DHS Spends $74M on Transportation and Guard Services with G4S Secure Solutions

Contract Overview

Contract Amount: $74,100,887 ($74.1M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-08-30

End Date: 2010-04-10

Contract Duration: 223 days

Daily Burn Rate: $332.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSPORTATION AND GUARD SERVICES

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $74.1 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: TRANSPORTATION AND GUARD SERVICES Key points: 1. Contract awarded to G4S Secure Solutions (USA) Inc. for $74.1M. 2. Service category is Security Guards and Patrol Services (NAICS 561612). 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract type is Firm Fixed Price. 5. Performance period was 223 days.

Value Assessment

Rating: fair

The contract value of $74.1M for a 223-day period appears high for security guard services. Benchmarking against similar contracts for security guards and patrol services is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources', suggesting a competitive process was intended. However, the specific exclusion of sources warrants further investigation to understand its impact on price discovery and overall competition.

Taxpayer Impact: Taxpayer funds were used for security services. The effectiveness of the competition method in securing the best price for the government is a key consideration for taxpayer impact.

Public Impact

Ensures security for transportation and border protection operations. Supports the Department of Homeland Security's mission. Provides essential guard services for a critical government agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration.
Ambiguity in 'Exclusion of Sources' competition method.
Lack of detailed performance metrics provided.

Positive Signals

Utilized a full and open competition approach.
Firm Fixed Price contract type can control costs.
Services provided to a critical federal agency.

Sector Analysis

The contract falls under the Security and Protection Services sector. Spending benchmarks for security guard services can vary significantly based on location, scope, and duration. This contract's value of $74.1M for less than a year of service suggests a substantial operational requirement.

Small Business Impact

The data indicates that the awardee is G4S Secure Solutions (USA) Inc., a large corporation. There is no indication of small business participation in this specific contract award.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the U.S. Customs and Border Protection to ensure services meet requirements and that the contractor adheres to the terms of the firm fixed price agreement.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

High contract value relative to duration.
Potential for limited competition due to source exclusion.
Lack of detailed cost breakdown for analysis.
Short contract performance period may indicate an interim solution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $74.1 million to G4S SECURE SOLUTIONS (USA) INC.. TRANSPORTATION AND 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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $74.1 million.

What is the period of performance?

Start: 2009-08-30. End: 2010-04-10.

What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The justification for excluding sources is critical to understanding the competitive landscape. If exclusions were not well-founded, it could limit competition, potentially leading to higher prices than a truly open bid. Further documentation is needed to assess if the exclusion process was justified and if it resulted in fair market pricing.

How does the per-unit cost or hourly rate for these security guard services compare to industry benchmarks, considering the contract's duration and scope?

Without specific per-unit cost data or hourly rates, a direct comparison is difficult. However, the total contract value of $74.1M over 223 days suggests a significant daily expenditure. Benchmarking against similar government or private sector contracts for security personnel in similar operational environments is essential to determine if the pricing was competitive and represented good value.

What were the key performance indicators (KPIs) for this contract, and how was G4S's performance measured to ensure effectiveness and accountability?

The provided data does not detail the specific Key Performance Indicators (KPIs) or the performance measurement process for this contract. Effective oversight requires clearly defined metrics for service delivery, response times, and personnel conduct. Understanding these KPIs and the contractor's performance against them is crucial for assessing the overall effectiveness and accountability of the security services provided.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

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, 33410

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $78,600,887

Exercised Options: $78,600,887

Current Obligation: $74,100,887

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1006A01327

IDV Type: BPA

Timeline