sr-042611-3cCity Council Meeting: April 26, 2011
Agenda Item: 3G
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Big Blue Bus Facility Security Guard Services
Recommended Action
Staff recommends that the City Council award Bid No. 3019 to ABM Security, Ino. a
California-based company, for security guard services at the Big Blue Bus for FY 2011-
12 at a cost of $354,931, with three additional one-year renewal-options at a total cost
of $1,514,469.
Executive Summary
The Big Blue Bus facility is operational on a 24/7 basis and security services are
necessary to ensure effective control of access points to the bus yard at all times. The
Big Blue Bus has contracted- its onsite security services since February 2002. ABM
Security Services, Inc. is recommended to perform these services at an annual cost of
$354,931 for FY 2011-12 and a total cost of $1,514,469 if all three options are granted
by the City.
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.
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.
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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 May 11. 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. Since
Council approval it was determined that a larger security staffing plan was needed to
meet the needs of the agency than was bid. U.S Security Associates, Iric. has been
providing service under a purchase order until this bid could be awarded.
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.
Discussion
The security service would provide roving patrols during all hours and secure the
vehicle entrance to the bus yard and employee parking areas. The vendor would 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. Additionally, 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. Currently there are no in-house personnel within the department
with the training or expertise to provide security services as these functions are outside
of the scope of standard transit operations.
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Vendor Selection
In January 2011, the City published Notices Inviting Bids to provide security guard
services for the Big Blue Bus in accordance with City specifications. The bid was posted
on the City's on-line bidding site, Planet Bids, and notices were advertised in the Santa
Monica Daily Press in accordance with City Charter and Municipal Code provisions.
Forty bids were received and publicly opened on February 10, 2011. Bids were
evaluated based on the overall pricing provided in the submitted bids. The top ten
vendors (Attachment A) were interviewed by a panel consisting of two Santa Monica
Police Officers, a Motor Coach Supervisor and the Transit Maintenance Manager. Only
the top three scoring companies were invited to a second interview.
ABM Security Services, Inc. received the highest score of all the bidders. They are
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, 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 with contracted services. 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 $633,360 the first year. In addition, the ongoing
annual training expenses, uniform service and equipment are $47,250 for a first year
total of $680,610. This is 48% higher than ABM Security Services, Inc.'s costs. In-
house costs for years two through four are estimated at 46%-47% higher than those of
ABM Security Services, Inc. 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.
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Annual Contracted Versus In-House Cost Comparison
ABM Security In-House* Difference % Difference
Year1 $354,931.20 $680,610.00 ($325,678.80) ~8%
Year2(optional $371,467.20 $701,028.30 ($329,567.10) -47%
Year3(optional $388,398.40 $722,059.15 ($333,660.75) s16%
Year4(optional $399,672.00 $743,720.92 ($344,048.92) 1t6%
Total ~ $1,514,468.80 $2,847,418.37 ($1,332,949.57) ~7%
In-house cost for Years 2 through 4 are adjusted to include estimated annual information of 3% for
wages, training, equipment & materials.
The ABM Security Services, 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, ABM Security Services, 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
The FY 2011-12 contract amount to be awarded to .ABM Security Services, Inc. is
$354,931. Funds will be included in the proposed FY 2011-12 Budget at account
41670.555020. Budget authority for subsequent years will be requested in each annual
budget cycle for Council approval.
Prepared by: AI Davis, Transit Safety and Security Officer
Approved:
Forwarded to Council:
Ste lig nie Negriff ~ Rod Gould
Dir c%tt~or of Transit Services City Manager
Attachments: Attachment A -Pricing
Attachment B -Annual Contracted Versus In-House Cost
Comparison
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ATTACHMENT A PRICING
FY2011-12 Option
Year 1 Option
Year 2 Option
Year 3
Guard Supervisor "Guard Supervisor Guard Supervisor Guard Supervisor
ABM Security Services, Inc. $16.85 $ 18.99 $ 17.64 $ 19.83 $ 18.45 $ 20.68 $ 18.99 $ 21.24
American Guard Services, Inc. $16.49 $ 17.38 $16.49 $ 17.38 $16.49 $ 17.38 $16.49 $ 17.38
California Panther Security (CPS) $16.89 $ 17.50 $16.89 $ 17.50 $16.89 $ 17.50
$16.89
$ 17.50
Cisco Security $16.45 $ 17.45 $16.45 $ 17.45 $16.45 $ 17.45
$16.45
$ 17.45
Commonwealth International, Inc. $16.98 $ 17.98 $17.82 $ 19.84 $17.82 $ 19.84 $17.82 $ 19.84
General Security Services, Inc. $16.95 $ 18.11 $0.00 $ - $0.00 $ - $0.00 $ -
HighQualitySecurity* $16.50 $ 17.75 $16.50 $ 17.75 $16.50 $ 17.75 $16.50 $ 17.75
Metro Patrol Services $14.00 $ 16.00 $14.00 $ 16.00 $15.00 $ 17.00
$15.00
$ 17.00
Millennium Security Services, Inc. $16.95 $ 17.95 $17.45 $ 18.45 $17.95 $ 18.95 $18.45 $ 18.45
U.S.SecurityAssociates $16.59 $ 19.51 $16.59 $ 19.51 $16.59 $ 19.51 $16.59 $ 19.51
* Proposal withdrawn by vendor
Attachment B
Contract vs. In-House Services Cost Comparison
ABM SECURITY, INC. FY2011-12
Fully Loatletl
#FTE's Weeks HrslWk Cost lc) Value
Guards 9 52 40 $76.85 $315,432.00
or 1 52 40 $18.99 $39,499.20
d -Includes hiring, training, payroll, personnel administration, health
uniforms, tools, safety equipment, and vacation/sick holiday leaves.
Total: $354.931.20
FY2O11.12
In-House
Fully Loatletl
#FTE'S Weeks Hrs/Wk Cost (c)
Security Guards (a) 9 52 40 $29.98
Security Supervisors (b) i 52 40 $34.68
Does not include any shift differential.
(a) The pay scale is based on the CSM Community Services Officer I position (Step 2)
(b) The pay scaleis based on the CSM Community Services Officer II position (Step 2;
(c) Includes salaries & fringe bene0ts (36 %) Total:
d requires vendor to provide trained & certi0ed security officer/guards.
Total: $0.(
eid requires Cily to provide working facilities, equipment and storage space
in either case
Total:
Bid requires Vendor to provide uniforms.
Total:
Grand To[al: $354,931.20
$72,134.40
annual training to maintain required wrtifcations.
To[al:
$15,000.00
facilities, equipment and storage space
employees or contractor
~aaAm~~S»n~M~Rri~l~ i '
_. ~~.,~ ,.~
Qty. ~,~,
u ~,~~ s_
Cost ~~~Vatue
Uniform Service 10 $3,000.00 $30,000.00
Safety Shoes 10 $200.00 $2,000.00
Flashlights 10 $25.00 $250.00
Total: $32,250.00
Grano Total: $680,610.00
ABM Securi Services, Inc In-House Difference % Difference
$354,931.20 $680,610.00 $325,678.80 -48%
Attachment B
Contract vs. In-House Services Cosl Comparison
ABM SECURITY, INC.
Option Years 2-4 In-House Cost Calculation (Estimated) for Years 2-4 (Not adjusted for inflation)
2 #FTE's Weeks HrslWk
ty Guartls 9 52 40
risor 1 52 40
:ad -Includes hiring, training, payroll, personnel atlministralion, health
s, uniforms, tools, safety equipment, and vacatioNSick/holitlay leaves.
Fully Loaded
Cost (c) Value
$17.64 $330,2:
$19.83 $41,2
Total: $371,4f
3 #FTE's Weeks HrsNyk Cost (c) Valua
:y Guards 9 52 40 $18.45 $345,384.00
visor 1 52 40 $20.68 $43,014.40
ratl -Includes hiring, training, payroll, personnel atlministration, hea8h
s, uniforms, tools, safety equipment, and vacationlsicklholitlay leaves.
4 #FTE's Weeks HrslWk Cost (e
y Guards 9 52 40 $18.99
~isor 1 52 40 $2124
~atl - Includes hiring, training, payroll, personnel administration, health
s, uniforms, tools, safety equipment, antl vacation/sick/holiday leaves.
$44,179.20
Fe~~,Q~...`'< a .. vus u..... S.i id 1 .. .,..... 1
if .
- w
. ...
FUlfy
Loaded
#FTE's Weeks Cost (c) Value
Security Guards (a) 9 52 $29.98 $561,225.60
Security Supervisors (b) 1 52 $34.68 $]2,134.40
Does not include any shift tliHerential.
(a) The pay scale is based on the CSM Community Services Officer I position (Step 2)
(b) The pay scale is based on the CSM Community Services Officer II position (Step 2)
(c)Inclutles salaries8fringe benefits(36°O/a) Totah $633360.00
Trd1019 t2FE(3stf(191,#e8#~..3 _u.W e.w .,.~:... ~., ... . r<x,w .". `~~
Ongoing annual training to maintain requiretl cedificafions, $15,000.00
Total: $15,000.00
VLoYk BR~cti!~g4lhStfrr?_QA.5net1 ......,_,;s 4r ~v.._..'s.+ ~. 'o L s.:......w,7:.''
Month Cost Value
Working facilities, equipment antl storage space similar whether services pmvitled by
in-house employees or contractor
Total' $0,00
€NU~4landMafa ~I§.,,,..~~...-. :T'...--m."m'_..'. < .nu.,~~:~~ utiL..,..~:~-
~~
"
Qty. Cost Value
Uniform Service 10 $3,000.OD $30,000.00
Safety Shoes - 10 $200.00 $2,000.00
Flashlights 10 $25.00 $250.00
Total: $32,250.00
In-HOUSeCost(EStimated)for Veers 2-0(Not adjusted forinFlation) $680,610.00
ABM Securi In-House' Difference % DiHOrence
Vear1 $354,931.20 $680,610.00 $325,676.60 -08%
Year2 0 tional $371,46].20 $701,028.30 $329,567.10 -07%
Year3 o tional $388,398.40 $722,059.15 $333,660.]5) -46%
Year4 o tional $399,672.00 $]43,720.92 $344,048.92 -46%
Total $1,514,468.80 E2,847,418.37 $1,332,949.57 -07%
"/n-house cost yor Years 2 fNOUgh 4 are atljusfetl fo inclutle esffmafetl annual inflation of 3Y Ior wages, froining, equipment 8 maferiais.