security, monitoring, and risk assessment. This contract falls under the North American Industry Classification System (NAICS) code 561612, 'Security Guards and Patrol Services.' The market for these services is often characterized by a mix of large national providers and smaller regional firms. Federal government contracts represent a substantial portion of this market, driven by the need to secure numerous facilities and assets across the country.

Small Business Impact

The provided data indicates that small business participation was not a primary set-aside consideration for this contract (sb: false, ss: false). While G4S Secure Solutions is a large entity, the contract does not explicitly detail subcontracting plans for small businesses. This suggests that the primary award was not structured to maximize small business involvement, though subcontracting opportunities may still exist at the discretion of the prime contractor. Further analysis would be needed to determine the extent of small business utilization.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency (Department of Justice) and potentially the relevant Inspector General's office. Mechanisms likely include performance reviews, site inspections, and financial audits to ensure compliance with contract terms and service level agreements. Transparency is generally facilitated through contract databases, but specific oversight reports or detailed performance metrics are not publicly available in this summary.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Contracts
General Services Administration Schedules
Department of Justice Facility Management

Risk Flags

Long contract duration may limit flexibility.
Firm Fixed Price could lead to contractor windfall or service quality issues if not managed.
Lack of explicit small business set-aside information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $126.7 million to G4S SECURE SOLUTIONS (USA) INC.. 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 (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $126.7 million.

What is the period of performance?

Start: 2003-10-01. End: 2011-04-30.

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

The contract data identifies the service as 'Security Guards and Patrol Services' (NAICS 561612). This typically encompasses providing trained personnel to monitor premises, control access, deter unauthorized activities, respond to incidents, and maintain a visible security presence. The exact number of guards, posts covered, hours of operation, and specific security protocols would have been detailed in the contract's statement of work, which is not provided here. Given the significant award value and duration, it likely covered multiple facilities or high-traffic locations within the Department of Justice's jurisdiction in the District of Columbia.

How does the firm fixed-price (FFP) structure impact risk and value for this contract?

A Firm Fixed-Price (FFP) contract, like this one, obligates the contractor (G4S Secure Solutions) to perform the work for a predetermined price, regardless of their actual costs. This shifts the primary cost risk to the contractor. For the government, this offers budget certainty and protection against cost overruns. However, it can lead to a loss of value for the government if the contractor is highly efficient and incurs costs well below the fixed price, as the savings do not typically revert to the government. Conversely, if the contractor faces unforeseen cost increases, they absorb those losses, which could potentially impact service quality if not managed carefully.

What is the historical spending trend for security guard services by the Department of Justice?

Analyzing historical spending trends for security guard services by the Department of Justice requires access to comprehensive federal procurement data over multiple fiscal years. This specific contract, awarded in 2003 and ending in 2011, represents a significant expenditure during that period. Without broader data, it's difficult to establish a definitive trend. However, the consistent need for security services across federal agencies, particularly for agencies like the DOJ with numerous facilities and sensitive operations, suggests that spending in this category is generally stable or may increase over time due to inflation, expanded security requirements, and growth in federal operations.

What is G4S Secure Solutions' track record with federal government contracts, particularly for security services?

G4S Secure Solutions (USA) Inc. is a major global provider of security services and has a substantial history of holding federal government contracts. Their portfolio often includes security guard services, physical security systems, and related support functions for various agencies. While this specific contract with the DOJ was a significant award, G4S has likely held numerous other contracts across different federal departments. A comprehensive assessment of their track record would involve reviewing past performance evaluations, any contract disputes or terminations, and the overall volume and value of contracts they have successfully managed for the government.

Were there any specific performance issues or notable successes associated with this contract?

The provided summary data does not include specific details regarding performance issues or notable successes for this particular contract. Such information is typically found in contract performance reports, agency evaluations, or potentially in Inspector General reports if significant problems arose. Without access to these detailed records, it is impossible to assess the contractor's performance beyond the fact that the contract was awarded and fulfilled over its duration. The competitive nature of the award suggests an expectation of satisfactory performance.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $126,660,295

Exercised Options: $126,660,295

Current Obligation: $126,660,295

Parent Contract

Parent Award PIID: GS07F0382K

IDV Type: FSS

Timeline