sr-051110-1bCity Council Meeting: May 11, 2010
Agenda Item: ~'~'
To: Mayorand City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Contract for Security Guard Services
Recommended Action
Staff recommends that City. Council authorize the City Manager to negotiate and
execute a contract with U.S. Security Associates, Inc. in the annual amount of $336,000
for security guard services at the Big Blue Bus facility, with two 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. is recommended to control
access to the yard at all times to ensure a secure working environment during Big Blue
Bus business hours at an annual cost of $336,000 per year. Big Blue Bus maintenance
operations are performed on a 24R basis and the security service ensures effective
cohtrol of all access points to the facility at all times employees are present.
Background
Consistent with information provided to Council on January 17. 2009 staff has
considered the following standards in formulating this recommendation:
1. Pooling of contracted employees would provide significant benefits that City
staffing could not provide.
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.
1
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
At its February 23, 2010 meeting, Council directed staff to award Bid No. 2985 to U.S.
Security Associates, Inc. to provide security guard services at the BBB facilities, in the
amount of $177,048 for the remainder of FY2009-10 and to bring the item back to
Council prior to exercising renewal options.
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.
Use of contracted staff for this service is consistent with the City's adopted outsourcing
criteria. Security services performed under the proposed contract require training and
technical expertise that are outside of the department's core mission of public transit
2
service delivery. An outside security contractor has much greater ability to allocate
staffing resources quickly and efficiently to respond to personnel turnover or when
BBB's needs change. Additionally, the contracted function has minimal interaction with
transit customers, as its primary responsibility is to provide security for employees and
vendors who require access to BBB's facilities.
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
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 to continue to provide security services
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 $558,064 per year. In .addition, the ongoing annual training expenses,
3
uniform service and equipment are $44,025 for yearly total of $602,089. This is 46%
higher than U.S. Security Associates, Inc.'s costs. In-house costs for years two through
three are estimated at 47% and 49% higher than those of U.S. Security Associates. The
continued utilization of contracted services allows for more effective and efficient use of
resources and is consistent with policy of supplementing, rather than supplanting,
permanent City positions.
Annual Contracted Versus In-House Cost Comparison
U.S. Security In-House* Difference % Difference
FY2010-11
$335,778.56 $620,151.67 ($284,373.11) -46%
FY2011-12
(optional) $335,778.56 $638,756.22 ($302,977.66) -47%
FY2012-13
.(optional) $335,778.56 $657,918.91 ($322,140.35) -4g%
`AtlJustetl to inclutle estlmatetl annual inflation of 3% for wages, training,
equipment and 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 July 1, 2010. The contract
amount to be awarded to U.S. Security Associates, Inc. is $336,000. Funds are
included in the FY2010-11 budget at account 41670.555020. Budget authority for future
4
years. will be included in the respective proposed budgets for Council's review and
adoption.
Prepared by: AI Davis, Transit Safety and .Security Officer
Approved:
Forwarded to Council:
.`
St nie Negriff
D ect r of Transit Service
Rod Gould
City Manager
Attachments: Attachment A -Top 5 Vendor Proposals
Attachment B -Contract vs. In-House Services Cost Comparison
5
> , Purchasing Secticn
1717 Fourth Street, Suite 250
............ Santa Monica, CA 90401
Telephone: 310-458-8281
Fax: 310J93-6142
10!20!2009
$'~vYy g J.u ~.
Attachment A
Bid Results
BID # 2985
TITLE: provide on-site security guard services at the Big Blue Bus.
The Alpha & Omega Group Security ' Barry's Security Services, Inc. : Califarnia$anther Security, Inc. GEED Security Services, Inc. aLS, Security Associates, Inc.:
Velt(tOP
Inglewood Riverside, CA Los Angeles CA Los Angeles, CA `West Covina, OA
PerlOd 1 (TBD - 6/30/10)
Hourl
Rate Weekly Rate
Notes
Hourly Rate Weekly Rate (hrs/wk
Notes
Hourly Rate Weekly Rate (hrslwk X
Notes
Hourly Rate Weekly Rate
Notes
Hourly Rate Weekly Rate
Notes
Classification Weekly Hours y (hrs/wkXrate) Xrate) rate) (hrsNuk Xrate) (hrshvkXrdle)
128 HOURS
Guard (24 hours!? $ 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
(fith SVeet) 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
(lam - 3pm)
$ 13.97
$ 558.80
$ 16.42
$ 656.80
$ 15.49
$ 619.60
$ 16.97
$ 678.80
$ 17.03
$ 681.20
(7th Street)
Man-Fri
168 HOURS
Underground parking swcture (2q hours/7 $ 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
168 HOURS
Addfl guard during constmction (24 hours/7 $ 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
WeekrySuhtotal $ 7,639.68 $' 8;964.48 $ 8,482.56 $ 9,27Y:68 $ 9,318.32..
PBrtoit 1`fgtat(w
2~~
ek/~stiDX :'f48 6~'t 68
`f
~ 233
07648
$ "' :: 220
546:56:
$=,'„' 063`S:6
~ 241 $ 242
27ti.32
e
, . ...... . ... . ..
„ ,
., ., ,
. , ,
,
Security Ofcer
' $ 13.97 $ 16.42 $ 15.49 $ 16.97 $ 17.03 TBD
(Additional,
rf required)
- Payment terms tliscomit N/A $ (4,661.53) N/A N/A N/A
1 % Local Vendor Preference N/A - N/A N/A N/A N/A
Period 1 total after discount(s) $ 198,631.68 $ 228,414.95 $ 220,546.56 $ ~ 241,063.68 $ 242,276.32
PerlOd 2 (7/1/10 - 6/30/11)
H
l
R
t Weekly Rate
Notes
Hourl
Rate Weekly Rate (hrslwk
Notes
Hourl
Rate Weekly Rate (hrslwk X
Notes
Hourly Rate Weekly Rate
Notes
Haudy Rate Weekly Rate
Noes
Classification Weekly HOarS our
y
a
e (hrs/wkX rate) y X rate) y mte) (hrslwk X mte) (hrsAVk X rate)
728 HOURS
Guard (24 hours/7 $ 15.79 $ 2,021.12 $ 16.97 $ 2,172.16 $ 17.03 $2,179.84
Security da s/week
(6th Street) 4D HOURS
Super-visor (lam-3pm) - $ 17.23 $ 689.20 $ 17.97 $ 718.80 $ 18.38 $ 735.20
Mon-Fn Living wage increase plus same % Increase the same % as CPI or % of -
secunly Guara 4g HouRS. increase as LWR Living Wage
(7th Street) (lam-3pm) $ 15.79 $ 631.60 $ 16.97 $ 678.80 $ 17.03 $ 681.20
Moo-Ftl
168 HOURS.
Underground parking structure (24 hours n $ 15.79 $ 2,652.72 $ 16.97 $ 2,850.96 $ 17.03 $ 2,861.04
tla s/week
Weekly5ubiotal $ = $ - $ 5;994:64 $ 6,420.72 $ 6,457:28
° Pet<iod2'totaffw?ekrt!sUtrxs^+) $.;:: ? -: ,,$. ...:
„s",. C , $ ,'r 311°7~'1>2$ "$ 33877!14
, ,.$ 33578.56;
> ~, ,
Security Officer Living wage increase plus same % increase as LWR Increase the same % as CPI or % of Living Wage $ 1$,79 $ 16 97 $ 17.03 TBD
(Additional, if requiretl)
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) $ - $ - $ 371,721.28 $ 333,877.44 $ 335,778.56
Z-t~m 1-g
Attachment B Security Service In House Cost Comparison FY2010-11 through FY2012-13
U.S. Security Associates. Inc In-House Cost Calculation (Estimated) for Years FY2010-FY2013 Not Adjusted for Inflation
Overhead-Includes hiring, training, payroll, personnel atlministratioghealth benefis,
uniforms, tools, safety equipment, antl vacation/sick/holitlay leaves.
Total
7ra(mn4 _.,,,
Bitl requires vendor to pmvitle trained 8 certified severity officer/guards. -
Total: $0.00
requires City to provitle working facilities, equipment antl storage space in either case
Vendor to provide uniforms.
Total
U.S. SecudtyASSOCia[es. Inc $335,778.56
E eKsonnel - _ , ,
Fully
Loatled
- #FTE's Weeks Cost (c) Value
Security Guards (a) 8 52 $2930 $48],552.00
Security Supervisors (b) 1 52 $33.90 $70,51200
Does not include any shift differential.
(a) The pay scale is basetl on the CSM Community Services Officer 1 posit ion (Step 2)
(b) The pay scale is basetl on Ue CSM Community Services Officer II posi tion (Step 2)
(c) Indutles salaries 8fringe benefits (36%) Total: $558,064.00
Tfaim09 Far POSEr!¢Rep's~ ., a-„ .. .. .. ~'x„
Ongoing annual training to maintain requiretl certifications. $15,000.00
Total: $15,000.00
WotkSpacelOffiEejStart UACOSt[~ _
- ,,, _ -
Month Cost Value
Working facilities, equipment and storage space similar whether services provided by
in-house employees or contractor
Total: $0.00
Ep6ipmentantl Mitenals s, _, , ,
~
~~ _
- - a
e -
Qty. Cost Valu
UniformService 9 $3,00000 $2],000.00
Safety Shoes 9 $200.00 $1,800.00
Flashlights 9 $25.00 $225.00
Total: $29,025.00
In-House Cost (Estimated) for Years 1-3 (Not Adjusted for inflation) $602;089.09
U.S. Secud In-House" Difference %Bifference
FY2010-2011 $335,778.56 $620,151.67 ($284,373.11) -06%
FY2011-2012 $335,77856 $638,756.22 ($302,97].66) -47%
FV2012-2013 5335,]]8.56 $657,91891 ($322,140.35 49%
Total $1,007,335.68 $1,916,826.80 $909,491.12 -07%
'In-house cost for Years f-3 are adjusted to include estimated annual inflation of 3%for wages, training, equipment 8 materials.
Period 3 (7/1/11 - s/3o/1z> Hourl
Rate Weekly Rate Notes Hourl
Rate Weekly Rate (hrslwk Notes Hourl
Rate W°ekly Rale (hrsN/k X Notes Hourl
Rate Weekly Rate Notes Hourl
Rate Weekly Rate Notes
Cl
ifi
ti W
kl
H y (hrs/wk Xrate) y Xrate) y rate) y (hrs/wkXrete) y (hrsAvkXrate)
ass
ca
on ee
y
OUrs
128 HOURS
Guam (2q hours/7 $ 16.10 $ 2,060.80 $ 16.97 $ 2,172:16 $ 17.03 $2,179.84
Security tla s/week
(6th Street) q0 HOURS
snper-visor pam-apm> The company increase pricing by the ° ° $ 17.57 $ 702.80 $ 17.97 $ 718.80 $ 18.38 $ 735.20
Mon-Fn %
th
Li
i
W
t
l
th Increase the same /° as CPI or /° of
qg Houles same
as
e
v
ng
age ra
e p
us
e
security Guam
(lam-apm) °
same /a as the Living Wage rate increase Living Wage
$ 16.10
$ 644.00
$ 16.97
$ 678.80
$ 17.03
$ 681.20
(7th Street)
Mon-Fri -
168 HOURS
Underground parking swcture (2q hours / 7 $ 16.10 $ 2,704.80 $ 16.97 $ 2,850.96 $ 17.03 $ 2,861.04
tla s / eek
Weekly Subtotal $ - $ - $, 6,112:40 $ -.6,420.72 $ -.6,457.28
" .;Feii4d3tnfat(wee(dysrttxs2) ;;$' _ . ., `; =; $ , ,. ._ . . , .: ..
~ $ : 3'[`f$448f?i $ 333,877:44
~ $.
t. 33577$516;
Security Officer The company increase pacing by the same % as the
(Adtlitional, if required) 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) $ - $ $ 377,844.80 $ 333,877.44 $ 335,778.56
Period 4 (7/1/12 - 6/30/13) Hourl
Rate Weekly Ra[e N
t H
l
R
t Weekly Rate (hrshvk N
t te
H
l
R Weekly Rate (hrslwk X Notes Hourl
Rate Weekly Rate Notes Hourl
Rate Weekly Rate N
t
i y
(hrslwk Xrate) o
es our
y
a
e
Xrate) o
es our
y
a
rate) y
(hrs/wk Xrate) y
(hrsAVkX rate) o
es
Classificat
on Weekly Hours
128 HOURS
Guard (2q hours/7 $ 16.43 $ 2,103.04 $ 16.97 $ 2,172.16 $ 17.03 $2,179.84
Security da s/weak
(6th Street) 4n HOURS
super-visor pam-apm) The company increase pricing by the ° ° $ 17.93 $ 717.20 $ 17.97 $ 718.80 $ 18.38 $ 735.20
Mon-Fn %
th
Li
i
W
t
l
th Increase the same /° as CPI or / of
qo HOURS same
as
e
v
ng
age ra
us
e p
e
secnnry Guard
pam-apm) °
same /° as the Living Wage rate increase Living Wage
- $ 16.43
$ 657.20
$ 16.97
$ 678.80
$ 17.03
$ 681.20
(7th Street)
Mon-Fri
168 HOURS -
Undergrountlparkingstructure (24 hours/7 $ 16.43 $ 2,760.24 $ 16.97 $ 2,850.96 $ 17.03 $2,861.04
tla s/week
Weekly Subtotal $. =' $ - $ 6;237:68 $ 6,420:72 $ .6;45728
Period4'tat3F(weehrys'ub fs~ „'$ ..,..:.'. .. .. ;: .$ ,.~'i .. ,,,.;v . ,. _: .,$ `3?.t4k359.3G $, ; . ' `.,.: 333,8?7:44 $., . 335,778:56::'.
Security Ofricer Tha company increase pricing by the same % as the Increase the same %es CPI or % of Living Wage $ 16.43 $ 16.97 $ 17.U3 TBD
(Atlditional, d requiretl) Living Wage rate plus the same % as the Living Wage
Payment terms discount N/A $ N!A WA N/A
1 % Lowl Vendor Preference N!A N/A N/A N/A N/A
Period 4 total a@erdiscorntrs) $ $ $ 324,359.36 $ 333,877.44 $ 335,778.56
Total of alt o periods (exdmmgaadmonatatficer-anerascoants) $ !: 198,631.85. $ 22$,414.95 $ 1,774,472.00` $ = 1,242,696.00 $ ! 1,249,812.00
PaymenF Terms Net 30 tlays 2 net 20 Nei 30 tlays 30 tlays Net 30
Statement or non collusion Complete Complete Complete Complete Complete
Atfdavi Complete Complete Complete Complete Complete
atllns requirements Can c°mpry Can comply Can comply Can comply Can compy
Oaks l°ItiaMe Complete Incomplei~ I~rcampiete Incomplete -- Complete
Living Wage Complete Complete Complete Notsubm fled( Complete
Personnel Information Provitletl Provitletl Provitletl Provitletl Provitletl
References Provitletl Provitletl Provitletl Provitletl Provitletl
Adtlentlum2 Complete Complete Complete Complete Complete
Addentlum Complete Complete Complete Complete Complete
Atldentlum4 Complete Complete Complete Complete Complete
Reference Contract No.
9208 (CCS).