DHS Awards $35.1M for Armed PSO Services in CA, Competition Found

Contract Overview

Contract Amount: $35,161,287 ($35.2M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $96.6K/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 FY23 BASE TASK ORDER AWARD FOR RECURRING SERVICES

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.2 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CA AND SURROUNDING AREAS FY23 BASE TASK ORDER AWARD FOR RECURRING SERVICES Key points: 1. The contract for armed protective security officer services in Los Angeles, CA, was awarded to PARAGON SYSTEMS INC for $35.1M. 2. The award was made under a full and open competition, suggesting a competitive bidding process. 3. The services fall under the Security Systems Services category, excluding locksmiths. 4. The contract is a firm-fixed-price delivery order with a duration of 364 days.

Value Assessment

Rating: good

The firm-fixed-price contract type is appropriate for services where the scope is well-defined, helping to control costs. Benchmarking against similar contracts for armed PSO services in major metropolitan areas would provide further insight into the pricing's competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the essential security services provided.

Public Impact

Ensures security for federal facilities and personnel in a major metropolitan area. Supports law enforcement and public safety through protective services. Provides employment opportunities within the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for price increases in future contract renewals.
Dependence on a single contractor for critical security functions.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract type helps control costs.
Services are essential for public safety and federal operations.

Sector Analysis

The security services sector is critical for government operations, particularly in high-risk or sensitive areas. Spending benchmarks for security services can vary widely based on location, threat level, and specific requirements, but this award represents a significant investment in protecting federal assets and personnel.

Small Business Impact

The data indicates that this contract was not awarded to a small business. While this specific award did not benefit small businesses, opportunities may exist in subcontracting roles or through other federal contracts.

Oversight & Accountability

The Department of Homeland Security, through its Office of Procurement Operations, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure proper execution and accountability.

Related Government Programs

Security Systems Services (except Locksmiths)
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential for cost escalation in future contract periods.
Lack of small business participation in the prime contract.
Dependence on a single provider for critical security functions.
Need for robust performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.2 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CA AND SURROUNDING AREAS FY23 BASE TASK ORDER AWARD FOR RECURRING SERVICES

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 $35.2 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is the historical cost trend for similar armed PSO services in the Los Angeles area?

Analyzing historical cost trends for similar armed PSO services in the Los Angeles area is crucial for assessing long-term value. Without this data, it's difficult to determine if the current $35.1M award represents an increase, decrease, or stable pricing compared to previous years or similar contracts. Understanding these trends helps identify potential cost efficiencies or areas where prices may be escalating.

What are the specific performance metrics and KPIs for PARAGON SYSTEMS INC under this contract?

The specific performance metrics and Key Performance Indicators (KPIs) for PARAGON SYSTEMS INC are essential for evaluating the effectiveness and value of the armed PSO services. These metrics should detail expected response times, officer conduct standards, incident reporting accuracy, and overall security effectiveness. Without defined KPIs, it is challenging to objectively measure contractor performance and ensure the government receives the contracted level of service.

How does the pricing of this contract compare to national benchmarks for armed protective security services?

Comparing the pricing of this $35.1M contract to national benchmarks for armed protective security services is vital for assessing value for money. Factors like the specific threat environment in Los Angeles, labor costs, and the exact scope of services will influence the price. A favorable comparison to national averages, considering these variables, would indicate good pricing, while a significantly higher cost might warrant further investigation into the necessity of the premium.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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: $35,161,287

Exercised Options: $35,161,287

Current Obligation: $35,161,287

Actual Outlays: $35,051,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW22DW9000002

IDV Type: IDC

Timeline