DHS Awards $23.1M for Armed Guard Services in California to Paragon Systems Inc

Contract Overview

Contract Amount: $23,133,777 ($23.1M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2009-10-01

End Date: 2013-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED GUARD SERVICES, LOS ANGELES, CA - 192110PNILA000001, OPTION YEAR I.

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90006

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.1 million to PARAGON SYSTEMS INC for work described as: ARMED GUARD SERVICES, LOS ANGELES, CA - 192110PNILA000001, OPTION YEAR I. Key points: 1. The contract value of $23.1M for armed guard services represents a significant investment in security. 2. Paragon Systems Inc. secured this contract through full and open competition, indicating a competitive bidding process. 3. The service category (Security Guards and Patrol Services) is essential for maintaining physical security at federal facilities. 4. The contract duration of 4 years (Option Year I) suggests a need for sustained security operations.

Value Assessment

Rating: fair

The contract value of $23.1M over 4 years averages approximately $5.78M annually. Benchmarking against similar contracts for armed guard services is difficult without more specific data on service levels and geographic scope, but this appears to be a substantial award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting that multiple vendors had the opportunity to bid. This method typically leads to better price discovery and potentially more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market competition to secure the best value.

Public Impact

Ensures the physical security of Department of Homeland Security facilities and personnel in Los Angeles, CA. Supports the operational readiness of the Office of Procurement Operations by providing essential security services. Contributes to the local economy through employment opportunities provided by Paragon Systems Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The security and guard services sector is a vital component of government operations, ensuring the safety of personnel and property. Spending in this sector can fluctuate based on threat levels and agency needs. This contract falls within the broader professional, scientific, and technical services category.

Small Business Impact

The data indicates that neither small business nor socio-economic status was a factor in this award (ss: false, sb: false). Therefore, there is no specific analysis of small business participation or impact for this particular contract.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, Office of Procurement Operations. Oversight would typically involve contract performance monitoring, financial reviews, and adherence to security protocols to ensure accountability and effective service delivery.

Related Government Programs

Risk Flags

Tags

security-guards-and-patrol-services, department-of-homeland-security, ca, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.1 million to PARAGON SYSTEMS INC. ARMED GUARD SERVICES, LOS ANGELES, CA - 192110PNILA000001, OPTION YEAR I.

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 $23.1 million.

What is the period of performance?

Start: 2009-10-01. End: 2013-09-30.

What is the average annual cost per guard or per hour of service provided under this contract?

The provided data does not include the number of guards, hours worked, or specific service rates, making it impossible to calculate a precise per-unit cost. The total contract value of $23.1M over 1460 days (approximately 4 years) averages to about $15.8M per year. Without knowing the staffing levels or hours, a meaningful per-unit cost benchmark cannot be established.

What specific security risks does this contract aim to mitigate, and how is the effectiveness of the mitigation measured?

While the contract is for armed guard services, the specific risks being mitigated (e.g., unauthorized access, theft, violence) are not detailed. Effectiveness is typically measured through performance metrics like incident response times, successful deterrence of security breaches, and adherence to post orders. The absence of these specifics in the data limits a thorough risk assessment.

How does the pricing of this contract compare to similar armed guard services procured by other federal agencies or in comparable geographic regions?

A direct price comparison is challenging without detailed service scope, hours, and specific threat levels addressed. However, the annual value of approximately $5.78M suggests a significant security operation. Further analysis would require benchmarking against contracts with similar guard-to-population ratios, facility types, and operational tempo in the Los Angeles area or nationally.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING 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: 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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,133,777

Exercised Options: $23,133,777

Current Obligation: $23,133,777

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCEW909A00003

IDV Type: BPA

Timeline

Start Date: 2009-10-01

Current End Date: 2013-09-30

Last Modified: 2024-09-09

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