Posts Tagged Publications

Publications: Freedonia Report On Global Demand For Security Services

This publication is very expensive, but you can buy bits and pieces of it at your own choosing. I am not getting any kickbacks or anything from this group, and I am only putting this out there as information for the readership to check out.

To go along with my post on crowdfunding, the global demand for security is increasing, and the factors driving the demand are evident in this report.

Factors such as rapid gains in economic activity, rising personal incomes, foreign investment activity, and concern that public safety forces are overburdened, corrupt, or unable to provide sufficient protection will boost gains. Furthermore, increasing regulation and a trend toward greater professionalism in many of these local security service markets will improve public trust in security service businesses, thereby driving gains.

I have seen these trends and talked about them here on the blog. China is blowing up when it comes to security services. Africa will definitely need services, and thanks to the cartels in Mexico, security will continue to be in high demand.  The US continues to be the largest consumer of security services in the world, which is interesting. Also, the progression towards ISO certification for maritime PMSC’s–which will probably carry over to land based PMSC’s in the future, is a sign of this ‘professionalizing’ of the industry. Check it out. -Matt

 

Global demand for security services is driven by rising urbanization, the real and perceived risks of crime and terrorism, and a belief that public safety measures are insufficient.
World demand to 7.4% annually through 2016
Global demand for private contract security services will increase 7.4 percent annually to $244 billion in 2016. In general, demand for security services is driven by rising urbanization, the real and perceived risks of crime and terrorism, belief that public safety measures are insufficient, and growth of a middle class with assets to protect and the means to pay for supplementary security measures. The security service market will also be supported by an improved economic environment and building construction activity.
Developing areas to see strongest gains in demand

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Publications: SIGAR Report–Concerns Remain About APPF’s Capabilities And Costs

Thus, the APPF acts as a monopoly service provider. Although contracted security costs for the majority of projects decreased, the average rate for armed local guard services increased as much as 47 percent for projects under the APPF. These costs could increase even more over time and implementing partners—left with no other options for local armed guard services—would have no choice but to pay the higher prices.

Pretty damning. Basically clients are using RMC’s as standard security providers, all because the APPF is so ineffective. That, and this ineffective force will have a monopoly soon, and will be able to charge whatever they want.

But here is the really bad part of this story. The loss of life because of this poor security force. Check out this quote:

Traders have informed the Wolesi Jirga about the onslaughts on the Kabul-Kandahar highway that have resulted in the death of 6 drivers and burning of 250 trucks with commercial goods over the past 6 months.
According to the Pajhwok Afghan News PAN), businessman Abdul Wali Wardak said their problems had increased after the responsibility of providing security for logistics vehicles was transferred to the Afghan Public Protection Force (APPF).
Afghanistan Chamber of Commerce and Industries Chief Mohammad Qurban Haqjo confirmed the losses and said the APPF has failed to provide the needed security for logistics vehicles and prevent the attacks caused by the insurgents.

Pathetic…. Read the report below if you want to check out SIGAR’s recommendations. -Matt

 

WHAT SIGAR FOUND
The effect of the transition to the Afghan Public Protection Force (APPF) has been minimal on projects in SIGAR’s sample, but only because implementing partners hired risk management companies (RMCs) to fill APPF capacity gaps and perform critical functions. Without RMCs, the APPF would be unable to provide the full range of security services needed by U.S. Agency for International Development (USAID) implementing partners. Contracts with implementing partners require the APPF to provide an appropriate number of capable and trained guards, as determined by the APPF in conjunction with the implementing partner, and a sufficient number of properly trained officers and non-commissioned officers to oversee the guards. However, for five projects that use APPF services, RMCs perform critical functions and fill gaps in APPF capabilities in recruiting, training, and supervision. Further, implementing partners reported that APPF officers and non-commissioned officers provided little benefit and were unable to perform required duties.

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Publications: Contractor Support Of USCENTCOM AOR, 1st Quarter FY 2013

For those looking for the source of this data, here is a link to the DASD Program Support that puts these reports together every quarter. They have been very useful and I have put everyone of them into my Scribd if you would like to reference and check this stuff out.

William over at Danger Zone Jobs has been tracking this data over the years and he has put together some excellent graphics showing exactly what the trends are over the last seven quarters. Here are some samples below and there are more at his post.

 

Pretty interesting, and you can visually see the heavy use of contractors in Afghanistan, even as the war winds down. Probably the most interesting graph is the use of American contractors in Afghanistan.

Interesting stuff and check it out below. -Matt

 

Contractor Support Of USCENTCOM AOR, 1st Quarter FY 2013 by Feral Jundi

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Publications: Stability Operations Magazine, January-February 2013

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Publications: IG Review Of Best Value Contracting For DoS Local Guard Programs

After reading the latest report on the Benghazi attack called Flashing Red: A Special Report On The Terrorist Attack At Benghazi, I came across another really cool report they referenced in regards to Best Value contracting. I thought it was pretty interesting and worthy of some attention here.

Here is the quote about it from the Benghazi report.

Though a few members of the February 17 Brigade and the Libya Shield militia assisted the Americans on the night of the attack, the security that these militias and the local police provided to U.S. personnel was woefully inadequate to the dangerous security environment in Benghazi.
The unarmed local contract guards also provided no meaningful resistance to the attackers. The Department of State’s Inspector General had previously found that concerns about local security guards were not limited to Libya. A February 2012 Department of State Inspector General (IG) report found that more than two-thirds of 86 diplomatic posts around the world surveyed reported problems with their local guard contractors. Of those posts that reported problems with their contractors, 37 percent said there was an insufficient number of local guards and 40 percent said there was insufficient training. The IG found that overseas diplomatic posts, particularly those in high-threat situations beyond Iraq, Afghanistan, and Pakistan urgently needed best-value contracting, which takes into account the past performance of contractors.
Recommendation: When it becomes clear that a host nation cannot adequately perform its functions under the Vienna Convention, the Department of State must provide additional security measures of its own, urgently attempt to upgrade the host nation security forces, or decide to close a U.S. Diplomatic facility and remove U.S. personnel until appropriate steps can be taken to provide adequate security. American personnel who serve us abroad must often work in high risk environments, but when they do, we must provide them with adequate security. That clearly was not the case in Benghazi on September 11, 2012.
Recommendation: The Department must conduct a review of its local guard programs and particularly the use of local guard contractors at high-risk posts who do not meet appropriate standards necessary for the protection of our personnel or facilities.

Did you read that highlight? Urgently needed Best Value contracting….. and this is the IG saying this. lol Myself and others have been promoting the concept for awhile now and at least the IG get’s it. It sounds like DoS is starting to see the light as well.

The one interesting point that was discussed is the 10 percent price preference rule and how local guard force companies were just partnering with US companies in order to qualify. Here is a quote:

U.S. companies or qualified joint ventures “shall be evaluated by reducing the bid by 10 percent.” Based on an examination of contract competition documents for 35 local guard contracts, OIG found that the 10 percent price preference given to qualifying U.S. companies had no effect on the outcome of the awards. OIG further determined that it is easy for foreign companies wishing to take advantage of the price preference to become eligible by simply forming a joint venture with a U.S. company, thus largely negating the purpose of the preference.

So private industry found a loophole and exploited it to win contracts. With that said, I agree with the IG’s take on the 10 percent rule, and that it needs to be changed in order for it to be effective. Here is their suggestion.

Review the need for a 10 percent price preference given to U.S. companies bidding on local guard contracts because the preference has not been demonstrated to be a factor in recent local guard competitions.

Check it out below and it will be located in my Scribd or here on the blog for future reference. -Matt

 

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Publications: Stability Operations Magazine, November-December 2012

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