DHS Awards $29M for Armed Facility Guards to Paragon Systems Inc

Contract Overview

Contract Amount: $29,032,494 ($29.0M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-05

End Date: 2023-10-25

Contract Duration: 446 days

Daily Burn Rate: $65.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ARMED FACILITY GUARDS

Place of Performance

Location: EAGLE PASS, MAVERICK County, TEXAS, 78852

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.0 million to PARAGON SYSTEMS INC for work described as: ARMED FACILITY GUARDS Key points: 1. Contract awarded to Paragon Systems Inc. for armed facility guards. 2. Spending is within the Security Guards and Patrol Services sector. 3. Potential risk associated with reliance on a single awardee for critical security services. 4. The contract supports U.S. Customs and Border Protection operations.

Value Assessment

Rating: good

The award amount of $29M for armed facility guards appears reasonable given the duration and scope. Benchmarking against similar contracts for security services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally effective in achieving fair market prices.

Taxpayer Impact: Taxpayer funds are being used for essential security services, ensuring the protection of federal facilities and personnel.

Public Impact

Ensures security at critical federal facilities. Supports border protection operations. Provides employment opportunities in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on contractor performance for security effectiveness.

Positive Signals

Awarded through full and open competition.
Supports a vital government function.

Sector Analysis

The security services sector is competitive, with numerous providers. Spending on security guards is a common requirement across many federal agencies to protect assets and personnel.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Oversight by the Department of Homeland Security and U.S. Customs and Border Protection is crucial to ensure the contractor meets performance standards and security requirements.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Contract duration is relatively long (446 days).
Potential for sole-source extension if competition is not re-initiated.
Reliance on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.0 million to PARAGON SYSTEMS INC. ARMED FACILITY GUARDS

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 (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2022-08-05. End: 2023-10-25.

What is the specific scope of services required for these armed facility guards?

The specific scope of services would detail the number of guards, hours of operation, locations, post orders, and any specialized training or equipment required. This information is critical for understanding the full value and cost drivers of the contract and ensuring it aligns with the agency's security needs.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract?

Performance metrics and KPIs are essential for evaluating the effectiveness of the security services provided. They typically include response times, incident reporting accuracy, guard presence, and adherence to post orders. Without these, it's difficult to objectively assess the contractor's performance and the overall value delivered.

How does the cost per guard hour compare to industry benchmarks for similar services in Texas?

Benchmarking the cost per guard hour against industry standards in Texas is vital for assessing cost-effectiveness. Factors like guard experience, licensing, and the specific security environment influence pricing. A comparison would reveal if the awarded rate is competitive or if there's potential for cost savings in future procurements.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RDAD22Q0000172

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Securitas AB

Address: 13900 LINCOLN PARK DR STE 300, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $29,155,336

Exercised Options: $29,032,494

Current Obligation: $29,032,494

Actual Outlays: $29,032,494

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA20D0010

IDV Type: FSS

Timeline