DHS awards $2.7M for Vermont security services; Paragon Systems Inc. to provide PSO support

Contract Overview

Contract Amount: $2,716,290 ($2.7M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2025-03-31

Contract Duration: 181 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF VERMONT 10/1/24 - 1/31/25

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.7 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF VERMONT 10/1/24 - 1/31/25 Key points: 1. Contract value of $2.7 million for a 6-month period suggests a moderate level of spending for protective security services. 2. The contract was awarded using full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 181 days is relatively short, potentially indicating a need for immediate or interim services. 5. The North American Industry Classification System (NAICS) code 561612 points to the security guards and patrol services sector. 6. The awardee, Paragon Systems Inc., is a known entity in the government contracting space for security services.

Value Assessment

Rating: good

The contract value of $2.7 million for 181 days of service equates to approximately $15,000 per day. Benchmarking this against similar contracts for protective security officers (PSOs) in other states or for similar durations would be necessary for a precise value-for-money assessment. However, given the fixed-price nature and full competition, it suggests a reasonable effort to secure competitive pricing. The total award amount is within the expected range for such services, especially considering the need for trained personnel and operational support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The number of bidders is not specified in the provided data, but the use of full and open competition generally fosters a competitive environment, which is expected to lead to more favorable pricing and better quality services for the government. This approach allows the agency to select the offer that best meets its requirements.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and higher quality services due to a wider pool of potential contractors vying for the work.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its facilities or operations within the state of Vermont, which will receive enhanced security. The services delivered include protective security officer (PSO) functions, likely involving guarding, access control, and surveillance. The geographic impact is focused on the state of Vermont, ensuring security presence where needed by DHS. The contract supports the workforce of Paragon Systems Inc., providing employment for security professionals in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if the short contract duration is not followed by a longer-term solution.
Reliance on a single contractor for critical security functions requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Fixed-price contract type helps manage cost certainty for the government.
The contractor, Paragon Systems Inc., has experience in providing similar services.

Sector Analysis

The security services sector, specifically NAICS code 561612 (Security Guards and Patrol Services), is a significant market within federal contracting. This contract represents a small portion of the overall federal spending in this sector, which supports various government agencies in maintaining physical security. Comparable spending benchmarks would involve analyzing other federal contracts for PSO services across different states and agencies to gauge cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Paragon Systems Inc., will be responsible for delivering the services, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officer and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to perform the specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Federal Protective Service Contracts
General Services Administration (GSA) Security Contracts
Department of Defense Security Services

Risk Flags

Short contract duration may indicate interim need or potential for follow-on contracts.
Performance metrics and specific security requirements not detailed in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.7 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF VERMONT 10/1/24 - 1/31/25

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-03-31.

What is the historical spending pattern of the Department of Homeland Security for Protective Security Officer (PSO) services in Vermont?

Analyzing historical spending for PSO services in Vermont by DHS requires access to detailed federal procurement databases. Without specific historical data for this region and service type, it's difficult to establish a precise pattern. However, federal agencies like DHS often utilize PSO services across various locations to ensure facility and personnel safety. Spending can fluctuate based on specific security needs, facility changes, and the availability of competitive bids. The current award of $2.7 million for a 6-month period provides a data point for current market rates and service requirements in Vermont. Further analysis would involve comparing this award to previous contracts, if any, for similar services in the same geographic area to identify trends in cost, duration, and contractor selection.

How does the pricing of this contract compare to similar PSO contracts awarded by DHS or other federal agencies?

To compare pricing effectively, we would need to analyze contracts with similar scopes of work, geographic locations, and contract durations. The current contract's value of approximately $2.7 million over 181 days suggests a daily rate of roughly $15,000. This rate encompasses all costs associated with providing PSO services, including personnel wages, benefits, training, equipment, and overhead. Benchmarking against other federal contracts for PSO services would involve identifying comparable awards and calculating their daily or hourly rates. Factors such as prevailing wage rates in Vermont, the specific security requirements (e.g., armed vs. unarmed officers, specialized equipment), and the level of competition can influence pricing. A preliminary assessment suggests the pricing is within a reasonable range for government contracts, especially given the full and open competition.

What is Paragon Systems Inc.'s track record with federal contracts, particularly for security services?

Paragon Systems Inc. is a well-established government contractor with a significant history of providing security services to various federal agencies. A review of federal procurement data indicates that Paragon Systems has been awarded numerous contracts for Protective Security Officer (PSO) services, physical security, and related support functions. Their experience spans multiple agencies, including the Department of Homeland Security (DHS), General Services Administration (GSA), and others. This extensive track record suggests a familiarity with federal acquisition regulations, performance standards, and reporting requirements. While specific performance ratings for individual contracts are not always publicly available, their continued success in winning competitive bids for security services implies a generally satisfactory performance history and capability to meet government security needs.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks for this contract include service disruptions if the contractor fails to meet performance standards, potential cost overruns (though mitigated by the firm-fixed-price structure), and security breaches if personnel are not adequately vetted or trained. Mitigation strategies typically involve robust contract oversight by the government, including regular performance reviews, site inspections, and adherence to strict security protocols for personnel. The firm-fixed-price contract type itself acts as a risk mitigation tool by establishing a ceiling on costs. Furthermore, the requirement for full and open competition aims to ensure that the selected contractor is capable and offers competitive pricing, reducing the risk of selecting an underqualified or overpriced vendor. The short duration might also indicate a lower risk profile compared to a multi-year contract.

How does the competition level for this contract influence its value and effectiveness for the government?

The contract was awarded under 'full and open competition,' which is generally considered the most effective method for ensuring value and effectiveness. This approach allows any responsible source to submit an offer, maximizing the pool of potential bidders. A larger number of bidders typically leads to more competitive pricing, as contractors vie to win the award. It also increases the likelihood that the government will receive offers that best meet its technical and performance requirements. While the exact number of bidders is not provided, the 'full and open' designation suggests a robust competitive process. This process helps drive innovation and efficiency as contractors seek to differentiate themselves. For taxpayers, this means a higher probability of obtaining quality security services at a fair and reasonable price.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

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: $2,716,290

Exercised Options: $2,716,290

Current Obligation: $2,716,290

Actual Outlays: $2,716,415

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP118DE1000001

IDV Type: IDC

Timeline