State Department Awards $44.5M Contract for Moscow Mission Guard Services to Paragon Professional Services LLC
Contract Overview
Contract Amount: $44,460,790 ($44.5M)
Contractor: Paragon Professional Services LLC
Awarding Agency: Department of State
Start Date: 2022-09-26
End Date: 2026-09-25
Contract Duration: 1,460 days
Daily Burn Rate: $30.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MISSION GUARD SERVICES - US MISSION MOSCOW, RUSSIA
Plain-Language Summary
Department of State obligated $44.5 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: MISSION GUARD SERVICES - US MISSION MOSCOW, RUSSIA Key points: 1. The contract is for security guard and patrol services at the U.S. Mission in Moscow, Russia. 2. The awardee is Paragon Professional Services LLC. 3. The contract has a firm fixed price type. 4. The contract duration is 1460 days. 5. The contract was not available for competition.
Value Assessment
Rating: questionable
The contract value of $44.5 million over four years for security services in Moscow appears high, especially given the lack of competitive bidding. Benchmarking against similar security contracts for overseas diplomatic missions is difficult without more data, but the absence of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a limited competition, as it was 'NOT AVAILABLE FOR COMPETITION'. This significantly restricts price discovery and may lead to higher costs for taxpayers. The specific justification for limiting competition is not provided, but it suggests potential sole-source or restricted vendor scenarios.
Taxpayer Impact: The lack of full and open competition for a significant contract value raises concerns about the efficient use of taxpayer funds. Without competitive pressure, the awarded price may not reflect the best value achievable.
Public Impact
Ensures security for U.S. personnel and facilities in a high-risk environment. Provides essential services for diplomatic operations in Moscow. Potential for increased costs due to limited competition. Lack of transparency in the procurement process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- High contract value
- Lack of justification for limited competition
Positive Signals
- Essential service provision
- Firm fixed price contract
Sector Analysis
This contract falls under the Security Guards and Patrol Services sector (NAICS 561612). Spending in this sector can vary widely based on location, security requirements, and contract duration. The high value suggests significant security needs for the U.S. Mission in Moscow.
Small Business Impact
The contract was awarded to Paragon Professional Services LLC, and there is no indication that small businesses were involved in this specific award. The contract details do not mention any small business set-asides or subcontracting goals.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the justification for restricting competition was sound and that the pricing is reasonable. Accountability for the procurement decision and contract performance rests with the Department of State.
Related Government Programs
- Security Guards and Patrol Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of full and open competition
- Potential for inflated pricing
- Limited transparency in procurement
- No indication of small business participation
Tags
security-guards-and-patrol-services, department-of-state, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $44.5 million to PARAGON PROFESSIONAL SERVICES LLC. MISSION GUARD SERVICES - US MISSION MOSCOW, RUSSIA
Who is the contractor on this award?
The obligated recipient is PARAGON PROFESSIONAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $44.5 million.
What is the period of performance?
Start: 2022-09-26. End: 2026-09-25.
What is the specific justification for limiting competition for this security contract in Moscow?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a limited or sole-source justification. Typically, such limitations are based on factors like urgent need, unique capabilities of a specific vendor, or national security concerns. A detailed review of the contract file would be necessary to ascertain the precise rationale and ensure it aligns with federal procurement regulations.
How does the per-unit cost of security personnel compare to similar contracts in other high-risk diplomatic locations?
Without specific details on the number of personnel, their roles, and the exact service levels, a direct per-unit cost comparison is not feasible. However, the overall contract value of $44.5 million over four years for security in Moscow suggests a substantial operational cost. Benchmarking against contracts for other U.S. embassies or consulates in challenging regions would be necessary to assess cost-effectiveness.
What measures are in place to ensure the effectiveness and quality of security services provided by Paragon Professional Services LLC?
While the contract type is firm fixed price, ensuring effectiveness relies on robust performance standards, regular monitoring, and clear reporting mechanisms. The Department of State likely has established procedures for performance evaluations and quality assurance for security contractors. However, the limited competition aspect might reduce the incentive for the contractor to proactively enhance service quality beyond the minimum requirements.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 19AQMM22R0174
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3301 C ST, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $95,162,458
Exercised Options: $75,075,690
Current Obligation: $44,460,790
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-09-26
Current End Date: 2026-09-25
Potential End Date: 2027-09-25 00:00:00
Last Modified: 2026-03-16
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