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NAICS Newsletter October 16, 2012

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 FY08 through FY12 for NAICS 561612

WHAT IS NAICS 561612?

This U.S. industry comprises establishments primarily engaged in providing guard and patrol services, such as bodyguard, guard dog, and parking security 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 earnings do not exceed $18,500,000 for each of the pay periods for the preceding completed 12 calendar months.

Total reported spending under NAICS 561612 for the period of Fiscal Year 2008 (FY08) through Fiscal Year 2012 (FY12) was almost $20 billion. FY12 reported spending of $3.3 billion for services under NAICS 561612. The chart below illustrates the reported** spending by year for FY08 through FY12.

Reported Contract Spending for NAICS 561612 FY08 through FY12

Source: epipeline's Contract History Plus*

WHO ISSUES THE CONTRACTS?

The Department of the State was the largest procurer for these services for the last five fiscal years (FY08 through FY12), with more than $4.5 billion in contract spending, comprising 23.2% of the market share for NAICS 561612. The Office of the Secretary of Defense took the second spot, with $3.9 billion in reported spending for this period. Immigration and Customs Enforcement and United States Marshals Service took third and fourth places, respectively, making up a combined market share of over 15% for all spending in NAICS 561612.

The Army and TSA spent $1.4 billion and $482 million respectively during this time period with the rest of the top ten reporting spending just over $1.1 billion for NAICS 561612.

Top 10 Federal Agencies by % of Total Market FY08 through FY12 for NAICS 561612

Source: epipeline's Contract History Plus*

WHO WINS THE CONTRACTS?

The two charts below identify the top 10 Companies, by market share, for the period of FY08 through FY12. 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

Triple Canopy achieved the top spot on the unrestricted competition list, with over $1.4 billion in contract dollars for FY08 to FY12 and more than 7% of market share. Wackenhut Services landed over $1.1 billion in contract dollars with Akal Security also earning roughly $1.1 billion. Paragon Systems Inc, and The Wackenhut Corporation both topped $1.1 billion. Five additional firms, MVM, Coastal International Security, Security Consultants Group, Inc, Blackwater Lodge and Training Center, and Intercon Security Systems, topped $500 million in contracting dollars for this 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 FY08 through FY12 - All Acquisition Strategies

Source: epipeline's Contract History Plus*

The combined contract spending for contracts awarded under "restricted competition," as outlined above, totaled over $2.3 billion for FY08 through FY12. TW Company takes the top spot, with reported spending of over $300 million for this period, or almost 13% of market share. Ahtna Government Services Corporation secured more than $161 million in contracting dollars for this 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 reflected in the chart below.

Top 10 NAICS 561612 Contractors by % of Total Market for FY08 through FY12 - Restricted Competition

Source: epipeline's Contract History Plus*

HOW ARE THESE CONTRACTS PROCURED?

82% of contract spending reported for the FY08 through FY12 timeframe under NAICS 561612 used full and open (unrestricted aka "N/A") competition. This equated to over $16 billion. Contracts that did not indicate their acquisition strategy (which means they could represent any acquisition strategy) reported contract spending of almost $1 billion. Competitive 8a and Small-Business set-aside procurements both topped $500 million.

Acquisition Breakout under NAICS 561612 for FY08 through FY12

Source: epipeline's Contract History Plus*

WHERE ARE THESE CONTRACTS PERFORMED?

These contracts are being performed across the United States with a reported spending for the FY08 through FY12 period of $12.7 billion.

The highest total of reported contract spending is reported for the District of Columbia, with $2 billion. Texas ($1.5 billion) and California ($1.1 billion) took the second and third spots. Together, the top five states represent over 33% of market under NAICS 561612. Besides those in the top ten, one addition state, Missouri, reported at least $300 million for NAICS 561612 during this time period.

Contract Place of Performance under NAICS 561612 for FY08 through January 2011

Source: epipeline's Contract History Plus*

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