National Park Service awards $18.7M contract for Statue of Liberty security, with 9 bidders vying for the work

Contract Overview

Contract Amount: $18,676,223 ($18.7M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of the Interior

Start Date: 2007-05-01

End Date: 2012-09-30

Contract Duration: 1,979 days

Daily Burn Rate: $9.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICES @ STATUE OF LIBERTY NATIONAL MONUMENT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

Department of the Interior obligated $18.7 million to PARAGON SYSTEMS INC for work described as: SECURITY GUARD SERVICES @ STATUE OF LIBERTY NATIONAL MONUMENT Key points: 1. The contract value represents a significant investment in safeguarding a national landmark. 2. A competitive bidding process suggests potential for favorable pricing and service quality. 3. The duration of the contract indicates a long-term need for these security services. 4. The fixed-price nature of the contract helps manage cost predictability. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized security service market.

Value Assessment

Rating: good

The contract value of $18.7 million over approximately five years for security services at the Statue of Liberty National Monument appears reasonable given the critical nature of the asset and the specialized services required. Benchmarking against similar large-scale security contracts for high-profile federal facilities would provide a more precise value-for-money assessment. However, the competitive nature of the award suggests that pricing was scrutinized by multiple vendors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order process, indicating that multiple vendors were invited to bid. With nine bidders participating, the competition level was robust, which typically drives down prices and encourages higher quality service offerings. The agency likely benefited from a wide range of proposals to choose from, ensuring a thorough evaluation of capabilities and cost-effectiveness.

Taxpayer Impact: The strong competition in this procurement is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that public funds are used efficiently by leveraging market forces to secure essential services.

Public Impact

The primary beneficiaries are the millions of visitors to the Statue of Liberty National Monument, who experience a safe and secure environment. The contract ensures the continuous provision of security guard and patrol services, maintaining the integrity and safety of the monument and its surrounding areas. The geographic impact is concentrated in New York Harbor, specifically Liberty Island and Ellis Island. The contract supports jobs within the private security sector, contributing to the local and national workforce in security services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor fatigue or complacency over the long contract duration if performance is not continuously monitored.
Reliance on a single contractor for critical security functions necessitates robust oversight and contingency planning.

Positive Signals

The competitive award process with multiple bidders suggests a strong initial selection of a capable provider.
The firm fixed-price contract structure provides cost certainty for the government.
The long-term nature of the contract allows for specialized training and integration of security personnel with site-specific protocols.

Sector Analysis

The security services industry is a large and diverse sector, encompassing a wide range of protective services. This contract falls under the Security Guards and Patrol Services sub-sector (NAICS 561612). Federal spending in this area is substantial, driven by the need to protect critical infrastructure, government facilities, and national landmarks. The market is characterized by both large, established security firms and smaller, specialized providers. This particular contract represents a significant award within the niche of high-security, high-visibility landmark protection.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion for this specific award, as indicated by 'sb': false. While the prime contractor, Paragon Systems Inc., is a large entity, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the broader small business ecosystem within the security services industry.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Park Service, a division of the Department of the Interior. Mechanisms likely include regular performance reviews, site inspections, and adherence to contractually defined service level agreements. Accountability is ensured through the firm fixed-price structure and the potential for penalties or contract termination for non-performance. Transparency is generally maintained through federal procurement databases, though specific operational oversight details are typically internal.

Related Government Programs

Statue of Liberty National Monument Operations
National Park Service Security Contracts
Federal Law Enforcement Support Services
Critical Infrastructure Protection Contracts

Risk Flags

Long-term contract duration may lead to complacency.
Reliance on a single provider for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.7 million to PARAGON SYSTEMS INC. SECURITY GUARD SERVICES @ STATUE OF LIBERTY NATIONAL MONUMENT

Who is the contractor on this award?

The obligated recipient is PARAGON SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2007-05-01. End: 2012-09-30.

What is the historical spending trend for security services at the Statue of Liberty National Monument?

Historical spending data for security services specifically at the Statue of Liberty National Monument prior to this $18.7 million contract (2007-2012) is not directly available in the provided data snippet. However, the duration and value of this contract suggest a consistent and significant need for security services at this iconic location. Federal agencies typically maintain multi-year contracts for essential services like security, often re-competing them to ensure continued value and adapt to evolving security requirements. To understand the full historical spending pattern, one would need to examine prior contracts awarded for this specific site or for similar high-security national monuments managed by the National Park Service.

How does the per-guard cost for this contract compare to industry benchmarks?

The provided data does not include the number of guards or hours worked, making a direct per-guard cost calculation impossible. The total contract value is $18,676,222.70, and the duration is approximately 61 months (from May 1, 2007, to September 30, 2012). Without knowing the staffing levels, shifts, and specific duties, it is not feasible to benchmark the per-unit cost against industry standards for security guard services. Such a benchmark would require detailed operational data, including the number of personnel deployed, hours of coverage, and specific security tasks performed.

What are the key performance indicators (KPIs) used to evaluate Paragon Systems Inc.'s performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a security contract of this nature, typical KPIs would likely include response times to incidents, adherence to post orders, patrol effectiveness, incident reporting accuracy, personnel punctuality and appearance, and overall site security status. The National Park Service would have established specific metrics within the contract's Performance Work Statement (PWS) to measure the contractor's success in maintaining a secure environment for the Statue of Liberty and its visitors. Regular performance evaluations would assess Paragon Systems Inc.'s compliance with these KPIs.

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

Paragon Systems Inc. has a significant track record with federal contracts, particularly in the realm of security services. The data indicates they were awarded this $18.7 million contract for security at the Statue of Liberty National Monument. A broader search of federal procurement databases would reveal numerous other awards to Paragon Systems Inc. across various federal agencies, likely including the Department of Defense, Department of Homeland Security, and others requiring security guard and related protective services. Their ability to win competitive bids for critical assets like the Statue of Liberty suggests a demonstrated capability and established reputation within the federal contracting community.

What are the potential risks associated with a long-term security contract like this?

Long-term security contracts, such as this five-year award, carry several potential risks. One primary risk is vendor complacency, where the contractor may reduce vigilance or service quality over time, assuming continued renewal. Another risk is the potential for price escalation if the contract includes provisions for adjustments, or if follow-on contracts are awarded without sufficient re-competition. Furthermore, changes in security threats or technology over the contract's lifespan could render the contracted services less effective if not adequately addressed through contract modifications or performance reviews. Finally, over-reliance on a single provider for critical security functions can create vulnerabilities if the contractor experiences financial instability or operational failures.

How does the competition level (9 bidders) impact the overall value for taxpayers?

A competition level involving nine bidders is generally considered robust and highly beneficial for taxpayers. A larger number of bidders typically leads to more competitive pricing as companies vie for the contract by offering lower bids and potentially enhanced service features. This increased competition drives down the overall cost to the government, ensuring that taxpayer dollars are used more efficiently. It also provides the agency with a wider selection of qualified vendors, increasing the likelihood of selecting a contractor that offers the best combination of price, quality, and performance, thereby maximizing the value received for the investment.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SRS Critical Infrastructure Security LLC (UEI: 355790924)

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

Financial Breakdown

Contract Ceiling: $52,094,448

Exercised Options: $29,565,293

Current Obligation: $18,676,223

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F0418K

IDV Type: FSS

Timeline