Business
Guardsman wins 40 per cent of Government security contracts
By Steven Jackson, Business Observer writer editorial@jamaicaobserver.com
Wednesday, July 01, 2009
The Kenny Benjamin led Guardsman Group was awarded $500 million worth of government security contracts over the 12 months period ended May 2009, or 40 per cent of government's total security bill in an industry with over 30 players.
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| Kenny Benjamin, the owner and executive chairman of the Guardsman Group of Companies, in front of the company headquarters on Old Hope Road in Kingston |
Interestingly, government is spending more on security at $1.23 billion over the period ending May than it is on upgrading the nation's health services. The Health ministry's capital budget is $1.05 billion this fiscal year.
Benjamin defended his contracts stating that they were awarded on merit.
"Few companies have the islandwide reach or certification to bid for these large contracts," he told the Business Observer yesterday. "It is objective because the National Contracts Committee (NCC) is involved and it is public and very open."
The data, compiled from the Contractor General's website and analysed by the Business Observer, accounts for security contracts endorsed by the NCC. Since September 2008, the NCC has been endorsing contracts valued at $10 million and above ($4 million prior), according to the website.
But the Guardsman group almost doubled its nearest rival Protection & Security Limited which received $286 million in contracts, while coming in at third was Atlas Protection Limited at $189 million.
Guardsman Group was awarded seven contracts over the period and of that amount, its subsidary, Marksman, received five contracts at $466.8 million. Its biggest contract was for the Tourism Product Development Co (TPDCO) for security courtesy corps services in Montego Bay, Negril, Ocho Rios, Kingston, Runaway Bay and Port Antonio valued at $219.5 million. That contract was awarded via selective tender in November 2008.
"For TPDCo we have 32 locations islandwide and can respond when needed. We have an islandwide reach," Benjamin said. "There were about 10 companies that bid for that contract."
Guardsman was also awarded an Air Jamaica contract for extending existing private security at Norman Manley International Airport and Sangster International Airport for $150 million. The tender process was a sole source tender in December 2008.
"In order to bid for airline security services, there is a required global standard by which the guards need to be trained. And we are the only company locally that can provide that level of training for our guards," said Benjamin, adding that the company invested US$3,000 in training each airport guard.
But Benjamin wants the testing criteria standardised across government entities.
"A lot of government entities seem to coin their own schedule and criteria," he said. "We don't know how many points are awarded for pricing for technical presentation, management structure and so on," he said.
Rival company Protect & Security received six contracts and its biggest contract was in May 2008 securing the Jamaica Urban Transit Company (JUTC) valued at $124 million. It also received a $105 million contract for three years for guard services at the Spanish Town and Linstead Hospitals and St Jago Health Centre.
Atlas was awarded nine contracts and its most prized was securing the Factories Corp of Jamaica at its two Marcus Garvey complexes for three years valued at $71.7 million. It was awarded via a selective tender process. Neither Atlas nor Protect & Security responded to Business Observer calls for comment.
Government is spending on average $100 million a month on security.
May 09:
. Modern Investigations & Security - $21.7 million to secure the Edna Manley College;
.Primeguard Loss Prevention - $32.7 million over two years to secure the Ministry of Education's Heroes Circle office and the Canewood Centre on Arnold Road.
April 09:
.Marksman - $12.7 million to secure the University Hospital of the West Indies for two months;
.Protection Security Company Ltd - $105.6 million to secure the Ministry of Health for three years at the Spanish Town and Linstead Hospitals and St Jago Health Centre;
. Atlas Protection Ltd - $26 million to secure the Princess Margaret Hospital
. Marksman - $33.2 million to secure the Chest Hospital in Kingston; and
. Protection Security Co Ltd - $33.5 million to secure Sir John Golding Rehabilitation Centre and the Hope Institute.
March 09:
. Atlas Protection Ltd - $10.3 million to provide guard services for a contract period of two years at the Financial Investigation division at Shalimar Ave;
. Atlas Protection Ltd - $23.7 million to secure the Registrar General Department's head office and nine regional offices for two years;
. Atlas Protection Ltd - $71.7 million to provide security guard services at Factories Corp of Jamaica's two Marcus Garvey complexes for three years;
. Marksman Ltd - $31.9 million for University Hospital of West Indies for extension of contract over four months to July for the provision of private security services at the University Hospital in Papine; and
. Allied Protection Ltd - $26.8 million for private security over two years at the Ministry of Agriculture's head office and out stations.
February 09:
. Bulls Eye Security - $7.4 million at the Denham Town housing under the National Housing Trust for security services from August 2008 to February 27, 2009.
. Atlas Protection - $12.1 million for security services for a contract period of two years at the National Laboratory and the Blood Bank on Slipe Pen Road.
Jan 09:
. Atlas Protection Ltd - $12.2 million to provide security for Reach Falls in Portland.
. Allied Protection - $14.1 million for security at Caymanas warehouse in St Catherine.
. Allied Protection - $91 million for security services for a Urban Development Co downturn Kingston complex.
December 08:
. Protection Security Co Ltd - $8.1 million for security service for Half-Way-Tree Transport Centre;
2. Guardsman - $29.5 million for Health Corp of Jamaica for provision of security guard for two years at HCL office and 10 Drug pharmacies islandwide; and
. Marksman Ltd - $150 million for a one year contract with Air Jamaica for private security at Norman Manley International Airport and Sangster International Airport.
November 08:
. Protection Security Co Ltd - $5.8 million for private security services at Jamaica Bauxite Mining's (JBM) Lydford Complex and its Ocho Rios Port in St Ann over three years; and
. Marksman Ltd - $219.5 million for security courtesy corps services for TPDCO in Mobay, Negril, Ocho Rios, Kingston, Runaway Bay and Port Antonio
October 08:
. Crime Prevention Armoured services Ltd - $8.84 million for Development Bank of Jamaica for security services at Cotton Polyester Textile Co Ltd at Rhoden's Pen in Old Harbour.
September 08:
. Ranger Protection and Security Co Ltd - $11.3 million for Urban Development Co security services at Caymanas Golf & Country Club for a contract of two years;
. Atlas Protection - $9.2 million for the Planning Institute of Jamaica (PIOJ) for security services for Oxford Rd and four adjacent parking areas for three years renewable; and
. Protection and Security Ltd - $11.9 million for Devon House Development Commission for security guards over two years at the Devon House complex.
August 08: None
July 08:
. Atlas Protection Ltd - $11.6 million for safety and security services for the Electoral Office of Jamaica's head office, Bay Farm Rd and the electoral director's residence;
. Bulls Eye Security Ltd - $6.4 million for the National Housing Trust Denham Town Block J for six months; and
. Allied Protection Ltd - $62.6 million for security guard services at Petrojam Ltd's Marcus Garvey Drive and Free Port Montego Bay offices for three years.
June 08:
. Guardsman Ltd - $6.6 million for security services at the Post and Telecoms Department over three months to allow conclusion of procurement process.
May 08:
. Protection and Security Ltd - $124.2 million for security services at all JUTC locations over 2 years; and
. Security Innovations Ltd -$4.3 million for National Housing Trust's 231 Spanish Town Road premise.
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