DHS awarded $19.7M for security guards, with 13 bids received in a full and open competition

Contract Overview

Contract Amount: $19,741,323 ($19.7M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2012-10-01

End Date: 2013-09-30

Contract Duration: 364 days

Daily Burn Rate: $54.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTION - GUARD SERVICE

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.7 million to PARAGON SYSTEMS INC for work described as: IGF::CT::IGF CRITICAL FUNCTION - GUARD SERVICE Key points: 1. The contract value represents a significant investment in essential security services for the Department of Homeland Security. 2. A high number of bidders suggests a competitive market for security guard services. 3. The contract's duration and value warrant scrutiny for potential cost efficiencies and performance. 4. The use of labor hours pricing may introduce variability in final costs. 5. Geographic focus on Georgia indicates a localized need for these services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details and comparable contract data. The total award of $19.7 million over one year for security guard services, while substantial, needs to be evaluated against the scope of services provided and the number of personnel deployed. The pricing structure based on labor hours can lead to cost fluctuations, making it difficult to assess fixed value without detailed breakdowns of hourly rates and estimated hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The participation of 13 bidders suggests a healthy level of competition within the security guard services market for this specific requirement. A robust competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and service, driving down costs and improving the quality of services received.

Public Impact

The Department of Homeland Security benefits from enhanced security and protection of its facilities and personnel. Services delivered include security guard and patrol functions, ensuring a safe environment. The geographic impact is concentrated in Georgia, where the services are deployed. The contract supports jobs within the security services industry, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing can lead to cost overruns if not carefully managed and monitored.
The specific performance metrics and quality assurance measures are not detailed, posing a risk to service effectiveness.
Potential for contractor performance issues if not adequately supervised.
Geographic concentration might limit flexibility if needs shift.

Positive Signals

Full and open competition generally leads to competitive pricing.
A significant number of bidders (13) indicates market interest and potential for strong performance.
The contract is awarded to a single entity, ensuring clear lines of responsibility.
The contract duration of one year allows for performance evaluation before potential renewal.

Sector Analysis

The security guard services sector is a significant part of the broader private security industry, which provides essential protective services to government agencies and private entities. This contract falls under the North American Industry Classification System (NAICS) code 561612 for Security Guards and Patrol Services. The market is characterized by numerous providers, ranging from large national firms to smaller regional companies. Government contracts for these services are common and represent a substantial portion of the industry's revenue.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct small business set-aside, the full and open competition allows small businesses to compete alongside larger firms if they meet the qualifications. However, without specific subcontracting plans detailed, the direct impact on the small business ecosystem is unclear. Larger prime contractors may have subcontracting opportunities, but this is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant program managers within the Department of Homeland Security. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are often internal.

Related Government Programs

Department of Homeland Security Security Services Contracts
Federal Security Guard Contracts
NAICS 561612 Security Guards and Patrol Services

Risk Flags

Labor Hour Pricing
Potential for Cost Overruns
Limited Public Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.7 million to PARAGON SYSTEMS INC. IGF::CT::IGF CRITICAL FUNCTION - GUARD 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 $19.7 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-09-30.

What is the historical spending pattern for security guard services by the Department of Homeland Security?

Analyzing historical spending for security guard services by DHS is crucial for understanding trends and identifying potential anomalies. While this specific contract award is for approximately $19.7 million in 2012-2013, broader historical data would reveal if this amount is consistent with previous years, if spending has increased or decreased, and which components of DHS are the largest consumers of these services. Examining past contract awards, including their values, durations, and competition levels, can provide context for the current award, highlighting whether DHS is achieving better value over time or if costs are escalating. This analysis would also identify if there are specific periods of increased spending, potentially linked to heightened security needs or new facility requirements.

How does the per-hour labor rate for this contract compare to industry benchmarks for security guards in Georgia?

To assess the value for money, comparing the per-hour labor rate under this contract to industry benchmarks is essential. Given the contract is priced on labor hours, obtaining the average hourly rate paid to Paragon Systems Inc. would be the first step. This rate should then be benchmarked against average wages and overhead costs for similar security guard services in the Georgia region, considering factors like guard experience, security clearance requirements, and the specific duties performed. Data from the Bureau of Labor Statistics (BLS) or private industry surveys can provide these benchmarks. If the contract's hourly rate is significantly higher than the market average, it could indicate potential overpricing or a need for renegotiation. Conversely, a rate below the benchmark might suggest aggressive pricing or potentially lower service quality.

What is Paragon Systems Inc.'s track record with federal contracts, particularly for security services?

Evaluating Paragon Systems Inc.'s track record with federal contracts is vital for assessing performance risk. A review of their past federal awards, including contracts with DHS and other agencies, would reveal their history of performance, any past performance issues or disputes, and their experience with similar security guard services. Examining contract termination data, past performance evaluations (if publicly available), and any debriefings from previous competitions can provide insights into their reliability and capability. A history of successful contract completion and positive performance reviews would suggest a lower risk for this current contract. Conversely, a pattern of performance issues or contract disputes might raise concerns about their ability to meet the requirements effectively and on time.

What specific security risks does this contract aim to mitigate for the Department of Homeland Security?

This contract for security guards and patrol services is fundamentally aimed at mitigating physical security risks to DHS assets, personnel, and facilities. These risks can include unauthorized access, theft, vandalism, workplace violence, and espionage. The presence of trained security personnel acts as a deterrent to potential threats and provides immediate response capabilities in case of security incidents. The specific deployment locations within Georgia would dictate the precise risks being addressed, such as securing sensitive government buildings, monitoring critical infrastructure, or protecting high-value assets. Understanding the threat landscape relevant to DHS operations in Georgia would further clarify the specific security objectives this contract is designed to achieve.

How has the number of bidders for security guard contracts with DHS evolved over time?

Tracking the evolution of the number of bidders for security guard contracts with DHS over time provides insight into market dynamics and the attractiveness of DHS requirements to potential contractors. An increasing number of bidders might suggest growing competition and potentially better pricing for the government. Conversely, a declining number could indicate market consolidation, increasing barriers to entry, or dissatisfaction with DHS contract terms. Analyzing this trend in conjunction with contract values and performance outcomes can help DHS refine its procurement strategies to ensure sustained competition and optimal value. For this specific contract, 13 bidders indicate a healthy competitive environment 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: 13

Pricing Type: LABOR HOURS (Z)

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: $19,741,323

Exercised Options: $19,741,323

Current Obligation: $19,741,323

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQE412D00003

IDV Type: IDC

Timeline