DHS awards $9.35M for security services in Ohio, with Paragon Systems Inc. securing the contract

Contract Overview

Contract Amount: $9,350,735 ($9.4M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-01

End Date: 2024-12-31

Contract Duration: 152 days

Daily Burn Rate: $61.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF OHIO

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44119

State: Ohio Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.4 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF OHIO Key points: 1. The contract value represents a significant investment in state-wide security infrastructure. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness. 3. Performance metrics will be key to assessing the value delivered by Paragon Systems Inc. 4. This contract falls within the broader context of federal security service procurement. 5. The IT sector is not directly involved, but cybersecurity considerations may be relevant. 6. The duration of 152 days suggests a focused, short-term operational need.

Value Assessment

Rating: good

The contract value of $9.35 million for approximately 5 months of service appears reasonable given the scope of providing armed protective security officers throughout Ohio. Benchmarking against similar state-wide security contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government, assuming the scope of work is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the value of federal dollars spent.

Public Impact

Federal facilities and personnel within the state of Ohio will benefit from enhanced security. The services delivered include armed protective security officer support. The geographic impact is state-wide across Ohio. The contract supports the workforce of Paragon Systems Inc. and potentially local security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined.
Ensuring consistent service quality across all deployed officers throughout Ohio.
Managing contractor performance effectively over the contract duration.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Clear geographic scope (state of Ohio) aids in operational planning.

Sector Analysis

This contract falls within the security and protective services sector, which is a critical component of government operations. The market for security services is competitive, with numerous firms capable of providing armed personnel. Federal spending in this area is consistent, driven by the need to protect government assets and personnel across various agencies and locations. Comparable spending benchmarks would involve analyzing other large-scale, state-wide security contracts awarded by federal agencies.

Small Business Impact

While this contract was awarded under full and open competition, there is no explicit indication of a small business set-aside. It is important to assess whether subcontracting opportunities were made available to small businesses to ensure their participation in fulfilling this federal requirement. The prime contractor's small business subcontracting plan, if applicable, would be a key factor.

Oversight & Accountability

Oversight will likely be managed by the Department of Homeland Security's contracting officers and program managers. Accountability measures will be tied to performance metrics outlined in the contract. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State-Wide Security Guard Services
Armed Security Personnel Contracts

Risk Flags

Potential for performance issues due to the short duration and state-wide scope.
Need for robust oversight to ensure consistent service quality across Ohio.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.4 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF 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 $9.4 million.

What is the period of performance?

Start: 2024-08-01. End: 2024-12-31.

What is the historical spending pattern of the Department of Homeland Security on security guard services in Ohio?

Analyzing historical spending data for the Department of Homeland Security (DHS) on security guard services specifically within Ohio would provide valuable context for this $9.35 million award. Without access to granular historical data, it's difficult to ascertain if this contract represents an increase, decrease, or stable level of spending compared to previous periods. However, federal agencies like DHS consistently procure security services to protect facilities and personnel. Understanding the frequency and value of past contracts in Ohio would help determine if this award is typical, an outlier, or indicative of a shifting requirement. This analysis would also reveal trends in contractor selection and pricing over time, offering insights into the competitive landscape and potential cost efficiencies achieved or missed.

How does the per-unit cost of an armed protective security officer under this contract compare to similar federal contracts?

To assess the per-unit cost, we would need to know the number of officers and hours to be worked, which are not explicitly detailed in the provided data. Assuming a standard 40-hour work week per officer and an average hourly rate, we could derive a per-officer annual cost. This figure would then be benchmarked against similar federal contracts for armed protective security officers, ideally those awarded in the same region or for comparable facilities. Factors like the level of security clearance required, the specific duties, and the geographic dispersion of posts significantly influence per-unit costs. A higher per-unit cost might be justified by specialized skills or challenging operational environments, while a lower cost could indicate strong competition or efficient contractor operations. Without these details, a precise comparison is not feasible, but the $9.35 million for approximately five months suggests a substantial operational deployment.

What is Paragon Systems Inc.'s track record with the Department of Homeland Security and similar federal agencies?

Paragon Systems Inc. has a notable track record in providing security services to federal agencies, including the Department of Homeland Security (DHS). Their history likely includes numerous contracts for protective security officers, access control, and other security-related functions across various government facilities. Examining their past performance ratings, any past performance issues or awards, and the volume of work they have handled for DHS and other agencies like the Department of Defense or General Services Administration would be crucial. A strong track record with positive past performance reviews generally indicates reliability and competence, which are key factors in contract awards. Conversely, any significant performance deficiencies or contract disputes could raise concerns about their ability to meet the requirements of this new award.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Key performance indicators (KPIs) for this contract would typically focus on the effectiveness and reliability of the armed protective security officers (PSOs) in fulfilling their duties. Common KPIs might include response times to incidents, adherence to post orders, officer punctuality and attendance, successful completion of patrols, and the absence of security breaches or critical incidents attributable to PSO performance. Measurement methods could involve regular supervisor reports, incident logs, electronic timekeeping and location tracking, client feedback surveys, and periodic performance reviews. The contract likely specifies the exact KPIs, their target values, and the methodology for assessing performance, which will directly impact contractor payment and future opportunities.

What is the potential impact of this contract on the small business ecosystem in Ohio?

The direct impact of this $9.35 million contract on the small business ecosystem in Ohio depends heavily on the subcontracting provisions within the award. Since it was competed full and open, there's no guarantee of a small business set-aside. However, Paragon Systems Inc. may be required to subcontract a portion of the work to small businesses, including those located in Ohio. If significant subcontracting opportunities are offered and actively pursued by local small businesses, it could provide them with valuable revenue and experience. Conversely, if the prime contractor handles the majority of the work internally or subcontracts to larger firms, the direct economic benefit to Ohio's small business ecosystem might be limited. Monitoring subcontracting awards will be key to assessing this impact.

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: $9,350,735

Exercised Options: $9,350,735

Current Obligation: $9,350,735

Actual Outlays: $9,350,735

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP419DE5000002

IDV Type: IDC

Timeline