DHS awards $36.4M for armed protective security services in California, with Paragon Systems Inc. winning the contract

Contract Overview

Contract Amount: $36,425,783 ($36.4M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $99.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT LOS ANGELES, CA AND SURROUNDING AREAS AWARD FOR FY24 RECURRING SERVICES - NON-SOCIAL SECURITY ADMINISTRATION (SSA)

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.4 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT LOS ANGELES, CA AND SURROUNDING AREAS AWARD FOR FY24 RECURRING SERVICES - NON-SOCIAL SECURITY ADMINISTRATION (SSA) Key points: 1. The contract value represents a significant investment in physical security for DHS operations in the Los Angeles area. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness and optimal service delivery. 3. Performance risk is moderate, given the critical nature of security services and the need for reliable contractor performance. 4. The contract duration of one year suggests a focus on immediate operational needs rather than long-term strategic security planning. 5. This award falls within the broader sector of security services, which is a consistent area of federal expenditure.

Value Assessment

Rating: good

The contract value of $36.4 million for one year of armed protective security services in a major metropolitan area appears to be within a reasonable range for such critical services. Benchmarking against similar contracts for PSO services in other high-cost-of-living areas 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 vendors had the opportunity to bid. This competitive process is expected to drive down prices and ensure the government receives the best value. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that leads to more favorable pricing and a wider selection of qualified service providers.

Public Impact

Federal facilities and personnel within the Los Angeles, CA, and surrounding areas will benefit from enhanced security. The services delivered include armed protective security, ensuring a secure environment for government operations. The geographic impact is concentrated in Southern California, specifically the Los Angeles region. The contract supports jobs for armed security professionals in the specified geographic area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Ensuring consistent adherence to strict security protocols and training standards.
Managing potential cost overruns if the scope of work expands beyond initial estimates.

Positive Signals

Award to a single contractor streamlines management and ensures a unified security approach.
Firm-fixed-price contract provides cost certainty for the government.
Focus on armed personnel addresses high-threat security needs.

Sector Analysis

The security services sector is a significant component of federal contracting, encompassing a wide range of protective and investigative services. This contract for armed protective security officers (PSOs) is a critical sub-segment, particularly for agencies like DHS that manage physical security at numerous facilities. Federal spending in this sector is driven by the need to protect personnel, assets, and sensitive information across various government operations. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded to private firms for similar services in other major metropolitan areas.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Paragon Systems Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside suggests that the competition was open to all eligible firms, and the primary focus was on meeting the specific security requirements, potentially favoring larger, established providers.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's Office of Procurement Operations, which awarded the contract. Accountability measures will be embedded in the contract's performance work statement, requiring adherence to specific security protocols and response times. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected in the execution or award of this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services Federal Contracts
Physical Security Contracts

Risk Flags

Potential for service disruption due to single contractor reliance.
Need for rigorous performance monitoring to ensure consistent security standards.
Ensuring compliance with all federal security regulations and protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.4 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT LOS ANGELES, CA AND SURROUNDING AREAS AWARD FOR FY24 RECURRING SERVICES - NON-SOCIAL SECURITY ADMINISTRATION (SSA)

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 $36.4 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the historical spending pattern for armed protective security services by the Department of Homeland Security in California?

Analyzing historical spending for armed protective security services by DHS in California requires a deeper dive into federal procurement databases beyond this single award. However, general trends indicate consistent federal investment in security services across various agencies, especially in high-population areas like Los Angeles. Factors influencing spending include threat assessments, facility security requirements, and the availability of qualified personnel. Comparing this $36.4 million award to previous years' spending on similar services in the region would reveal whether this represents an increase, decrease, or stable level of investment. It's also important to consider if this award consolidates previous smaller contracts or represents new requirements.

How does the awarded price compare to market rates for similar armed security services in the Los Angeles area?

A precise comparison of the awarded price to market rates for similar armed security services in the Los Angeles area requires access to detailed market research and pricing data that is not publicly available. However, the firm-fixed-price nature of the contract suggests that the Department of Homeland Security (DHS) has negotiated a set rate. Factors influencing market rates in Los Angeles include the high cost of living, demand for skilled security personnel, and the specific requirements for armed officers (e.g., level of training, equipment). Given the competitive bidding process, it is presumed that the awarded price reflects a reasonable market value, but a formal benchmark analysis would be needed for definitive assessment. The contract value of $36.4 million for a year of service implies a significant operational cost.

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

While specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, contracts for armed protective security services typically include stringent performance metrics. These often involve response times to incidents, adherence to post orders, officer conduct and professionalism, successful completion of required training and certifications, and incident reporting accuracy. The Department of Homeland Security (DHS) will likely monitor performance through regular site visits, review of incident reports, and potentially through a government-furnished performance evaluation system. The contract's Performance Work Statement (PWS) would outline these KPIs and the methods for monitoring and evaluation, with potential financial implications for failure to meet standards.

What is the track record of Paragon Systems Inc. in performing similar federal security contracts?

Paragon Systems Inc. has a significant track record in providing security services to federal agencies. A review of federal procurement data indicates that the company has been awarded numerous contracts for protective security services, including armed guard duties, at various federal installations across the United States. Their past performance often includes contracts with agencies such as the Department of Defense, Department of Justice, and other civilian agencies. Assessing their specific track record for this particular type of service (armed PSO) in a high-demand region like Southern California would involve examining past performance evaluations and any documented issues or successes on similar prior contracts. Generally, winning a large contract like this suggests a positive assessment of their past performance by the awarding agency.

Are there any specific risks associated with relying on a single contractor for armed security services in a critical region like Los Angeles?

Relying on a single contractor, such as Paragon Systems Inc., for armed security services in a critical region like Los Angeles presents several potential risks. One primary risk is service disruption; if the contractor experiences significant operational issues, such as staffing shortages, labor disputes, or financial instability, it could lead to gaps in security coverage, potentially compromising facility safety and government operations. Another risk is a lack of competitive pressure post-award, which could potentially lead to complacency or less incentive for the contractor to innovate or maintain the highest service levels. Furthermore, if the contract scope needs to expand significantly, negotiating terms with an incumbent sole provider might be less advantageous than in a competitive scenario. Robust government oversight and clear contract terms are essential to mitigate these risks.

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: $36,425,783

Exercised Options: $36,425,783

Current Obligation: $36,425,783

Actual Outlays: $36,432,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW22DW9000002

IDV Type: IDC

Timeline