Contracting out Security Services

Guidelines

  • lay down clear written policies and procedures governing the procurement of contract security services
  • cover the methods to be adopted in obtaining these services in the procedures
  • define levels of financial authority for outsourcing of services
  • ensure the procurement process is fair and transparent so that all eligible contractors can compete e.g. competitive tendering
  • regularly review/update these procurement policies and procedures

Listing of Contractors

  • establish a formal system of listing or registration of security contractors
  • make known to all potential applicants the registration criteria
  • monitor the additions to and deletions from the contractors' list

Tender Procedures

  • establish procedures for:
    • tender invitation
    • tender opening
    • tender evaluation and negotiation
    • tender selection
  • prepare comprehensive tender documents for each contract
  • involve more than one person in the selection and appointment stages
  • notify unsuccessful bidders of the tender result
  • allow for emergency situations in the procedures where the normal tendering arrangements may not be appropriate

Contract Conditions

  • based the contract agreement on standard contract terms
  • clearly detail the service requirements in the contract terms
  • provide for variation of service conditions in the contract terms
  • provide for deductions and withholding of payment for unsatisfactory service the contract terms
  • contain suitable provisions for termination if necessary in the contract
  • contain suitable conditions to enable extension of time in the contract
  • cover adequate provision for insurance or other forms of risk and liability
  • contain probity warnings dealing with corruption and conflict of interest in the Conditions of Tender and the contract

Contract Administration

  • issue clearly written instructions to the successful contractor detailing the scope and quality of services required
  • establish system of supervision and inspection of work
  • include both scheduled and surprise checks in the inspection system
  • issue to the contractor the records maintained of inspections and instructions
  • check the identity of guards to ensure they are either registered or in the process of applying for registration under the Watchmen's Ordinance or Security Guarding Service Ordinance
  • require contractors to provide explicit billing details on a timely basis
  • check the contractor's bills against inspection and other records before payment
  • subject the bills to random audit

Performance Appraisal

  • establish a formal appraisal system to assess the contractor's performance
  • establish a disciplinary system to enforce the contract provisions eg. a demerit system
  • require supervising staff compile evaluation reports periodically and at the end of the contract
  • prepare the evaluation report in a standard format
  • subject the records of performance and any de-merit or payment deduction systems to secure recording and storage measures to prevent tampering

Miscellaneous

  • segregate duties to provide independent checks and balances
  • regularly transfer staff members for career development and to minimise the potential for syndicated corruption

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