DHS Awards $38.3M for Armed PSO Services in California, Extending Contract with Paragon Systems Inc
Contract Overview
Contract Amount: $38,229,501 ($38.2M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $105.0K/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 THE SURROUNDING AREAS RECURRING SERVICES - OPTION YEAR 2 BASE AWARD
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012
Plain-Language Summary
Department of Homeland Security obligated $38.2 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CA AND THE SURROUNDING AREAS RECURRING SERVICES - OPTION YEAR 2 BASE AWARD 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 incumbent contractor, holding this option year 2 base award. 3. The contract utilizes a Firm Fixed Price (FFP) type, indicating predictable costs for the government. 4. The NAICS code 561621 points to Security Systems Services, excluding locksmiths, as the primary sector.
Value Assessment
Rating: good
The award amount of $38.3M for one year of service appears reasonable given the scope of armed PSO services. Benchmarking against similar contracts for security services in major metropolitan areas would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential security services.
Public Impact
Ensures continued security for federal facilities and personnel in a major metropolitan area. Supports critical infrastructure protection through the provision of armed security. Provides employment opportunities within the security services sector in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price creep in future option years if competition diminishes.
- Reliance on a single contractor for critical security functions.
- Geographic concentration of services in a high-cost area.
Positive Signals
- Awarded through full and open competition, indicating market responsiveness.
- Firm Fixed Price contract type provides cost certainty.
- Incumbent contractor likely brings established expertise and operational efficiency.
Sector Analysis
The security services sector, particularly for armed personnel, is critical for government operations. Spending benchmarks for similar services vary significantly based on location, threat level, and specific requirements, but $38.3M for a year in a major metro area is substantial.
Small Business Impact
The data indicates this contract was awarded to Paragon Systems Inc. and does not specify any set-asides for small businesses. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was made by the Department of Homeland Security, Office of Procurement Operations, suggesting established procurement processes. Oversight would focus on contract performance, adherence to security protocols, and financial accountability.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for vendor lock-in if competition is not maintained.
- Geographic concentration increases risk if local conditions change.
- Dependence on a single contractor for critical security functions.
- Firm Fixed Price may not account for unforeseen operational cost increases.
Tags
security-systems-services-except-locksmi, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $38.2 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CA AND THE SURROUNDING AREAS RECURRING SERVICES - OPTION YEAR 2 BASE AWARD
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 $38.2 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the historical performance of Paragon Systems Inc. in providing armed PSO services to DHS?
Assessing Paragon Systems Inc.'s past performance is crucial. Reviewing past contract data, performance reviews, and any documented issues or commendations will provide insight into their reliability and effectiveness. This historical context helps validate the decision to award the option year and informs future contracting strategies.
How does the per-hour or per-officer cost compare to industry benchmarks for armed security in the Los Angeles area?
A detailed cost analysis comparing the contract's hourly rates or per-officer costs against established industry benchmarks for armed security personnel in the Los Angeles metropolitan area is essential. This comparison will determine if the government is receiving competitive pricing and good value for the services rendered, considering factors like officer experience and required certifications.
What are the specific security requirements and threat levels driving the need for armed PSOs in this region?
Understanding the specific security requirements and threat assessments that necessitate armed protective security officers is key to evaluating the contract's necessity and effectiveness. This includes identifying the types of facilities or operations being protected, the nature of potential threats, and how the PSO services directly mitigate these risks to ensure mission continuity and personnel safety.
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: $38,229,501
Exercised Options: $38,229,501
Current Obligation: $38,229,501
Actual Outlays: $31,579,661
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFPW22DW9000002
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-03
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