Homeland Security's $24.3M contract for armed facility guards in El Paso region awarded to Paragon Systems Inc

Contract Overview

Contract Amount: $24,324,120 ($24.3M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-06

End Date: 2025-03-07

Contract Duration: 457 days

Daily Burn Rate: $53.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ARMED FACILITY GUARDS - EL PASO REGION

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.3 million to PARAGON SYSTEMS INC for work described as: ARMED FACILITY GUARDS - EL PASO REGION Key points: 1. Contract value appears reasonable given the duration and scope of security services required. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over 1.5 years indicates a sustained need for these security services. 4. Services are categorized under Security Guards and Patrol Services, a standard industry classification. 5. The award type is a BPA Call, indicating it's a call-off from a pre-existing Blanket Purchase Agreement. 6. The contract is managed under the Department of Homeland Security, specifically U.S. Customs and Border Protection.

Value Assessment

Rating: good

The contract value of approximately $24.3 million over its period of performance (December 2023 to March 2025) for armed facility guards suggests a substantial investment in border security. Benchmarking against similar contracts for security services requires detailed analysis of scope, geographic coverage, and personnel requirements. However, the award to Paragon Systems Inc. through a BPA call implies a pre-negotiated pricing structure, which can offer some level of cost predictability. Without specific per-guard hourly rates or detailed service level agreements, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach is generally favored as it allows for the widest possible pool of potential contractors, fostering price discovery and potentially leading to more favorable terms for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overpayment and ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) personnel and facilities in the El Paso region, ensuring operational continuity and security. The contract delivers essential security guard and patrol services to protect federal assets and personnel. The geographic impact is focused on the El Paso region, a critical area for border security operations. The contract supports employment for armed security professionals within the El Paso area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Details on guard-to-area ratios and specific patrol routes are not publicly available, hindering performance evaluation.
The duration of the contract (over 1.5 years) means sustained financial commitment, requiring ongoing monitoring.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
The contractor, Paragon Systems Inc., is an established provider of security services.
The contract is managed by U.S. Customs and Border Protection, an agency with significant security needs and oversight capabilities.

Sector Analysis

The security services sector is a significant component of the federal contracting landscape, encompassing a wide range of protective services. This contract falls under the Security Guards and Patrol Services category (NAICS 561612). The federal government is a major consumer of these services, particularly agencies responsible for border security, law enforcement, and facility protection. Spending in this sector is influenced by geopolitical factors, national security priorities, and the operational needs of various agencies. Comparable spending benchmarks would typically involve analyzing per-hour rates for armed guards across different regions and contract types.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false). While the primary awardee is Paragon Systems Inc., a large business, there is no explicit information regarding small business subcontracting requirements or performance. The absence of a small business set-aside suggests that the competition was open to all eligible firms, and the focus was on best value rather than specific small business participation goals for the prime contract. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) contracting officers and program managers within the Department of Homeland Security. As a BPA Call, the underlying Blanket Purchase Agreement likely has its own oversight mechanisms. Transparency is facilitated by the public award data, but detailed performance metrics and inspection reports are typically not publicly disclosed. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Defense Security Services
Immigration and Customs Enforcement Security Contracts
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

Potential for cost overruns if guard hours or rates exceed initial projections.
Risk of performance issues if guards lack adequate training or motivation.
Dependence on a single contractor for critical security functions.
Geopolitical or operational changes could necessitate contract modifications or extensions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.3 million to PARAGON SYSTEMS INC. ARMED FACILITY GUARDS - EL PASO REGION

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 $24.3 million.

What is the period of performance?

Start: 2023-12-06. End: 2025-03-07.

What is the historical spending pattern of the U.S. Customs and Border Protection (CBP) on security guard services in the El Paso region?

Analyzing historical spending patterns for CBP on security guard services in the El Paso region requires access to historical contract databases and procurement reports. While this specific contract is valued at approximately $24.3 million from late 2023 to mid-2025, understanding the broader trend involves looking at previous years. Factors influencing historical spending include changes in border security posture, staffing levels, and the utilization of contracted security personnel versus federal employees. Without specific historical data for this region and service type, it's difficult to provide precise figures. However, given the persistent security challenges and operational demands at the southern border, it is reasonable to assume a consistent and potentially increasing need for contracted security services over time, subject to budget allocations and strategic priorities.

How does the per-hour cost of armed guards under this contract compare to industry benchmarks for similar services in the El Paso area?

A precise comparison of the per-hour cost of armed guards under this contract to industry benchmarks for the El Paso area is not possible with the provided data alone. The contract value of $24.3 million is an aggregate figure over its duration and does not break down into specific hourly rates or the number of guards deployed. Factors influencing hourly rates include the level of armament, required certifications, experience, shift differentials, and the specific security protocols mandated by CBP. Generally, armed security personnel command higher rates than unarmed guards. To perform a benchmark analysis, one would need to obtain the specific hourly labor rates from the contract's details and compare them against prevailing wages and rates for similar security services in the El Paso region, considering the contractor's overhead and profit margins.

What is Paragon Systems Inc.'s track record with federal contracts, particularly with the Department of Homeland Security?

Paragon Systems Inc. has a significant track record as a federal contractor, particularly within the Department of Homeland Security (DHS) and its components like U.S. Customs and Border Protection (CBP). The company specializes in providing security services, including armed guards, physical security, and access control. Reviewing federal procurement data (e.g., FPDS or USASpending.gov) would reveal numerous awards to Paragon Systems across various agencies and locations. Their history with DHS suggests a familiarity with the agency's security requirements and operational environment. A detailed analysis would involve examining past performance evaluations, any past performance issues or disputes, and the scale and complexity of previous contracts awarded to Paragon Systems by DHS to assess their reliability and capability.

What are the key performance indicators (KPIs) used to measure the effectiveness of the armed facility guards under this contract?

Key Performance Indicators (KPIs) for armed facility guard contracts typically focus on ensuring the security and integrity of the facilities and personnel they protect. While specific KPIs for this contract are not detailed in the provided data, common metrics include response times to security incidents, the number of security breaches or unauthorized access attempts, adherence to post orders and patrol schedules, guard attendance and punctuality, and successful completion of required training and certifications. For CBP, KPIs might also relate to the prevention of smuggling attempts or the secure processing of individuals. Performance is usually monitored through regular reports, site inspections, and feedback from CBP personnel interacting with the guards. Contractual terms often include provisions for performance reviews and potential penalties for failing to meet established standards.

How does the use of a Blanket Purchase Agreement (BPA) Call impact the cost-effectiveness and flexibility of acquiring these security services?

The use of a Blanket Purchase Agreement (BPA) Call, as indicated for this contract, generally enhances cost-effectiveness and flexibility. A BPA is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services. By establishing a BPA, agencies can pre-negotiate favorable pricing, terms, and conditions with vendors, often based on GSA Schedule contracts or other competitive processes. A 'Call' or 'Order' against that BPA then allows for the rapid procurement of specific quantities or services without needing to conduct a full, separate competition each time. This streamlines the acquisition process, reduces administrative burden, and can lead to cost savings through volume discounts and pre-negotiated rates, while still allowing for some flexibility in ordering specific needs as they arise.

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: $24,324,120

Exercised Options: $24,324,120

Current Obligation: $24,324,120

Actual Outlays: $23,604,229

Parent Contract

Parent Award PIID: 70B01C23A00000007

IDV Type: BPA

Timeline