DHS awarded $64.4M for border security services, with a significant portion for guard services

Contract Overview

Contract Amount: $64,356,484 ($64.4M)

Contractor: G4S Secure Solutions (USA) Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-08-30

End Date: 2009-08-29

Contract Duration: 364 days

Daily Burn Rate: $176.8K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TRANSPORTATION, MEDICAL ESCORT, AND FACILITY GUARD SERVICES (SOUTHWEST BORDER REGION)

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85704

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $64.4 million to G4S SECURE SOLUTIONS (USA) INC. for work described as: TRANSPORTATION, MEDICAL ESCORT, AND FACILITY GUARD SERVICES (SOUTHWEST BORDER REGION) Key points: 1. Contract focused on essential security and transportation services at the Southwest Border. 2. Significant portion of spending allocated to security guard services, indicating a need for personnel. 3. Services were procured using a Time and Materials contract type, which can pose cost control challenges. 4. The contract duration was one year, suggesting a need for immediate or short-term support. 5. The award was made to a single contractor, raising questions about competition and potential cost efficiencies.

Value Assessment

Rating: fair

The total award of $64.4 million for a one-year period for security and transportation services appears substantial. Benchmarking against similar contracts for security guard services is difficult without more specific details on the scope of work, number of personnel, and hours. However, the Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, as it reimburses the contractor for direct labor and materials plus a fee. The obligated amount of $17.7 million suggests that not all funds were immediately utilized or committed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis. This indicates that the agency identified a specific contractor deemed capable of fulfilling the requirement without competition. Sole-source awards can be justified for various reasons, such as urgent needs, unique capabilities, or when only one responsible source exists. However, the lack of competition typically limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not have benefited from the most competitive pricing that could have been achieved through an open bidding process.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving essential security and transportation support. Services include facility guard services, medical escort, and transportation, crucial for border operations and managing individuals in custody. The geographic impact is concentrated in the Southwest Border Region, specifically Arizona, supporting critical national security functions. The contract likely supported a workforce of security guards and transportation personnel, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Time and Materials contract type can lead to cost overruns if not managed stringently.
Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.
The substantial award amount for a single year warrants close scrutiny of expenditures.

Positive Signals

Contract addresses critical security and transportation needs for a vital government agency.
Services provided are essential for border security operations.
The contractor, G4S Secure Solutions, is a large, established provider of security services.

Sector Analysis

The contract falls within the security and protective services sector, a significant market driven by government needs for physical security, personnel, and related services. The North American Industry Classification System (NAICS) code 561612 (Security Guards and Patrol Services) indicates a focus on guard services. Government spending in this sector is substantial, with agencies like DHS consistently requiring these services for border protection, facility security, and other operational needs. This contract represents a portion of that broader spending.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large contractor (G4S Secure Solutions), there are likely limited opportunities for small business subcontracting unless specifically mandated or pursued by the prime contractor. This contract does not appear to directly support the small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. As a sole-source award, there is an increased emphasis on contract administration and performance monitoring to ensure value for money and adherence to the contract terms. Transparency is facilitated through contract databases, but detailed operational oversight mechanisms are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Border Security Operations
Immigration and Customs Enforcement Services
Facility Security Contracts
Transportation Services for Government Agencies
Private Security Guard Services

Risk Flags

Sole-source award
Time and Materials contract type
Potential for cost overruns
Lack of detailed performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $64.4 million to G4S SECURE SOLUTIONS (USA) INC.. TRANSPORTATION, MEDICAL ESCORT, AND FACILITY GUARD SERVICES (SOUTHWEST BORDER REGION)

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 $64.4 million.

What is the period of performance?

Start: 2008-08-30. End: 2009-08-29.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to meet the government's needs. This could be due to unique capabilities, urgent and compelling circumstances, or a lack of other qualified bidders. For a contract of this magnitude and duration, the justification would likely have been documented and approved by appropriate levels within the Department of Homeland Security (DHS) or U.S. Customs and Border Protection (CBP). Without access to the contract file or justification documentation, the precise reasons remain unknown, but common justifications include specialized security requirements or the need for immediate service continuity.

How does the Time and Materials (T&M) contract type compare to other contract types for similar security services in terms of cost-effectiveness?

Time and Materials (T&M) contracts are often used when the level of effort or the materials required cannot be estimated with certainty at the time of award. For security services, T&M can be flexible, allowing for adjustments in staffing levels or hours based on evolving needs. However, compared to fixed-price contracts, T&M contracts carry a higher risk of cost overruns for the government because the final price is not predetermined. Agencies must implement robust oversight and monitoring to control costs, track labor hours, and ensure that the materials used are necessary and reasonable. In contrast, fixed-price contracts provide greater cost certainty but may be less adaptable to changing operational requirements. For routine security guard services, fixed-price contracts are often preferred for better cost control, while T&M might be used for more dynamic or unpredictable security support roles.

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

G4S Secure Solutions (USA) Inc. is a major global provider of security services and has a significant history of contracting with the U.S. federal government, including the Department of Homeland Security (DHS). They have been awarded numerous contracts across various agencies for services such as physical security, access control, guard services, and transportation. While specific performance details for individual contracts are not publicly detailed in this summary, G4S's continued success in winning federal contracts suggests a generally satisfactory performance history. However, like any large contractor, they may have faced performance issues or contract disputes on specific engagements. A deeper analysis would require reviewing contract performance reports (CPARS) and any available Inspector General reports related to their federal work.

What are the potential risks associated with a $64.4 million contract for security and transportation services over one year?

The primary risks associated with a contract of this magnitude and type include cost overruns due to the Time and Materials (T&M) pricing structure, potential for service quality issues if contractor performance is not rigorously monitored, and the lack of competition inherent in a sole-source award, which can limit price negotiation leverage. There's also a risk of scope creep, where the services provided expand beyond the original intent without corresponding adjustments to cost and oversight. Furthermore, reliance on a single contractor for critical border security functions could pose a risk if the contractor experiences significant operational disruptions or fails to meet performance standards, potentially impacting national security operations.

How does this spending compare to other DHS contracts for similar services?

Without specific details on the scope of services (e.g., number of guards, hours, specific locations, types of transportation), it is challenging to make a direct comparison of this $64.4 million award to other DHS contracts. However, the Department of Homeland Security, particularly U.S. Customs and Border Protection (CBP), consistently spends billions annually on a wide range of services, including security personnel, transportation, and facility management, especially along the Southwest Border. Contracts for border security operations can vary significantly in size and scope. This particular award appears to be a substantial, but not unprecedented, investment for a one-year period, reflecting the ongoing demands for security and logistical support in that region. Benchmarking would require comparing contracts with similar service descriptions, durations, and geographic focuses.

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: $64,633,413

Exercised Options: $64,633,413

Current Obligation: $64,356,484

Parent Contract

Parent Award PIID: HSBP1006A01327

IDV Type: BPA

Timeline