DHS awards $7.3M for protective security services in Upstate NY, with a 152-day duration

Contract Overview

Contract Amount: $7,277,622 ($7.3M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-01

End Date: 2023-09-30

Contract Duration: 152 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES UPSTATE, NY

Place of Performance

Location: ALBANY, ALBANY County, NEW YORK, 12212

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.3 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES UPSTATE, NY Key points: 1. Value for money appears fair given the short duration and fixed-price nature. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low due to the established nature of security services and fixed-price contract. 4. Performance context is limited to a 5-month period, making long-term effectiveness difficult to assess. 5. Sector positioning is within the broad security services industry, a common government need. 6. The contract was awarded as a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $7.3 million for a 152-day period suggests a daily rate of approximately $48,000. This rate needs to be benchmarked against similar protective security officer services contracts, considering factors like the number of officers, hours, and specific security requirements. Without more granular data on service levels, it's challenging to definitively assess value, but the fixed-price nature provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method typically fosters a competitive environment, which can lead to better pricing and service quality for the government. The specific number of bidders is not provided, but the chosen procurement method suggests a robust competition was sought.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives competitive pricing for essential services.

Public Impact

Benefits the Department of Homeland Security by ensuring the security of federal facilities or personnel in Upstate New York. Delivers essential protective security officer services, likely involving guarding, access control, and surveillance. Geographic impact is concentrated in Upstate New York. Workforce implications include the potential employment of security officers and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (152 days) may limit long-term performance assessment and contractor investment.
Lack of specific performance metrics makes it difficult to gauge the effectiveness of the security services provided.
Reliance on a delivery order under a potentially larger contract vehicle could obscure the true cost and competition for these specific services.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Fixed-price contract type provides cost certainty for the government.
The contract addresses a critical government function: security.

Sector Analysis

The security services industry is a significant component of the federal contracting landscape, with agencies consistently requiring guarding and patrol services. This contract falls within the broader professional, scientific, and technical services sector. Comparable spending benchmarks would involve analyzing other contracts for similar security officer services across different agencies and geographic locations, considering the scale and complexity of the security operations.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This means that while small businesses could have competed, there were no explicit requirements for their inclusion or subcontracting goals. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, but opportunities may have existed through prime contractor subcontracting if applicable.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of services as specified. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Guard and Patrol Services Contracts
General Services Administration (GSA) Schedule Contracts (if applicable)

Risk Flags

Short contract duration may limit long-term performance assessment.
Lack of detailed performance metrics.
Potential for cost-cutting impacting service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.3 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES UPSTATE, 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 $7.3 million.

What is the period of performance?

Start: 2023-05-01. End: 2023-09-30.

What is the typical cost per hour or per officer for protective security services in Upstate New York, and how does this contract's implied rate compare?

Determining the precise per-hour or per-officer cost from the provided data is challenging without knowing the exact number of officers, hours worked, and specific service requirements. However, a rough daily rate can be estimated. With a total award of $7,277,622.11 over 152 days, the average daily cost is approximately $47,880. If we assume an average of 10 officers working 12-hour shifts (120 officer-hours per day), the implied hourly rate would be around $399. This rate appears high when compared to general market rates for security guards, which can range from $25-$75 per hour depending on skill, location, and security level. However, federal contracts often involve higher security clearances, specialized training, and 24/7 coverage, which can significantly increase costs. Further analysis would require comparing this to similar DHS contracts for armed, highly trained protective security officers in comparable urban or sensitive areas within New York.

What specific security services are being provided under this contract, and what are the key performance indicators (KPIs)?

The contract is for 'PROTECTIVE SECURITY OFFICER SERVICES UPSTATE, NY'. This broadly indicates the provision of personnel to guard, patrol, and protect federal property, personnel, or information. Specific services likely include access control, perimeter security, surveillance, response to incidents, and potentially escort duties. However, the provided data does not detail the specific tasks, required qualifications of the officers (e.g., armed vs. unarmed, level of training), or the exact locations within Upstate New York. Key Performance Indicators (KPIs) are also not specified in the summary data. Typically, KPIs for such contracts might include response times to alarms, successful access control checks, incident reporting accuracy, and adherence to post orders. Without this granular information, a thorough assessment of service quality and effectiveness is not possible.

How does the $7.3 million award compare to historical spending on protective security services by the Department of Homeland Security in New York?

Comparing this $7.3 million award to historical DHS spending requires access to historical contract databases and spending reports. Without that specific data, a direct comparison is difficult. However, the Department of Homeland Security, particularly through its various components like the Federal Protective Service (FPS), is a major consumer of security services nationwide. Annual spending on security guard services by federal agencies often runs into billions of dollars. The $7.3 million for a 152-day contract in a specific region like Upstate New York represents a significant, but not necessarily outlier, expenditure for a focused security requirement. To provide context, one would need to analyze DHS's total security spending in New York over previous years, identify similar regional contracts, and assess if this award represents an increase, decrease, or stable level of investment in protective security.

What is the track record of Paragon Systems Inc. in providing protective security services to the federal government?

Paragon Systems Inc. is a known entity in the federal contracting space, particularly for security services. A review of federal procurement data (e.g., FPDS or SAM.gov) would reveal their history of awards, past performance ratings, and any significant issues or accolades. Generally, companies that secure contracts of this nature have demonstrated capabilities and experience. However, without specific details on Paragon Systems' past performance on similar DHS contracts, including client feedback, any past disputes, or successful project completions, it's difficult to provide a definitive assessment of their track record beyond their presence in the market. A deeper dive would involve examining their contract history for compliance, quality of service, and overall client satisfaction.

What are the potential risks associated with a fixed-price contract for security services, especially given the short duration?

Fixed-price contracts, while offering cost certainty, can introduce risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on quality or staffing to maximize profit, especially if the initial price was set too low or if unforeseen operational challenges arise. Given the short 152-day duration, the contractor might be less incentivized to invest in extensive training or process improvements that would yield long-term benefits. Conversely, the contractor bears the risk of cost overruns if their initial estimates were inaccurate or if operational costs increase unexpectedly. For this specific contract, the risk of compromised service quality due to cost-cutting is a primary concern, necessitating robust government oversight to ensure standards are met throughout the contract period.

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: $7,277,622

Exercised Options: $7,277,622

Current Obligation: $7,277,622

Actual Outlays: $6,922,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP120DE2000002

IDV Type: IDC

Timeline