DHS spent $23M on Georgia security services, with Paragon Systems Inc. securing the contract via full and open competition

Contract Overview

Contract Amount: $22,971,685 ($23.0M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-28

End Date: 2021-09-30

Contract Duration: 367 days

Daily Burn Rate: $62.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA, 10/1/20 - 9/30/21

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.0 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA, 10/1/20 - 9/30/21 Key points: 1. The contract value of approximately $23 million for a one-year period suggests a significant investment in protective security. 2. Full and open competition indicates a robust bidding process, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, Paragon Systems Inc. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. The contract duration of 367 days aligns with typical annual service agreements. 6. The award was made by the Department of Homeland Security's Office of Procurement Operations.

Value Assessment

Rating: good

The contract value of $22,971,685.05 for approximately one year of service appears reasonable given the scope of protective security officer services across an entire state. Benchmarking against similar large-scale state-wide security contracts would provide a more precise value assessment. However, the fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The agency sought proposals from a wide range of qualified vendors.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through a broad bidding process and ensures that the government receives the best value available in the market.

Public Impact

Federal facilities and personnel within the state of Georgia are protected by the services rendered under this contract. The contract ensures the continuous provision of security guard and patrol services. The geographic impact is statewide, covering all areas within Georgia where DHS requires protective security. The contract supports jobs within the security services industry in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality assurance details in the provided data.
Potential for cost creep if the scope of work expands beyond initial expectations, despite the fixed-price structure.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type transfers cost overrun risk to the contractor.
Contract duration of approximately one year allows for regular performance review and potential re-competition.

Sector Analysis

The security services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under the Security Guards and Patrol Services sub-sector. The market for federal security services is substantial, with numerous private companies competing for government contracts. Spending in this area is driven by the need to protect federal assets, personnel, and sensitive information across various agencies and locations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, large businesses were eligible to bid and likely dominated the competition. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is not discernible from this data alone. Future analysis could explore if any small businesses were part of the awarded contractor's team.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security. Accountability measures are inherent in the fixed-price contract, requiring the contractor to deliver services as specified. Transparency is generally facilitated through contract award databases, though specific performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Operations
Statewide Security Services Contracts
Security Guard Services

Risk Flags

Lack of detailed performance metrics
Limited information on bidder competition
No specific small business subcontracting data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.0 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA, 10/1/20 - 9/30/21

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 $23.0 million.

What is the period of performance?

Start: 2020-09-28. End: 2021-09-30.

What was the historical spending pattern for protective security officer services in Georgia by the Department of Homeland Security prior to this contract?

Analyzing historical spending for DHS protective security officer services in Georgia prior to the 10/1/20 - 9/30/21 contract would require access to historical federal procurement data. Without that specific data, it's difficult to provide a precise comparison. However, federal spending on security services is generally consistent, driven by ongoing operational needs and facility protection requirements. Significant fluctuations might indicate changes in threat levels, agency footprint, or shifts in contracting strategies (e.g., moving from multiple smaller contracts to a single large one, or vice versa). The $23 million awarded for this one-year contract suggests a substantial and ongoing requirement for these services within Georgia.

How many bids were received for this contract, and what was the range of proposed prices?

The provided data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION,' which implies that multiple vendors were eligible to bid. However, the specific number of bids received and the range of proposed prices are not detailed in the available information. Typically, full and open competition aims to solicit a wide array of proposals to ensure competitive pricing. The absence of this data prevents a granular analysis of the competitive landscape and whether the winning bid was significantly lower, higher, or in line with other offers. Further investigation into the contract file or relevant procurement databases would be necessary to obtain these details.

What specific performance metrics were included in the contract, and how was contractor performance evaluated?

The provided data does not specify the performance metrics or evaluation criteria used for this contract. Standard government contracts for security services typically include metrics related to response times, officer conduct, incident reporting accuracy, and adherence to post orders. Performance evaluations are crucial for ensuring the government receives the quality of service required and for informing future contracting decisions. Without the specific details of the Performance Work Statement (PWS) or Service Level Agreements (SLAs), it is impossible to assess how Paragon Systems Inc.'s performance was measured and whether they met or exceeded expectations during the contract period.

Does Paragon Systems Inc. have a track record of performance issues or contract disputes with federal agencies?

To assess Paragon Systems Inc.'s track record, a review of their past performance information, including any past performance evaluations, contract disputes, or claims filed against them by federal agencies, would be necessary. This information is often available through sources like the Contractor Performance Assessment Reporting System (CPARS) or agency-specific records. Without access to these specific records for Paragon Systems Inc., it is not possible to definitively state whether they have a history of performance issues or disputes. However, the fact that they were awarded this significant contract suggests they likely met the agency's responsibility criteria at the time of award.

What is the typical cost per hour or per officer for similar protective security services in the Georgia region?

Determining the precise per-unit cost for protective security officers in Georgia requires detailed market analysis and access to specific contract data. Factors influencing cost include the level of security clearance required, the specific duties performed (e.g., access control, patrols, response), the time of day/week, and the geographic location within Georgia. Generally, government contracts for security guards can range significantly, often from $30 to $70+ per hour, depending on these variables and the inclusion of overhead and profit. The $23 million contract over approximately 367 days implies an average daily cost of roughly $62,593, or an hourly rate that would depend heavily on the number of officers and hours worked per day. A more granular analysis would be needed to benchmark this effectively.

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: $22,971,685

Exercised Options: $22,971,685

Current Obligation: $22,971,685

Actual Outlays: $2,425,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQE417D00001

IDV Type: IDC

Timeline