DHS Awards $32.6M for Protective Security Officers in Manhattan, NY to Paragon Systems Inc
Contract Overview
Contract Amount: $32,574,221 ($32.6M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2018-10-01
End Date: 2024-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROTECTIVE SECURITY OFFICER (PSO) 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 $32.6 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES - MANHATTAN, NY Key points: 1. Contract awarded to Paragon Systems Inc. for PSO services. 2. Significant contract value of $32.6 million over its period of performance. 3. Competition method was 'Full and Open', suggesting broad market participation. 4. Sector is Security Guards and Patrol Services, a critical government function.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar PSO contracts would be needed for a definitive value assessment, but the award amount appears reasonable for the scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The use of full and open competition aims to secure competitive pricing, maximizing taxpayer value for essential security services.
Public Impact
Ensures continuous security operations at Department of Homeland Security facilities. Supports federal agency presence and safety in a major metropolitan area. Provides employment opportunities within the security services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for price creep if contract scope expands without re-competition.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
The security services sector is highly competitive, with numerous established providers. Government contracts for PSO services are common and essential for maintaining secure federal facilities across the nation.
Small Business Impact
The data indicates the awardee, Paragon Systems Inc., is not a small business. Further analysis would be needed to determine if small business subcontracting opportunities were included or met.
Oversight & Accountability
The contract falls under the Office of Procurement Operations within DHS, suggesting established procurement processes. Oversight would focus on performance monitoring and adherence to contract terms.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Contract duration is lengthy (approx. 5.5 years).
- Awardee is not a small business.
- No specific performance metrics provided.
- Potential for scope creep on long-term contracts.
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 $32.6 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER (PSO) 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 $32.6 million.
What is the period of performance?
Start: 2018-10-01. End: 2024-03-31.
What is the specific scope of services covered by these PSO contracts, and how does it compare to industry standards for similar facilities?
The provided data does not detail the specific scope of services. A comprehensive analysis would require reviewing the contract's Statement of Work (SOW) to understand the exact duties, post orders, and required qualifications for the Protective Security Officers. Comparing this to industry benchmarks for similar government or private sector facilities would reveal if the services are standard, enhanced, or reduced in scope.
Are there any identified risks related to vendor performance or security breaches associated with Paragon Systems Inc. on this or similar contracts?
The provided data does not contain information on past performance issues or security incidents related to Paragon Systems Inc. A thorough risk assessment would involve reviewing past performance evaluations (e.g., CPARS), any documented disputes or claims, and the vendor's overall security posture and compliance history.
How effectively does the firm fixed price contract structure mitigate cost overruns given the extended duration and potential for evolving security needs?
The firm fixed price (FFP) structure is designed to shift cost risk to the contractor, providing budget certainty for the government. However, for extended contracts like this (over 5 years), evolving security needs or unforeseen circumstances could lead to change orders or requests for equitable adjustments, potentially increasing costs if not managed strictly.
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: $32,574,221
Exercised Options: $32,574,221
Current Obligation: $32,574,221
Actual Outlays: $31,805,112
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP118DE2000001
IDV Type: IDC
Timeline
Start Date: 2018-10-01
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2023-09-28
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