DHS awards $61.3M contract for detention services to Paragon Professional Services LLC

Contract Overview

Contract Amount: $61,343,107 ($61.3M)

Contractor: Paragon Professional Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2023-09-29

Contract Duration: 364 days

Daily Burn Rate: $168.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES AT EL PASO SERVICE PROCESSING CENTER

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79925

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $61.3 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: DETENTION SERVICES AT EL PASO SERVICE PROCESSING CENTER Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. High value contract for essential immigration enforcement support services. 3. Performance period of one year with potential for extensions. 4. Focus on security and operational support within a detention facility. 5. Geographic concentration in Texas, impacting local service delivery. 6. Contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: fair

The contract value of $61.3 million for a one-year period for detention services appears to be within a reasonable range for large-scale federal support contracts. However, without specific details on the scope of services, staffing levels, and facility size, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for detention services would be necessary for a more definitive comparison. The fixed-price nature of the contract offers some cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach typically occurs when a specific contractor is deemed uniquely qualified or when circumstances necessitate an immediate award without a competitive process. The lack of competition means that the government did not benefit from multiple bids to drive down prices or explore a wider range of service providers. This limits the government's ability to ensure it is receiving the best possible price and service through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest feasible price. It also reduces transparency in the procurement process.

Public Impact

Provides essential detention services for U.S. Immigration and Customs Enforcement (ICE). Supports the operational capacity of the El Paso Service Processing Center. Ensures the secure housing and management of individuals in federal custody. Impacts the local workforce in El Paso, Texas, through employment opportunities. Contributes to the broader federal immigration enforcement and processing system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs.
Lack of transparency in the justification for sole-source procurement.
Potential for contractor lock-in due to limited competition.
Performance metrics and quality assurance details are not publicly detailed.
Dependence on a single contractor for critical detention services.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract addresses a critical need for detention services in a key operational area.
Award supports continuity of operations for ICE.
Potential for experienced contractor to deliver reliable services.

Sector Analysis

The federal government's spending on security services, including detention and facility management, is a significant component of its operational budget. This contract falls within the broader security and professional services sector, which encompasses a wide range of support functions for government agencies. The market for detention services is specialized, often involving contractors with specific expertise in managing secure facilities and adhering to strict regulatory requirements. Comparable spending benchmarks would typically be assessed against other ICE or DHS contracts for similar services, considering facility size, location, and duration.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses detailed in the provided data. The award to a single, likely larger, entity suggests that small businesses may not have been primary participants in this specific procurement. Further analysis would be needed to determine if any subcontracting opportunities exist within the performance of this contract and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE). Specific oversight mechanisms would include contract performance monitoring, quality assurance checks, and potentially site visits to the detention facility. Transparency is limited due to the sole-source nature of the award. The DHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Detention Services
Immigration and Customs Enforcement Contracts
Homeland Security Support Services
Security Guard Services
Facility Management Contracts

Risk Flags

Sole-source award
Lack of competition
Limited transparency in justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $61.3 million to PARAGON PROFESSIONAL SERVICES LLC. DETENTION SERVICES AT EL PASO SERVICE PROCESSING CENTER

Who is the contractor on this award?

The obligated recipient is PARAGON PROFESSIONAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $61.3 million.

What is the period of performance?

Start: 2022-09-30. End: 2023-09-29.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the summary data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, urgent requirements where competition is not feasible, or specific statutory authority. Without further documentation, such as a Justification and Approval (J&A) document, the precise reasons remain unknown. This lack of transparency can raise concerns about whether the government truly explored all competitive options or if there were other factors influencing the award decision.

How does the cost of this contract compare to similar detention services contracts awarded by ICE or DHS?

A direct cost comparison is challenging without detailed service scope, staffing levels, and facility capacity for this $61.3 million contract. However, the average daily cost per detainee can be a useful benchmark. While not provided here, industry reports and previous government audits suggest that per-detainee costs can range significantly, often between $100-$300 per day, depending on location, services included (medical, transportation, etc.), and contract type. Given the contract duration of approximately one year and the total value, this contract likely supports a substantial number of individuals daily. A comprehensive analysis would require comparing the implied per-diem rate of this contract against publicly available data for similar ICE contracts, adjusted for regional cost differences and service complexity.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this detention services contract. In federal contracts, particularly for critical services like detention, KPIs and SLAs are crucial for ensuring service quality, accountability, and value for money. They typically define measurable standards for aspects such as facility safety, security protocols, staff conduct, cleanliness, food services, and response times to incidents. The absence of this information in the summary suggests that these details are likely contained within the full contract document. Robust KPIs and SLAs are essential for effective contract oversight and for holding the contractor, Paragon Professional Services LLC, accountable for meeting government requirements.

What is the track record of Paragon Professional Services LLC in providing federal detention services?

Paragon Professional Services LLC has a history of providing services to federal agencies, including those related to security and logistics. While specific details on their track record in detention services are not fully elaborated in the provided data, their selection for this significant contract suggests they possess the necessary qualifications and experience deemed sufficient by ICE. A deeper dive into their past performance on similar contracts, including any past performance reviews, awards, or disputes, would provide a more comprehensive understanding of their reliability and effectiveness in managing detention facilities and ensuring compliance with federal standards.

What are the potential risks associated with relying on a sole-source provider for detention services?

Relying on a sole-source provider for detention services presents several risks. Firstly, the lack of competition can lead to inflated costs for taxpayers, as the contractor faces less pressure to offer competitive pricing. Secondly, it can reduce flexibility and innovation, as the government is tied to a single provider's service model and capabilities. Thirdly, there's a risk of contractor complacency or reduced service quality over time, knowing that alternative providers are not readily available. Finally, operational disruptions could occur if the sole-source contractor experiences significant performance issues or financial instability, as transitioning to a new provider under such circumstances could be complex and time-consuming.

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

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: $61,343,107

Exercised Options: $61,343,107

Current Obligation: $61,343,107

Actual Outlays: $61,347,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR22D00000012

IDV Type: IDC

Timeline