DHS Spends $24.7M on Armed Guard Services in Southern California via Competitive Delivery Order
Contract Overview
Contract Amount: $24,738,955 ($24.7M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2008-03-14
End Date: 2008-12-31
Contract Duration: 292 days
Daily Burn Rate: $84.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: ARMED GUARD SERVICES THROUGHOUT SOUTHERN CALIFORNIA
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90001
Plain-Language Summary
Department of Homeland Security obligated $24.7 million to PARAGON SYSTEMS INC for work described as: ARMED GUARD SERVICES THROUGHOUT SOUTHERN CALIFORNIA Key points: 1. Significant contract value of $24.7 million for security services. 2. Competition was present, indicated by 'COMPETITIVE DELIVERY ORDER'. 3. Risk is moderate, involving physical security and personnel. 4. Sector is primarily security services, supporting homeland security operations.
Value Assessment
Rating: good
The contract was awarded via a competitive delivery order, suggesting a reasonable price discovery process. Benchmarking against similar contracts for armed guard services in California would provide further insight into value.
Cost Per Unit: $84,722 (annualized)
Competition Analysis
Competition Level: full-and-open
Awarded as a competitive delivery order, indicating multiple vendors likely competed. This method generally promotes price competition and ensures fair market value.
Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure services at the best possible price for the government.
Public Impact
Ensures security for federal facilities and personnel in a major metropolitan area. Supports law enforcement and homeland security missions. Provides employment opportunities within the private security sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in time and materials contracts.
- Dependence on a single contractor for critical security functions.
- Geographic concentration of services in Southern California.
Positive Signals
- Competitive award process.
- Clear definition of service area.
- Established contract duration.
Sector Analysis
This contract falls within the security and protective services sector. Spending benchmarks for similar government contracts for armed guard services in California can vary widely based on location, threat level, and service requirements.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security, Office of Procurement Operations, suggesting established oversight mechanisms. However, the effectiveness of oversight for time and materials contracts requires continuous monitoring.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Time and Materials contract type can lead to cost uncertainty.
- Potential for vendor performance issues impacting security.
- Geographic concentration limits flexibility.
- Contract duration is relatively short (less than a year).
Tags
security-guards-and-patrol-services, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $24.7 million to PARAGON SYSTEMS INC. ARMED GUARD SERVICES THROUGHOUT SOUTHERN CALIFORNIA
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 $24.7 million.
What is the period of performance?
Start: 2008-03-14. End: 2008-12-31.
What was the average hourly rate paid to armed guards under this contract?
The provided data does not specify the average hourly rate. The contract type is 'TIME AND MATERIALS', and the total award was $24.7 million over 292 days. To determine the hourly rate, one would need to know the total labor hours expended and the agreed-upon markups for materials and overhead.
What specific security risks were identified that necessitated armed guard services?
The data does not detail the specific security risks. However, contracts for armed guard services are typically awarded in response to identified threats to federal facilities, personnel, or sensitive information. These could range from potential terrorism threats to vandalism or unauthorized access.
How effectively did the competitive delivery order process ensure cost savings compared to other procurement methods?
The competitive delivery order process generally promotes cost savings by allowing multiple vendors to bid on specific requirements. While the exact savings are not quantifiable from this data alone, the 'COMPETITIVE DELIVERY ORDER' designation suggests a deliberate effort to leverage market competition to achieve a favorable price for the government.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: SRS Critical Infrastructure Security LLC (UEI: 355790924)
Address: 14160 NEWBROOK DR STE. 210, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,738,955
Exercised Options: $24,738,955
Current Obligation: $24,738,955
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07F0418K
IDV Type: FSS
Timeline
Start Date: 2008-03-14
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2019-02-13
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