DHS awards $33.8M for Protective Security Services in California to Paragon Systems Inc
Contract Overview
Contract Amount: $33,839,259 ($33.8M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2017-10-01
End Date: 2018-09-30
Contract Duration: 364 days
Daily Burn Rate: $93.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: LABOR HOURS
Sector: Other
Official Description: PROTECTIVE SECURITY SERVICES (PSO)FOR LOS ANGELES, CA
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012
Plain-Language Summary
Department of Homeland Security obligated $33.8 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY SERVICES (PSO)FOR LOS ANGELES, CA Key points: 1. The contract value of $33.8 million for security services is significant. 2. Paragon Systems Inc. is the sole awardee, indicating potential lack of broader competition. 3. The contract falls under the Security Guards and Patrol Services NAICS code. 4. The award was made by the Department of Homeland Security's Office of Procurement Operations.
Value Assessment
Rating: good
The award amount of $33.8M for a one-year contract appears reasonable for protective security services in a major metropolitan area like Los Angeles. Benchmarking against similar contracts would provide a more precise assessment.
Cost Per Unit: $92,965 (annualized average per contract)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the 'DELIVERY ORDER' designation implies this might be one of several orders under a larger contract vehicle, and the specific competition for this order needs further review.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary security services.
Public Impact
Ensures security at federal facilities in Los Angeles, protecting personnel and assets. Supports federal operations by providing essential security guard services. The contract contributes to the local economy through employment and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on competition for this particular delivery order.
- Potential for price creep if this is a sole-source delivery order under a broader IDIQ.
Positive Signals
- Awarded under full and open competition.
- Secures critical federal facilities.
- Managed by a major federal agency (DHS).
Sector Analysis
The security services sector is a consistent area of government spending. This contract aligns with typical expenditures for guard and patrol services, particularly in high-demand urban areas. Benchmarks for similar contracts would be useful for detailed cost analysis.
Small Business Impact
The data indicates the awardee is Paragon Systems Inc., a large business. There is no explicit indication of small business participation in this specific award, which warrants further investigation to ensure compliance with small business goals.
Oversight & Accountability
The Department of Homeland Security's Office of Procurement Operations is responsible for this award. Standard oversight mechanisms for contract performance and financial management should be in place, but specific details on enhanced oversight are not provided.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for limited competition on delivery orders under larger contract vehicles.
- Lack of explicit small business participation noted.
- Need for detailed cost breakdown to confirm value for money.
- Performance metrics and oversight details not readily available.
Tags
security-guards-and-patrol-services, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $33.8 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY SERVICES (PSO)FOR LOS ANGELES, CA
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 $33.8 million.
What is the period of performance?
Start: 2017-10-01. End: 2018-09-30.
What was the competitive landscape for the underlying contract vehicle under which this delivery order was issued?
While the award states 'FULL AND OPEN COMPETITION,' this refers to the eligibility of bidders. The specific competition for this delivery order, especially if it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, needs clarification. Understanding the competition for the base IDIQ is crucial to assess if this delivery order truly leveraged the most competitive pricing and innovative solutions available.
How does the per-unit cost of security personnel compare to industry benchmarks for the Los Angeles area?
The annualized average cost per contract is $92,965. To assess value, this figure needs to be broken down into hourly rates or cost per guard. Comparing these rates to prevailing wages and market rates for security personnel in Los Angeles, considering factors like experience, licensing, and security clearances, is essential for a robust value assessment.
What performance metrics are used to ensure the effectiveness of the protective security services provided?
The effectiveness of the services is typically measured through Key Performance Indicators (KPIs) related to response times, incident reporting accuracy, personnel reliability, and adherence to post orders. Without access to the contract's Performance Work Statement (PWS) and associated quality assurance surveillance plans (QASP), a definitive assessment of effectiveness cannot be made.
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: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Securitas AB
Address: 13655 DULLES TECHNOLOGY DR STE 100, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,839,259
Exercised Options: $33,839,259
Current Obligation: $33,839,259
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSHQW913D00003
IDV Type: IDC
Timeline
Start Date: 2017-10-01
Current End Date: 2018-09-30
Potential End Date: 2020-12-12 00:00:00
Last Modified: 2024-09-10
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