DHS awarded $28.9M for protective security services in FY16, with Paragon Systems Inc. securing the contract

Contract Overview

Contract Amount: $28,933,094 ($28.9M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2015-10-01

End Date: 2016-09-30

Contract Duration: 365 days

Daily Burn Rate: $79.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CL,CT::IGF PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR FY16 - 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 $28.9 million to PARAGON SYSTEMS INC for work described as: IGF::CL,CT::IGF PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR FY16 - LOS ANGELES Key points: 1. The contract value represents a significant investment in protective security services for the Department of Homeland Security. 2. Competition dynamics for this contract are crucial for ensuring taxpayer value and service quality. 3. Risk indicators include the potential for service disruptions and the need for consistent performance monitoring. 4. Performance context is tied to the critical nature of security services for government facilities. 5. The sector positioning is within the broader security and guard services industry, a competitive landscape. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of approximately $28.9 million for FY16 protective security services appears reasonable given the scope of services typically required by the Department of Homeland Security. Benchmarking against similar contracts for PSO services across federal agencies would provide a more precise value-for-money assessment. However, the absence of detailed performance metrics and cost breakdowns in the provided data limits a deeper analysis of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. This competitive approach is generally expected to drive down prices and encourage innovation as contractors vie for the award. The number of bidders and the evaluation criteria would further illuminate the intensity of the competition and its impact on price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a market where the most competitive offers are likely to be selected, potentially leading to cost savings and higher quality services.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its facilities, which receive enhanced security coverage. The services delivered include protective security, likely involving personnel to guard and patrol government installations. The geographic impact is concentrated in California, specifically Los Angeles, where the services were rendered. Workforce implications include the creation of jobs for security officers employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting security continuity.
Ensuring consistent adherence to security protocols and standards.
Managing contract modifications and scope creep effectively.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration of one year provides a defined period for service delivery.
The contractor, Paragon Systems Inc., likely has experience in providing security services.

Sector Analysis

The contract falls within the Security and Guard Services industry, a sector characterized by a large number of providers ranging from small businesses to large corporations. Federal spending in this sector is substantial, driven by the need for physical security at government facilities nationwide. This contract represents a portion of that broader spending, contributing to the operational security of DHS assets in the Los Angeles area.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Paragon Systems Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award, which could represent missed opportunities for small business participation in federal contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract databases, though detailed operational oversight specifics are not provided here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Guard and Patrol Services Contracts
Physical Security Contracts

Risk Flags

Potential for performance deficiencies impacting security.
Need for robust oversight to ensure service quality.
Contract value requires justification for taxpayer funds.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.9 million to PARAGON SYSTEMS INC. IGF::CL,CT::IGF PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR FY16 - 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 $28.9 million.

What is the period of performance?

Start: 2015-10-01. End: 2016-09-30.

What is the historical spending trend for Protective Security Officer (PSO) services by the Department of Homeland Security?

Analyzing historical spending for PSO services by DHS requires access to multi-year contract data. While this specific award is for FY16, a comprehensive trend analysis would involve examining awards from previous years and projecting future needs. Factors influencing spending include changes in threat levels, agency security mandates, and budget allocations. Without broader data, it's difficult to ascertain if the $28.9M for FY16 represents an increase, decrease, or stable level of investment compared to prior or subsequent years. However, the consistent need for security personnel suggests a sustained level of expenditure in this category.

How does the awarded amount compare to the estimated value or ceiling of the contract, if applicable?

The provided data lists an 'amount' (a) of $28,933,093.70, which represents the obligated amount for this specific delivery order. It does not explicitly state a contract ceiling or estimated total value for a larger indefinite-delivery/indefinite-quantity (IDIQ) contract from which this order might have been placed. If this $28.9M is the total value for the FY16 period, then it is the definitive figure. If it's an order against a larger contract, the ceiling would indicate the maximum potential spending, and this figure would represent actualized spending within that potential. Without knowing if this is a standalone contract or a delivery order against a larger IDIQ, a direct comparison to a ceiling is not possible.

What specific performance metrics were used to evaluate Paragon Systems Inc. for this contract?

The provided data does not include specific performance metrics used during the evaluation of Paragon Systems Inc. for this contract. Typically, solicitations for security services outline detailed performance work statements (PWS) that include key performance indicators (KPIs) such as response times, officer attentiveness, incident reporting accuracy, and adherence to post orders. The evaluation criteria would have weighed these factors alongside price. Post-award, performance is monitored against these metrics, often through contractor performance assessment reporting (CPARs).

What is Paragon Systems Inc.'s track record in providing similar security services to federal agencies?

Paragon Systems Inc. has a significant track record in providing security services to various federal agencies. A review of federal procurement data (e.g., FPDS) would reveal numerous contracts awarded to Paragon for Protective Security Officer (PSO) services, physical security, and access control at numerous government installations. Their experience likely spans multiple departments and agencies, indicating a capacity to handle large-scale security requirements. Assessing their past performance ratings (CPARs) would provide further insight into their reliability and effectiveness in fulfilling similar contracts.

Were there any notable challenges or disputes during the performance of this contract?

Information regarding specific challenges or disputes during the performance of this particular FY16 contract for Paragon Systems Inc. is not available in the provided data snippet. Contract performance issues can arise from various factors, including scope changes, unforeseen operational difficulties, or disagreements over contract terms. Federal contract databases often contain records of contract modifications, claims, or disputes, but such details are not included here. A thorough review of contract administration files or CPARs would be necessary to identify any performance-related challenges.

How does the cost per officer or per hour compare to industry benchmarks for similar security services?

Determining a precise cost per officer or per hour requires breaking down the total contract value ($28.9M) by the number of officers and the duration/hours worked. The provided data does not include the number of personnel or total hours. However, the North American Industry Classification System (NAICS) code 561612 (Security Guards and Patrol Services) provides a basis for industry comparison. Typical rates for unarmed security guards can range widely based on location, experience, and specific duties, often falling between $25-$50 per hour. Without more granular data on staffing and hours, a direct benchmark comparison for this specific contract is speculative.

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

Solicitation ID: HSHQW9-13-R-00003

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: $28,933,094

Exercised Options: $28,933,094

Current Obligation: $28,933,094

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQW913D00003

IDV Type: IDC

Timeline