DHS Awards $35.5M for Border Facility Guards to Paragon Systems Inc

Contract Overview

Contract Amount: $35,505,493 ($35.5M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-26

End Date: 2025-03-07

Contract Duration: 559 days

Daily Burn Rate: $63.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SOUTHWEST BORDER ARMED FACILITY GUARDS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.5 million to PARAGON SYSTEMS INC for work described as: SOUTHWEST BORDER ARMED FACILITY GUARDS Key points: 1. Contract awarded to Paragon Systems Inc. for security guards at Southwest Border facilities. 2. The contract value is $35.5 million, with a duration extending to March 2025. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The service falls under Security Guards and Patrol Services, a common government need.

Value Assessment

Rating: good

The contract value of $35.5 million for approximately 18 months of service appears reasonable given the scope of providing armed guards for border facilities. Benchmarking against similar security contracts 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, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for essential border security services.

Public Impact

Ensures security and operational continuity at critical Southwest Border facilities. Supports the Department of Homeland Security's mission to secure the nation's borders. Provides employment opportunities within the security services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope expands beyond initial estimates.
Dependence on a single contractor for critical security functions.
Geopolitical factors impacting border operations could affect service delivery.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Clear contract duration and defined scope of work.
Contract supports a vital national security mission.

Sector Analysis

This contract falls within the professional services sector, specifically security and protective services. Government spending in this area is substantial, driven by national security and public safety requirements. Benchmarks vary widely based on service type and location.

Small Business Impact

While the prime contractor is Paragon Systems Inc., the data does not indicate any specific subcontracting goals for small businesses on this particular award. Further investigation into subcontracting plans would be needed to assess small business participation.

Oversight & Accountability

The Department of Homeland Security, through U.S. Customs and Border Protection, is responsible for overseeing this contract. Standard oversight mechanisms for service contracts, including performance monitoring and payment verification, should be in place.

Related Government Programs

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

Risk Flags

Lack of specific per-unit cost data for benchmarking.
Potential for scope creep impacting final cost.
Dependence on contractor performance for critical security functions.
Limited information on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.5 million to PARAGON SYSTEMS INC. SOUTHWEST BORDER 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 $35.5 million.

What is the period of performance?

Start: 2023-08-26. End: 2025-03-07.

What is the specific hourly rate or labor hour cost being paid to Paragon Systems Inc. under this BPA call?

The provided data does not detail the specific hourly rate or labor hour cost. The total award value is $35,505,493.18 over a period of 559 days. To determine the labor hour cost, one would need to divide the total value by the total labor hours worked, which are not explicitly stated but can be inferred from the contract type (Labor Hours) and duration.

What are the key performance indicators (KPIs) used to measure the effectiveness of the armed guards provided by Paragon Systems Inc.?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, KPIs for security guard services would include response times, incident reporting accuracy, adherence to post orders, and overall security posture. The U.S. Customs and Border Protection would be responsible for defining and monitoring these metrics.

How does the cost per guard compare to similar contracts for armed facility security services at other federal locations?

Without specific per-unit cost data or benchmarks for comparable contracts, a direct comparison is difficult. The total award value and duration suggest a significant operational requirement. A detailed cost analysis comparing the number of guards, hours, and specific security requirements would be necessary for an accurate benchmark.

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

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: $35,505,493

Exercised Options: $35,505,493

Current Obligation: $35,505,493

Actual Outlays: $35,147,130

Parent Contract

Parent Award PIID: 70B01C23A00000007

IDV Type: BPA

Timeline