DHS awarded $48.4M for security services, with a significant portion allocated to mission support

Contract Overview

Contract Amount: $48,366,624 ($48.4M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-19

End Date: 2016-09-18

Contract Duration: 365 days

Daily Burn Rate: $132.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF TASK ORDER FOR 48 WEEKS OF MISSION SUPPORT BASE

Place of Performance

Location: JUPITER, PALM BEACH County, FLORIDA, 33458

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $48.4 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: IGF::CL::IGF TASK ORDER FOR 48 WEEKS OF MISSION SUPPORT BASE Key points: 1. Contract value represents a substantial investment in essential security operations. 2. Competition dynamics suggest a potentially competitive bidding environment for these services. 3. Risk indicators are moderate, given the nature of security services and contract duration. 4. Performance context is tied to critical border protection functions. 5. Sector positioning places this contract within the broader government security services market.

Value Assessment

Rating: good

The contract value of $48.4 million for 48 weeks of mission support appears reasonable for specialized security services. Benchmarking against similar contracts for security guards and patrol services (NAICS 561612) would provide a clearer picture of value for money. The firm fixed-price structure helps control costs, but the specific unit costs are not detailed here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought the best value through this process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price, reducing the risk of overpayment.

Public Impact

Benefits U.S. Customs and Border Protection by ensuring mission support services. Delivers essential security and operational support functions. Geographic impact is focused on Florida, where the services are rendered. Workforce implications include employment for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if mission requirements evolve beyond initial expectations.
Reliance on a single contractor for critical security functions could pose a risk if performance issues arise.
Ensuring consistent service quality across the contract duration requires robust oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm fixed-price contract provides cost certainty for the government.
Clear contract duration (48 weeks) allows for defined planning and resource allocation.

Sector Analysis

This contract falls within the government's security and protective services sector, a significant market driven by federal agency needs for physical security, guard services, and operational support. The market is characterized by numerous private sector providers, ranging from large corporations to smaller specialized firms. Spending in this area is often driven by national security concerns and the need to protect federal assets and personnel.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if opportunities exist for small businesses to participate in the subcontracting chain.

Oversight & Accountability

Oversight is likely managed by U.S. Customs and Border Protection contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and delivery requirements. Transparency is facilitated by the contract award notice, though detailed performance metrics are not publicly available.

Related Government Programs

Homeland Security Contracts
Federal Protective Services
Border Security Operations
Government Security Guard Services

Risk Flags

Contract duration and scope clarity
Performance monitoring and quality assurance
Potential for cost overruns if scope expands

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.4 million to G4S SECURE SOLUTIONS (USA) INC.. IGF::CL::IGF TASK ORDER FOR 48 WEEKS OF MISSION SUPPORT BASE

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 $48.4 million.

What is the period of performance?

Start: 2015-09-19. End: 2016-09-18.

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

Analyzing historical spending for similar security services by U.S. Customs and Border Protection (CBP) is crucial for understanding trends and identifying potential anomalies. While this specific contract is for $48.4 million over 48 weeks, CBP's overall budget for security and operational support services can fluctuate based on national priorities, threat assessments, and operational needs. Past awards for guard services, mission support, and related security functions would provide a baseline. For instance, if CBP has consistently awarded contracts in the tens of millions annually for these types of services, this award would appear within historical norms. Conversely, a significant deviation from past spending levels might warrant further investigation into the reasons, such as increased operational tempo, new security requirements, or a change in contracting strategy. Examining the number of competitors in previous similar solicitations can also shed light on market dynamics and pricing pressures over time.

How does the awarded price compare to market rates for similar security services in Florida?

Comparing the awarded price of $48.4 million for 48 weeks of mission support to market rates for similar security services in Florida is essential for assessing value for money. This requires benchmarking against industry data for security guard services, patrol, and operational support, considering factors like the number of personnel, skill levels required, hours of service, and geographic location within Florida. If the contract's average weekly cost or hourly rates for personnel are significantly higher than prevailing commercial rates for comparable services in the region, it could indicate potential overpricing or a lack of sufficient competition. Conversely, if the rates are competitive or lower, it suggests effective price negotiation and a potentially good deal for the government. Access to detailed cost breakdowns and labor rates within the contract would facilitate a more precise comparison with market benchmarks.

What are the specific performance metrics and Key Performance Indicators (KPIs) for this contract?

The specific performance metrics and Key Performance Indicators (KPIs) for this contract are critical for evaluating the effectiveness and quality of the mission support services provided by G4S Secure Solutions (USA) Inc. While the contract award notice does not detail these, typical KPIs for security services include response times to incidents, adherence to post orders, personnel punctuality and appearance, incident reporting accuracy, and overall client satisfaction. For mission support, metrics might extend to operational readiness, equipment maintenance, or logistical support efficiency. Robust KPIs allow U.S. Customs and Border Protection to objectively measure contractor performance, identify areas for improvement, and ensure that the services delivered meet the required standards and contribute to the agency's objectives. Without these specific metrics, a thorough assessment of contractor performance and value realization is challenging.

What is the track record of G4S Secure Solutions (USA) Inc. in performing similar government contracts?

G4S Secure Solutions (USA) Inc. has a significant track record in performing government contracts, including security and mission support services. Their experience with federal agencies, particularly within the Department of Homeland Security and its components like U.S. Customs and Border Protection, suggests familiarity with government requirements, regulations, and operational environments. Evaluating their past performance on similar contracts is key to assessing reliability and capability. This includes reviewing past performance evaluations, any documented instances of contract disputes or performance failures, and their history of meeting delivery schedules and quality standards. A strong performance history on comparable contracts would increase confidence in their ability to successfully execute this $48.4 million award, while any significant past issues would raise red flags requiring closer scrutiny.

Are there any potential risks associated with the firm fixed-price contract type for these services?

The firm fixed-price (FFP) contract type for these mission support services generally offers cost certainty to the government, as the price is set and not subject to adjustment based on the contractor's actual cost experience. However, for complex or evolving service requirements, an FFP contract can introduce risks. If the scope of work is not precisely defined or if unforeseen challenges arise during the 48-week period, the contractor may face financial strain if their costs exceed the fixed price. This could potentially lead to pressure to cut corners on service quality or personnel to maintain profitability. Conversely, if the contractor significantly underbids or efficiently manages resources, they could realize substantial profit. The government's risk is primarily related to ensuring the contract adequately covers all necessary services and that performance standards are met, regardless of the contractor's cost.

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 › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 1395 UNIVERSITY BLVD, JUPITER, FL, 33458

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

Financial Breakdown

Contract Ceiling: $48,366,624

Exercised Options: $48,366,624

Current Obligation: $48,366,624

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1013D00022

IDV Type: IDC

Timeline