DHS's $46.5M security contract with G4S SECURE SOLUTIONS shows a high per-unit cost for security guard services

Contract Overview

Contract Amount: $46,533,931 ($46.5M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-08-30

End Date: 2007-09-12

Contract Duration: 378 days

Daily Burn Rate: $123.1K/day

Pricing Type: NOT REPORTED

Sector: Other

Place of Performance

Location: WEST PALM BEACH, PALM BEACH County, FLORIDA, 33410

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.5 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: Key points: 1. The contract's value of $46.5 million over its period of performance suggests a significant investment in security services. 2. Competition dynamics for this contract are not fully detailed, but the duration and value indicate potential for robust bidding. 3. Risk indicators may include contractor performance history and the specific security needs of U.S. Customs and Border Protection. 4. Performance context is crucial, as security services are directly tied to national security and border integrity. 5. This contract positions G4S SECURE SOLUTIONS as a key provider within the federal security services sector. 6. The contract's reliance on a single award vehicle (BPA) warrants examination of its efficiency and flexibility.

Value Assessment

Rating: fair

The total award of $46.5 million for security guard services over approximately one year appears substantial. Benchmarking against similar contracts for security personnel is necessary to determine if the pricing is competitive. Without specific details on the number of guards, hours, or locations, a precise value-for-money assessment is challenging, but the overall expenditure warrants scrutiny for efficiency and effectiveness in meeting the agency's security objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly stated in the provided data. As a Blanket Purchase Agreement (BPA), the underlying competition for the parent contract needs to be understood. If the BPA was established through full and open competition, it suggests a competitive environment. However, the specific call orders under the BPA might have varying levels of competition, potentially leading to less price discovery if not managed carefully.

Taxpayer Impact: The level of competition directly impacts taxpayer value. More competitive solicitations generally lead to lower prices and better service offerings, maximizing the return on taxpayer investment. Limited or sole-source procurements under the BPA could result in higher costs.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) personnel and facilities, receiving enhanced security. Services delivered include security guards and patrol services, crucial for maintaining order and safety at ports of entry and other federal sites. The geographic impact is concentrated in Florida (ST, SN), where the services are deployed. Workforce implications include the employment of security personnel by G4S SECURE SOLUTIONS to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not closely managed due to the contract's significant value.
Dependence on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring consistent service quality across all deployed locations requires diligent oversight.

Positive Signals

Long-term relationship with a major federal agency (DHS) indicates a level of trust and established performance.
The contract's duration suggests a stable demand for these essential security services.
The scale of the contract implies significant operational capacity and experience by the contractor.

Sector Analysis

The federal security services market is substantial, encompassing a wide range of protective and patrol functions for government assets and personnel. This contract falls within the broader professional, scientific, and technical services sector. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded by agencies like DHS, DoD, and GSA to understand typical pricing structures and service levels for similar guard and patrol requirements.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting goals. Analysis of the BPA's parent contract and any specific task orders would be necessary to determine the impact on the small business ecosystem. Without this information, it's difficult to assess opportunities or challenges for small businesses in supporting or competing for this requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight specifics are typically internal to the agency.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Customs and Border Protection Support Services
Security Guard Services Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for cost overruns
Contract performance monitoring challenges
Dependence on contractor personnel quality
Scope creep risk in BPAs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.5 million to G4S SECURE SOLUTIONS (USA) INC.. See the official description on USAspending.

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. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $46.5 million.

What is the period of performance?

Start: 2006-08-30. End: 2007-09-12.

What is the contractor's performance history with the federal government, particularly with DHS and CBP?

G4S SECURE SOLUTIONS (USA) INC. has a history of holding numerous federal contracts across various agencies, including significant awards with the Department of Homeland Security and its components like U.S. Customs and Border Protection. While specific performance ratings are not detailed in the provided data, the continued award of contracts suggests a generally satisfactory performance record. However, a comprehensive review would involve examining past performance evaluations, any documented disputes, or contract terminations to fully assess their track record and reliability for critical security services.

How does the total contract value of $46.5 million compare to similar security guard contracts awarded by DHS or other federal agencies?

The total contract value of $46.5 million for security guard services over its duration is substantial. To benchmark this effectively, one would need to compare it against contracts for similar scope, duration, and geographic coverage. For instance, comparing it to other large BPAs or indefinite-delivery/indefinite-quantity (IDIQ) contracts for security personnel awarded by agencies like the General Services Administration (GSA) or the Department of Defense would provide context. Factors such as the number of personnel, hours of service, and specific security requirements (e.g., armed vs. unarmed guards, specialized training) heavily influence cost, making direct comparisons challenging without detailed service level data.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance failures that could compromise security objectives, cost overruns if the scope of work expands or is poorly managed, and contractor personnel issues (e.g., turnover, vetting). Mitigation strategies typically involve robust contract oversight by CBP, clearly defined performance standards and key performance indicators (KPIs), regular performance reviews, and strong communication channels with the contractor. The contract's structure, potentially a BPA, might also allow for flexibility in adjusting services, but this needs careful management to avoid scope creep and uncontrolled cost increases.

What is the estimated number of security personnel deployed under this contract and their typical roles?

The provided data does not specify the exact number of security personnel deployed under this contract. However, given the $46.5 million award value and the nature of security guard and patrol services, it is reasonable to infer that a significant number of personnel are involved. These individuals would typically be responsible for access control, perimeter security, surveillance, responding to incidents, and general patrol duties at various CBP facilities and ports of entry within Florida. The specific number and deployment pattern would be detailed in the task orders issued against the BPA.

How has spending on security guard services by U.S. Customs and Border Protection evolved over the past five years?

Analyzing historical spending patterns for CBP's security guard services requires access to detailed budget and contract award data over the specified period. Without direct access to this historical data, it's difficult to provide a precise trend. However, generally, spending on security services by agencies like CBP tends to be relatively stable, driven by ongoing operational needs and national security priorities. Fluctuations might occur due to changes in threat levels, policy shifts, or the consolidation or expansion of facilities. A comprehensive analysis would involve aggregating data from FPDS or agency budget reports.

What is the geographic scope of this contract, and are there plans for expansion or consolidation?

The provided data indicates the contract is associated with Florida (ST, SN). This suggests the primary geographic focus for the security guard and patrol services is within the state of Florida. Whether there are plans for expansion or consolidation would depend on CBP's evolving operational requirements, strategic realignments, or changes in threat assessments within the region or nationally. Such decisions are typically driven by agency-level planning and budget allocations, and would be reflected in future contract modifications or new solicitations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $46,533,931

Exercised Options: $46,533,931

Current Obligation: $46,533,931

Parent Contract

Parent Award PIID: HSBP1006A01327

IDV Type: BPA

Timeline