DHS awards $30.5M contract for armed protective security services in California to Paragon Systems Inc
Contract Overview
Contract Amount: $30,476,436 ($30.5M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-09-15
End Date: 2021-09-30
Contract Duration: 380 days
Daily Burn Rate: $80.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES - RECURRING FOR LOS ANGELES, CA AND SURROUNDING AREAS
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012
Plain-Language Summary
Department of Homeland Security obligated $30.5 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES - RECURRING FOR LOS ANGELES, CA AND SURROUNDING AREAS Key points: 1. The contract is for recurring armed protective security officer (PSO) services in Los Angeles and surrounding areas. 2. Paragon Systems Inc. is the sole awardee for this delivery order. 3. The contract was awarded under full and open competition. 4. The North American Industry Classification System (NAICS) code is 561612 for Security Guards and Patrol Services.
Value Assessment
Rating: good
The contract value of $30.5 million over approximately 13 months suggests a competitive pricing strategy. Benchmarking against similar contracts for PSO services in major metropolitan areas would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method typically drives competitive pricing. The specific price discovery mechanisms within the bidding process are not detailed but are expected to be robust.
Taxpayer Impact: Taxpayer funds are utilized for essential security services, with competition aiming to ensure efficient allocation of resources.
Public Impact
Ensures critical infrastructure and facilities in the Los Angeles area are protected by armed personnel. Supports federal law enforcement and security missions within the Department of Homeland Security. Provides employment opportunities for security professionals in California.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Positive Signals
- Awarded via full and open competition
- Clear service requirement and location
Sector Analysis
This contract falls within the security and protective services sector, which is a significant area of government spending. Benchmarks for similar security contracts vary widely based on location, personnel requirements, and contract duration.
Small Business Impact
The data indicates that small businesses were not the primary awardee for this specific contract, as Paragon Systems Inc. is a large business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security, Office of Procurement Operations, suggesting established oversight mechanisms. The delivery order structure implies adherence to a larger contract vehicle.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for cost overruns if scope creeps.
- Dependence on a single large contractor.
- Risk of service disruption if contractor performance degrades.
- Limited visibility into specific threat landscape driving the need.
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 $30.5 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES - RECURRING FOR LOS ANGELES, CA AND SURROUNDING AREAS
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 $30.5 million.
What is the period of performance?
Start: 2020-09-15. End: 2021-09-30.
What is the historical performance of Paragon Systems Inc. on similar DHS contracts?
Historical performance data for Paragon Systems Inc. on similar Department of Homeland Security contracts would be crucial for assessing reliability and effectiveness. Reviewing past contract awards, performance evaluations, and any documented issues or commendations would provide insight into their capabilities and adherence to service level agreements.
How does the per-hour or per-officer cost compare to industry benchmarks for armed security services in the Los Angeles area?
A detailed cost breakdown, including per-hour or per-officer rates, is necessary to compare against industry benchmarks for armed security services in the Los Angeles region. Factors such as officer experience, required certifications, and operational tempo influence these costs. Without this granular data, a precise value assessment is challenging.
What specific security threats or operational needs necessitate the use of armed protective security officers for this contract?
Understanding the specific security threats or operational needs driving this contract is vital for evaluating its necessity and effectiveness. This context would clarify the criticality of armed PSO services, the level of risk mitigation required, and whether alternative security measures could achieve similar outcomes, thereby informing the overall value proposition.
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: $30,476,436
Exercised Options: $30,476,436
Current Obligation: $30,476,436
Actual Outlays: $97,876
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFPW18DW9000001
IDV Type: IDC
Timeline
Start Date: 2020-09-15
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2022-08-12
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