DHS awarded $24.8M for armed guard services in Los Angeles, with Paragon Systems Inc. securing the contract

Contract Overview

Contract Amount: $24,842,600 ($24.8M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2011-10-01

End Date: 2013-09-30

Contract Duration: 730 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: Other

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

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.8 million to PARAGON SYSTEMS INC for work described as: ARMED GUARD SERVICES, LOS ANGELES SERVICE AREA - 192111PNILA000001 Key points: 1. The contract value represents a significant investment in security services for the Los Angeles area. 2. Competition dynamics for this contract need further examination to understand pricing pressures. 3. The duration of the contract (730 days) suggests a need for sustained security presence. 4. The service area is geographically specific, impacting local workforce and economic considerations. 5. The North American Industry Classification System (NAICS) code 561612 indicates a focus on security guards and patrol services.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires detailed cost breakdowns and comparison to similar service contracts in the Los Angeles region. Without specific performance metrics or unit cost data, it is difficult to definitively assess value for money. The total award amount of $24.8 million over two years suggests a substantial operational cost, which warrants scrutiny against industry standards for armed guard services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a specific reason for excluding certain potential bidders. While competition was intended, the exclusion suggests that the pool of eligible bidders may have been limited, potentially impacting the breadth of price discovery. Further details on the exclusion criteria are needed to fully understand the competitive landscape.

Taxpayer Impact: The limited competition may have resulted in less downward pressure on pricing, potentially leading to higher costs for taxpayers compared to a truly open competition.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its facilities within the Los Angeles service area, receiving enhanced security. The contract ensures the provision of armed guard services, contributing to the safety and security of federal assets and personnel. The geographic impact is concentrated in Los Angeles, California, potentially creating local employment opportunities for security personnel. Workforce implications include the direct employment of armed guards and support staff by the contractor, Paragon Systems Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and reduced innovation.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of the security services provided.
The specific reasons for excluding sources in the competition need to be transparently documented to ensure fairness.

Positive Signals

The contract addresses a critical need for security services for a federal agency.
The contractor, Paragon Systems Inc., has a track record in providing security services, suggesting some level of established capability.
The award specifies a defined service area and duration, providing clarity on the scope of work.

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' category (NAICS 561612). Spending in this sector is driven by government and private sector needs for physical security, asset protection, and threat mitigation. Comparable spending benchmarks would involve analyzing other large-scale federal contracts for armed guard services across different geographic regions and agencies.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests that the primary focus was on securing the necessary security services through the most competitive means available under the specified procurement strategy. There is no explicit information regarding subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational oversight mechanisms are internal to the agency.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services Contracts
Security and Protection Services

Risk Flags

Limited competition may impact price.
Lack of detailed performance metrics.
Potential for cost overruns if not managed closely.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.8 million to PARAGON SYSTEMS INC. ARMED GUARD SERVICES, LOS ANGELES SERVICE AREA - 192111PNILA000001

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 $24.8 million.

What is the period of performance?

Start: 2011-10-01. 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?

Analyzing historical spending requires access to detailed procurement data beyond this single award. However, the award of $24.8 million for a two-year period (2011-2013) suggests a consistent and significant requirement for these services. To understand the pattern, one would need to examine prior contracts for similar services in the same geographic region, looking at award amounts, durations, and contractors. This would reveal trends in cost, contractor selection, and the overall investment in security by DHS in Los Angeles over time. Without this broader context, it's difficult to determine if this specific award represents an increase, decrease, or stable level of spending.

How does the awarded price compare to market rates for armed guard services in Los Angeles during the contract period?

A precise comparison to market rates is challenging without access to detailed cost breakdowns and specific service level agreements within the contract. However, the total award of $24.8 million over 730 days averages approximately $34,000 per day, or roughly $1.1 million per month. This figure encompasses all aspects of the service, including personnel, equipment, and overhead. To benchmark effectively, one would need to research prevailing wage rates for armed guards in Los Angeles, typical overhead costs for security firms, and profit margins. Industry reports or data from similar government contracts awarded around the same time (2011-2013) in the region would provide a more robust comparison point for assessing value for money.

What specific risks were identified or mitigated during the procurement process for this contract?

The provided data does not explicitly detail the risks identified or mitigated during the procurement. However, common risks in procuring armed guard services include contractor performance failures, security breaches, inadequate vetting of personnel, and cost overruns. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that certain risks related to bidder eligibility or capability may have been addressed by defining specific exclusion criteria. Further analysis would require reviewing the solicitation documents, pre-award assessments, and any debriefings provided to unsuccessful bidders to understand the risk management strategies employed.

What is the track record of Paragon Systems Inc. in fulfilling federal contracts for security services?

Paragon Systems Inc. has a history of providing security services to various federal agencies. Their track record can be assessed by examining past contract awards, performance evaluations (if publicly available), and any reported instances of contract disputes or failures. A positive track record would indicate a demonstrated ability to meet contractual obligations, manage personnel effectively, and adhere to security protocols. Conversely, any negative performance history, such as missed deadlines, quality issues, or compliance violations, would raise concerns about their capacity to deliver on this specific $24.8 million contract. Accessing contract performance data systems would provide a more comprehensive view.

How effective has this contract been in meeting the Department of Homeland Security's security objectives in Los Angeles?

Assessing the effectiveness of this contract requires performance metrics and outcome data that are not included in the provided summary. Effectiveness would be measured against the specific security objectives outlined in the contract, such as response times, incident prevention rates, and the overall security posture of the facilities protected. Without access to post-award performance reports, incident logs, or DHS assessments of the security services provided by Paragon Systems Inc., it is impossible to definitively evaluate the contract's success in meeting its intended goals. This information would typically be found in internal agency performance reviews or Inspector General reports.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

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: $50,189,468

Exercised Options: $24,842,600

Current Obligation: $24,842,600

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEW909A00003

IDV Type: BPA

Timeline