DHS spent $23.3M on armed guard services in Los Angeles, with Paragon Systems Inc. securing the contract

Contract Overview

Contract Amount: $23,308,207 ($23.3M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2010-10-01

End Date: 2013-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ARMED GUARD SERVICES, LOS ANGELES SERVICE AREA - 192111PNILA000001 RECURRING SERVICES FY11

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.3 million to PARAGON SYSTEMS INC for work described as: ARMED GUARD SERVICES, LOS ANGELES SERVICE AREA - 192111PNILA000001 RECURRING SERVICES FY11 Key points: 1. The contract value of $23.3 million over three years suggests a significant need for security services in the Los Angeles area. 2. The 'Full and Open Competition' indicates a competitive bidding process, potentially leading to better pricing. 3. The contract duration of 1095 days (3 years) provides stability for service delivery but also limits flexibility for re-evaluation. 4. The NAICS code 561612 for Security Guards and Patrol Services places this contract within a well-defined industry sector. 5. The absence of small business set-aside flags suggests larger firms were likely the primary bidders. 6. The BPA Call award type implies this contract was issued under a pre-existing Blanket Purchase Agreement, streamlining the procurement process.

Value Assessment

Rating: good

The total contract value of $23.3 million over three years averages to approximately $7.77 million per year. Benchmarking this against similar federal contracts for armed guard services in major metropolitan areas would be necessary for a precise value-for-money assessment. However, the competitive nature of the award suggests that pricing was likely scrutinized. Without specific per-unit cost data or a direct comparison to market rates for similar services in Los Angeles, a definitive assessment of cost-effectiveness is challenging, but the competitive award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' meaning all responsible sources were permitted to submit a bid. While the specific number of bidders is not provided, this type of competition generally fosters a robust price discovery process. The agency sought proposals from a wide range of qualified contractors, aiming to secure the best value. The open nature of the competition is a strong indicator that the government received multiple offers, which typically drives down costs compared to less competitive solicitations.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overspending that could occur with sole-source or limited solicitations.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its various facilities within the Los Angeles service area, which receive enhanced security. The contract ensures the provision of armed guard services, contributing to the physical security and protection of government assets and personnel. The geographic impact is focused on the Los Angeles metropolitan area, a critical region for federal operations. The contract supports jobs within the security services industry, likely benefiting security personnel employed by Paragon Systems Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome data makes it difficult to assess the effectiveness of the guard services beyond their presence.
The contract duration of three years might limit the agency's ability to adapt to evolving security threats or incorporate new technologies without modification.
No information is provided on the specific qualifications or training standards for the armed guards beyond general industry requirements.

Positive Signals

The contract was awarded through a full and open competition, indicating a thorough vetting process and likely competitive pricing.
Paragon Systems Inc. has a track record of providing security services, suggesting experience and established operational capabilities.
The contract specifies armed guard services, indicating a higher level of security is being provided, potentially deterring more serious threats.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services sub-sector (NAICS 561612). The federal government is a major consumer of security services, contracting for protection of facilities, personnel, and assets across numerous agencies. Spending in this sector is influenced by threat levels, regulatory requirements, and the physical footprint of government operations. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded by DHS or other federal agencies in major urban centers.

Small Business Impact

The contract details indicate that small business set-asides were not utilized ('sb': false). This suggests that the requirement was likely too large or specialized to be effectively fulfilled by small businesses, or that the competition was opened broadly to ensure the widest possible pool of qualified bidders. Consequently, there may be limited direct subcontracting opportunities for small businesses unless Paragon Systems Inc. voluntarily engages them. The overall impact on the small business ecosystem for security services in Los Angeles would depend on whether other, smaller contracts for similar services exist or if this large contract displaces opportunities for smaller providers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise. The BPA Call award mechanism might also have its own internal oversight processes within the issuing agency.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services
Security Services for Federal Facilities
Law Enforcement Support Services

Risk Flags

Potential for personnel reliability issues in armed guard services.
Ensuring consistent adherence to post orders and security protocols.
Risk of incidents involving use of force.
Contract duration may limit flexibility in adapting to changing security needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.3 million to PARAGON SYSTEMS INC. ARMED GUARD SERVICES, LOS ANGELES SERVICE AREA - 192111PNILA000001 RECURRING SERVICES FY11

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 $23.3 million.

What is the period of performance?

Start: 2010-10-01. End: 2013-09-30.

What is the historical spending pattern for armed guard services in the Los Angeles area by the Department of Homeland Security?

Historical spending data for armed guard services by DHS in the Los Angeles area prior to this $23.3 million contract (2010-2013) is not directly available in the provided data snippet. However, the existence of this contract suggests a sustained need for such services. To understand the historical pattern, one would need to analyze FPDS data for previous contracts awarded to Paragon Systems Inc. or other contractors for similar services in the same geographic region. Factors influencing historical spending would include changes in threat assessments, shifts in federal facility presence, and evolving security policies within DHS. Without access to broader historical data, it's difficult to determine if this $23.3 million represents an increase, decrease, or stable level of spending compared to prior periods.

How does the annual cost of this contract compare to the average annual cost of similar federal armed guard contracts in other major metropolitan areas?

The annual cost of this contract averages approximately $7.77 million ($23.3 million / 3 years). To compare this to similar federal armed guard contracts in other major metropolitan areas, one would need to access a database of federal contract awards and filter for contracts with similar NAICS codes (561612), service types (armed guard), and geographic locations (e.g., New York, Chicago, Houston). Key comparison points would include contract value, duration, and the specific services required. Factors like local labor costs, prevailing wage rates, and the specific security threat environment of each city can significantly influence pricing. A comprehensive benchmark analysis would require detailed data on multiple comparable contracts to establish a reliable average and identify outliers.

What specific performance metrics were used to evaluate Paragon Systems Inc.'s service delivery under this contract?

The provided data snippet does not include specific performance metrics or evaluation criteria used for this contract. Typically, federal contracts outline Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) that the contractor must meet. These might include response times to incidents, guard post-order adherence, incident reporting accuracy, personnel reliability, and adherence to post-orders. The contracting officer's representative (COR) would usually monitor these metrics throughout the contract period. Without access to the contract's statement of work or performance work statement, it is impossible to detail the specific metrics used to assess Paragon Systems Inc.'s performance.

What is Paragon Systems Inc.'s overall track record with federal contracts, particularly with the Department of Homeland Security?

Paragon Systems Inc. has a significant history of federal contracting, particularly with agencies like the Department of Homeland Security (DHS). While the provided data only details one specific contract, a broader search of federal procurement databases (like FPDS) would reveal numerous other awards to Paragon Systems Inc. across various agencies and locations. Their track record likely includes a range of security services, potentially from basic guard services to more specialized protective roles. Assessing their overall track record would involve examining the volume of contracts awarded, their performance history on those contracts (including any awards or penalties), and their past performance evaluations. A positive history with DHS suggests familiarity with the agency's requirements and procedures.

Were there any identified risks or concerns associated with Paragon Systems Inc. as a contractor for this specific armed guard services contract?

The provided data snippet does not explicitly list any risks or concerns associated with Paragon Systems Inc. for this particular contract. However, general risks associated with armed guard contracts can include personnel reliability and vetting, potential for use of excessive force, and ensuring consistent adherence to post orders. The fact that the contract was awarded through full and open competition suggests that potential bidders, including Paragon Systems Inc., were vetted based on established criteria. Any significant pre-award concerns would likely have precluded them from being awarded the contract, or resulted in specific mitigation requirements being included in the contract terms. Post-award performance monitoring would address any emerging risks.

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

Pricing Type: LABOR HOURS (Z)

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: $46,754,867

Exercised Options: $23,313,246

Current Obligation: $23,308,207

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCEW909A00003

IDV Type: BPA

Timeline