DHS awards $64M task order for security guards to Paragon Professional Services LLC

Contract Overview

Contract Amount: $64,019,920 ($64.0M)

Contractor: Paragon Professional Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-30

End Date: 2024-09-29

Contract Duration: 365 days

Daily Burn Rate: $175.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EL PASO SPC GUARD SERVICES TASK ORDER

Place of Performance

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

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $64.0 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: EL PASO SPC GUARD SERVICES TASK ORDER Key points: 1. The contract value represents a significant investment in security services for U.S. Immigration and Customs Enforcement. 2. The award was made on a 'not available for competition' basis, raising questions about the procurement process. 3. The firm fixed-price contract type suggests that costs are predictable, but does not inherently guarantee value. 4. The duration of one year with a potential for renewal indicates an ongoing need for these services. 5. The specific NAICS code (561612) points to a specialized market for security guards and patrol services.

Value Assessment

Rating: questionable

Benchmarking the value of this $64 million task order is challenging without comparable contract data for similar security guard services within DHS or other agencies. The firm fixed-price structure provides cost certainty for the government, but the absence of competition makes it difficult to assess if the pricing reflects market rates or represents a fair value for the services rendered. Further analysis would require comparing the scope of work and service levels to other contracts for security personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' justification, indicating that it was not openly competed. This typically occurs when a specific justification, such as the urgency of need or the unique capabilities of a contractor, is cited. The lack of a competitive bidding process means that multiple potential vendors were not given the opportunity to offer their services, which can limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. The government did not explore alternative vendors who might offer similar services at a lower cost or with better terms.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) personnel and facilities, who will receive enhanced security. The services delivered include security guard and patrol functions, crucial for maintaining order and safety. The geographic impact is concentrated in Texas, specifically El Paso, where the services are being performed. The contract supports the workforce employed by Paragon Professional Services LLC, providing jobs in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The 'not available for competition' justification requires scrutiny to ensure it was appropriately applied.
Without competitive bids, it's difficult to ascertain if the chosen contractor offers the most cost-effective solution.
The fixed-price nature, while offering cost certainty, doesn't guarantee efficiency or optimal resource utilization.

Positive Signals

The firm fixed-price contract type provides budget predictability for the agency.
The award addresses a clear need for security services, likely critical for ICE operations.
The contractor, Paragon Professional Services LLC, is being entrusted with a significant security role.

Sector Analysis

The security services industry is a substantial sector within the broader professional services market. NAICS code 561612 specifically covers establishments primarily engaged in providing security guards and patrol services. This market is characterized by a mix of large, established firms and smaller, specialized providers. Government contracts for security services are a significant portion of this market, driven by the need to protect federal facilities, personnel, and assets. Benchmarking spending in this area often involves comparing contract values against the scope of services, number of personnel, and geographic coverage.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) flag is also false. This suggests that the primary award was not specifically targeted towards small businesses. There is no information provided regarding subcontracting plans, so the extent to which small businesses might be involved in fulfilling this contract indirectly remains unknown. The focus appears to be on a larger prime contractor.

Oversight & Accountability

Oversight for this task order would primarily fall under the Department of Homeland Security (DHS) and specifically U.S. Immigration and Customs Enforcement (ICE). The contract's firm fixed-price nature implies that the government is paying a set amount for the defined services, with oversight focused on ensuring those services are delivered as specified. Accountability measures would likely involve performance reviews, adherence to security protocols, and reporting requirements. Transparency might be limited due to the sole-source nature of the award, but contract details and performance metrics are typically available through federal procurement databases.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Immigration and Customs Enforcement Support Contracts
Guard Services Contracts

Risk Flags

Sole-source award justification requires review.
Potential for uncompetitive pricing.
Need to verify contractor's past performance.
Scope of work clarity for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $64.0 million to PARAGON PROFESSIONAL SERVICES LLC. EL PASO SPC GUARD SERVICES TASK ORDER

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 $64.0 million.

What is the period of performance?

Start: 2023-09-30. End: 2024-09-29.

What is the track record of Paragon Professional Services LLC in performing similar government contracts, particularly for DHS or ICE?

Assessing the track record of Paragon Professional Services LLC requires a review of their past performance on federal contracts. This would involve examining contract databases like the Federal Procurement Data System (FPDS) or USAspending.gov for previous awards, contract values, and performance ratings. Specifically, looking for contracts with similar scopes of work (security guard services), durations, and agencies (DHS, ICE) would provide insight into their experience and reliability. A history of successful contract completion, positive performance reviews, and minimal disputes or terminations would indicate a strong track record. Conversely, a pattern of issues could raise concerns about their ability to meet the requirements of this new task order.

How does the awarded price of $64 million compare to market rates for similar security guard services in the El Paso, Texas region?

Determining if the $64 million award represents a fair market price is challenging without specific data on the number of guards, hours of service, and required security clearances. However, general market research for security guard services in a metropolitan area like El Paso can provide a benchmark. Factors such as prevailing wages for security personnel, overhead costs for the contractor, and profit margins typical in the industry would be considered. If comparable contracts for similar services in the region are significantly lower, or if the number of personnel and hours implied by the contract value seem excessive for the stated needs, it could suggest the price is not competitive. The 'not available for competition' status further complicates this assessment, as a competitive process often drives prices down.

What specific justification was provided for awarding this task order on a 'not available for competition' basis, and was it adequately documented?

The justification for a 'not available for competition' (sole-source) award typically falls under specific exceptions to full and open competition, such as the urgency of the requirement, the unique capability of the contractor, or when only one source is reasonably available. For this task order, the specific justification would need to be documented and approved by the contracting officer. Common reasons for sole-source awards in security services might include a critical, immediate need where transitioning to a new vendor would be detrimental, or if the incumbent contractor possesses unique knowledge or access essential for continuity. The adequacy of the documentation would be assessed by contracting oversight bodies to ensure the exception was legitimately applied and not used to avoid competition.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured and evaluated?

Key performance indicators (KPIs) for a security guard services contract typically revolve around factors such as guard presence and punctuality, response times to incidents, adherence to post orders, incident reporting accuracy, and overall effectiveness in preventing unauthorized access or disturbances. The contract documents would outline these specific KPIs and the metrics used for evaluation. Performance will likely be monitored through regular reports from the contractor, site visits by government representatives, and potentially through feedback from personnel and visitors interacting with the guards. The agency's Contracting Officer's Representative (COR) is usually responsible for overseeing contractor performance and ensuring that the services meet the required standards throughout the contract period.

What is the historical spending trend for security guard services by U.S. Immigration and Customs Enforcement (ICE) over the past five years?

Analyzing historical spending trends for security guard services by ICE over the past five years would involve querying federal procurement databases for contracts awarded under relevant NAICS codes (e.g., 561612) and agency identifiers. This would reveal the total annual expenditure on such services, the primary contractors utilized, and the average value and duration of contracts. Understanding these trends can help contextualize the current $64 million task order. For instance, if historical spending has been consistently high, this award might represent a continuation of established needs. If spending has been lower, or if this is a new type of requirement, it could signal a shift in operational needs or security posture for ICE.

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: $64,019,920

Exercised Options: $64,019,920

Current Obligation: $64,019,920

Actual Outlays: $61,930,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR22D00000012

IDV Type: IDC

Timeline