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Who made the choice: Definitely, Google. On the paper, it is SIS. I worked for SIS a decade ago: yes, they are nice folks, they did not provide health insurance. They had some $120/month insurance, which covers like $10K a year--and this is not an insurance at all. That's why I did not buy that insurance.

SIS won lots of security contracts based on the price alone. Guardmark, one of its competitors, provides a good health insurance for its employees; but they can't compete with SIS, which does not provide any benefits.

Maybe it was just the impetus for the change? I'd imagine there's more than one security contractor in silicon valley.

Isn't it obvious?

SIS cannot force Google to convert some employees to full-time (nor it makes business sense for them).