DHS awarded $42.9M for security services, with G4S Secure Solutions winning a significant portion

Contract Overview

Contract Amount: $42,919,465 ($42.9M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-08-30

End Date: 2013-09-03

Contract Duration: 369 days

Daily Burn Rate: $116.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

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 $42.9 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: TRANSPORTATION AND GUARD SERVICES Key points: 1. Value for money appears fair given the scale and duration of services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, typical for large-scale security contracts. 4. Performance context is based on a single delivery order, limiting broader trend analysis. 5. Sector positioning is within the broad security services industry, a consistent government need.

Value Assessment

Rating: fair

The contract value of $42.9 million for security guard services over approximately one year appears within a reasonable range for a federal contract of this nature. Benchmarking against similar large-scale security contracts awarded by agencies like DHS or other federal entities would provide a more precise value-for-money assessment. The time and materials pricing structure, while flexible, can sometimes lead to cost overruns if not managed tightly, suggesting a need for diligent oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows one award, which could imply a single strong bidder or a complex evaluation process. A higher number of bidders typically suggests more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Benefits U.S. Customs and Border Protection by providing essential security personnel. Services delivered include guarding and patrol functions to secure federal assets and personnel. Geographic impact is concentrated in Florida (FL), as indicated by the award data. Workforce implications involve the employment of security guards and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Limited performance data from a single delivery order makes long-term value assessment difficult.
Concentration of services in one state may not reflect broader national security needs.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Services provided are critical for border security operations.
Contract duration of approximately one year allows for flexibility in adapting to changing security needs.

Sector Analysis

The security services sector is a significant component of federal contracting, encompassing a wide range of protective and investigative services. This contract falls under the security guards and patrol services sub-sector, which is characterized by a mix of large established firms and smaller specialized providers. Federal spending in this area is consistently high due to the ongoing need for physical security at government facilities, borders, and critical infrastructure. Comparable spending benchmarks would involve looking at other large contracts for security personnel across various federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While G4S Secure Solutions is a large corporation, there may be subcontracting opportunities for small businesses within the scope of this contract. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officer and their representatives. Accountability measures would be embedded in the contract's performance work statement, with potential for penalties or remedies for non-performance. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are not always publicly available.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Customs and Border Protection Operations Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited performance data from a single delivery order.
Concentration of services in a single geographic region.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.9 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 $42.9 million.

What is the period of performance?

Start: 2012-08-30. End: 2013-09-03.

What is the historical spending trend for security guard services by U.S. Customs and Border Protection?

Analyzing historical spending for security guard services by U.S. Customs and Border Protection (CBP) requires accessing detailed contract award data over multiple fiscal years. While this specific award represents $42.9 million, CBP's overall expenditure on security services can fluctuate based on evolving threats, operational needs, and budget allocations. Generally, agencies like CBP maintain a consistent need for security personnel to protect ports of entry, border sectors, and other critical infrastructure. Trends might show an increase in spending during periods of heightened border activity or national security alerts, or a decrease due to efficiency initiatives or shifts in resource priorities. A comprehensive analysis would involve aggregating data from various contract vehicles, including indefinite-delivery/indefinite-quantity (IDIQ) contracts and individual delivery orders, to identify patterns in contract types, award values, and incumbent contractors over time.

How does the per-unit cost of security guards under this contract compare to industry benchmarks?

Determining the per-unit cost of security guards under this contract requires detailed information on the number of hours worked, the types of security personnel employed (e.g., armed vs. unarmed, supervisory vs. entry-level), and their respective hourly rates, which are not fully detailed in the provided summary. The contract is 'Time and Materials,' meaning the government pays for direct labor hours at specified rates plus the actual cost of materials. To benchmark, one would need to calculate an average loaded hourly rate for the guards based on the contract's terms and compare it to prevailing market rates for similar security services in Florida. Industry benchmarks for security guard services can vary significantly based on location, required qualifications, and the specific duties performed. Without granular data on the labor mix and specific rates, a precise comparison is challenging, but the 'fair' value assessment suggests it is likely within an acceptable range.

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

G4S Secure Solutions (USA) Inc. is a major provider of security services and has a substantial track record with various federal agencies, including the Department of Homeland Security (DHS). Their portfolio typically includes a wide range of security solutions, from physical guarding and access control to monitoring and response services. Federal contract databases often show G4S as an awardee on numerous contracts, ranging in value and scope. For DHS specifically, G4S has likely been involved in providing security for facilities, border operations, and other critical infrastructure. A review of their contract history would reveal their performance ratings, any past performance issues or disputes, and their success in competitive bidding processes. Their continued presence as a large federal contractor suggests a generally positive track record, though like any large company, specific contract performance can vary.

What are the potential risks associated with a 'Time and Materials' contract for security services?

Time and Materials (T&M) contracts, like the one awarded to G4S Secure Solutions, carry inherent risks, primarily the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours and materials used, plus a fixed fee or profit. This structure can incentivize contractors to extend work hours or use more materials than strictly necessary if oversight is insufficient. For the government, effective management requires rigorous monitoring of labor hours, validation of material costs, and clear definitions of what constitutes 'time and materials.' Without strong oversight, the final cost can exceed initial estimates, potentially leading to a lower value for money. However, T&M contracts offer flexibility for requirements that are not well-defined at the outset or are expected to change frequently.

How does the geographic concentration in Florida impact the overall effectiveness of these security services for CBP?

The geographic concentration of these security services in Florida (FL) means this specific contract addresses CBP's security needs within that particular region. Florida, with its extensive coastline and numerous ports of entry, is a critical area for CBP operations. Concentrating services here allows for tailored security solutions to meet the unique challenges of the region, such as managing high volumes of international trade and travel, and interdicting illicit activities. However, it also implies that this contract does not directly cover CBP's security requirements in other vital regions. CBP likely utilizes multiple contracts to cover its nationwide security needs, with Florida being one significant component. The effectiveness within Florida would depend on the adequacy of the security personnel, their deployment, and their integration with other CBP operational strategies in the state.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 4200 WACKENHUT DR STE 100, PALM BEACH GARDENS, FL, 33410

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,919,465

Exercised Options: $42,919,465

Current Obligation: $42,919,465

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F0382K

IDV Type: FSS

Timeline