DHS Spends $40.9M on Guard Services via Full & Open Competition

Contract Overview

Contract Amount: $40,897,017 ($40.9M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-03-31

End Date: 2011-09-30

Contract Duration: 2,009 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD SUPPORT SERVICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.9 million to PARAGON SYSTEMS INC for work described as: GUARD SUPPORT SERVICE Key points: 1. Significant contract value of $40.9 million. 2. Awarded to Paragon Systems Inc. under full and open competition. 3. Security Guards and Patrol Services sector, NAICS 561612. 4. Contract duration spans from 2006 to 2011.

Value Assessment

Rating: fair

The contract value of $40.9 million over five years suggests a substantial investment in security services. Benchmarking against similar contracts for guard services is necessary to assess if this price reflects market rates and value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally promotes competitive pricing and allows a wide range of qualified vendors to bid.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in securing DHS facilities.

Public Impact

Ensures physical security and access control at Department of Homeland Security facilities. Supports critical government operations by maintaining a safe environment. Provides employment opportunities within the security services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively long (5 years).
Lack of specific performance metrics or cost-saving incentives mentioned.
Potential for price creep over the contract term.

Positive Signals

Awarded via full and open competition.
Clear contract type (Firm Fixed Price) for cost certainty.
Established vendor with a significant contract award.

Sector Analysis

The security services sector, particularly guard and patrol services, is a consistent area of government spending. Benchmarks for similar contracts would typically consider the number of guards, hours, and geographic locations.

Small Business Impact

While this contract was awarded to Paragon Systems Inc., it's unclear if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was managed by the Department of Homeland Security's Office of Procurement Operations. Oversight would involve monitoring performance, adherence to contract terms, and financial accountability.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Long contract duration may limit flexibility.
Lack of detailed cost breakdown or performance metrics.
Potential for vendor lock-in.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.9 million to PARAGON SYSTEMS INC. GUARD SUPPORT SERVICE

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 $40.9 million.

What is the period of performance?

Start: 2006-03-31. End: 2011-09-30.

What was the average annual cost per year for this contract?

The total contract value was $40,897,016.67 over a period from March 31, 2006, to September 30, 2011, which is approximately 5.5 years. Dividing the total value by the duration suggests an average annual cost of roughly $7.4 million. This figure provides a high-level view but doesn't account for potential variations in spending across different years.

Were there any performance issues or contract disputes during its term?

The provided data does not contain information on performance issues or contract disputes. A comprehensive review would require access to contract performance reports, modification histories, and any associated litigation or claims filed by either party. Without this, it's difficult to assess the contractor's performance or any challenges encountered.

How did the final cost compare to the initial estimated cost?

The data provided does not include an initial estimated cost for the contract, only the final award amount. Therefore, a direct comparison between the final cost and the initial estimate cannot be made. To assess cost effectiveness, one would need the original solicitation documents and the government's cost projections at the time of award.

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

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SRS Critical Infrastructure Security LLC (UEI: 355790924)

Address: 14160 NEWBROOK DR STE. 210, CHANTILLY, VA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,787,053

Exercised Options: $40,897,017

Current Obligation: $40,897,017

Timeline