DHS awards $21.3M for protective security services in Manhattan, with a focus on guard and patrol operations

Contract Overview

Contract Amount: $21,314,455 ($21.3M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2025-03-31

Contract Duration: 181 days

Daily Burn Rate: $117.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE MANHATTAN AREA

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 $21.3 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE MANHATTAN AREA Key points: 1. The contract value of $21.3 million for a six-month period suggests a significant operational requirement for security personnel. 2. The use of Firm Fixed Price contract type indicates a clear understanding of service scope and cost expectations. 3. The award to Paragon Systems Inc. warrants a review of their past performance and capacity for this scale of operation. 4. The geographic focus on the Manhattan area implies a concentration of federal assets requiring physical security. 5. The North American Industry Classification System (NAICS) code 561612 points to a standard service offering within the security industry.

Value Assessment

Rating: good

The contract value of $21.3 million over 181 days averages approximately $117,759 per day. This daily rate for security services in a high-cost urban area like Manhattan appears within a reasonable range for comprehensive protective services. Benchmarking against similar contracts for security guard and patrol services in major metropolitan areas would provide further validation of value for money.

Cost Per Unit: $117,759 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield favorable pricing and service terms for the government. The number of bidders, if available, would further indicate the level of market interest and competitive intensity.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of qualified contractors to vie for government business.

Public Impact

Federal agencies and personnel operating within the Manhattan area will benefit from enhanced physical security and protection. The services delivered include security guards and patrol operations, crucial for maintaining a safe and secure environment. The geographic impact is concentrated within the Manhattan area of New York, ensuring coverage for federal facilities and assets in this dense urban center. The contract supports jobs within the security services sector, potentially creating or maintaining employment opportunities for security officers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen security threats escalate during the contract period, impacting the fixed-price nature.
Reliance on a single contractor for critical security functions necessitates robust performance monitoring to ensure consistent service delivery.

Positive Signals

The use of full and open competition suggests a robust market response and potential for competitive pricing.
The firm fixed-price contract structure provides cost certainty for the government, mitigating budget overruns for the defined scope.
The contract duration of six months allows for flexibility and reassessment of needs for future security service requirements.

Sector Analysis

The security services industry, particularly guard and patrol services (NAICS 561612), is a significant component of the broader professional, scientific, and technical services sector. Federal spending in this area is driven by the need to protect government facilities, personnel, and sensitive information across various agencies. This contract fits within the typical federal procurement landscape for physical security, with spending levels often influenced by the threat environment and the number of federal installations in a given region. Comparable spending benchmarks would typically be found within agency-specific security service solicitations and award data.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that small business subcontracting is not explicitly mentioned as a requirement (sb: false, ss: false). This suggests that the primary award went to a larger entity, and opportunities for small businesses would likely be through direct subcontracting if the prime contractor chooses to engage them, rather than through a mandated set-aside program.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's Office of Procurement Operations, with specific program managers responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are inherent in the firm fixed-price structure, which penalizes the contractor for cost overruns. Transparency is facilitated through federal procurement databases where contract awards are published, though detailed performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Physical Security Services
Guard Services
Patrol Services
Department of Homeland Security Contracts

Risk Flags

Potential for service disruption if contractor faces unforeseen workforce issues.
Need for rigorous performance monitoring to ensure consistent security coverage.
Reliance on a single vendor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.3 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE MANHATTAN AREA

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 $21.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-03-31.

What is the historical spending pattern of the Department of Homeland Security on protective security officer services in the Manhattan area?

Analyzing historical spending for protective security officer services by DHS in Manhattan requires access to detailed federal procurement data over multiple fiscal years. While this specific contract award is for $21.3 million over six months, understanding the broader trend involves examining previous contracts for similar services in the same geographic region. Factors such as changes in security posture, the number of federal buildings occupied, and the evolution of threat assessments would influence year-over-year spending. Without historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of investment. However, the significant value of this single award suggests a consistent and substantial need for these services in a high-density federal presence area like Manhattan.

How does the per-day cost of these security services compare to similar contracts in other major metropolitan areas?

The daily cost for this contract is approximately $117,759. To benchmark this effectively, one would need to compare it against contracts for similar protective security officer services (NAICS 561612) awarded by federal agencies in other major metropolitan areas such as Los Angeles, Chicago, or Washington D.C. Key comparison points would include the number of officers provided, the hours of coverage, the specific security duties performed (e.g., access control, patrols, response), and the prevailing labor costs in those respective regions. Urban centers generally command higher service rates due to increased operational complexity and higher labor expenses. A detailed comparison would reveal if the Manhattan rate is competitive or an outlier.

What is Paragon Systems Inc.'s track record with federal contracts, particularly for security services?

Paragon Systems Inc. has a history of performing federal contracts, including those for security services. A thorough assessment of their track record would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scale and complexity of previous security contracts they have managed. Understanding their experience with similar firm fixed-price contracts and their ability to meet performance standards in high-threat or high-visibility environments like Manhattan is crucial. Positive past performance indicators would suggest a lower risk for this current award, while any significant issues could raise concerns about their capacity and reliability.

What are the specific risks associated with relying on a single contractor for protective security in a high-profile area like Manhattan?

Relying on a single contractor, even one with a strong track record like Paragon Systems Inc. is presumed to be, introduces several risks. These include potential service disruptions due to unforeseen events affecting the contractor's workforce (e.g., labor disputes, widespread illness), a lack of competitive pressure to innovate or improve service quality once the contract is awarded, and the potential for vendor lock-in if the contractor becomes indispensable. In a high-profile area like Manhattan, any lapse in security could have significant consequences. Mitigation strategies include robust contract oversight, clear performance metrics, contingency planning, and maintaining open communication channels with the contractor to address issues proactively.

How does the $21.3 million award align with the typical budget allocation for security services within the Department of Homeland Security?

Determining how this $21.3 million award aligns with DHS's typical budget requires analyzing the agency's overall budget for protective services and the proportion allocated to specific operational areas like Manhattan. DHS, encompassing agencies like CBP, ICE, and the Secret Service, has substantial security needs. This award represents a significant, albeit short-term, investment. To assess alignment, one would compare this contract's value against the total annual spending on security personnel across DHS, or specifically within the Office of Procurement Operations if it manages a consolidated security budget. Without broader budget context, it's challenging to definitively state alignment, but the amount suggests it's a material expenditure for the services rendered.

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: $21,314,455

Exercised Options: $21,314,455

Current Obligation: $21,314,455

Actual Outlays: $21,316,852

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP118DE2000001

IDV Type: IDC

Timeline