DHS awards $29.7M contract for protective security services in Manhattan, NY

Contract Overview

Contract Amount: $29,719,544 ($29.7M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $81.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES MANHATTAN, NY

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 $29.7 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES MANHATTAN, NY Key points: 1. Contract value represents a significant investment in securing federal facilities in a high-cost urban area. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. Performance period covers one year, indicating a need for ongoing security services. 5. The contractor, Paragon Systems Inc., is a known entity in the security services sector. 6. The contract falls under the Security Guards and Patrol Services NAICS code.

Value Assessment

Rating: good

The contract value of approximately $29.7 million for one year of protective security services in Manhattan is substantial, reflecting the high operational costs and security demands of the location. Benchmarking against similar contracts for large metropolitan areas would be necessary for a precise value-for-money assessment. However, the fixed-price nature of the contract provides cost certainty. The awarded amount is within a reasonable range for comprehensive security services in a major city, considering factors like personnel, equipment, and operational overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value through a broad market solicitation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of securing high-quality services at a competitive rate.

Public Impact

Federal facilities in Manhattan, New York, will receive enhanced protective security services. The contract ensures the safety and security of government personnel and assets within the specified area. The services provided are critical for maintaining the operational integrity of federal agencies operating in Manhattan. The contract supports jobs within the security services industry, likely benefiting local residents in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if market rates for security personnel rise significantly during the contract period.
Dependence on a single contractor for critical security functions requires robust performance monitoring.
Geographic concentration of services in Manhattan may limit opportunities for smaller, specialized security firms.

Positive Signals

Award under full and open competition suggests a competitive process that likely yielded favorable pricing.
Fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contractor, Paragon Systems Inc., has experience in providing security services, potentially leading to efficient service delivery.

Sector Analysis

The protective security services sector is a significant component of the broader facilities management and security industry. This contract falls within the Security Guards and Patrol Services category (NAICS 561612). The market for federal security contracts is substantial, driven by the need to protect government assets and personnel across various locations. Competition in this sector can be intense, with both large established firms and smaller specialized companies vying for contracts. The value of this specific contract, at nearly $30 million annually, places it as a significant award within the protective services domain for a major metropolitan area.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated for small businesses within this specific award. The absence of a small business set-aside means that larger, established companies were likely the primary bidders and recipients of this contract. This could limit opportunities for small businesses to participate in providing these critical security services unless they are part of a larger subcontracting network not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Homeland Security. Performance monitoring, quality assurance checks, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Manhattan Federal Facility Security
Security Guard Services Contracts
General Services Administration (GSA) Security Contracts

Risk Flags

Potential for service disruption if contractor faces labor issues.
Dependence on contractor's ability to maintain adequate staffing levels.
Need for continuous monitoring of performance against contract requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.7 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES MANHATTAN, NY

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 $29.7 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical spending pattern for protective security services by the Department of Homeland Security in Manhattan?

Analyzing historical spending for protective security services by DHS in Manhattan requires access to detailed federal procurement data over multiple fiscal years. Typically, agencies like DHS award numerous contracts for security services across various facilities and locations within a major metropolitan area like Manhattan. Spending patterns can fluctuate based on evolving security needs, changes in facility requirements, and the competitive landscape of security service providers. Without specific historical data for this contract vehicle or similar services in Manhattan, it's difficult to provide precise figures. However, it is reasonable to assume that DHS maintains a consistent and significant budget allocation for security services in high-risk, high-value urban centers to ensure the protection of federal assets and personnel.

How does the awarded amount compare to other similar protective security contracts awarded by federal agencies in major U.S. cities?

The awarded amount of approximately $29.7 million for one year of protective security services in Manhattan is substantial, reflecting the high operational costs and security demands of a major metropolitan area. To benchmark this value, one would compare it to similar contracts awarded by agencies like the General Services Administration (GSA), the FBI, or other departments for security guard and patrol services in cities such as New York, Los Angeles, Chicago, or Washington D.C. Contracts for comprehensive security in dense urban environments often range from tens to hundreds of millions of dollars annually, depending on the scope, number of facilities, and level of security required. Given the fixed-price nature, the government has established a clear cost ceiling. A detailed comparison would involve analyzing contract duration, service levels, and the specific security threats addressed.

What are the key performance indicators (KPIs) typically used to evaluate the performance of protective security officers under such contracts?

Key Performance Indicators (KPIs) for protective security officer contracts are crucial for ensuring effective service delivery and accountability. Common KPIs include response times to incidents, adherence to post orders and patrol routes, incident reporting accuracy and timeliness, personnel attendance and punctuality, uniform and appearance standards, and the successful prevention of unauthorized access or security breaches. For this contract, DHS would likely establish specific metrics related to the protection of federal facilities and personnel in Manhattan. Performance evaluations would assess the contractor's ability to meet these KPIs, with potential financial incentives or penalties tied to performance outcomes. Regular site visits, performance reviews, and feedback from facility managers are also integral to oversight.

What is the track record of Paragon Systems Inc. in fulfilling federal contracts for security services?

Paragon Systems Inc. is a well-established federal contractor specializing in security services. A review of public federal procurement databases (such as FPDS or SAM.gov) would reveal their contract history, including awards from various agencies like the Department of Defense, Department of Justice, and others. Their track record typically includes providing a range of security services, such as physical security, access control, background checks, and security system monitoring. Analyzing their past performance ratings, any past performance issues or disputes, and the volume and value of contracts they have successfully managed would provide insight into their reliability and capability to fulfill this DHS contract effectively. Generally, companies with extensive federal contracts have demonstrated a capacity to meet government requirements.

What are the potential risks associated with relying on a single contractor for protective security services in a high-threat urban environment like Manhattan?

Relying on a single contractor for critical protective security services in a high-threat urban environment like Manhattan presents several potential risks. These include service disruption due to contractor performance issues, labor disputes, or financial instability. There's also a risk of 'vendor lock-in,' where switching contractors could be costly and time-consuming, potentially reducing leverage for negotiating future contracts. Furthermore, a single contractor might face challenges in rapidly scaling services or adapting to unforeseen security threats without adequate contingency planning. The concentration of security personnel from one company could also create a single point of failure if widespread issues arise. Robust contract management, clear performance expectations, and contingency plans are essential to mitigate these risks.

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: $29,719,544

Exercised Options: $29,719,544

Current Obligation: $29,719,544

Actual Outlays: $7,398,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP118DE2000001

IDV Type: IDC

Timeline