sr-022310-1ec~®
City Council Report
City of
Santa Monica
City Council Meeting: February 23, 2010
Agenda Item: ~ "'~
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Award of Bid to U.S. Security Associates, Inc. to Provide Security Services
at Santa Monica's Big Blue Bus Facilities
Recommended Action
Staff recommends that City Council award Bid No. 2985 to U.S. Security Associates,
Inc. to provide security guard services at the Big Blue Bus facility in the estimated
amount of $177,048 for the remainder of FY2009-10, with three additional one-year
renewal options at a cost of $336,000 per year.
Executive Summary
The Big Blue Bus has contracted with a security service to provide daily coverage at the
facility since February 2002. U.S. Security Associates, Inc. will. control access to the
yard at all times to ensure a secure working environment during Big Blue Bus business
hours and perform security patrols at Blue: The Transit Store during the hours of store
operation at an annual cost of $336,000 per year. Big Blue Bus maintenance operations
are performed on a 24/7 basis and the security service ensures effective control of all
access points to the facility at all times employees are present.
Background
City Council held study sessions to review previous Council discussions and existing
policies on contracting. At the January 17, 2009 meeting Council considered. and
adopted criteria for contracting for public services. The following conditions for
outsourcing contracts apply to this staff report:
1. Pooling of contracted employees would provide significant benefits that City
staffing could not provide.
1
2. Service requires technical or special expertise that City staff could not or do not
provide, and is outside of core service mission of the department.
3. Service by contractor staff does not have significant interaction, communication
or engagement with the community and service is not expected to significantly
affect customer service provided.
4. Service would supplement City jobs by having contractors perform more labor-
intensive, rudimentary tasks, freeing up City employees to perform more skilled
functions. An accompanying reduction in work-related injury, public liability claims
and employee lost time would be expected.
Discussion
The Big Blue Bus has maintained a contract for on-site security since February 2002
based in part on recommendations made by the Federal Transit Administration's Office
of Safety and Security to secure public transportation properties and ensure the safety
of the transportation systems. Controlling access to the bus facility is necessary since
the maintenance function of the Big Blue Bus is performed on a 24/7 basis and buses
depart the yard as early as 4:30 a.m. and return as late as 1:00 a.m. Access control. at
all gates is essential to prevent trespassers from entering the property.
The security service will provide roving patrols during all hours and secure the vehicle
entrance to the bus yard and employee parking areas. The vendor will staff the property
to monitor access, identify and document visitors, patrol off-site locations and escort
employees to remote or subterranean parking locations. This patrol will also cover Blue,
the Transit Store.
Vendor Selection
In September 2009, the City published Notices Inviting Bids for security services to the
Big Blue Bus in accordance with City specifications. The bid was posted on Planet Bids
and notices were advertised in accordance. with City Charter and Municipal Code
provisions. Forty bids were received and publicly opened on October 20, 2009. Five of
2
the vendors were invited to present their proposals (see Attachment A). The vendors
made presentations to a committee of employees from different Big Blue Bus divisions
as well as Police Department personnel.
Vendor interviews were conducted and staff reviewed the general security experience,
the screening and training process, experience on similar public agency projects, and
list of references for the personnel who would be assigned to this project.
U.S. Security Associates, Inc. is recommended based on their understanding of the
project's scope- of service and the City's customer service expectations, extensive
training program, low employee turnover rate of one-fourth the security industry
average, practice of offering top wages and benefits, and use of information technology
to manage service quality.
A cost analysis has been completed to compare the economic impact of providing
security services in-house. The analysis shows that continuing to outsource security
services is the most cost-effective measure. As shown in Attachment B, the estimated
cost for providing security services in-house, including staffing, overhead, and
supervision is $292,980 the first year and $558,064 (not adjusted for inflation) in
remaining years. In addition, the ongoing annual training expenses, uniform service and
equipment are $56-,925 for a first year total of $349,905. This is 49% higher than U.S.
Security Associates, Inc.'s costs. In-house costs for years two through four are
estimated at 46% - 49% higher than those of U.S. Security Associates. The continued
utilization of contracted services allows for more effective and efficierit use of resources
and is consistent with policy of supplementing, rather than supplanting, permanent City
positions.
3
Annual Contracted Versus In-House Cost Comparison
U.S. Securi In-House** Difference % Difference
Year 7 $177,048.00 $349,905.00 ($172,857.00) -49%
Year 2 (optional) $335,778.56 $620,151.67 ($284,373.11) -46%
Year 3 (optional) $335,778.56 $638,756.22 ($302,977.66) -47%
Year 4 (optional) $335,778.56 $657,918.91 ($322,140.35) -49%
* Year 1 is based on a 19-week period. Year 2 , 3 & 4 are based on a 52-week
period.
** In-house cost for Years 2 through 4 are adjusted to include estimated annual
inflation of 3% for wages, training, equipment & materials.
The U.S. Security Associates, Inc. bid states that all work will be performed by four full-
time security guards every day, with afull-time supervisor on-site on weekdays and on-
call during weekends. The security services will be coordinated with the Santa Monica
Police Department by the Big Blue Bus Transit Safety and Security Officer. To avoid
any confusion, U.S. Security Associates, Inc. uniforms will be distinctly different from the
uniforms worn by City of Santa Monica police and safety employees. The security
guards will carry pepper spray, walkie-talkies and cell phones.
Financial Impacts & Budget Actions
If approved by Council, the contract would become effective March 1, 2010. The
contract amount to be awarded to U.S. Security Associates, Inc. is $177,048 for the
remainder of FY2009-10. There is sufficient funding in account 41670.555020 to cover
FY2009-10 costs. Budget authority for future years will be included in the respective
proposed budgets for Council's review and adoption. The MOE budget for FY2010-11 in
4
account 41670.555020 will be sufficient to cover the $336,000 annual cost of the
services
Prepared by: AI Davis, Transit Safety and Security Officer
Approved:
r
Ste ie Negriff
Dir cto of Transit Services
Forwarded to Council:
Rod Gould
City Manager
Attachments: Attachment A -Top 5 Vendor Proposals
Attachment B -Contract vs. In-House Services Cost Comparison -
Year One and Years Two through Four
5
~® Purchasing Section
1717 Founh Street, Suite 250
.......... Santa Monica, CA 90407
Telephone: 370-058-8287
Fax: 310-393-6142
Attachment A Bid Results
10/20!2009 BID # 2985
- TITLE: Provide on-site security guard services at the Biq Blue Bus
The Alpha &Omega Group Security Barry's Security Services, Inc.. California Panther Security, Ina CEED Security Services, Inc. U.S,Security Associates, Inc. :
Vendor -
= Inglewood Riverside, CA Los Angeles CA ` Las Angeles,'CA West Covina, CA
PerlOd 1 (TBD - 6/30/10)
H
l
R
t Weekly Rate
t
N
H
l
R
t Weekly Rale (hrs/wk
N Weekly Rate (hrs/wk X Weekly Rate Weekly Rate
our
y
a
e h
/
k X
t o
es our
y
a
e X
t otes Hourly Rate Notes Hourly Rate Notes Hourly Rate Notes
Classification Weekly Hours rs
w
ra
e
( ) ra
e
) rate) (hrs/wk X rate) (hrs/wk X rate)
728 HOURS
Guard (24 hours/7 $ 13.97 $ 1;788.16 $ 16.42 $. 2,101.76 $ 15.49 $ 1,982.72 $ 16.97 $ 2,172.16 $ 17.03 $2
179.84
Security da s/week ,
(6th SlreeQ 40 HOURS
Super-visor (lam-3pm) $ 14.97 $ 598.80 $ 17.22 $ 688.80 $ 16.89 $ 675.60 $ 17.97 $ 718.80 $ 18.38 $ 735.20
Mon-Fri
Security Guartl 40 HOURS
(7th Street) (lam-3pm) $ 13.97 $ 558.80 $ 16.42 $ 656.80 $ 15.49 $ 619.60 $ 16.97 $ 678.80 $ 17.03 $ 681.20
Mon-F'
166 HOURS
underground parking structure (24 hours/~ $ 13.97 $ 2,346.96 $ 16.42 $ 2,758.56 $ 15.49 $ 2,602.32 $ 16.97 $ 2,850.96 $ 17.03 $2,861.04
da s /week
768 HOURS
Addfl guard during construction (24 hours /? $ 13.97 $ 2,346.96 $ 16.42 $ 2,758.56 $ 15.49 $ 2,602.32 $ 16.97 $ 2,850.96 $ 17.03 $2,861.04
tla s/week
Weekly Subtotal $.. 7,639.68; $ .8;96448 $ 8482;56 $ 9,271'68 $ `:9,318.32
'' Period,l.tatal~vee`/dvsubxzsj °$ ;19$631:68; $ .; - :::. 233,UT64$ $= i "220,54fi.5G= $, 241,0,6,x.,68 $ 242,276;32':
Security Offcer
(Atltlitional, if requiretl)
$ 13.97
$ 16.42
$ 15.49
$ 16.97
$ 17.03
TBD
Payment terms discount N!A $ (4,667.53) N/A N/A N/A
1% Local Ventlor Preference N/A N/A N/A N/A N/A
Period 1 total aHerdiscount(s) $ 198,631.68 $ 228,414.95 $ 220,546.56 $ 241,063.68 $ 242,276.32
Period 2 (7/1/10 - 6/30/11)
H
l
R
t Weekly Rate
N
t
H
t
l
R Weekly Rate (hrs/wk
N
H
l Weekly Rate (hrs/wk X Weekly Rate Weekly Rate
our
y
a
e h
/
k X
t o
es our
y
a
e X
t otes our
y Rate Notes Hourly Rale Notes Hourly Rate Notes
Classification Weekly HOUrs rs
w
ra
e
( ) ra
e
) rate
) (hrs/wkXrate) (hrslwkXmte)
728 HOURS
Guard (24 hours/7 $ 15.79 $ 2,021.12 $ 16.97 $ 2,172.16 $ 17.03 $2
179.84
Security da s/wee ,
(6th Street) 40 HOURS '
Super-visor (lam-3pm) $ 17.23 $ 689.20 $ 17.97 $ 718.80 $ 18.38 $ 735.20
Mon-Fri Living wage increase plus same % Increase the same % as CPI or % of
secunry Guara bo HouRS increase as LWR Living Wage
(7th Street) (lam-3pm) $ 15.79 $ 631.60 $ 16.97 $ 678.80 $ 17.03 $ 681.20
Mon-Fd
168 HOURS
underground parking structure (24 hours/7 $ 15.79 $ 2,652.72 $ 16.97 $ 2,850.96 $ 17.03 $2,861.04
tla s / ee
Weekly Subtota l' - $ - $ 5,994:64 $ 6,420:72 $ 6;457:28'
sPertod'~totef(oyeefill%gub5C52~
~_ ... , =~ .' ,,'-~
. , , $ ..,
~ . ., ,.'~:.<. ;'.>',,37,'(:721.28i
.. .. $ ";33,3t877c44~
s , ;:. $ ,:'`.:. '°r=°:'33fi,77$.56~.
,.
.
Security Officer
(Atltlitional, if requiretl) Livm wa a increase lus same % increase as LWR
g g p Increase the same % as CPI or % of Livin Wa e
g 9
$ 15.79
$ 16.97
$ 17.03 .
TBD
Payment terms discount N/A $ - N/A N/A N/A
1% Local Vendor Preference N/A N/A N/A N/A N/A
Period 2 total after discount(s) $ - $ - $ 311,721.28 $ 333,877.44 $ 335,778.56
Period 3 (7/1/11 - 6/30/12)
H
l
t
R Weekly Rate Weekly Rate (hrs/wk Weekly Rate (hrs/wk X Weekly Rate Weekly Rate
our
y
a
e hrs/wkX rate
( ) Notes Hourly Rate
X
t Notes Hourly Rate Notes Hourly Rate Notes Hourly Rate Notes
Classification Weekly HOUS ra
e) rate) (hrsAvkXrate) (hrsN/kX rate)
128 HOURS
Guard (24 hours/7 $ 16.10 $ 2,060.80 $ 16.97 $ 2,172.16 $ 17.03 $2,179.84
Security dos/week
(fish Street) 40 HOURS
super-visor pam-apm) The company increase pricing by the $ 17.57 $ 702.80 $ 17.97 $ 718.80 $ 18.38 $ 735.20
Mon-Fn %
h
Li
i p n
Increase the same /n as CPI or /p of
40 HOURS same
p as t
e
v
ng Wage rate plus the
Security Guard
7th St
t
pam-apm)
same % as the Living Wage rate increase Living Wage
$ 18
10
$ 644
00
$ 16
97
$ 678
80
$ 97
03
$ 681
20
(
ree
) Moo-Fn . . . . . .
168 HOURS
Underground parking stmcture (24 hours/7 $ 16.10 $ 2,704.80 $ 16.97 $ 2,850.96 $ 17.03 $2,861.04
da s/wee
:. Weekly Subtotal $ - $ $ 6,112.40 $ 6,420,72 $ 6;457128
~: ~. period 3stotalr(yve~f4ysus3(5~ .,~'.,;~. ~ .., ~ `. ' „ ~, ~,,., ~:'.. ,. v. ~$:;~., ~..,`. ~".~,,31?.8~#4:8~ $,~~;;~.~: 333;837.'4'4 `$,~.:r'-.+.' "::335x'378.6'..
Security Officer The company increase pricing by the same % as the
(Atlditional, if requiretl) Living Wage rate plus the same % as the Living Wage Increase the same % as CPI or % of Living Wage $ 16.10 - $ 16.97 $ 17.03 TBD
rate increase
Payment terms discount N/A $ - N/A N/A N/A
1% Local Vendor Preference N/A N/A N/A N/A N/A
Period 3 total after discount(s) $ - $ - $ 317,844.80 $ 333,877.44 $ 335,778.56
Period 4 (7/1/12 - 6/30/13)
H
l
R
t Weekly Rate
N Weekly Rate (hrslwk Weekly Rate (hrs/wk X Weekly Rate Weekly Rate
our
y
a
e hrs/wk X rate
( ) otes Hourly Rate
X
t Notes Hourly Rate Notes Hourly Rale Notes Hourly Rate Notes
Classification Weekly HOUrs ra
e) rate) (hrs/wkXrate) (hrs/wkXrate)
128 HOURS
Guartl (24 hours/7 $ 16.43 $ 2,103.04 $ 16.97 $ 2,172.16 - $ 17.03 $2,179.84
Security da s/week`
(fith Street) 40 HOURS
super-visor pam-apm) The company increase pricing by the $ 17.93 $ 797.20 $ 17.97 $ 718.80 $ 18.38 $ 735.20
Mon-Fd
same % as the Living Wage rate plus the o
Increase the same / as CPI or % of
security cnara
7th st
t 4o HouRS
lam-a m
( p > same %p as the Living Wage rate increase Living Wage
$ 16
43
$ 657
20
$ 16
97
$ 678
80
$ 17
03
$ 681
20
(
ree
) Mon-Fri . . . . . .
168 HOURS
Untlergmuntl parking stmcture (24 hours / 7 $ 16.43 $ 2,760.24 $ 16.97 $ 2,850.96 $ 17.03 $ 2,861.04
da s/wee
.Weekly Subtotal $ - $ - $ '. 6 237:68 $ 6,420:72 $ 6,457>28.
Petdd`4;totah'(week7x~u~X~s2~ >`$ ;~' ~ ( = $ ~ 5.. ~ , 324,359,3fi $ ~ 333,877:44 $ ., ;~ 335~~77856.
Secuniy Officer The company Increase pricing by the same % as the W
(Additional, if required)
Living Wage rate plus the same % as the Living Wage Increase the same % as CPI or / of Livin
a e
g g
$ 16.43
$ 16.97
$ 17.03
TBD
Payment terms discount N/A $ - N/A N/A N/A
1% Local Vendor Preference N/A NIA N/A N/A N/A
Period 4 total after discount(s) $ $ - $ 324,359.36 $ 333,877.44 $ 335,778.56
7ptal Of all4 periods (exuua ng aEddronal orccer aver a~scounts) $ 198,631,6$ $ 228,474.95 $ 1,174,472.OU $ 9,242,696100 $ 1,249,612:00`
Payment Tertns Net 30 tlays 2net 20 Net 30 days 30 tlays Net 3o
Statement o(non collusion Complete Complete Complete Complete Complete
Affidavit Complete Complete Complete Complete CompleVe
Bulns requirements Can comply can compy Can comply Can comply Can comply
Oaks Initiative Complete Incomplete 'iancomplete ~ Incomplete:. Complete
Living wage Complete Complete Complete Notsubm ttetl Complete
Personnel Information Provitletl Provitletl Provided Providetl Pmvitled
References Provitletl Providetl Providetl Providetl Provitled
Atltlendum 2 Complete Complete CompleVe Complete Complete
Atltlentlum 3 Complete Complete Complete Complete Complete
Atldentlum4 Complete Complete Complete CompleVe Complete
Attachment B
Contract vs. In-House Services Cost Comparison
(Bid#2925)
U.S. Security Associates. Inc In-House Year 1 (19 weeks)
Training' .. ' - ,_>)
eitl requires vendor to provide trained & certified security officer/guards.
Total: $0.00
i requires City to provide working facilities, equipment and storage space
either case
requires Vendor to provide uniforms.
U.S. Securi Associates. Inc $177,048.00
Personngl , ;
.
..
.~
~
~
~„
+ '
..
3
~
-
-
_
.
._
,
... ... _
_ .w..-_
, .
,
Fury . _..,.
Loaded Cost
# FTE's Weeks (c) - Value
Security Guards (a) 12 19 $29.30 $267,216.00
Security Supervisors (b) 1 19 $33.90 $25,764.00
Does not include any shift tlifferentiaL.
(a) The pay scale is based on the CSM Commu nity Services Officer I position (Step 2)
(b) The pay scale is based on the CSM Commu nity Services Officer II position (Step 2)
(c) Includes salaries & fringe benefits (36%) Total: $292,980.00
:~~bnan-N,tbl„~'ost.JS9,Rgks~ ~.„..,.~_ .....~,.. >. .t.u. .. __.~,....._.'
Ongoing annual training to maintain required certifications. $15,000.00
Total: $18,000.00 '.
facilities, equipment and storage space
employees or contractor
U.S. Securi In-House Diference % Difference
$177,048.00 $349,905.00 $172,857.00 -49%
In-House Cost Estimated for Year 1: $349,905.00
U.S. Security Associates. Inc
1 $UPBNISar
Protection Services
-Includes hiring training, Payroll, personnel administration, health benefits,
tools, safety equipment, antl vacation/sicklholitlay leaves.
Total
fF$IRipfls.. . , ! i ._w..,.n S ..,,... a ~. r ~....,,. ~ ., .~ .~ ........_
aid requires ventlor to provitle trainetl & cedifietl security officerlguartls.
Total: $0,00
requires City to provide working facilities, equipment antl stoage space in either case
Bitl requires Vendor to provitle uniforms.
In-House Cost Calculation (Estimated) for Years 2-4 Not Adjusted for Inflation
Security Guartls (a) B 52 $29,30 $467,552.00
Security $upe[visors (b) 1 52 $33.90 $70,512.00
Does not inclutle any shift tlifferential.
(a) The pay scale is basetl on the CSM Community Services Officer I position (Step 2)
(b) The pay scale is basetl on the CSM Community Services Officer II position (Step 2)
(c) Includes salaries 8 fringe benefits (36%) Total: $558,064:00
annual training to maintain required certifications.
$15,000.00
facilities, equipment antl storage space similar whether services
employees or contractor
$eNICe
9 $200.00 $1,800.00
s $zs.6o $zzs,oo
Total' $2902500
U.S. Security Associates. Inc $315,]]8.56
In-House Cost (EStimated)for Veers 2-4 (NO[Atljusted for inflation) $602,069.00
O.S. Securit In-Hause" Difference % pifference
Vear1 $1]7,048.00 $349,905,00 ($172,85200) -49%
Year2 (optional) $335,778.56 $620,151.67 ($284,373.11) -06%
Vearl(optional) $335,778.56 $638,756,22 ($302,977.66) -q7%
Vear4(optlonal) $335,778.56 $657,918.91 ($322,140.35) -49%
Total $1,184383.6(1 $2,266,]31.80 $1,082,348.12) -06% '
'Year 1 is based an a 19-week period. Year 2, 3 8 4 are basetl on a 51-week period.
'""/n-house cost /or Years 2 through 4 are adjusted to inclutle estimated annual in/lation o13% Pot wages, training, equipment & materials.