To address issues associated with the management of FPS security guard contracts, Congress enacted P.L. 110 - 356 (the Federal Protective Service Guard Contracting Reform Act of 2008) which requires the DHS Secretary, acting through the Assistant Secretary of U.S. Immigration and Customs Enforcement, to establish guidelines that prohibit convicted felons—who own contract security guard businesses—from being awarded federal security guard contracts. Department of Homeland Security Intended Changes

In FY2009 the physical security of federal property is being maintained solely by contract security guards. DHS intends for FPS to continue maintaining security policy and standards, conducting building security assessments, and monitoring federal agency compliance with security standards. Additionally, the Administration, in the FY2010 budget request, proposes to transfer FPS from ICE to the National Protection and Programs Directorate (NPPD) within DHS. 110 - 329 (the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009) which requires the Office of Management and Budget and DHS to fully fund FPS operations through the collection of security fees paid by federal departments and agencies. Only the Senate-passed version of H.R.
The Federal Protective Service (FPS)—within U.S. Immigration Customs Enforcement (ICE) in the Department of Homeland Security (DHS)—is responsible for protecting federal government property, personnel, visitors, and customers, including property leased by the General Services Administration (GSA). FPS currently employs over 15,000 contract security guards to protect federal property. DHS continued the use of contract security guards to focus FPS activities on maintaining security policy and standards, conducting building security assessments, and monitoring federal agency compliance with security standards in FY2009. P.L. 110-329 (the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009) included provisions on FPS maintaining a certain number of police officers. The 110th Congress also enacted P.L. 110-356 (the Federal Protective Service Guard Contracting Reform Act of 2008) which addressed the issue of awarding federal contracts to privately owned contract security guard businesses. The 111th Congress has yet to take any legislative action on FPS, however, the Administration's FY2010 budget request proposes to transfer FPS from ICE to the National Protection and Programs Directorate (NPPD) within DHS, which the Senate-passed version of H.R. 2892 supports. This report will be updated as developments warrant.