DATE: April 12, 2022
SUBJECT:
Title
RESOLUTION SELECTING AND AUTHORIZING A FIVE (5) YEAR AGREEMENT WITH UNIVERSAL PROTECTION SERVICES, LP DBA ALLIED UNIVERSAL SECURITY SERVICES FOR SECURITY SERVICES AT B STREET CRUISE SHIP TERMINAL, THE PORT PAVILION AT BROADWAY PIER, TENTH AVENUE MARINE TERMINAL, JOINT HARBOR OPERATION CENTER, ADMINISTRATION BUILDING, AND AS NEEDED REQUESTS FOR AN AMOUNT NOT TO EXCEED $16,029,000, OF WHICH APPROXIMATELY $8,335,080 ARE REIMBURSABLE TO THE DISTRICT BY MEANS OF PASS-THROUGH FEES TO CRUISE LINES AND OTHER USERS. ALL FUNDS REQUIRED FOR FUTURE FISCAL YEARS WILL BE BUDGETED IN THE APPROPRIATE FISCAL YEAR, SUBJECT TO BOARD APPROVAL UPON ADOPTION OF EACH YEAR’S FISCAL BUDGET.
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EXECUTIVE SUMMARY:
The District contracts security guard services required by the Federal Maritime Transportation Security Act (MTSA) for access and perimeter control to the MTSA regulated commercial and cruise ship terminal, and for the screening of passengers and luggage at the cruise ship terminals. The current agreement with Universal Protection Services (AUS) expires on June 30, 2022. On September 24, 2021, RFP 21-24RH was issued to firms interested in providing security services. Electronic solicitation notices were sent to Two Hundred Twenty-Four (224) service providers. Fifty-eight (58) providers downloaded the solicitation package. The District received a total of eight (8) proposals by the November 4, 2021 closing date. Three firms were selected as finalists and interviewed on December 13th and 20th by District staff.
Based on the interviews, the written proposals, and a decision analysis process, staff identified Universal Protection Services, LP dba Allied Universal Security Services (AUS), the incumbent provider, as the firm best qualified to perform security services for the District. The criteria for selection in the decision analysis process were experience of the firm’s staff, approach to the project, capability to perform, the firm’s relevant experience in a MTSA regulated maritime security environment, and cost and pricing.
The proposed five (5) year agreement, to commence on July 1, 2022, is for a total amount not to exceed $16,029,000. A significant portion of the total costs of the agreement are for services provided to cruise ships at the cruise ship terminals (CST). The costs for providing security when cruise ships berth at the CSTs are recovered through a combination of tariffs and administrative fees charged by the District. Likewise, the District recoups costs for security provided for special events that occur at the CSTs (when the event organizers do not provide their own security). Collectively, District staff estimates that more than 52% of the total costs of security provided pursuant to the agreement would be recovered for security services provided at the CSTs. The budgeted amount is based on projected cruise and special event activities over the next five (5) years and is paid on an actual time and material basis. The remaining costs are security services provided at the Tenth Avenue Marine Terminal (TAMT) gate entrances, for watch standers at the Joint Harbor Operations Center (JHOC), other events at the administration building, and as-needed security requests from other District departments.
Recommendation
Adopt a resolution selecting and authorizing a five (5) year agreement with Universal Protection Services, LP dba Allied Universal Security Services (AUS) for security services at B Street Cruise Ship Terminal, the Port Pavilion at Broadway Pier, Tenth Avenue Marine Terminal, Joint Harbor Operation Center, Administration Building, and as needed requests, for an amount not to exceed $16,029,000.00, of which approximately $8,335,080 are directly reimbursable to the District by means of pass-through tariff and administrative fees to cruise lines and other users. Security costs are budgeted on an annual basis under District non-personnel expense, subject to Board approval.
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FISCAL IMPACT:
Funds for the first year of this expenditure are budgeted for in the FY 2023 Maritime Department (153) account. Funds required for future fiscal year(s) will be budgeted for the appropriate fiscal year and cost account subject to Board approval upon adoption of each fiscal year’s budget. This agreement allows for early termination by the Executive Director and has been deemed an operational necessity.
A significant portion of the total costs of the agreement are for service provided to cruise ships at the cruise ship terminals. The costs for providing security when cruise ships berth at the CSTs are recovered through a combination of tariffs and administrative fees charged by the District. Likewise, the District recoups costs for security provided for special events that occur at the CSTs (when the event organizers do not provide their own security). Collectively, District staff estimates that more than 52% of the total costs of security provided pursuant to the agreement would be recovered for security services provided at the CSTs.
The remaining costs (approximately 48% of the contract value) are for services at the Tenth Avenue Marine Terminal, the watch standers that monitor the Closed-Circuit Television System (CCTV) at the Joint Harbor Operations Center (JHOC), security for events, board meetings at the port administration building, and as needed requests from other departments. Funding for the agreement will be through Maritime Division's annual operating budget. Currently, there is $2,810,100 budgeted for the Fiscal Year FY22/23.
Compass Strategic Goals:
This agreement addresses security for B Street Cruise Ship Terminal, the Port Pavilion at Broadway Pier, and Tenth Avenue Marine Terminal, JHOC, Administration Building events and additional security needs as required, ensuring a safe and secure port.
This agenda item supports the following Strategic Goal(s).
• A thriving and modern maritime seaport.
• A vibrant waterfront destination where residents and visitors converge.
• A Port that is a safe place to visit, work and play.
DISCUSSION:
The security guard services required by the Maritime Transportation Security Act (MTSA) for access and perimeter control to the marine terminals and the screening of passengers and luggage at the cruise ship terminals are contracted out by the District. The District's current five-year agreement for these services expires on June 31, 2022.
On September 24, 2021, RFP 21-24RH was issued seeking firms interested in providing these security services and providing JHOC watch stander positions monitoring the District's CCTV surveillance system video at the United States Coast Guard; Sector San Diego JHOC. The District received a total of eight (8) proposals by the November 4, 2021 closing date. Three (3) firms were selected as finalists and interviewed on December 13th and 20th by a cross-departmental panel of five (5) employees. Based on the interviews, the written proposals, and a decision analysis process using the criteria stated in the RFP; experience of proposed staff, approach to the project, capability to perform, and cost and price (Attachment B), the panel identified the most qualified firm. The three (3) firms ranked in order are as follows:
Universal Protection Services, LP dba Allied Universal Security Services
Universal Projection Services, LP dba Allied Universal Security Services (AUS) is a publicly held California Corporation with over 140,000 security officers nationwide. Twenty thousand security officers are in California, and 4,200 are in the San Diego region. In addition, AUS provides security services for more than 20 port authorities in the United States, cruise ship operators, terminal cargo operators, shippers, and chem-petrol facilities subject to the Maritime Transportation Security Act (MTSA) and 33 CFR 105 regulations. AUS has numerous offices throughout the United States, including one here in San Diego. Their San Diego office is located 17 miles or 20 minutes from the Port.
AUS is one of the largest security services providers in North America and is recognized as a premier service provider in every market they serve. AUS offers its clients Safety Act protections from the Department of Homeland Security, ensuring customers receive liability protection at the highest level. Under this contract, AUS will partner with Six Maritime as their armed security provider. Six Maritime is a certified San Diego small business enterprise, and service-disabled veteran-owned business. Combined, the two companies employ more TWIC certified guards than any other company in the San Diego region. Six Maritime and AUS have provided security services throughout the United States for over four years. With the current workforce constraints, AUS is committed to recruiting and retaining staff for full-time and as-needed positions. They have adopted a wide range of incentives, including On-The-Spot recognition for exceptional task performance, consisting of a financial incentive. Additionally, AUS is committed to Diversity Equity and Inclusion (DEI) and provides diversity training in its recruitment and retention efforts.
Allied Institute, an internal division of AUS, is staffed with 50 full and part-time instructors who provide mandatory and voluntary training courses. In addition, AUS has developed a quarterly customer service training program for all their employees, with an additional monthly "train the trainer" program, educating front-line supervisors. Training is tailored to specific roles, and security professionals are cross trained to ensure all posts' coverage. All training for personnel assigned to the District will be trained, coordinated, and conducted by the company's local training manager. Port-specific training includes seaport posts, TWIC training, seaport job tasks, and equipment operations. Additional on-site training includes general orders and post orders, access control, emergency procedures, customer service, and MARSEC level postures.
The project manager, Ricardo Talavera, started at the District with Universal Protection Services in 2014. Ricardo served in key supervisory roles until he was promoted to account manager in 2018. He prioritizes focusing on training, facility security enhancements, and reporting objectives. Ricardo has completed his Facility Security Officer training and has security certificates from Grossmont College. Ricardo has developed solid and cooperative relationships with Port staff, and these relationships have been critical to successful security operations.
AUS will provide security services including physical security, access control, screening; vehicles, passengers, & luggage, close circuit systems monitoring, facility escorts, security patrol, and associated security-related administrative support. AUS's approach to providing continued security services to the District encompasses evaluating the qualifications for the entire security team, reviewing current post orders, reviewing the current training program to ensure program compliance, and assessing the condition of uniforms/equipment and refresh needed.
During the interview, key staff assigned to the District account provided a strong sense of their experience, professionalism, and capabilities. AUS has successfully handled service requirements for as many as three simultaneous cruise ship calls. They have qualified staff with the experience needed to meet the District's Facility Security Plan (FSP) and MTSA requirements. Over 250 security guards currently hold the Transportation Workers Identification Credential (TWIC), and 35 are armed guard qualified. Local staff has the required Department of Defense (DOD) security clearances needed to work within the JHOC, monitoring the District's CCTV system. AUS also has an excellent relationship with other government stakeholders, such as the Department of Homeland Security (DHS), Customs & Border Protection (CBP), Coast Guard, and Transportation Security Administration (TSA).
AUS's proposed rates for the bulk of their workforce were the lowest dollar amount through the contract term. For example, AUS's unarmed guard rates were between 6.85% and 17.68% lower for the three-finalist interviewed, respectively.
Terminal Security Solutions, Inc.
Terminal Security Solutions (TSS) is a maritime security firm founded in 2017 and is financially backed by Nautilus International Holding Corporation. Their headquarter is in Long Beach, CA, and their sister company is Metropolitan Stevedoring. TSS provides security services for Cruise Terminal Security, Cargo Terminal Security, Crew Safeguarding & Escort, Guard Certification, and Training. Since 2017, TSS has been awarded eleven maritime security contracts; some their clients include Port Canaveral, Royal Caribbean, Disney Cruise Line, and Shippers Transport Express. TSS is also a maritime security provider offering consultation and customization of Facility Security Plans (FSP). Additionally, they perform facility security assessments & audits.
Terminal Security Solutions has no security contracts within San Diego County. If awarded this agreement, TSS would hire a project manager with a maritime security background, offer incumbent staff employment opportunities, advertise vacancies, and temporarily assign senior staff to ensure a seamless transition. The firm would also purchase screening equipment for cruise operations, create post orders, and ensure manuals align with Coast Guards regulations and District standards. TSS is aware of the supply chain challenges that may impact acquiring the required screening equipment. Therefore, they will coordinate with suppliers to ensure no delivery delays.
TSS was recognized as a qualified respondent, but their fee proposal was significantly higher than the other finalists.
American Guard Service, Inc.
American Guard Service (AGS) is a security service provider with 24 years of experience, of which fifteen years have served the maritime industry at multiple shipping facilities within the United States. Their current clients include the Port of Seattle, Carnival Cruise Lines, and Florida International. AGS has 31 offices in the U.S., including its headquarters in Los Angeles and its regional office in National City. They employ over 6,000 employees nationwide, of which 2000 guards hold TWIC credentials. AGS was recently recognized by the Department of Homeland Security's Office as Safety Act Designated, ensuring customers receive liability protection at the highest level.
If awarded the contract, AGS proposed to perform an on-site survey to determine critical vulnerabilities and understand the terminal layout and traffic patterns. In addition, the Liaison team would meet directly with stakeholders and the current security team to understand the duties and expectations for the officers. AGS would retain qualified incumbents in good standing and develop a work schedule that serves District's requirements. AGS would also provide updates on an ongoing basis and obtain signoffs for each phase of the transition process.
During the interview, the panel felt that AGS’s presentation lacked sufficient detailed planning to highlight their capabilities. Also, the panel was concerned that AGS may not be able to deliver on its implementation plan, thus it received a lower score. Additionally, AGS costs were higher than the recommended vendor, AUS.
CONCLUSION
The evaluation panel Identified AUS as the firm best qualified to provide capable, cost-efficient security services for the District and our customers. AUS has the equipment on hand at the facilities, a sufficient number of TWIC guards meet regulatory requirements, sufficient personnel with DOD clearances to man the Coast Guard JHOC and are able to provide competitive rates for the District and the Cruise Lines. The proposed five-year agreement, to commence on July 1, 2022, is a time and materials service agreement, and will be for an amount not to exceed $16,029,000.
General Counsel’s Comments:
The General Counsel’s Office has reviewed the agenda sheet and attachments, as presented to it, and approves them as to form and legality.
Environmental Review:
The proposed Board action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
The proposed Board action complies with Sections 35 and 81of the Port Act, which authorizes the Board to do acts necessary and convenient for the exercise of its power; and to use funds for necessary expenses of conducting the District. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
Finally, the proposed Board action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Diversity, Equity, and Inclusion Program:
Due to limited sub opportunities, bonus points for diversity, equity, and inclusion (DEI) participation categories were made available. Of the eight (8) respondents: two (2) are SBEs. Two (2) of the respondents identified subs. AUS identified one SBE/DVBE as part of their team for 15% SBE/DVBE participation.
PREPARED BY:
Dave Foster, HLS - Harbor Police Department
Daniel Valentine, Maritime Operations
Attachment(s):
Attachment A: Agreement 07-2022RH Universal Protection Services, LP dba Allied Universal Security Services
Attachment B: RFP 21-24RH Decision Analysis Matrix