DHS awards $5.1M contract for protective security services in Ohio, utilizing full and open competition

Contract Overview

Contract Amount: $5,117,811 ($5.1M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-23

End Date: 2022-01-31

Contract Duration: 130 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES - OHIO

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44199

State: Ohio Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.1 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES - OHIO Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for protective security officer services, a critical function for agency operations. 3. The award was a delivery order under a larger contract, indicating potential for follow-on work. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. The duration of the contract is relatively short (130 days), suggesting a specific, time-bound need. 6. The contractor, Paragon Systems Inc., is a known entity in the security services sector.

Value Assessment

Rating: good

The contract value of approximately $5.1 million for a 130-day period for security services in Ohio appears reasonable given the scope. Benchmarking against similar contracts for protective security officers requires access to a broader dataset of federal awards. However, the firm-fixed-price structure provides cost predictability. The specific services and locations will heavily influence the true value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to meet its requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) facilities and personnel in Ohio, who will receive enhanced security. Services delivered include protective security officer functions, likely encompassing access control, surveillance, and response. The geographic impact is concentrated within Ohio, specifically at locations managed by DHS. The contract supports the workforce of Paragon Systems Inc., providing employment for security officers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality assurance details in the provided data.
Short contract duration may indicate a temporary need or a gap-filling measure, raising questions about long-term security planning.
No information on small business subcontracting, though the contract was not set aside for small businesses.

Positive Signals

Awarded via full and open competition, suggesting a competitive market and potentially good value.
Firm-fixed-price contract type offers cost certainty.
Contractor has experience in providing security services.

Sector Analysis

The protective security services sector is a significant component of the broader government contracting landscape, particularly for agencies like DHS. This contract falls under the Security Guards and Patrol Services industry (NAICS 561612). The market for these services is competitive, with numerous established providers. Federal spending in this area is consistent, driven by the need to protect government assets and personnel across various locations.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of mandatory small business subcontracting goals. This suggests that the primary focus was on securing the best offer through open competition, rather than specifically promoting small business participation. The impact on the small business ecosystem is likely minimal unless Paragon Systems Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security's Office of Procurement Operations. Performance monitoring, quality assurance, and payment approvals are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DHS Protective Security Services Contracts
Federal Security Guard Contracts
GSA Schedule 84 - Integrated Security and Law Enforcement Equipment and Services

Risk Flags

Short contract duration may indicate a temporary need or gap.
Lack of detailed performance metrics in the provided summary.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.1 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES - OHIO

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 $5.1 million.

What is the period of performance?

Start: 2021-09-23. End: 2022-01-31.

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

The Department of Homeland Security (DHS) is a significant spender on protective security services, reflecting its broad mandate to secure the nation. Historical data indicates consistent and substantial investment in this area across various components like Customs and Border Protection (CBP), Federal Protective Service (FPS), and other operational units. Spending often fluctuates based on specific security threats, facility needs, and policy changes. For instance, periods of heightened national security concerns or the expansion of federal facilities can lead to increased contract awards. Analyzing past contract awards, including their value, duration, and the types of services rendered, reveals a steady demand for security personnel, access control systems, and related services. This contract, valued at approximately $5.1 million over 130 days, aligns with the typical scale of such awards, though specific historical benchmarks would require a deeper dive into DHS's procurement history for similar services in Ohio or comparable regions.

How does the awarded price compare to similar protective security contracts in the federal market?

Without access to a comprehensive database of all federal protective security contracts awarded during the same period and in similar geographic locations, a precise price comparison is challenging. However, the firm-fixed-price nature of this $5.1 million contract for a 130-day duration suggests the agency aimed for cost certainty. The average cost per day is approximately $39,368. Factors influencing price include the number of posts, hours per post, security clearance levels required for personnel, and specific duties. Generally, contracts awarded under full and open competition tend to yield competitive pricing. To conduct a thorough benchmark, one would compare this contract's cost per post-hour against other DHS or agency contracts for similar services, considering regional labor costs and the specific security requirements outlined in the statement of work.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or the specific performance measurement tools used for this contract. Typically, for protective security officer services, KPIs might include metrics such as response times to incidents, adherence to post orders, punctuality and attendance of officers, successful access control, and the absence of security breaches. Performance is usually assessed through regular government inspections, client feedback, incident reports, and contractor self-reporting. The contracting officer's representative (COR) or a designated government official would be responsible for monitoring performance against the contract's requirements and the established KPIs. The firm-fixed-price structure implies that the contractor is paid for meeting the defined service levels, with potential penalties or remedies for non-performance.

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

Paragon Systems Inc. is a well-established federal contractor specializing in security services. They have a significant history of providing protective security officers, access control, and other security-related solutions to various government agencies, including the Department of Homeland Security (DHS). Their portfolio often includes contracts for federal buildings, courthouses, and other sensitive government installations. While specific performance details for every contract are not publicly available, their continued success in winning and performing on numerous federal contracts suggests a generally positive track record. Agencies often award contracts to companies with proven experience and a history of meeting performance requirements. A deeper analysis would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) if accessible.

Are there any identified risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this contract could include contractor performance issues (e.g., staffing shortages, inadequate training, failure to meet post orders), security breaches, or cost overruns if not managed tightly under the firm-fixed-price structure. Given the short duration, a risk might also be the potential for disruption if the contractor is changed frequently or if this is a stop-gap measure. Mitigation strategies typically involve robust government oversight, clear performance standards in the contract, regular performance reviews, and defined remedies for non-performance. The use of full and open competition also mitigates the risk of awarding to an unqualified vendor. The contracting agency likely has established procedures for monitoring contractor performance and addressing any issues that arise promptly to ensure continuity of security operations.

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: $5,117,811

Exercised Options: $5,117,811

Current Obligation: $5,117,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP419DE5000002

IDV Type: IDC

Timeline