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    Security Outcome-Based Contracting

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    Security Outcome-based Contracting

    Background

    As demand for security services continues to rise, increasing manpower to meet the demand is not tenable given the manpower constraints of an ageing population, and slower workforce growth faced by the security industry. To mitigate this, the industry needs to shift away from employing traditional manpower intensive models to those that integrate technology as well as job and process redesign.

    The Security Industry Transformation Map (ITM) recommends four key strategies to enable security agencies to deliver integrated security solutions. One of these strategies is to drive change in the procurement of security services, from headcount-based to outcome-based contracting (OBC). The government has taken the lead on this front and from 1 May 2020, it has been made mandatory for all government agencies to adopt OBC for security services contracts.

    Please click here for more information on the Security ITM.

    What is Outcome-based Contracting (OBC)?

      OBCReq

    By integrating technology and re-designing of work-processes, OBCs can:

     Reduce_Reliance  Improve_Cost_Effectiveness 
    Reduce Reliance of Manpower Improve Cost-effectiveness of Security Contracting

    Security OBC Feature

    Here are some of the key features of security OBC:

    OBC_Spec  Outcome-based Specifications 

     
    Outcome-based specifications describe security outcomes and operational parameters instead of just specifying headcount.

     
     Outcome_Driven_Perf_Mgmt Outcome-Driven Performance Management

     
    To encourage security agencies to deliver good service, buyers can tie performance indicators to desired outcomes. Performance-based models can be used to incentivize security agencies who have exceeded set performance standards.
     Qual_Foc_Eval Quality-focused Evaluation

     
    Quality attributes should take on at least an equal or heavier weighting compared to price when evaluating OBCs. We encourage at least a 50% price to 50% quality weighting.
     Longer_Contract_duration Longer Contract Durations

     
    Longer contract durations allows a longer cost recovery period for technology investments a security agency has made, especially if an Operating Expenditure model is adopted by the buyer which results in upfront costs being borne by the security agency.

    Reducing Reliance on Manpower through Security Technology

    As security agencies shift away from offering traditional labour-intensive models to innovative solutions that integrate technology and process redesign, this will lead to productivity enhancements and improvements in security outcomes.

    Security technology that enhances the work of Security Officers and help to improve the security of infrastructure and premises are easily available and constantly evolving.  

    Security_Tech

    In preparation for OBC, it would be beneficial for buyers of security services to be aware of the various technologies available in the market, to be able to adopt technologies that best suit their security needs. Buyers of security services may get in touch with the Security Systems Association of Singapore (SSAS) who work together with various security agencies and security technology solution providers to learn more available technologies in the market.

    Standards for Security Technologies

    In 2019, the Technical Reference 69 – Video Analytics within Video Surveillance Systems document was launched.  This document was jointly developed by the Security Association Singapore (SAS) and SSAS with the support of Infocomm Media Development Authority (IMDA) and Enterprise Singapore (ESG), and in consultation with industry stakeholders, such as security agencies, technology vendors and government agencies.

    TR69

    Buyers may refer to this Technical Reference 69 (TR69) when considering video analytics systems. The Security Industry Institute (SII) also conducts the Smart Video Analytics & Applications Course which takes reference from the principles in the TR69.

    OBC Success Stories

    Please visit the following links appended below for more details:

    • A Smarter Way to Procure Security Services (Click Here)
    • Covid-19 Speeds Up Tech Adoption in Security Sector (Click here)
    • More Than Half of the Government Agencies Have Adopted Outcome-based Security Service Contracts (Click here)
    • JTC Partners With Certis in Shift to Outcome-based Security Contract (Click here)
    • A Step Up in Security Through Customised Tech-based Tools and Process Redesign (Click here)

    Contact

    For guidance or assistance in OBC matters, please contact us at MHA_Security_OBC_Helpdesk@mha.gov.sg. 

    Resources

     

    MHA Guide for Security Outcome-Based Contracts

    MHA, in consultation with the labour movement and security associations and agencies, has developed a guide to support service buyers in adopting outcome-based contracts. This guide provides the principles and templates for service buyers to adopt outcome-based contracts at every stage of the tender process. 

    Please click here for the guide.

    Security Outcome-Based Contract Template

    This OBC template provides service buyers with sample clauses that they can adapt based on their own security requirements. Please click the link here to download the OBC template.

    Security OBC Related Courses 

    CPS has collaborated with the Security Industry Institute (SII) to develop OBC workshops and seminars. You may visit SII’s website for more information: 

    • Outcome-based Contract Workshop (Click here)
    • Develop Outcome-based Security Contract (Click here)
    • Smart Video Analytics & Applications Course (Click here)

    List of Security Agencies Ready to Provide OBC Services

    Please visit the website below to access the list of security agencies that are ready to provide OBC services:

    • Security Tripartite Alliance For Responsible Outcome Based Contracting (STAR) (Click here)

    Grants for Technology Adoption

    Please visit the following websites for more details of the available grants for technology adoption: 

    Security agencies preparing themselves for OBC, technology adoption and job redesign can refer to the following:

    OBC Resource Kit for Private Residences

    Please click this link here to access a resource kit on outcome-based contracting for private residences. 

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