Strategic Security Management

1. Function: Does the equipment perform all the functions required to

meet the needs? Does the equipment perform considerably more func-

tions than is required, or is another piece of equipment a better match?

2. Reliability: Does the manufacturer have a reputation of reliability in

the industry? Is there any track record with this equipment?

3. Compatibility: Is this equipment compatible with the rest of the equip-

ment that will be used for the total physical protection system? If

things need to work in concert with each other, will they?

4. Price: Is this equipment within the prescribed budget for the system?

5. Ease of Installation: Will installation costs be reasonable for this equip-

ment, or is the equipment too burdensome? Is there a wide range of

integrators that have the ability to install this equipment?

6. User Friendliness: Is this equipment easy to use for the ultimate end

user?

7. Expandability: Is this expandable to cover the anticipated potential

future requirements?

If these general criteria are followed, it is reasonably assured that equipment

choices will be based on the product matching the need and not the need

matching the product.

Defining Cost and Cost-Benefit Analysis

When determining what physical security countermeasures to implement,

it is obviously important to have an understanding of what those counter-

measures will cost. This is not as simple as finding out how much the products

cost to purchase or getting a proposal from an integrator for product installa-

tion. The following aspects of cost must be taken into account:

1. System Installation Cost: This is what would normally be considered

the cost of the system, what would be put in an Invitation to Bid.When

estimating this cost for planning purposes before the bid process, take

into account all these components of the installation cost:

a. Product costs: This is what the equipment cost is to the integrator.

b. Shipping costs: The equipment has to get to the integrator and then

to the site. Where is the equipment chosen coming from?

c. Labor costs: This is always a major part of the system cost. What is

the typical wage rate in your area? Will this be a prevailing wage

job? There may be different wage rates for different functions. What

must be done for each of these functions with the system chosen?

 In field supervision

 Site installation

212 Strategic Security Management

 Programming

 Testing

 Training

d. Fixed costs: There are always fixed costs for a project that could

include the following:

 Material cost

 Subcontractor cost

 Engineering

 Bonding fees

 Permit fees

 Taxes

 Tools

e. Profit/Overhead costs: There must actually be a profit made from

the installation of the system.

2. System Operation Costs: It is necessary to look at everything that must

be done on a regular basis because of the installed system, including

how if affects personnel and policies and procedures. All these added

functions have a cost associated with them that must be taken into

account when determining the overall cost of the countermeasure. For

instance:

a. Do personnel have to be added in order to operate the system?

Security officers or central station personnel?

b. Does someone have to regularly review the output of the system?

(CCTV images, access control reports, etc.)

c. Does a policy or procedure have to be added because of the system

that affects someone’s productivity?

3. Maintenance Costs: How much will this system cost to maintain? Does

regular routine maintenance have to occur, and if so how often and in

what detail? For instance, a gate operator has a far greater need for

routine maintenance than a burglar alarm. What is the track record of

the equipment from a breakdown point of view? How often will the

system not be functional? What extra costs, particularly with person-

nel and repair costs, will be incurred when the system is down? These

are not easy questions to answer, but the analysis must be done.

4. Replacement Costs: What is the life cycle of all the equipment within

the system? When will products have to be replaced, and what is the

anticipated cost of those products at that time?

Once you have analyzed all of the above costs, you now have the overall cost

of the countermeasure and can analyze that cost versus the benefit.

Security Measures: Physical Security 213