DHS awards $26.3M for Protective Security Officer Services in Manhattan to Paragon Systems Inc
Contract Overview
Contract Amount: $26,299,359 ($26.3M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-10-01
End Date: 2021-09-30
Contract Duration: 364 days
Daily Burn Rate: $72.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROTECTIVE SECURITY OFFICER SERVICES MANHATTAN
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10278
State: New York Government Spending
Plain-Language Summary
Department of Homeland Security obligated $26.3 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES MANHATTAN Key points: 1. The contract value is substantial at $26.3 million. 2. Paragon Systems Inc. is the incumbent contractor. 3. The contract was awarded under full and open competition. 4. The service falls under Security Guards and Patrol Services. 5. The contract duration is one year.
Value Assessment
Rating: good
The award amount of $26.3 million for one year of security services appears reasonable given the scope. Benchmarking against similar contracts for protective security officers in major metropolitan areas would provide further validation.
Cost Per Unit: $72,251 (annualized per contract)
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars for essential security services.
Public Impact
Ensures security at federal facilities in Manhattan. Supports the mission of the Department of Homeland Security. Provides employment opportunities for security personnel. Maintains a safe environment for government employees and visitors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if Paragon Systems is consistently re-awarded.
- Reliance on a single vendor for critical security functions.
- Geographic concentration of services in Manhattan.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration of one year.
- Firm fixed price contract type provides cost certainty.
Sector Analysis
The Security Guards and Patrol Services sector is crucial for government operations, ensuring physical security. Spending in this sector can vary significantly based on location, facility size, and threat level. This contract aligns with typical spending for comprehensive security coverage in a major urban center.
Small Business Impact
The data indicates that neither small business set-aside nor small business participation was a factor in this specific award. Future solicitations could explore opportunities for small business involvement in subcontracting roles.
Oversight & Accountability
The Office of Procurement Operations within DHS is responsible for managing this contract. Standard oversight procedures for service contracts, including performance monitoring and payment verification, would be in place to ensure accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for service disruption due to geographic concentration.
- Reliance on a single incumbent contractor.
- Lack of explicit small business participation noted.
- Need for ongoing performance monitoring to ensure quality.
Tags
security-guards-and-patrol-services, department-of-homeland-security, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $26.3 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES MANHATTAN
Who is the contractor on this award?
The obligated recipient is PARAGON SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $26.3 million.
What is the period of performance?
Start: 2020-10-01. End: 2021-09-30.
What is the historical performance of Paragon Systems Inc. in delivering protective security officer services?
Assessing Paragon Systems Inc.'s past performance is crucial for understanding their reliability and effectiveness. Reviewing past contract performance evaluations, any documented issues or commendations, and their track record with similar government agencies would provide insight into their capability to meet the current contract's requirements and ensure consistent service delivery.
Are there any identified risks associated with the concentration of security services in Manhattan under this contract?
Concentrating security services in a single geographic area like Manhattan could pose risks related to localized disruptions (e.g., natural disasters, civil unrest) impacting service delivery. It also means a significant portion of DHS's security budget for this function is tied to one location, potentially limiting flexibility if needs shift elsewhere.
How does the firm fixed price (FFP) contract type impact the government's ability to manage costs and ensure value for these security services?
A firm fixed price contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This incentivizes the contractor to manage their expenses efficiently. For security services, FFP is generally suitable, but it requires clear performance standards to ensure quality is not sacrificed for cost savings.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Securitas AB
Address: 13900 LINCOLN PARK DR STE 300, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $26,299,359
Exercised Options: $26,299,359
Current Obligation: $26,299,359
Actual Outlays: $1,936,892
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP118DE2000001
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2021-09-30
Potential End Date: 2024-09-18 00:00:00
Last Modified: 2024-09-30
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