DHS awards $45.7M for security guard services in Florida, with 12 bids received

Contract Overview

Contract Amount: $45,724,487 ($45.7M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-19

End Date: 2018-09-18

Contract Duration: 364 days

Daily Burn Rate: $125.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF TRANSPORTATION SECURITY GUARD SERVCIES

Place of Performance

Location: JUPITER, PALM BEACH County, FLORIDA, 33458

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45.7 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: IGF::CL::IGF TRANSPORTATION SECURITY GUARD SERVCIES Key points: 1. Contract value represents a significant investment in physical security infrastructure. 2. The procurement process involved robust competition, suggesting potential for favorable pricing. 3. Performance duration of one year indicates a need for ongoing, consistent service delivery. 4. The fixed-price contract type shifts cost risk to the contractor. 5. Services are geographically concentrated in Florida, impacting regional security operations. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $45.7 million for one year of security guard services appears reasonable given the scope and duration. Benchmarking against similar large-scale security contracts for federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it relies on the contractor's accurate cost estimation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 12 bids received. This high level of competition is a positive indicator, suggesting that the solicitation attracted a broad range of qualified vendors. The significant number of bidders likely contributed to price discovery and may have driven down costs compared to a less competitive scenario.

Taxpayer Impact: The strong competition ensures taxpayers benefit from a potentially more cost-effective solution, as multiple companies vied to offer their best pricing and terms.

Public Impact

Benefits U.S. Customs and Border Protection by ensuring secure facilities and operational continuity. Provides essential security guard services across various locations within Florida. Supports the physical security of critical federal infrastructure and personnel. Implies a workforce of security guards employed by the contractor within the specified region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
No indication of small business subcontracting goals or achievements.
Geographic concentration in Florida could limit broader market engagement for other regions.

Positive Signals

Full and open competition with 12 bidders suggests a healthy market and competitive pricing.
Firm fixed-price contract type offers budget predictability for the agency.
Contract awarded to a known entity (G4S Secure Solutions) may indicate a track record of performance.

Sector Analysis

The security guard services sector is a substantial part of the broader security industry, characterized by numerous providers ranging from small local firms to large multinational corporations. Federal contracts for these services are common across various agencies requiring physical security for facilities, personnel, and assets. Spending in this sector is influenced by security threats, regulatory requirements, and the footprint of federal operations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements. This suggests that larger, established firms were likely the primary bidders. Further investigation would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection's contracting officer and program managers. The Inspector General's office for the Department of Homeland Security may also conduct audits or investigations into contract performance and financial management to ensure accountability and prevent fraud.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Customs and Border Protection Facility Management
General Services Administration Security Contracts

Risk Flags

Potential for service quality degradation if contractor faces cost overruns.
Limited visibility into small business participation.
Geographic concentration may not reflect agency-wide needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45.7 million to G4S SECURE SOLUTIONS (USA) INC.. IGF::CL::IGF TRANSPORTATION SECURITY GUARD SERVCIES

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 $45.7 million.

What is the period of performance?

Start: 2017-09-19. End: 2018-09-18.

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

Analyzing historical spending for security guard services by U.S. Customs and Border Protection (CBP) in Florida requires access to detailed federal procurement databases. While this specific contract awarded in 2017 for $45.7 million provides a snapshot, understanding the pattern involves looking at prior and subsequent contracts for similar services. Factors such as changes in security needs, facility expansions or consolidations, and shifts in contracting strategies (e.g., moving from multiple smaller contracts to larger ones or vice versa) would influence spending trends. Without access to a comprehensive historical dataset for CBP's security guard procurements in Florida, it is difficult to establish a definitive spending pattern beyond this single award. However, the significant value of this contract suggests a consistent and substantial requirement for these services within the region.

How does the number of bidders (12) compare to similar federal security guard contracts?

A full and open competition yielding 12 bids for a federal security guard contract of this magnitude ($45.7 million) is generally considered a healthy level of competition. For large-value service contracts, the number of bidders can vary significantly based on the specific requirements, geographic scope, and market dynamics. Contracts with fewer than 5 bidders might raise concerns about market saturation or barriers to entry, while numbers exceeding 10-15 often indicate a robust and accessible market. In the context of security services, which often involve established players and clear performance standards, 12 bidders suggests that the solicitation was well-publicized and that multiple qualified firms were interested and capable of performing the work. This level of competition typically benefits the government by fostering competitive pricing and encouraging higher quality service offerings.

What are the potential risks associated with a firm fixed-price contract for security guard services?

While firm fixed-price (FFP) contracts offer budget certainty for the government, they carry specific risks, primarily for the contractor. For security guard services, the main risk to the contractor is underestimating labor costs, overtime, training, or the need for specialized equipment or personnel. If the contractor's costs exceed their fixed price, their profit margins shrink, or they may incur a loss. Conversely, the government's risk is that the contractor might cut corners on service quality to protect their profit margin if costs escalate unexpectedly. Effective performance monitoring and clear contract terms are crucial to mitigate this risk and ensure that the government receives the contracted level of service despite the fixed-price arrangement.

What is the typical performance duration for federal security guard contracts of this size?

The typical performance duration for federal security guard contracts can vary widely, but contracts of this size ($45.7 million) often have an initial base period of one year, followed by multiple option periods that can extend the total contract duration significantly, often up to five years. The provided data indicates a 364-day duration, which aligns with a one-year base period. This structure allows the agency to reassess needs and contractor performance before committing to longer terms. Shorter durations, like one year, can provide flexibility but may lead to more frequent re-procurement efforts. Longer-term contracts, when performance is satisfactory, can offer stability and reduce administrative burden.

What does the NAICS code 561612 indicate about the specific services procured?

The North American Industry Classification System (NAICS) code 561612 specifically identifies 'Security Guards and Patrol Services.' This classification indicates that the contract's primary purpose was to procure personnel services for guarding and patrolling properties, facilities, or assets. Services under this code typically include uniformed guards for access control, surveillance, deterring theft or vandalism, and responding to incidents. It generally excludes services like private investigation, electronic security system installation and monitoring, or security system maintenance, which fall under different NAICS codes. Therefore, this contract was focused on the human element of security presence and monitoring.

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: $45,724,487

Exercised Options: $45,724,487

Current Obligation: $45,724,487

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1013D00022

IDV Type: IDC

Timeline