DHS awarded $27.6M for security services, with 12 bidders indicating robust competition

Contract Overview

Contract Amount: $27,612,218 ($27.6M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2014-10-01

End Date: 2015-09-30

Contract Duration: 364 days

Daily Burn Rate: $75.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CL,CT::IGF PSO SERVICES FOR FY15 - LOS ANGELES

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.6 million to PARAGON SYSTEMS INC for work described as: IGF::CL,CT::IGF PSO SERVICES FOR FY15 - LOS ANGELES Key points: 1. The contract value represents a significant investment in security guard services for DHS. 2. Robust competition with 12 bidders suggests a healthy market for these services. 3. The contract was awarded via full and open competition, maximizing potential for value. 4. Performance is benchmarked against similar security contracts, with a focus on cost-effectiveness. 5. The sector for security services is mature, with established players and pricing benchmarks. 6. Risk indicators are monitored through performance metrics and contractor adherence to terms.

Value Assessment

Rating: good

The contract value of $27.6 million for one year of security services appears reasonable given the scope. Benchmarking against similar contracts for security guard services across federal agencies suggests that the pricing is competitive. The presence of 12 bidders further supports the notion that the awarded price reflects market rates and offers good value for money. The contract type (delivery order) indicates it was part of a larger framework, potentially allowing for further cost efficiencies.

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 offers. The participation of 12 bidders signifies a highly competitive environment, which typically drives down prices and encourages innovation. This level of competition suggests that the government received a wide range of proposals and was able to select the best value offering. The extensive bidding process likely contributed to a fair price discovery mechanism.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process through potentially lower costs and access to a wider pool of qualified contractors, ensuring efficient use of public funds.

Public Impact

Federal law enforcement and government facilities benefit from enhanced security and protection. The services delivered include essential security guard functions, ensuring safety and order. The geographic impact is concentrated in California, supporting federal operations within the state. The contract supports a workforce of security personnel, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting service continuity.
Reliance on a single delivery order under a larger IDIQ could limit flexibility.
Ensuring consistent service quality across all deployed personnel.

Positive Signals

Awarded under full and open competition, indicating broad market engagement.
Multiple bidders participated, suggesting a competitive and healthy market.
Contract duration provides a stable period for service delivery.
Clear performance standards are likely in place for security services.

Sector Analysis

The security services sector is a substantial part of the broader professional services market. Federal spending in this area is consistent, driven by the need for physical security at government facilities nationwide. This contract fits within the established market for security guards and patrol services, where pricing is often benchmarked against industry standards and previous government contracts. The market is characterized by a mix of large, established firms and smaller specialized providers.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated. The award to Paragon Systems Inc., a larger entity, suggests that the primary focus was on securing comprehensive security services. The impact on the small business ecosystem would depend on whether Paragon Systems Inc. utilizes small businesses for any subcontracting opportunities, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security's contracting officers and program managers. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts
Security Guard Services
Physical Security Contracts

Risk Flags

Potential for service disruption if contractor fails to meet performance standards.
Adequacy of oversight to ensure consistent service quality across all locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.6 million to PARAGON SYSTEMS INC. IGF::CL,CT::IGF PSO SERVICES FOR FY15 - LOS ANGELES

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 $27.6 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-09-30.

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

The Department of Homeland Security (DHS) has consistently allocated significant funds towards security services, including guard and patrol functions, to protect its numerous facilities and personnel. Historical data indicates a steady demand for these services, often awarded through competitive solicitations. While specific year-over-year figures fluctuate based on agency needs, budget allocations, and contract renewals, DHS's overall spending in this category remains substantial. Analyzing trends over the past five to ten fiscal years would reveal patterns in contract values, types of services procured, and the primary contracting vehicles used. This particular contract for FY15, valued at approximately $27.6 million, aligns with the agency's ongoing commitment to maintaining robust security postures across its operational domains.

How does the awarded price compare to market rates for similar security guard services?

The awarded price of $27.6 million for security guard services in FY15 appears competitive, especially considering the contract was awarded under full and open competition with 12 bidders. Industry benchmarks for security guard services vary based on location, skill level of guards, and specific duties required. However, a contract of this magnitude, involving potentially numerous guard hours over a year, suggests that the pricing was scrutinized against market expectations. The presence of multiple bidders typically drives prices towards market equilibrium. Without specific details on the hourly rates or the number of guards deployed, a precise comparison is difficult, but the competitive award process implies the price is aligned with or favorable compared to prevailing market rates for similar federal contracts.

What are the key performance indicators (KPIs) typically used for security guard contracts?

Key Performance Indicators (KPIs) for security guard contracts are crucial for ensuring service quality and accountability. Common KPIs include response times to incidents, adherence to post orders, guard presence and punctuality, incident reporting accuracy and timeliness, and customer satisfaction surveys (often from facility managers). For this contract, DHS likely established specific metrics related to preventing unauthorized access, maintaining surveillance, and responding effectively to security breaches. Performance evaluations would assess the contractor's ability to meet these KPIs consistently. Failure to meet critical KPIs could result in penalties, contract modifications, or even termination, underscoring the importance of rigorous performance monitoring.

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

Paragon Systems Inc. has a significant track record of fulfilling federal contracts, particularly in the realm of security services. They have been a consistent awardee of contracts from various federal agencies, including the Department of Homeland Security, Department of Defense, and others requiring physical security, guard services, and related protective measures. Their history often includes large-scale contracts similar to the one awarded for FY15. While specific performance details for every contract are not publicly available, their continued success in winning competitive bids suggests a generally positive performance history and capability to meet federal security requirements. Reviewing past performance evaluations and contract histories would provide a more granular understanding of their reliability and effectiveness.

What are the potential risks associated with a contract of this size and scope?

Contracts of this size and scope, like the $27.6 million awarded to Paragon Systems Inc. for security services, carry inherent risks. One primary risk is contractor performance failure, where the quality of services may degrade, leading to security vulnerabilities. Another risk involves cost overruns if the labor hours or operational demands exceed initial projections, although fixed-price or labor-hour contracts with defined scopes aim to mitigate this. There's also the risk of security breaches or incidents occurring despite the contracted services, which could lead to reputational damage for the agency and potential loss of life or property. Furthermore, managing a large contract requires significant government oversight to ensure compliance with terms, conditions, and performance standards, posing an administrative burden.

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: 12

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: $27,612,218

Exercised Options: $27,612,218

Current Obligation: $27,612,218

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQW913D00003

IDV Type: IDC

Timeline