Outcome-Based Security Contracting & Tender Requirements

Outcome-Based Security Services Contract

Executive Summary and Tender Requirements Overview

January 2026

Executive Agenda

Shift to Outcome-Based Contracting (OBC)

Price-Quality Evaluation Method (PQM)

Key Security Outcomes & Scope

Performance Management & Demerits

Transition & Compliance

The Strategic Shift: Outcome-Based Contracting

The contract moves away from simple headcount supply to defined performance outcomes. The tenderer must propose an operational model integrating manpower, processes, and technology.

Evaluation Criteria: Price-Quality Method (PQM)

Proposals are evaluated on a 40/60 split, emphasizing quality and operational capability over lowest price.

Quality Evaluation Breakdown

1. Operational Process Control: Ability to achieve security outcomes.

2. Technology Maturity: Quality and relevance of proposed tech solutions.

3. Manpower & Support: Supervisory plans, staff training, and well-being measures.

4. Track Record: Success in similar scale operations.

Mandatory Submission Plans

Risk Assessment

Threat & Vulnerability Risk Assessment (TVRA) covering probability, severity, and control measures.

Operational Model

Integration of manpower, process, and technology to meet outcomes.

Resource Plan

Optimum manpower structure and technology commitments.

Security Outcomes: Access Control

Personnel Access

• Only authorized personnel and cleared visitors allowed entry. • Access passes required for perimeter side gates. • Strict verification protocols.

Vehicle Access

• Only authorized vehicles in basement carpark. • Taxis/Ride-shares must exit immediately after drop-off. • No unauthorized parking management.

Security Control Room Operations

• 24-hour operation for handling calls, felonies, and emergencies. • Continuous CCTV monitoring. • Dispatch of officers within X minutes of incident detection. • Support for fire drills and evacuation exercises.

Technology & Equipment Integration

Contractor Furnished Equipment (CFE)

The contractor bears all costs for installation, maintenance, and removal of proposed hardware (e.g., Video Analytics, Electronic Clocking). The Authority reserves the right to acquire ownership of deployed technology at depreciated costs upon contract expiry.

Performance-Based Payment Model

Monthly payments are adjusted based on demerit points accumulated. Low demerits (<10 points) result in a bonus.

Demerit Point System Severity

Minor (3 Points)

Improper attire, code of conduct breach (sleeping), inaccurate reporting.

Major (20-40 Points)

Slow incident response, technology unavailability (<85%), attendance failures <92%.

Critical (50 Points)

Failure to prevent injury, break-ins, theft, or fire. (Trigger for potential termination).

Consequences of Service Failure

50 Points in Any Month: Authority writes Warning Letter or Work Improvement Order (WIO). Immediate remedial action required.

50 Points for 3 Consecutive Months: Authority entitled to TERMINATE the contract.

Transition Plan Requirements

1. Timeline & Milestones: Detailed schedule for taking over operations. 2. Manpower Shortfall Strategy: Plan for interim measures if recruitment lags. 3. Hardware Installation: Deadlines for installing CFE (Video analytics, sensors). 4. UAT & Training: Acceptance testing and On-The-Job training dates.

Resource & Manpower Planning

The tender requires a fixed baseline resource commitment. Key Constraints: • Contractor cannot unilaterally adjust committed resources without variation orders. • Manpower must be supported by evidence of training and competency (WSQ). • Any inadequacy during the contract period must be addressed at NO additional cost.

Training & Compliance

Competency (WSQ)

All officers must hold relevant WSQ qualifications. Refresher training is at the Contractor's cost.

HR & Welfare

Compliance with Progressive Wage Model (PWM). Policies must promote work-life balance.

Personal Data Protection (PDPA)

Contractor must ensure compliance with PDPA when handling data (NRIC, visitor logs). • Consent: Must be obtained for data collection. • Protection: Reasonable security arrangements to prevent leaks. • Retention: Cease retention when no longer necessary. • NRIC Handling: Encouraged to use partial NRIC (last 3 digits + checksum).

Price Schedule Structure

Fixed Components

Includes Manpower + Technology Solutions. Inclusive of uniforms, training, admin, and maintenance.

Variable (Surge) Components

Ad-hoc services subject to ability to supply. Surge factor applies if notice < 7 days. Does not apply to overtime charges.

Strategic Implications

Higher Accountability: Outcome-based models shift risk to the contractor.

Incentivized Performance: Bonus/Penalty structure drives consistent quality.

Technology Reliance: Reduces dependency on pure headcount, improving long-term efficiency.

Next Steps & Recommendations

1. Review Security Outcomes to ensure they match current site risks.

2. Align budget with PQM strategy (expect higher quality to cost more).

3. Finalize Tender Specifications and release Invitation to Tender.

Q&A

Thank You