DHS awards $16.6M for security services to Paragon Systems Inc. under full and open competition
Contract Overview
Contract Amount: $16,625,563 ($16.6M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-10-01
End Date: 2021-09-30
Contract Duration: 364 days
Daily Burn Rate: $45.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PSO SERVICES - STATE OF VIRGINIA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $16.6 million to PARAGON SYSTEMS INC for work described as: PSO SERVICES - STATE OF VIRGINIA Key points: 1. Spending of $16.6M on security services. 2. Contract awarded to Paragon Systems Inc. 3. Competition method: Full and Open. 4. Sector: Government Services/Security.
Value Assessment
Rating: fair
The contract value of $16.6M for one year of security services appears within a reasonable range for large-scale government contracts of this nature. Benchmarking against similar contracts for security guard services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential security services, with the competitive process aiming to ensure efficient allocation of resources.
Public Impact
Ensures security for Department of Homeland Security operations. Supports a private sector company, Paragon Systems Inc. Provides employment opportunities for security personnel. Contributes to the overall safety and security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope changes.
- Dependence on a single contractor for critical services.
Positive Signals
- Awarded through full and open competition.
- Clear contract period and fixed price.
Sector Analysis
This contract falls within the government services sector, specifically focusing on security and protective services. Spending benchmarks for similar security guard contracts can vary significantly based on location, service level, and contract duration.
Small Business Impact
The contract was awarded to Paragon Systems Inc., a private company. There is no indication in the provided data that small businesses were specifically involved as subcontractors or prime contractors in this award.
Oversight & Accountability
The Office of Procurement Operations within DHS is responsible for managing this contract. Oversight would involve monitoring service delivery, performance, and adherence to contract terms to ensure accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Contract duration is one year, requiring potential re-competition.
- Reliance on a single vendor for critical security functions.
- Potential for scope creep leading to increased costs.
- Need for robust performance monitoring to ensure service quality.
Tags
security-guards-and-patrol-services, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $16.6 million to PARAGON SYSTEMS INC. PSO SERVICES - STATE OF VIRGINIA
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 $16.6 million.
What is the period of performance?
Start: 2020-10-01. End: 2021-09-30.
What is the specific scope of services provided under this contract?
The contract is for security guards and patrol services. The exact scope would detail the number of guards, hours of coverage, specific locations to be secured, and any specialized security measures required. This level of detail is crucial for understanding the full value and necessity of the $16.6M award.
How does Paragon Systems Inc.'s pricing compare to industry averages for similar security services?
Without specific per-unit cost data (e.g., hourly rate per guard) and detailed service requirements, a direct comparison is difficult. However, the contract's full and open competition suggests a competitive pricing strategy was employed. Further analysis would require access to bid data and industry cost benchmarks.
What performance metrics are used to evaluate the effectiveness of Paragon Systems Inc.'s security services?
Performance metrics typically include response times, incident reporting accuracy, guard professionalism, and adherence to post orders. The Department of Homeland Security would likely have a quality assurance surveillance plan (QASP) to monitor these metrics and ensure the contractor meets or exceeds contractual obligations.
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
Solicitation ID: 70RFP319RE3000001
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: $16,625,563
Exercised Options: $16,625,563
Current Obligation: $16,625,563
Actual Outlays: $816,100
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP319DE3000002
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2025-09-15
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