DHS awards $4.2M contract for transportation and guard services to Paragon Professional Services LLC

Contract Overview

Contract Amount: $4,231,924 ($4.2M)

Contractor: Paragon Professional Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-06-01

End Date: 2026-03-31

Contract Duration: 303 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS AWARD PROVIDES TRANSPORTATION AND GUARD SERVICES FOR THE ENFORCEMENT AND REMOVAL OPERATIONS, NEWARK AREA OF RESPONSIBILITY TO ACHIEVE THE ICE MISSION TO SAFELY TRANSPORT DETAINED ALIENS. THIS ACTION OBLIGATES FUNDING.

Place of Performance

Location: NEWARK, ESSEX County, NEW JERSEY, 07102

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.2 million to PARAGON PROFESSIONAL SERVICES LLC for work described as: THIS AWARD PROVIDES TRANSPORTATION AND GUARD SERVICES FOR THE ENFORCEMENT AND REMOVAL OPERATIONS, NEWARK AREA OF RESPONSIBILITY TO ACHIEVE THE ICE MISSION TO SAFELY TRANSPORT DETAINED ALIENS. THIS ACTION OBLIGATES FUNDING. Key points: 1. The contract aims to support ICE's mission by providing essential transportation and security for detained aliens. 2. Services are concentrated in the Newark area of responsibility, indicating a focus on regional operational needs. 3. The award is a delivery order under a larger contract, suggesting a phased approach to service delivery. 4. The firm-fixed-price contract type helps to define cost expectations and manage budget predictability. 5. The duration of the contract is approximately 10 months, aligning with specific operational requirements. 6. The contract was awarded through full and open competition after exclusion of sources, indicating a competitive process.

Value Assessment

Rating: good

The contract value of $4.2 million for approximately 10 months of service appears reasonable for specialized transportation and security operations. Benchmarking against similar contracts for guard services and alien transportation within the Department of Homeland Security would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the initial solicitation may have had some exclusions, the final award was made after a competitive process where multiple sources were considered. The specific number of bidders is not provided, but this type of competition generally promotes price discovery and encourages multiple vendors to offer their best pricing and capabilities.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it is likely to result in a more favorable price compared to a sole-source award. It ensures that the government is not overpaying for the required services.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) operations, ensuring the safe and secure transportation of detained aliens. The services delivered include transportation and guard services critical for maintaining order and security during enforcement and removal operations. The geographic impact is focused on the Newark area of responsibility, supporting regional ICE field operations. The contract supports the workforce within the security and transportation sectors, likely through Paragon Professional Services LLC's employment of guards and drivers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if operational needs expand beyond initial estimates.
Reliance on a single contractor for critical security and transportation functions requires robust performance monitoring.
Geographic concentration of services may limit flexibility if needs shift to other regions.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a potentially competitive pricing structure.
Clear service delivery period (approx. 10 months) allows for focused performance management.

Sector Analysis

The North American Industry Classification System (NAICS) code 561612, 'Security Guards and Patrol Services,' falls within the broader security and investigation services sector. This sector is characterized by a mix of large established firms and smaller specialized providers. Government contracts for security and transportation services are a significant component of this market, driven by national security, law enforcement, and public safety needs. Spending in this area is often influenced by immigration policies and enforcement priorities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Paragon Professional Services LLC is the prime contractor. There is no information provided on subcontracting plans or the extent to which small businesses might be involved in fulfilling this contract. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though it represents a missed opportunity for direct small business awards.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security (DHS). The contract's performance will likely be monitored by contracting officers and program managers within ICE. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, which places cost risk on the contractor. The DHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

ICE Enforcement and Removal Operations
DHS Transportation Services
Federal Security Guard Contracts
Alien Transportation Services

Risk Flags

Performance Risk: Contractor's ability to consistently provide reliable transportation and security services.
Operational Risk: Potential disruptions to ICE operations if services are not delivered as required.
Compliance Risk: Ensuring adherence to all legal and ethical standards in handling detained individuals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.2 million to PARAGON PROFESSIONAL SERVICES LLC. THIS AWARD PROVIDES TRANSPORTATION AND GUARD SERVICES FOR THE ENFORCEMENT AND REMOVAL OPERATIONS, NEWARK AREA OF RESPONSIBILITY TO ACHIEVE THE ICE MISSION TO SAFELY TRANSPORT DETAINED ALIENS. THIS ACTION OBLIGATES FUNDING.

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 $4.2 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-03-31.

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

A thorough review of Paragon Professional Services LLC's past performance is crucial for assessing their capability to fulfill this contract. This would involve examining their contract history within the Federal Procurement Data System (FPDS) or other relevant databases. Key areas to investigate include their experience with transportation and guard services for detained populations, adherence to delivery schedules, quality of service, and any past performance issues or disputes. Understanding their prior success rates and any corrective actions taken in response to performance deficiencies will provide valuable insight into their reliability and suitability for this critical role.

How does the awarded price of $4.2 million compare to market rates for similar security and transportation services in the Newark area?

To benchmark the value for money, the awarded price of $4.2 million should be compared against industry standard rates for security guard services and specialized transportation for detained individuals in the Newark, New Jersey region. This comparison would ideally involve analyzing data from similar government contracts awarded in the same geographic area and for comparable service durations and scopes. Factors such as the number of personnel required, hours of service, security clearances, and specialized equipment or vehicles needed will influence the cost. Without specific market data or comparable contract awards, it is difficult to definitively state if this price represents excellent value, but the firm-fixed-price nature suggests a degree of cost control.

What are the specific risks associated with relying on a single contractor for transportation and guard services for detained aliens in the Newark area?

Relying on a single contractor, even one selected through competition, introduces several risks. These include potential service disruptions due to contractor performance issues, labor disputes, or unforeseen events like equipment failure or personnel shortages. If Paragon Professional Services LLC fails to meet its contractual obligations, ICE may face significant operational challenges in safely transporting and securing detained aliens, potentially leading to security breaches or delays in removal operations. Furthermore, a lack of immediate alternative providers could weaken the government's leverage in enforcing contract terms or negotiating future services, although the contract duration of approximately 10 months mitigates some long-term dependency risks.

How effective are the current oversight mechanisms in ensuring the quality and compliance of services provided under this contract?

The effectiveness of oversight hinges on the diligence of the contracting officer's representatives (CORs) and the program managers within ICE responsible for monitoring Paragon Professional Services LLC's performance. Robust oversight involves regular site visits, performance reviews, audits of personnel and equipment, and prompt resolution of any issues. The firm-fixed-price nature of the contract provides some inherent accountability by placing financial risk on the contractor. However, the quality of service, adherence to protocols for handling detained individuals, and overall compliance with legal and ethical standards depend heavily on active and informed government oversight.

What has been the historical spending trend for transportation and guard services by ICE in the Newark area of responsibility?

Analyzing historical spending data for similar services in the Newark area of responsibility by ICE is essential for understanding spending trends and identifying potential anomalies. This would involve examining contract awards for transportation and guard services over the past several fiscal years. Trends might reveal increasing or decreasing demand for these services, shifts in contractor selection, or significant fluctuations in contract values. Such historical context helps in evaluating whether the current $4.2 million award is consistent with past spending patterns or represents a notable deviation, which could warrant further investigation into the underlying reasons.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $4,231,924

Exercised Options: $4,231,924

Current Obligation: $4,231,924

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR23D00000001

IDV Type: IDC

Timeline