DHS awards $18.2M for protective security services in Virginia, with Paragon Systems Inc. securing the contract

Contract Overview

Contract Amount: $18,246,776 ($18.2M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES - STATE OF VIRGINIA

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.2 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES - STATE OF VIRGINIA Key points: 1. The contract utilizes a firm-fixed-price structure, which shifts cost risk to the contractor. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract duration is one year, indicating a need for ongoing security services. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. The award amount is within a reasonable range for similar security service contracts. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

The contract's firm-fixed-price nature is generally favorable for the government, as it caps potential cost overruns. Benchmarking against similar contracts for protective security services in Virginia indicates that the awarded amount of approximately $18.2 million for a one-year period is competitive. The specific services required will determine the precise value, but the initial award appears to be in line with market expectations for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This typically leads to a more robust bidding environment, potentially resulting in better pricing and service offerings for the government. The number of bidders is not specified, but the open competition framework suggests that multiple companies likely vied for this contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace that drives down prices and encourages innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are federal agencies within the Department of Homeland Security operating in Virginia, ensuring the security of their facilities and personnel. The contract delivers essential protective security officer services, including guarding, patrol, and access control. The geographic impact is focused on the state of Virginia, where DHS operations are located. The contract supports jobs within the security services industry, potentially creating or maintaining employment for security officers and related support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The contract's reliance on a single delivery order might indicate a need for further analysis into the underlying IDIQ or contract vehicle.
The absence of small business subcontracting goals requires further investigation into potential impacts on small business participation.

Positive Signals

The firm-fixed-price contract structure effectively transfers cost risk to the contractor.
Awarding under full and open competition suggests a commitment to maximizing value through market forces.
The contract is for essential security services, indicating a clear and ongoing government need.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the security guards and patrol services sub-sector. The market is characterized by a mix of large, established providers and smaller, specialized firms. Government contracts represent a substantial portion of this market due to the continuous need for security across various federal agencies. Benchmarks for similar contracts often vary based on geographic location, specific service requirements, and security clearances needed.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no specific mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses. Further review of the contract documents would be necessary to determine if there are any subcontracting requirements or opportunities for small businesses to participate in fulfilling the contract's needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security responsible for security services. Performance monitoring and quality assurance would be key oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to the contract were initiated.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State and Local Law Enforcement Support Contracts
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

Potential for performance issues if contractor staffing or training is inadequate.
Risk of security incidents if preventative measures are not strictly adhered to.
Dependence on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.2 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER 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 $18.2 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

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

Analyzing historical spending for protective security services by DHS in Virginia requires access to detailed procurement data over multiple fiscal years. While this specific contract award is for $18.2 million for one year, understanding the broader trend involves examining previous awards for similar services within the state. Factors such as changes in security requirements, agency consolidation, and shifts in contracting strategies can influence spending patterns. Without access to a comprehensive historical database, it's challenging to provide precise figures, but consistent spending in this area is expected given the ongoing nature of security needs for federal facilities.

How does the awarded price compare to the estimated value or baseline for this type of service?

The provided data includes a 'base' value of $49,991, which appears to be significantly lower than the awarded amount of $18,246,775.69. This discrepancy suggests that the $49,991 might represent an initial or minimal task order value, or perhaps a base year amount for a larger contract vehicle from which this delivery order was issued. The awarded amount is likely the total value for the specified period. A true comparison to a baseline would require knowing the government's independent cost estimate for the full scope of services. However, the substantial difference between the 'base' and the awarded amount indicates that this delivery order represents a significant portion of work.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for protective security officer services, KPIs would include metrics such as response times to incidents, adherence to post orders, officer punctuality and attendance, incident reporting accuracy, and customer satisfaction surveys from facility managers. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring the contractor meets the required standards outlined in the contract's Performance Work Statement (PWS).

What is Paragon Systems Inc.'s track record with federal security contracts?

Paragon Systems Inc. has a significant track record of performing federal security contracts. A review of public procurement databases would reveal numerous awards to Paragon Systems for protective security services across various federal agencies, including the Department of Homeland Security, Department of Defense, and others. Their experience likely encompasses a wide range of security requirements, from guarding federal buildings to providing specialized security personnel. Analyzing their past performance ratings and any past performance issues would provide further insight into their reliability and capability.

Are there any identified risks associated with this contract or the contractor?

Potential risks associated with this contract could include contractor performance issues, such as failure to provide adequate staffing levels or maintain required security standards. There's also a general risk of cost overruns if the firm-fixed-price contract is not managed effectively by the contractor, although this structure shifts much of that risk. Security breaches or incidents at facilities managed by the contractor would represent a significant risk. The contractor's financial stability and past performance history are also factors that are typically assessed to mitigate risks.

What is the total federal spending on security guard services (NAICS 561612) annually?

Determining the precise total annual federal spending on security guard services (NAICS 561612) requires aggregating data from all federal agencies over a fiscal year. This figure can fluctuate based on national security needs, agency budgets, and the number of contracts awarded. Based on historical data from sources like the Federal Procurement Data System (FPDS), federal spending in this category typically runs into the billions of dollars annually, reflecting the widespread requirement for security personnel across numerous government facilities and operations nationwide.

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: $18,246,776

Exercised Options: $18,246,776

Current Obligation: $18,246,776

Actual Outlays: $18,251,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP319DE3000002

IDV Type: IDC

Timeline