Committee forwards $17.1 million SFMTA security contract with King Security to full board

The Government Audit and Oversight Committee on Dec. 5 voted 2–1 to forward to the full Board of Supervisors a resolution authorizing a three-year agreement, with options to renew up to two additional years, with King Security Services, Inc., for armed and unarmed security services for the San Francisco Municipal Transportation Agency (SFMTA) not to exceed $17,100,000.

An SFMTA representative (referred to in committee as Mr. True) told the committee the contract covers security accompanying revenue staff and special events, protection of facilities and yards, live video monitoring of T-Line platforms, additional guards at the Muni Metro East rail facility and expansion of services from weekend-night-only coverage to seven nights a week at bus facilities. Mr. True said the total not-to-exceed amount includes approximately $5.2 million per year plus contingency for emergency services and CPI adjustments.

“Those services are crucial to both accompanying our revenue staff into the field, to special events, and also at our many facilities,” Mr. True said, describing a procurement that the agency began in September and which the MTA board approved on Dec. 4. He said six bids were received; the two lowest bids were found nonresponsive on financial-reporting and armed-experience grounds, and King Security — the incumbent — was found responsive.

Supervisors asked detailed questions about new services and whether the cost increase was budgeted. Mr. True confirmed the services and hours were budgeted and that the existing contract expires Dec. 31; he said the not-to-exceed amount would allow the agency to continue services into January or February if a new agreement were not approved immediately.

Supervisor Daley urged caution, citing a recent agreement involving building owners and the security officers’ union that included a roughly 27 percent pay increase and health benefits for security officers. “Given that contract struggle...I think it would be appropriate for us to hold off on this contract to take a look to see if the new precedent being set ... will be met by the contractor,” Daley said, expressing discomfort moving forward without review of the labor terms.

The clerk noted the budget analyst’s report recommends approval of the resolution. Chair Sean Ellsburn said he preferred avoiding a potential security gap and moved to send the item as a committee report to the full board. The clerk recorded a 2–1 vote to forward the contract authorization to the Board of Supervisors.

The contract resolution will be considered by the full Board of Supervisors at its next meeting; the committee’s record, budget analyst recommendation and procurement documentation will accompany the item.