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NAICS NewsletterSeptember 12, 2008

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 the services of 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. To understand the future, one must study the past. epipeline's Contract History Plus* provides you with a broad context and several perspectives that enables 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 buying these services over the last four fiscal years.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 561612

WHAT IS NAICS 561612?

NAICS 561612 is used for firms that principally provide (armed or unarmed) guard and patrol services, such as bodyguard, guard dog, and parking security services. This NAICS was previously represented by Standard Industrial Classification (SIC) code 7381, as it related to the following topics:

  • Body guard services
  • Guard dog services
  • Guard services
  • Parking security services
  • 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 August 22, 2008), 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. If a company has not been in business for three years, the average weekly revenue for the number of weeks the company has been in business is multiplied by 52 to determine the average annual receipts.

Total reported spending under NAICS 561612 for the period of Fiscal Year 2004 (FY04) through the second quarter (Q2) of Fiscal Year 2003 (FY08 aka Q2FY08) was over $7 Billion. With two quarters reported, FY08 reported spending of almost $340 Million for services under NAICS 561612. The chart below illustrates the reported** spending by year for FY04 through Q2FY08.

Reported Contact Spending FY04 - Q2FY08 for NAICS 561612 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 contract spending.

WHO ISSUES THE CONTRACTS?

The Department of State was the largest buyer for these services for the last four fiscal years (FY04 through Q2FY08), with over $1.63 Billion in contract spending, comprising over 23% of the market share for NAICS 561612. The United States Army, was a very close second, with $1.62 Billion reported for the same period. The Department of Energy, the Department of Homeland Security (DHS)'s Immigration and Customs Enforcement (ICE), and the United States Air Force rounded out the top five. All agencies in the top ten each reported spending over $100 Million for the FY04 - Q2FY08 period.

Top 10 Federal Agencies by % of Total Market FY04 - Q2FY08 for NAICS 561612 Source: epipeline's Contract History Plus*

WHAT IS GSA SCHEDULE 084?

The General Services Administration (GSA)'s Federal Supply Schedule (FSS), includes the schedule "084: Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue, Clothing, Marine Craft & Emergency/Disaster Response." This schedule was created from the former Schedule 539 SAM (Solutions And More), and included security guard services as one of the offerings, under SIN 246 54. Many contracts out of DHS (new home for the Federal Protective Service, Immigration, and Customs) use this GSA schedule to obtain their requirements. (Information about this GSA schedule can be found under epipeline program code 084 Total.) Other agencies use this schedule to procure their security services as well, such as EPA and NASA.

There are currently 170 GSA Schedule 084 holders that provide services under SIN 246 54, Protective Service Occupations. This includes the following positions: Security Guards, Alarm Monitors, Baggage Inspectors, Corrections Officers, Court Security Officers, Detection Dog Handlers, Detention Officers, Firefighters, Police Officers, Categories to support Operation On-site of Security Functions, and other support and related categories.

GSA along with other agencies use this service to provide for their guard service needs. The map below identifies where these contractors are located. There are ten states that have five or more firms. The 15 white-shaded states have no schedule holders under that SIN based in that state. While these firms may be located in specific areas of the country that does not preclude them from performing services on contracts located throughout the United States and abroad.

Location of Contractors under GSA Schedule 084 SIN 246 54 Source: GSA's E-Library. Schedule 084 data as of 09/08/2008.

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 2,724 companies registered under NAICS 561612 (source: active registrants, www.ccr.gov as of 098/08/2008). Of this number, 2,212 qualify as small businesses, which includes the following breakout by socioeconomic categories (some companies may qualify under more than one category):

  • 284 SBA Certified 8(a) contractors;
  • 182 SBA Certified HUBZone contractors; and
  • 528 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 then the resulting totals above represent.

The two charts below identify the top 10 Companies, by market share, for the period of FY04 through Q2FY08. 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

Wackenhut Services holds the top spot on the unrestricted competition list, with $893 Million in contract dollars for FY04-Q2FY08 and over 13% of the market share. Wackenhut also appears in the 4th spot, as "The Wackenhut Corporation." The source data (FPDS) is based on Company Name, rather than Parent company, therefore some companies may be listed more than once. There are actually eight different Wackenhuts listed in the top 200 (includes Wackenhut International, Wackenhut Corrections Corporation, Wackenhut Of Nevada, Wackenhut Puerto Rico Inc, and Wackenhut Security Hellas). The combined reported spending for these "Eight Wackenhuts" reaches almost $1.3 Billion for the FY04-Q2FY08 period. All companies listed in the top ten exceed the $200 Million mark for reported spending.

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 FY04 - Q2FY08 - All Acquisition Strategies Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $1.33 Billion for FY04 through Q2FY08. Alutiiq International Solutions LLC had the highest reported spending with over $190 Million, or 14.20% of the market share. They are also listed 6th on the chart above. Parkstrip Rose Garden Hotel LLC was not too far below Alutiiq's level, with $184 Million. The remaining firms on the list were below $100 Million, but above $25 Million.

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 FY04 - Q2FY08 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

Over 43% of the contract dollars spend during the FY04 through Q2FY08 timeframe were awarded using full and open competition. This represented over $3.07 Billion for NAICS 561612. Over 37% of contracts during this period did not report their acquisition strategy. These contracts could include those awarded using full and open competition, small business set-aside, or any manner of restriction. This accounted for over $2.65 Billion in contract dollars. Contracts sole sourced to 8(a) firms held over 8% of the market share (over $619 Million). Competitive 8(a) contracts were valued at almost $280 Million.

All other acquisition strategies combined were only 1.7% of the market share. The strategy with the highest reported contract spending was the combination effort of Small Disadvantaged Business (SDB) and 8(a) and HUBZone - with over $65 Million.

Acquisition Breakout under NAICS 561612 - FY04 through Q2FY08 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 of $4.97 Billion and contracts for locations outside the United States total over $2.28 Billion. The map below illustrates the distribution of locations within the United States (only). For example, there are 10 states that are shaded dark blue. This means that these states have reported contract spending between $93 Million and $671 Billion.

The state with the highest total of reported contract spending is Texas, with $670 Million - which equated to about 9% of the market share under NAICS 561612 for the period of FY04 through Q2FY08. Washington, DC, Tennessee, South Carolina and North Carolina rounded out the top five and all reported spending above $400 Million.

Contract Place of Performance under NAICS 561612 (FY04-Q2FY08) Source: epipeline's Contract History Plus*
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