Homeland Security awards $32.5M for armed protective services in California, with Paragon Systems Inc. as the incumbent

Contract Overview

Contract Amount: $32,502,457 ($32.5M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $89.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CA AND SURROUNDING AREAS OPTION YEAR 3, BASIC RECURRING SERVICES (FUNDED)

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.5 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CA AND SURROUNDING AREAS OPTION YEAR 3, BASIC RECURRING SERVICES (FUNDED) Key points: 1. The contract value represents a significant investment in securing federal facilities and personnel within a key metropolitan area. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness and service quality. 3. Performance history of the incumbent contractor will be a key indicator of future success. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. Geographic scope covers Los Angeles and surrounding areas, indicating a broad operational requirement.

Value Assessment

Rating: good

The awarded amount of $32.5 million for one year of armed protective services appears to be within a reasonable range for large-scale security contracts in major metropolitan areas. Benchmarking against similar contracts for PSO services in other high-cost-of-living regions would provide further context. The firm-fixed-price structure suggests that the government has a clear understanding of the service requirements and associated costs, aiming to control expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The government's decision to use full and open competition suggests confidence in the market's ability to meet its needs.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of qualified contractors to vie for government work.

Public Impact

Federal facilities and personnel in Los Angeles and surrounding areas will benefit from enhanced security. The contract ensures the provision of armed protective services, a critical component of national security. The geographic impact is concentrated in Southern California, a region with significant federal presence. The contract supports jobs within the private security sector, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service requirements expand beyond the initial scope.
Reliance on a single contractor for critical security functions could pose a risk if performance degrades.
Ensuring consistent service quality across all contracted locations requires robust oversight.

Positive Signals

The firm-fixed-price contract type helps to mitigate cost uncertainty.
Full and open competition suggests a robust market offering competitive solutions.
The incumbent contractor's experience may lead to efficient service delivery.

Sector Analysis

The security services industry is a substantial sector within the broader professional, scientific, and technical services market. Federal contracts for armed protective services are a significant component, driven by the need to secure sensitive government installations, personnel, and events. This contract fits within the niche of high-security, armed guard services, which typically requires specialized training, licensing, and equipment, differentiating it from basic security guard services.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on small businesses. However, large prime contracts like this often present subcontracting opportunities for specialized security firms, potentially benefiting small businesses if actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of Homeland Security. Accountability measures are embedded in the firm-fixed-price contract terms, with performance standards and deliverables expected to be met. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services
Security Services for Federal Facilities

Risk Flags

Potential for service disruption if contractor faces staffing issues.
Risk of contractor complacency due to incumbency.
Need for continuous performance monitoring to ensure quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.5 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CA AND SURROUNDING AREAS OPTION YEAR 3, BASIC RECURRING SERVICES (FUNDED)

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 $32.5 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical spending trend for armed protective services by the Department of Homeland Security in the Los Angeles area?

Analyzing historical spending for armed protective services by DHS in the Los Angeles area requires access to detailed federal procurement data over multiple fiscal years. While this specific contract is for $32.5 million for one year (Option Year 3), understanding the trend involves looking at previous years' awards for similar services to the same or different contractors. Factors such as changes in security requirements, inflation, and market competition influence these trends. A consistent or increasing spending pattern might indicate a growing need or a stable demand for these services, while a decreasing trend could suggest efficiency gains, reduced requirements, or shifts in security strategy. Without historical data specific to this contract's lineage and location, it's challenging to provide a precise trend analysis, but the current award suggests a sustained need.

How does the awarded price per day for armed protective services compare to industry benchmarks in California?

To benchmark the awarded price per day, we would need to calculate it from the total contract value and duration. The contract value is $32,502,457.35 for a 364-day period. This equates to approximately $89,292 per day. Comparing this daily rate to industry benchmarks for armed protective services in California requires data from market research reports or databases that track average daily rates for similar services, considering factors like the number of armed guards, their qualifications, hours of service, and the specific security environment. Given that this is a large-scale federal contract in a high-cost area, the rate might be competitive, but a definitive assessment requires access to specific, up-to-date benchmark data for armed PSO services in major California metropolitan areas.

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

Paragon Systems Inc. is a known entity in the federal contracting space, particularly for providing security services. A thorough assessment of their track record would involve reviewing their performance on past and current federal contracts, including any awards, penalties, or contract terminations. Key indicators include past performance evaluations (e.g., CPARS reports), the number and types of contracts awarded, and any reported disputes or litigation. Their incumbency on this specific contract suggests a level of satisfactory performance in the past. However, a comprehensive analysis would require examining their broader portfolio of federal work to identify any patterns of success or recurring issues across different agencies and contract types.

What are the potential risks associated with relying on a single contractor for armed protective services in a large geographic area?

Relying on a single contractor, even an incumbent, for armed protective services across a large geographic area like Los Angeles and its surroundings presents several potential risks. These include service disruptions due to contractor staffing shortages, labor disputes, or unforeseen operational issues. There's also a risk of complacency, where the contractor might reduce efforts to innovate or improve service quality due to a lack of direct competitive pressure on this specific contract. Furthermore, a single point of failure could be critical if the contractor's security clearance or operational capabilities are compromised. Robust contract management, performance monitoring, and contingency planning by the government agency are essential to mitigate these risks.

How does the scope of 'basic recurring services' influence the contract's flexibility and potential for additional task orders?

The term 'basic recurring services' typically defines the core, predictable security functions required under the contract, such as routine patrols, access control, and monitoring. This scope helps establish a baseline for performance and pricing. However, federal contracts often include provisions for 'other than basic recurring services' or task orders that allow for additional, non-routine requirements, such as surge support during events, emergency response, or specialized security details. The flexibility of this contract regarding additional services would depend on the specific language in the contract clauses and the availability of funding. Understanding the process for issuing and pricing task orders is crucial for assessing the contract's overall adaptability to evolving security needs.

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: $32,502,457

Exercised Options: $32,502,457

Current Obligation: $32,502,457

Actual Outlays: $5,606,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW18DW9000001

IDV Type: IDC

Timeline