Using the ACS to choose a security provider: an inside view

28 Jul 09

The Regulator is claiming many benefits for its Approved Contractor Scheme, but are they materialising in the real world? Stuart Lowden conducts his own investigation into the way in which the scheme operates at present.

By Stuart Lowden

After nearly 40 years of lobbying, the Government of the day finally bowed to increasing pressure and passed the Private Security Industry Act 2001 into law.

In addition to licensing individuals to operate within the security guarding sector, the Act required the new Regulator – the Security Industry Authority (SIA) – to establish a “system of inspection for providers of security services, under which those organisations who satisfactorily meet the agreed standards may be registered as approved, and may advertise themselves as such”.

The Approved Contractor Scheme (ACS) came into being at the same time as compulsory licensing for security officers in March 2006. How are the benefits of ACS sold to the buyers? In the words of the SIA: 'Approved contractors are demonstrably committed to customer service and the compulsory licensing of their staff. This means their customers can rest assured that every private security operative deployed on their premises will be working within the law (unless we have withdrawn the company’s authority to deploy staff whose licence applications are pending, which can be checked via the public Register of Approved Contractors)’.

The key advantages to buyers are defined as being continuity of service, Best Practice and continuity of quality, clear customer focus and increased flexibility coupled with leadership and innovation. These benefits are explored in greater detail on the ACS section of the SIA’s website (click on the dedicated link provided on the right hand panel of this page).

Without question, the ability to deploy staff whose applications for licence are still pending is a huge benefit and considerably assists security companies in maintaining continuity of service, but just how valid are the claims that ACS registered companies are genuinely better, in terms of quality, customer focus and leadership? To find out, you need to conduct a deeper investigation into the way the scheme operates.

ACS scoring and inspection

The cornerstone of the ACS is the Self-Assessment Workbook and its independent inspection regime, both of which are monitored closely by the SIA. Full details are available on the SIA’s website, but in the broadest terms the scoring system works as follows.

There are 89 workbook indicators spread across nine key categories of compliance: Strategy, Processes, Commercial Relationship Management, Finance, Resources, People, Leadership, Corporate Social Responsibility and Results.

Over two thirds of the workbook indicators are likely to be met or exceeded if companies are already complying to existing standards (ie ISO 9000, BS 7499 and BS 7858). However, there are a significant number that are breaking new ground, particularly in the areas of Corporate Social Responsibility, leadership and benchmarking.

The 89 indicators can be simply met (effectively a pass in that category) or exceeded by degrees. So for example, let us look at a key indicator, a company’s approach to welfare and benefits (Indicator 6.3.4)…

6.3 An SIA Approved Contractor can demonstrate that its people are provided with appropriate benefits and welfare arrangements.

6.3.4 An approach to provision of welfare and benefits is in place.

Required achievement level: The welfare and benefits offered by the organisation meet the legal requirements. In addition, appropriate uniforms are supplied and the organisation ensures they are cleaned and renewed. Necessary Personal Protective Equipment (PPE) is provided free of charge. All employees are made aware of the welfare and other benefits package. All employees have regular contact with a supervisor or manager who can address any welfare concerns.

On top of that, The welfare and benefits offered by the organisation exceed the legal requirements and include such things as:

compassionate leave arrangements
self certification for periods of sickness of up to seven days
payment of training required to obtain an SIA licence
days spent on the training required for an SIA licence are paid

All employees are made aware of the welfare and other benefits package. The welfare and benefits package also includes:

payment of the SIA licence application fee
personal accident cover
sufficient legal cover
counselling service from trained professionals after suffering trauma

The way the scoring system works, the Required Level earns the base mark of zero, columns to the right of the required level earn +1 and +2 respectively. Anything to the left of the required level constitutes a fail in that category. ACS companies are not allowed to fail in any of the 89 categories.

Some categories offer greater opportunity to exceed the required level, some less, but in total there is the opportunity to exceed the base level by 157 marks.

How the industry scores

The diagram reproduced on the right hand column of this page shows a breakdown of the scoring of the 611 Approved Contractors as of 31 March this year. What is very interesting is how many companies are complying by a very low margin, doing enough to pass but not a great deal more.

By contrast, there are at least 60 companies operating well above basic requirements, exceeding the target by over 71 marks and, of these, there’s a sizeable minority with scores exceeding 100 marks.

Using the scoring system to select a contractor

The scoring system is a guide to a company’s general professionalism and to the robustness of its processes. If you wish to use the ACS to help with selecting a contractor you would be advised to look closely at where the higher marks have been ‘earned’. Are they in the areas that matter to you?

By all means ask for a copy of the latest SIA inspection report. You will learn a lot about a prospective supplier from that document.

The scheme is also a very useful tool with which to define a buyer’s priorities. For example, which is more important to you, that a company invests in the training and development of its people or that it has a documented benchmarking scheme to measure the perception of the public of its service?

Both are important in their own way. Both are capable of earning a potential higher score, but which truly matters to you and your business?

The ACS: a valuable tool for buyers?

The ACS is a hugely valuable tool for buyers, but only if used wisely and not in isolation. While the SIA would claim it to be a scheme that ensures good practice, I would argue that it’s more a benchmark of adequate practice and should give buyers comfort that acceptable standards will be delivered.

In the very simplest terms, those buyers selecting companies who are not ACS need to carry out some extensive research to assure themselves that their proposed contractors operate to acceptable standards. The ACS removes this burden by yielding an SIA ‘stamp of approval’.

For those seeking a higher level of service provision, the ACS does give the enlightened buyer who asks the right questions an easy way to differentiate between the good and the merely adequate.