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NAICS NewsletterDecember 20, 2010

NAICS 561612

Security Guards and Patrol Services

Government Contract and Procurement Analysis Report

Report Summary

This report, offered by epipeline, contains a brief analysis of the Federal government's procurement practices with regards to purchasing Security Guards and Patrol Services.


You will find information on the top federal government agencies that purchase these services, as well as their procurement strategy (i.e. full and open competition, set-asides and more). Finally, there is a review of the top companies that are awarded federal government contracts for Security Guards and Patrol Services.


To get a more comprehensive analysis and learn more about how epipeline can help you identify current and future bid opportunities, register for a live Demo.

This report takes an in-depth look at the 'Security Guards and Patrol Services' industry, NAICS 561612. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enable you to develop the best positioning and strategy for your company to more effectively compete for government contracts. The following graph illustrates one such perspective: the top Government departments/agencies buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY06 through FY10 for NAICS 561612

WHAT IS NAICS 561612?

NAICS 561612 encompasses organizations primarily engaged in providing guard and patrol services, such as bodyguard, guard dog and parking security services. NAICS 561612 excludes establishments primarily engaged in selling, installing, monitoring, and maintaining security systems and devices, such as burglar and fire alarms and locking devices, as these companies are classified in Industry 56162, Security Systems Services.

The description of NAICS 561612 is further broken out to include these additional specific topics:

  • Body guard services
  • Guard dog services
  • Guard services
  • Parking security services
  • Patrol services, security
  • Personal protection services (except security systems services)
  • Property protection services (except armored car, security systems)
  • Protection services (except armored car, security systems), personal or property
  • Protective guard services
  • Security guard services
  • Security patrol services

The size standard associated with NAICS 561612 is $18.5 Million (effective November 5, 2010), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross receipts does not exceed $18.5 Million for the past three years.

Total reported spending under NAICS 561612 for the period of Fiscal Year 2006 (FY06) through Fiscal Year 2010 (FY10) was over $16.6 billion. FY10 reported spending of more than $3.1 million for services under NAICS 561612. The chart below illustrates the reported** spending by year for FY06 through FY10.

Reported Contract Spending for NAICS 561612 FY06 through FY10

Source: epipeline's Contract History Plus*

** Note: it is possible that some Defense spending for the more recent fiscal years (FY05 to present) is not as widely reported as earlier years. These numbers will likely increase as more departments and agencies report their current and historic contract spending.

WHO ISSUES THE CONTRACTS?

The Department of State was the largest procurer for these services for the last five fiscal years (FY06 through FY10), with over $4.2 billion in contract spending, comprising just over 25.5% of the market share for NAICS 561612. Bureau of Immigration and Customs Enforcement took the second spot, with over $2.7 billion in reported spending for this period. The Department of the Army and Department of Energy took third and fourth places, respectively, making up a combined market share of 21.6% for all spending in NAICS 561612.

The US Marshals Service and Office of the Secretary of Defense spent $994 and $953 million respectively during this time period with the rest of the top ten reporting spending just over $1.8 billion for NAICS 561612.

Top 10 Federal Agencies by % of Total Market FY06 through FY10 for NAICS 561612

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 3612 companies registered under NAICS 561612 (source: active registrants, www.ccr.gov as of 12/17/2010). Of this number, 2953 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 303 SBA Certified 8(a) contractors;
  • 126 SBA Certified HUBZone contractors; and
  • 784 Service Disabled Veteran Owned Small Businesses (SDVOSB).

NOTE, the CCR website states, "As of the July 30, 2008 release (4.08.2), CCR-registered vendors may elect not to display their registration in the CCR/FedReg Public Search." This could mean that there are more active contractors registered with the CCR than the resulting totals above represent.

The two charts below identify the top 10 Companies, by market share, for the period of FY06 through FY10. The first chart represents the top 10 companies that were awarded their contracts under ANY type of competition, whether it was full and open, small business set-aside, sole-sourced, etc. This list primarily consists of large businesses. The second chart, however, lists the top 10 companies that won their contracts under RESTRICTED competition. Specifically, epipeline limited this to those contracts awarded under the acquisition strategies listed below. The contract dollars represented on this second chart may not include all contract dollars for the individual contractor.

  • 8(a) Competed
  • 8(a) Small Disadvantaged (SDB) set-aside
  • 8(a) sole-source
  • SDB set-aside
  • SDB, 8(a) with HUBZone
  • Combination HUBZone and 8(a)
  • HUBZone set-aside
  • HUBZone sole-source
  • Service Disabled Veteran-Owned Small Business (SDVOSB) set-aside
  • SDVOSB sole-source
  • Emerging Small Business set-aside
  • Very Small Business set-aside
  • Reserved for Small Businesses ($2501 to $100,000)
  • Total Small Business set-aside

Blackwater Lodge and Training Center achieves the top spot on the unrestricted competition list, with close to $1.3 billion in contract dollars for FY06 to FY10 and nearly 7.9% of the market share. Wackenhut Services landed $1.2 billion in contract dollars with Triple Canopy earning slightly over $1 billion. The Wackenhut Corporation and Akal Security round out the top five with $969 million and $916 million, respectively. Three additional firms, Coastal International Security, Dyncorp International LLC and Pond Security Service GmbH, each topped half a billion in contracting dollars for the same time period.

PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which may not be reflected in the chart below.

Top 10 NAICS 561612 Contractors by % of Total Market for FY06 through FY10 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $2 billion for FY06 through FY10. TW Company Inc takes the top spot, with reported spending of nearly $165 million for this period, or 8.13% of market share. Parkstrip Rose Garden Hotel LLC also secured almost $122 million in contracting dollars for this time period. Another two firms in the top ten, Alutiiq International Solutions LLC and Ares Group Incorporated, exceeded $100 million in reported spending for NAICS 561612.

PLEASE NOTE: as this is a listing by Company name, rather than PARENT company, some companies may have more than one ranking, which may not reflected in the chart below.

Top 10 NAICS 561612 Contractors by % of Total Market for FY06 through FY10 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

Almost 76% of contract spending reported for the FY06 through FY10 timeframe under NAICS 561612 used full and open (unrestricted aka "N/A") competition. This equated to over $12.6 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of more than $1.9 billion. Contracts that were small business set-aside reported spending of nearly $553.9 million. The combined value of contracts representing all other acquisition strategies was just over $1.5 billion, or approximately 9% of the market.

Acquisition Breakout under NAICS 561612 for FY06 through FY10

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the continental United States and abroad. The 50 states plus Washington, DC have reported spending for the FY06 through FY10 period of $10.7 billion and contracts for locations outside the United States (or unlisted) totaled approximately $5.9 million.

The highest total of reported contract spending is reported for Washington D.C., with $1.4 billion. Texas ($1.1 billion) and California ($872 million) took the second and third spots. Together, the top five states represent over 29.14% of market under NAICS 561612. Besides those in the top ten, an additional 17 states reported at least $100 million for NAICS 561612 during this time period.

Contract Place of Performance under NAICS 561612 for FY06 through December 2010

Source: epipeline's Contract History Plus*

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