NIH awards $37M for security guards under FAR 8.405-6, citing limited competition
Contract Overview
Contract Amount: $37,041,323 ($37.0M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2020-12-01
End Date: 2022-10-20
Contract Duration: 688 days
Daily Burn Rate: $53.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS REQUIREMENT IS AWARDED FOR SECURITY GUARD SERVICES AT THE NATIONAL INSTITUTES OF HEALTH (NIH). THIS AWARD IS FOR A BASE PERIOD OF THREE (3) MONTHS PURSUANT TO FAR 8.405-6(A)(1), CONDUCTED UNDER THE AUTHORITY OF THE MULTIPLE AWARD SCHEDULE PRO
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $37.0 million to PARAGON SYSTEMS INC for work described as: THIS REQUIREMENT IS AWARDED FOR SECURITY GUARD SERVICES AT THE NATIONAL INSTITUTES OF HEALTH (NIH). THIS AWARD IS FOR A BASE PERIOD OF THREE (3) MONTHS PURSUANT TO FAR 8.405-6(A)(1), CONDUCTED UNDER THE AUTHORITY OF THE MULTIPLE AWARD SCHEDULE PRO Key points: 1. Awarded for security guard services at NIH. 2. Contract duration is 688 days. 3. Utilizes FAR 8.405-6, which can limit competition. 4. Sector is primarily government services and security.
Value Assessment
Rating: questionable
The contract value of $37M over 688 days appears high for security guard services, especially given the limited competition cited. Benchmarking against similar contracts for security services at federal facilities is recommended to assess value.
Cost Per Unit: $53,839 (annualized estimate)
Competition Analysis
Competition Level: limited
The contract was awarded under FAR 8.405-6(a)(1), which allows for limited competition. This justification needs careful review to ensure it was appropriate and that the pricing reflects fair market value despite the restricted competition.
Taxpayer Impact: Taxpayer funds are being used for security services. The justification for limited competition raises concerns about potentially higher costs than if full and open competition had been pursued.
Public Impact
Ensures security at a major federal health research institution (NIH). Supports jobs in the security services industry. The use of limited competition may impact the overall cost-effectiveness for taxpayers. The specific justification for limited competition warrants scrutiny to ensure proper use of federal funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition justification
- Potential for overpayment due to limited competition
- Lack of transparency in pricing due to limited competition
Positive Signals
- Provides essential security services
- Awarded to a known entity (Paragon Systems Inc.)
Sector Analysis
This contract falls within the government services sector, specifically security and protective services. Benchmarks for similar security guard contracts at federal facilities would be useful to assess the pricing and value.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business set-aside opportunities were missed or if the prime contractor utilizes small business subcontractors.
Oversight & Accountability
The use of FAR 8.405-6 for limited competition requires robust justification and oversight to ensure it serves the government's best interest and does not lead to inflated costs. Agency oversight is crucial.
Related Government Programs
- Security Guards and Patrol Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Limited competition cited
- Potential for above-market pricing
- Lack of small business participation indicated
- High annualized per-unit cost
Tags
security-guards-and-patrol-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.0 million to PARAGON SYSTEMS INC. THIS REQUIREMENT IS AWARDED FOR SECURITY GUARD SERVICES AT THE NATIONAL INSTITUTES OF HEALTH (NIH). THIS AWARD IS FOR A BASE PERIOD OF THREE (3) MONTHS PURSUANT TO FAR 8.405-6(A)(1), CONDUCTED UNDER THE AUTHORITY OF THE MULTIPLE AWARD SCHEDULE PRO
Who is the contractor on this award?
The obligated recipient is PARAGON SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $37.0 million.
What is the period of performance?
Start: 2020-12-01. End: 2022-10-20.
What was the specific justification for limiting competition under FAR 8.405-6 for this security guard service contract?
The provided data cites FAR 8.405-6(a)(1) as the authority. This FAR clause typically allows for limited competition when specific conditions are met, such as when only one source can provide the supply or service, or in the interest of economy and efficiency. A detailed review of the agency's justification documentation would be necessary to understand the precise reasons for limiting competition in this instance.
How does the per-unit cost of $53,839 compare to industry benchmarks for similar security guard services at federal facilities?
The annualized per-unit cost of $53,839 needs to be benchmarked against similar contracts for security guard services at federal facilities. Without specific data on the scope of services (e.g., number of guards, hours, specific security measures), it's difficult to definitively assess if this is competitive. However, this figure appears on the higher end and warrants further investigation into the specific service requirements and market rates.
What is the potential impact on taxpayer value when contracts are awarded under limited competition versus full and open competition?
Limited competition can potentially lead to higher costs for taxpayers because it reduces the number of bidders, thereby decreasing price pressure. When multiple companies compete, they are incentivized to offer lower prices and better value to win the contract. Conversely, limited competition may be justified in specific circumstances for efficiency or unique capabilities, but it necessitates rigorous oversight to ensure fair pricing and prevent potential overspending.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $37,041,323
Exercised Options: $37,041,323
Current Obligation: $37,041,323
Actual Outlays: $17,071,333
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QSWA20D0010
IDV Type: FSS
Timeline
Start Date: 2020-12-01
Current End Date: 2022-10-20
Potential End Date: 2022-10-20 00:00:00
Last Modified: 2024-10-31
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