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NAICS NewsletterMarch 22, 2007

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 FY03 through FY06 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
  • 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 $17.0 Million (effective July 31, 2006), which means that a company, including its affiliates, would be considered a "small business" if their average annual gross revenue does not exceed $17.0 Million for the past three years.

Total reported spending under NAICS 561612 in FY03 was over $1.55 Billion. FY04 saw a slight decrease, to over $1.50 Billion. Even though spending for FY05 and FY06 is not as widely reported as the previous fiscal years, FY05 saw an increase to over $1.74 Billion. While FY06 has only reported $1.28 Billion so far, this may increase as more departments and agencies report their contract spending.

WHO ISSUES THE CONTRACTS?

The Department of Defense (DoD) was the largest buyer for these services for the last four fiscal years (FY03 through FY06), with over $1.53 Billion in contract spending, comprising over 25% of the market share for NAICS 561612. This value may include all components of the Defense Department (Army, Navy, Air Force, DLA, etc.), however, FY05 and FY06 contract dollars have not been as widely reported yet (at least as far as FPDS data).

The Department of State was a close second, with just under $1.50 Billion over the same period. The Department of Energy (DOE) and the Department of Homeland Security (DHS) held almost the same market share, with DHS reporting only about $10 Million less than DOE. The Justice Department rounded out the top five.

Top 10 Federal Agencies by % of Total Market FY05 through FY09 for NAICS 561612

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 169 GSA Schedule 084 holders that provide services under SIN 246 54, Guard Services. 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 six or more firms. The 16 gray-shaded states have no schedule holders under that SIN. 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 GSA Schedule 084 (SIN 246 54) Holders

WHO WINS THE CONTRACTS?

According to the Central Contractor Registry (CCR), there are 2,341 companies registered under NAICS 561612 (source: active registrants, www.ccr.gov as of 03/16/2007). Of this number, 1,945 qualify as small businesses. The two charts below identify the top 10 Companies, by market share, for the period of FY03 through FY06. 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 following acquisition strategies:

  • 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, Inc., holds the top spot, by a large margin, on the unrestricted competition list, with over $800 Million in total contract dollars for FY03 through FY06 - over 23% of the market share. The second spot is held by DynCorp International, LLC. Their contract dollars for the same period was almost $450 Million. Blackwater Security Consulting, Akal Security Inc., and Pond Security Service GMBH hold the remaining spots in the top five, all with over $200 Million reported spending. Along with the top ten, three additional firms had reported spending for that period of over $100 Million: USProtect Corporation, SecTek Inc., and ITT Federal Services International. Another 67 firms' reported contract dollars was at least $10 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 FY05 through FY09 - Unrestricted

The combined contract spending for contracts awarded under "restricted competition" totaled over $768 Million for FY03 through FY06. Alutiiq Security & Technology, which held the 8th spot in the chart above, takes top honors on the next chart, with over 15% of the restricted contract spending, which equates to over $116 Million. Chenega Integrated Systems LLC and Deco Inc. hold a bit more than half Alutiiq's market share, with under 9%. Chenega Integrated Systems having the edge with over $66 Million to Deco's $66 Million. Another Chenega firm holds the 9th spot on the list, but as the separate company, Chenega Technical Products LLC.

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 FY05 through FY09 - RESTRICTED Competition

HOW ARE THESE CONTRACTS PROCURED?

A significant percentage of contracts with spending during the FY03 through FY06 timeframe under NAICS 561612 did not report their acquisition strategy. This could include contracts awarded using full and open competition, small business set-aside, or any manner of restriction. This accounted for over 60% of the market share - almost $3.7 Billion in contract dollars. Full and Open (unrestricted) competition held 26% of the market share, equating to almost $1.6 Billion. Businesses of any size and type can compete for these contracts. By comparison, contract dollar totals for this period for all other acquisition strategies combined, was about half that, with over $800 Million. The breakout of this segment of reported acquisition strategies is described in the second pie chart below.

Acquisition Breakout under NAICS 561612 for FY03 through FY06

Over 45% of contract dollars (from the 'All Other Strategies' described in the chart above) were sole sourced to 8(a) firms (this may include those sole sourced to Alaska Native Corporations). This represented almost $370 Million in reported contract spending over the FY03-FY06 period. Almost one-fourth of the market share was held by contracts that were set-aside for small businesses. 8(a) competitive procurements held over 20% of the market share and HUBZone set-aside requirements represented over 6%. All other reported acquisition strategies were below 1% of the market share.

Acquisition Breakout (Other than Full and Open) under NAICS 561612 for FY03 through FY06

Source: epipeline's Contract History Plus*

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