CorrectionalNEWS design+construction+operations SECURITY ELECTRONICS CONTRACTORS REPORT 2015 This report is published by Correctional News, the information source for the correctional construction market. Visit us online at www.correctionalnews.com 2015 ANNUAL SECURITY ELECTRONICS CONTRACTORS LIST Annual Revenues Under $5 Million Annual Revenues Over $6 Million Annual Revenues $15 Million and Over Company Contact Geographic Area Covered Annual Revenue Sierra Detention Systems Inc. Brighton, Colo. www.sierracompanies.com Bryan Trojan 303-278-6879 U.S. Argyle Security San Antonio, Texas www.argylesecurity.com Buddy Johns 210-495-5245 North America $35 million Cornerstone Electronics (Trentech, ECS and EO ISI) Montgomery, Ala. www.cornerstonedetention.com David Beeler 509-482-6215 U.S. & International Accurate Controls Inc. Ripon, Wis. www.accuratecontrols.com TJ Rogers 920-748-6603 P2 Controls Malvern, Pa. p2abc.com Largest Contract in Past Year Value of Jobs Under Contract Completed Projects in Past Year $41 million 29 $4.4 million $29.3 million 164 $22 million $3.3 million $24 million 30 U.S. $18 million $4.5 million $35 million 65 Nicholas Carman 610-644-8300 U.S. & International $10.1 million $3.75 million $5.3 million 37 CML RW Security Erie, Colo. www.theRWcompanies.com J.J. Ramsey 303-704-6036 U.S. & International <$10 million $8 million $35 million 9 Southern Folger San Antonio, Texas www.southernfolger.com Michael Chike 210-531-4155 U.S. $7 million $1.3 million $7.3 million 15 Esitech Inc. Richmond, Va. www.esitechinc.com Bill Denton 804-672-3223 East of Rocky Mountains $6.2 million $3.6 million $3.5 million 16 South Western Communications Inc. (SWC) Decatur, Ala. www.swc.net Rick Holmes 256-351-2445 U.S. $6.2 million $2.8 million $6.9 million 31 Sweeper Metal Fabricators Corporation Drumright, Okla. www.sweepermetal.com John Schiffmacher U.S. 918-352-2133 $3.2 million $1.25 million $2.8 million 13 Justice Systems Corp. Kent, Wash. www.justicesys.com Paul Allyn 425-392-2328 Western U.S., Pacific Coast $3 million $1 million $6 million 12 Simpson Security Systems Inc. Alexandria, La. www.simpsonssecurity.com Keith Simpson 318-443-3391 Gulf Coast, Southern U.S. $3 million $1.4 million $1 million 13 Easter-Owens Arvada, Colo. www.easterowens.com Erica Easter 303-431-0111 North America $2.4 million $1.4 million $13.5 million 156 Secure Control Systems Inc. San Antonio, Texas www.securecontrolsystems.com Brian Mikiten 210-530-5245 North America N/A N/A N/A 6 $38 million $3.6 million *Bulk of data for 2015 SEC List is based on information collected from 2014 records. Security Electronics Contractors Report 2015 page 2 Value of Current Jobs Under Contract Number of Employees 1 Argyle Security 158 1 Sierra Detention Systems Inc. $41 million 2 Sierra Detention Systems Inc. 110 2 Accurate Controls Inc. $35 million 3 CML RW Security 97 3 CML RW Security 4 Simpson Security Systems Inc. 70 4 Argyle Security 5 Accurate Controls Inc. 63 5 Cornerstone Electronics 6 Easter-Owens 60 6 Easter-Owens 7 Cornerstone Electronics 45 7 Southern Folger $7.3 million 8 South Western Communications Inc. 32 8 South Western Communications Inc. $6.9 million 9 Esitech Inc. 26 9 Justice Systems Corp. 10 Secure Control Systems Inc. $35 million $29.3 million $24 million $13.5 million $6 million 10 P2 Controls 22 $5.3 million Completed Projects in Past Year 1 Argyle Security 164 2 Easter-Owens 156 3 Accurate Controls Inc. 65 4 P2 Controls 37 5 South Western Communications Inc. 31 Annual Revenue 80 70 In Millions 60 2013 50 2014 40 30 20 10 0 Sierra Detention Systems Argyle Security Cornerstone Accurate Controls Inc. P2 ABC Controls CML RW Southern Folger Esitech South Western Comm. Inc. 2 Security Electronics Contractors Report 2015 page 3 SEC ROUNDTABLE The Ever-Changing World of SECs By Jessie Fetterling Correctional News spoke with four SEC industry leaders to catch up on the evolving needs of SEC clients and the future of SECs. Keith Thoene, president, CML RW Security LLC; David Beeler, vice president, Cornerstone Electronics; Russell Pilcher, CEO, Sierra Detention Systems; and Buddy Johns, president and CEO, Argyle Security, all weigh in on what’s new and next in the industry. Q: What are some of the current needs of SEC clients today? Thoene: Facilities are reaching out more and more for service and support. Thoene Beeler With the aforementioned transition from the maintenance personnel to the IT department, sometimes the more immediate security needs can be lost in the mountain of IT requests that are coming into the IT department in any given week. Beeler: Ongoing managed services are being requested because modern systems require advanced training and skill sets to maintain. Some facilities have staff with this knowledge base. Others should consider appropriate service agreements. Clients also need faster response times for repair. Facilities are employing less correctional officers, which indirectly or directly makes them rely on the electronics more. Pilcher: The client needs a system that is not only tank-tough, but nimble, intuitive and looks both forward and backward. In today’s economic climate, security upgrades for correctional institu- tions are many times a difficult resolution to pass by popular vote. As a result, SEC upgrades must be future-proofed to the fullest extent that is technologically possible. If a county purchases a camera last year, and that camera has a five-year shelf life, should the county have to throw away that camera at the end of those years? Too often the integrators are pushing to sell the end users a new product rather than incorporate their old technology with forward-looking software and hardware. At Maricopa County, we found a way to use 6,000 existing cameras with 3,000 new cameras easing the operational and economical transition for the county. Pilcher Johns Standardization is of the utmost importance to today’s owner. Many owners control more than one facility and must adhere to court-imposed compliance criteria as well as multiple county agencies requiring access to their system. A universally accepted system with a single-source of responsibility eases many issues today’s owner encounters. A true design-build partner that can accept responsibility from conceptual design to ongoing maintenance solves many of these problems. Johns: Service agreements, preventive maintenance programs, technical support and ultimately refresher training classes for their staff and operational personnel are what clients need. As the technology becomes more advanced the user must also be more informed. As more of the systems become digital and IP is more prevalent, a seamless integra- Security Electronics Contractors Report 2015 tion with the IT departments becomes more important. Q: How are changing technologies affecting SECs? Thoene: Our programming staff has probably seen the largest change. Things have really shifted from seeking out more of a machine control/PLC specialist to more of a GUI interface specialist. This is driven by more ever-demanding specifications outlining numerous theories of control operations and systems integrations. Beeler: With a heavier emphasis on IP-based systems, we are keeping current by training and hiring that knowledge base. Pilcher: The barriers that existed between new-age IT departments and timeless sheriff’s offices are beginning to crumble. One of the keys to doing so is creating an interface and system that is both user-friendly yet highly functional and forward looking. As our system has evolved, we cannot turn a blind eye to the end user. This has resulted in more customer-direct communication, learning exactly what their needs are in a fully operational system. The technology has evolved from a commoditybased, one-size-fits-all system, to a highly personalized, supremely individual interface, catered to the specific needs of the facility. The gap is widening between SECs that choose not to make the investments to be forward looking and those that do. When presented with the two options, the end user is immediately aware of the difference when the end product is examined. It is the responsibility of the industry to not allow the lowest common denominator from a technological perspective to be forced upon counties in the area of human safety. Johns: The SEC must maintain a current training program and relationship with vendors to allow for shared information and knowledge on products and inte- page 4 SEC ROUNDTABLE gration, as the manufacturers evolve their products to meet the needs and changes of the security industry. More networktrained programmers, engineers and fabrication technicians are being utilized in the design and implementation of each system. Q: How is green building affecting SECs? Thoene: There has not been a tremendous impact from green or LEED building initiatives on the SEC market. This industry generates little construction waste and does not have a large amount of flexibility with the rigid security parameters in which we are held. Beeler: We are seeing a movement towards modern pneumatic locks and operators because they require less energy and overall maintenance. ects ever for [the California Department of Corrections and Rehabilitation]. This project includes several unique systems such as a lethal fence system. In these types of challenging scope items, CML RW can prove our capabilities designing and installing certain projects that may dissuade others due to the complexity. Beeler: The Snake River Correctional Institution in Ontario, Ore., was a recently completed upgrade project that included 50-plus touch screens. The challenge was the size of the project and the quick eight- to 10-month turnaround desired by the facility. It was an existing facility that required a phased roll out with limited interruptions to keep the occupied facility operational. Planning the timing with the owner for every step proved very successful for the owner and for us. "With a heavier emphasis on IP-based systems, we are keeping current by training and hiring that knowledge base," said Beeler. Pilcher: The biggest example of green building we have seen is the introduction of building automation to the correctional industry. SECs are now being called upon to not only have purview of doors, locks and cameras, but also to oversee management of plumbing, water control, boilers and air-handling units. It has resulted in Sierra needing to be more versatile and well rounded in the talent it employs. Rather than searching for talent only in the corrections industry, we have broadened our talent pool to include those individuals with expansive technology experience. A nice byproduct of this need has been the cross training afforded to our teams with viewpoints and experiences outside of the realm we normally encounter. Johns: The SEC systems are being integrated with other building systems to more efficiently operate the buildings themselves. SEC systems generate a great deal of data that is now able to cross over into these other building systems. Q: Can you describe a project that you are currently working on or have recently completed? Thoene: We are currently building the security system for the Donovan Infill Complex in San Diego. This has been a very enjoyable project for our staff because of the tremendous talent that we work with daily as we go through the design-build process. All parties — the owner, architect, general contractor and consultants — have really worked together as a team to navigate through one of the first design-build correction proj- Pilcher: We are in the final phases of the Maricopa County, Ariz., electronics retrofit, which to our knowledge is the singlelargest electronics retrofit in the history of the industry. In this project, we were able to incorporate the elements mentioned earlier: standardization, forward and backward looking technology, and maintenance and technical support on an ongoing basis with a service-level agreement of two hours. We view the county not as a customer, but as a true partner. The county had highly specialized instructions and directives for the operation of their security system. It was only through constant communication and collaborative efforts that we were able to provide exactly what the end user required. Johns: Most of our new projects involve working with the customer to assist them in the transition from older technology to newer technology. It is my responsibility to provide options and solutions to each customer on their current systems in place and what can or cannot communicate with the new security components and systems. We have to stay current on the Security Electronics Contractors Report 2015 Join the Correctional News group: http://linkd.in/RwLhuJ page 5 SEC ROUNDTABLE next generation of devices being introduced into the security industry, while understanding the existing systems that are being utilized and maintained at each customer’s location. It is not feasible to just throw out old technology and replace it with everything new. We have a responsibility to maximize the value of legacy systems and still give our customers the benefits of advancing technology. Q: What is the future of the industry and your company’s involvement in it? Thoene: We believe that there will continue to be a focus on smaller facility additions and renovations versus large new facilities. The inmate population is declining in many areas due to several reasons such as alternate sentencing and relaxing drug laws. These trends will probably persist and continue to place more focus on extending the life of buildings that are big enough for the population and modifying those which need to Pilcher: We have crossed the threshold and made an investment in breaking the status quo by guiding owners through a new procurement method — one of collaboration and partnership rather than lowest common denominator of both form and function. We have attacked the dispute problem and resolved the multi-participant scope gap issue and have implemented this on many of our contracts from as large as Maricopa, Ariz., to as small as Brighton, Colo. These projects are under budget and ahead of schedule. In the future, we continue to invite owners, architects and consultants to our state-of-the-art Concept Center, the only center of its type, so they can see these solutions implemented in reallife functionality. Johns: Our industry is becoming much more technologically advanced. The future leaders of our industry will be those who take this technology and turn it into user-friendly, easily implemented and continuously operated systems. Our end "We have a responsibility to maximize the value of legacy systems and still give our customers the benefits of advancing technology," said Johns. meet current classifications and facility programs. CML RW Security simply hopes to continue servicing our customers’ needs as they change with time. We pride ourselves in not trying to be everything to everybody and feel that a smaller client base that is extremely pleased with our performance will pay out in the end. Beeler: The systems have grown more advanced, software based and network reliant. The networks are also increasingly joined with county or state networks, which increases the possibility for viruses, and worse, hacking of the systems. Our industry has not had to deal with these threats — yet. The base PLC systems in use today were designed 25 years ago. They are solid, dependable, non-proprietary, but also were never designed with security in mind. In addition, Windows-based PCs have to be regularly maintained with the latest security patches. The best, but not foolproof, scenario is to isolate the detention network from the rest of the world, but ironically, owners and IT groups are increasingly desiring the exact opposite for connectivity and sharing of information. To compensate, we are testing and implementing military-grade technologies to monitor the detention computers in real time for changes that could be harmful or compromise security. users have a job to do, and our job will be to make their job easier. Our industry is changing from a detective security environment to a preventative security environment. Furthermore, this change from detective to preventive measures gives an ROI to the end user. Our systems can and will provide value. The information gathered from our video, audio and access control systems will provide information that can enhance a facility’s operations, reduce operational costs and provide for compliance enforcement and review. Security electronics systems are now a valuable management information tool. Security Electronics Contractors Report 2015 page 6 SEC REPORT End of Life for Popular Jail System By Bryan Trojan Bosch Security Systems, one of the major manufacturers of Security Electronics equipment, announced the End of Life (EOL) of one of their most popular systems, the DiBos 8 Hybrid Recorder/IP Recorder Software and Accessories. This change not only impacts integrators, but also various counties and jails with this type of hardware currently operating in their facility. The DiBos 8 Hybrid Recorders and IP Recorder Software and Accessories have long been a staple in jails and prisons across the country. Their ease of use, affordability and vast availability has made them prominent in the corrections sector. However, this announcement by Bosch should send warning signals to many facilities across the country. With parts no longer being manufactured and serviced, facilities will need to turn to the secondary market (i.e. eBay) to procure parts for routine maintenance and troubleshooting issues. Reliance on these markets could frighten facility managers across the country. Fear not, the situation is not entirely doom and gloom for facilities. A new, IP-based system offers enhancements that improve the functionality and versatility of a security system, offering vast improvements over old technology: • The system architecture of a new, IP-based system, which is tax-deductible, allows for gradual upgrades. Customers now have the alternative to build their system as needed. The initial cost of a replacement system can be spread over time, allowing the system to grow with the end-user. There is no need to purchase the full capability at the onset of a project if that capability will not be put to use immediately. End-users can customize their purchase to only what is absolutely necessary. • The older, limited systems of the past, restricted users to eight, 16 or 32 cameras. New IP-based systems are unlimited in the quantity of cameras. The only limitations existing are license size and storage capabilities. Counties that have recently upgraded know the cost of storage is one of the greatest costs of a new system. However, because of the new system’s ability to grow, this cost can be spread over time. • The new technology offers more dense storage. Instead of a DVR topping out at 2-8TB, facility storage is limitless. In areas such as California where storage requirements can be as long as 13 months, entire rooms devoted to video storage are no longer needed. What used to be accomplished in entire rooms can now be accomplished in a few equipment racks. • The days of grainy, out-of-focus video is now a thing of the past. Digital systems support high-resolution streams of 720pixel or 1080-pixel, high-definition video, making facial recognition no longer an issue. With the upgraded video quality, facilities have been able to decrease their overall camera count because better quality cameras are able to cover more square footage. It should be noted that a quality, certified integrator is necessary to install and configure a new IP-based system. Facilities should be aware that due to programming issues, systems are no longer “plug-and-play.” An integrator that performs as a partner, listening to the needs of the facility, is an absolute must. Life-safety issues are one of the most important aspects of this industry and should never be taken lightly. A new, IP-based system is not only safer, but more user-friendly, and offers technological advantages unforeseen as little as 10 years ago. Bryan Trojan is the business development and marketing manager at Sierra Detention. 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