DoD's $63.6M Security Services Contract with Paragon Systems Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $63,604,842 ($63.6M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Defense
Start Date: 2013-04-18
End Date: 2020-04-30
Contract Duration: 2,569 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF C2F SECURITY SERVICES.
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $63.6 million to PARAGON SYSTEMS INC for work described as: IGF::OT::IGF C2F SECURITY SERVICES. Key points: 1. The contract value of $63.6 million over seven years indicates a significant investment in security services. 2. Paragon Systems Inc. secured this contract through full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type helps manage cost certainty for the Department of Defense. 4. The sector is primarily security services, a critical component for government operations.
Value Assessment
Rating: good
The contract's value of $63.6 million over approximately seven years suggests a competitive price point for comprehensive security services. Benchmarking against similar large-scale security contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, allowing all eligible vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair price, maximizing taxpayer value for essential security services.
Public Impact
Ensures security for Department of Defense facilities and personnel. Supports jobs within the private security sector. Provides a stable, long-term service for a critical government function.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (7 years).
- No small business participation noted.
- Service type is sensitive.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract.
- Significant contract value indicates robust service delivery.
Sector Analysis
The security services sector is vital for government operations, encompassing guarding, patrol, and alarm systems. Spending in this sector can fluctuate based on threat levels and agency needs, with large contracts like this representing significant portions of agency security budgets.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract, as the 'sb' field is false. This suggests that the prime contractor, Paragon Systems Inc., is likely a larger entity, and opportunities for small business subcontracting were either not pursued or not required.
Oversight & Accountability
The award through full and open competition suggests a transparent process. However, ongoing oversight would be necessary to ensure service quality, adherence to contract terms, and proper financial management throughout the contract's lifecycle.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration may lead to price inflexibility.
- No explicit small business participation.
- Potential for scope creep if not managed tightly.
- Reliance on a single contractor for critical security functions.
Tags
security-guards-and-patrol-services, department-of-defense, ne, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.6 million to PARAGON SYSTEMS INC. IGF::OT::IGF C2F SECURITY SERVICES.
Who is the contractor on this award?
The obligated recipient is PARAGON SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $63.6 million.
What is the period of performance?
Start: 2013-04-18. End: 2020-04-30.
What specific security services are covered under this contract and how do they align with the Air Force's evolving security needs?
The contract likely covers a broad range of security services including physical security, access control, surveillance, and potentially emergency response. Given the contract's duration (2013-2020), the Air Force would have had mechanisms for contract modifications or task order adjustments to address evolving threats and technological advancements in security.
What was the competitive landscape like for this specific security service niche (NAICS 561612) during the solicitation period?
NAICS 561612, Security Guards and Patrol Services, is a competitive market. The fact that this contract was awarded under 'full and open competition' implies that multiple qualified vendors likely vied for it. The specific number of bidders and their relative strengths would provide deeper insight into the competitive intensity and potential for price undercutting.
How does the contract's firm fixed price structure mitigate risks for the government, and what risks remain for the contractor?
A firm fixed price (FFP) contract shifts most of the cost risk to the contractor. The government pays a set price, protecting against cost overruns. The contractor assumes the risk of performing the work within that price, facing potential losses if costs exceed estimates due to unforeseen circumstances or inefficiencies.
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
Solicitation ID: FA460012R0019
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: SRS Critical Infrastructure Security LLC (UEI: 355790924)
Address: 13655 DULLES TECHNOLOGY DR STE 100, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $66,768,065
Exercised Options: $65,471,284
Current Obligation: $63,604,842
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2013-04-18
Current End Date: 2020-04-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2020-04-22
More Contracts from Paragon Systems Inc
- DOJ Security Guard Services — $191.0M (Department of Justice)
- Armed Guard Services — $152.6M (Department of Health and Human Services)
- FOR Other Functions — $58.5M (Department of Health and Human Services)
- Armed Protective Security Officer (PSO) Services for LOS Angeles, California and Surrounding Areas Task Order Award for Option Year 3 — $55.2M (Department of Homeland Security)
- NCC and Security West Armed/Unarmed Guard Services — $53.7M (Social Security Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)