Since May 2020, all public sector agencies have been required to adopt Outcome-based Contracts (OBCs) in their procurement of new security services. The Singapore Police Force Centre for Protective Security (CPS) has been assisting buyers from both the public and the private sectors to transit from headcount-based contracts to OBCs.[1]
In OBCs, service buyers will specify contract requirements in terms of expected performance levels, rather than output levels. In contrast, traditional headcount-based contracts specify fixed amounts of resources (e.g. manpower, equipment) that the service provider needs to supply.
With the heightened terrorism threat, increased demand for security services and slowing pace of workforce growth, the adoption of OBCs will help the industry adapt and transform their operating models. With OBCs, service providers would be in a better position to innovate and deliver more productive and effective solutions that integrate manpower, technology and processes.
For more information on OBCs, members of the public may reach out to CPS at MHA_Security_OBC_Helpdesk@mha.gov.sg.
[1]The promotion of the adoption of OBCs is in support of the Security Industry Transformation Map (ITM) to transform demand for security services by enabling the industry to move away from a headcount-based model to deliver integrated security solutions.
Annex A
Case studies: OBCs in the Private Sector
SGX Centre:
Service Buyer – Singapore Exchange (SGX)
Service Provider - Certis CISCO Security Pte Ltd
Singapore Exchange Limited (SGX) improved its security capabilities by employing technology in their security set-up. Through an OBC, SGX collaborated with service provider Certis CISCO to implement a Visitor Management System (VMS) which has enabled smoother visitor registration. With the VMS, SGX was able to reduce the waiting time required to register crowds during peak hours by up to 50 percent. With the automation of more mundane tasks such as distribution of visitor passes, patrols, bag checks and the unlocking and locking of doors, security officers at SGX are better able to focus their attention on higher-order functions, such as incident response and system management. Using new technologies and updated processes, SGX also managed to significantly reduce its reliance on ad-hoc manpower redeployments.
Some notable features built into its security set-up include digital cameras that support video analytics, with functions such as intruder and line-crossing alerts, forensic search capabilities, and facial recognition.
Annex B
Case studies: OBCs in the Private Sector
CapitaLand Business and Science Parks
Service Buyer – CapitaLand Limited
Service Provider – Triple ‘S’ Protection Pte Ltd
Singapore-based real estate firm CapitaLand Ltd, which recently acquired property investment firm Ascendas-Singbridge, had implemented OBCs as part of its procurement process for security services. A total of 54 properties owned by CapitaLand Ltd. comprising business parks, logistics and light industrial buildings are managed through OBCs. The new OBCs focus on meeting security outcomes and performances, where security officers who consistently meet high performance standards are rewarded with quarterly incentive pay-outs.
Since implementing outcome-based contracting in July 2020, CapitaLand was able to reduce its total security headcount by 10% through innovative usage of technology. Triple ‘S’ Protection Pte Ltd, its contracted security agency, introduced CCTVs with remote monitoring functions and data analytic capabilities to effectively respond to incidents and deter illegal activities. The security team based in the command centre can monitor multiple sites remotely via the CCTV system supported by smart analytics, and quickly activate and deploy small roving teams to respond to the incidents.
A spokesperson from CapitaLand said: “CapitaLand has seen encouraging operational improvements since implementing outcome-based contracts for the security set-up on the premises of our business and science parks. The integration of security technologies like CCTVs with video analytics, round-the-clock surveillance through a centralised security command centre, visitor management system and body-worn cameras for night patrolling officers have led to better incident response times and greater productivity. With physically demanding tasks such as the patrolling of building premises performed through ‘virtual patrols’ by leveraging technology and smart CCTVs, the security officers deployed to our premises can now focus on executing higher-order functions. These operational improvements would not have been possible if we were still relying on traditional headcount-based contracts with security service providers.”
Case studies: OBCs in the Private Sector
Jackson Square
Service Buyer – ESR-REIT
Service Provider – Prosegur Singapore Pte Ltd
ESR-REIT, a leading Singapore-focused industrial real estate investment trust with a portfolio of quality income-producing industrial properties, adopted a security OBC for its Jackson Square property. Through implementation of its OBC in July 2019, ESR-REIT was able to reduce its security headcount by 75%, from four officers to one officer, by complementing its manpower with technology.
ESR-REIT’s security service provider, Prosegur Singapore Pte Ltd, implemented a dynamic mobile guarding and smart command centre operation at Jackson Square which allowed it to reduce its reliance on manpower. Integrating core and essential systems from the building onto a single platform enhanced the property’s security efficiency. Security teams, which are always connected to the command centre, can provide timely support and assistance for guarding duties
Additionally, the installation of CCTVs with video analytics at strategic locations within the premise enables the security officers to monitor and manage the premise more efficiently. ESR-REIT is expected to experience overall contract-cost savings, taking into consideration the projected increases in the Progressive Wage Model (PWM) for security officers over the next few years.
SINGAPORE POLICE FORCE
03 September 2021 @ 6:45 PM