DHS awards $21.2M for security services to Paragon Systems Inc. under full and open competition

Contract Overview

Contract Amount: $21,209,706 ($21.2M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2025-09-30

Contract Duration: 182 days

Daily Burn Rate: $116.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: I/A/W THE ATTACHED ACQUISITION ALERT, TASK ORDER#: 70RFP125FRE200009 FALLS WITHIN SECTION 2(D) AS A NON-COVERED CONTRACT. THIS CONTRACT ALIGNS WITH ONE OF THE DESIGNATED CATEGORIES: IMMIGRATION ENFORCEMENT, LAW ENFORCEMENT, MILITARY, PUBLIC SAFETY, O

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.2 million to PARAGON SYSTEMS INC for work described as: I/A/W THE ATTACHED ACQUISITION ALERT, TASK ORDER#: 70RFP125FRE200009 FALLS WITHIN SECTION 2(D) AS A NON-COVERED CONTRACT. THIS CONTRACT ALIGNS WITH ONE OF THE DESIGNATED CATEGORIES: IMMIGRATION ENFORCEMENT, LAW ENFORCEMENT, MILITARY, PUBLIC SAFETY, O Key points: 1. Contract value of $21.2 million for security guard services represents a significant investment in public safety. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The contract duration of 182 days indicates a short-term need for these services. 5. The services are geographically focused on New York. 6. Paragon Systems Inc. is the sole awardee for this specific task order.

Value Assessment

Rating: good

The contract value of $21.2 million for approximately six months of security services appears reasonable given the scope. Benchmarking against similar large-scale security contracts for federal agencies suggests that pricing is likely competitive, especially considering the full and open competition. The firm-fixed-price structure further supports value by incentivizing contractor efficiency. Without specific per-unit data, 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 a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovation, leading to better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and service quality for the allocated funds.

Public Impact

The primary beneficiaries are federal agencies within the Department of Homeland Security requiring security services. The services delivered include security guards and patrol services, crucial for maintaining safety and order. The geographic impact is concentrated in New York, where the services will be physically rendered. The contract supports the workforce employed by Paragon Systems Inc. in the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration may necessitate a quick ramp-up and transition, potentially impacting service continuity if not managed well.
Lack of detailed performance metrics in the provided data makes it difficult to assess effectiveness beyond contract award.
Dependence on a single contractor for this task order could pose a risk if unforeseen issues arise with Paragon Systems Inc.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm-fixed-price contract structure aligns incentives for contractor performance and cost control.
The contract is for essential public safety services, aligning with the agency's core mission.

Sector Analysis

This contract falls within the Security Guards and Patrol Services industry, a significant segment of the broader professional, scientific, and technical services sector. The market for government security services is substantial, with numerous private companies competing for federal contracts. This specific award to Paragon Systems Inc. for $21.2 million is a notable, albeit short-term, allocation within this sector, reflecting the ongoing need for physical security at federal facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary awardee, Paragon Systems Inc., is likely a large business, and the contract does not appear to mandate specific small business subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Homeland Security. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is facilitated by the public availability of contract awards, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DHS Security Services
Federal Law Enforcement Support
Immigration and Customs Enforcement (ICE) Support
General Services Administration (GSA) Security Contracts
Public Safety Contracts

Risk Flags

Short contract duration may impact service continuity and transition planning.
Limited information on specific performance metrics and evaluation criteria.
Potential for increased costs if security needs escalate beyond initial scope.
Dependence on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.2 million to PARAGON SYSTEMS INC. I/A/W THE ATTACHED ACQUISITION ALERT, TASK ORDER#: 70RFP125FRE200009 FALLS WITHIN SECTION 2(D) AS A NON-COVERED CONTRACT. THIS CONTRACT ALIGNS WITH ONE OF THE DESIGNATED CATEGORIES: IMMIGRATION ENFORCEMENT, LAW ENFORCEMENT, MILITARY, PUBLIC SAFETY, O

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 $21.2 million.

What is the period of performance?

Start: 2025-04-01. End: 2025-09-30.

What is Paragon Systems Inc.'s track record with the Department of Homeland Security and other federal agencies for similar security services?

Paragon Systems Inc. has a significant history of providing security guard and related services to various federal agencies, including the Department of Homeland Security (DHS) and the General Services Administration (GSA). Their contract portfolio often includes physical security, access control, and patrol services for federal buildings and facilities. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally satisfactory performance history. Analyzing past performance evaluations and any documented disputes or contract terminations would provide a more comprehensive understanding of their reliability and effectiveness in fulfilling security requirements.

How does the per-day cost of this contract compare to similar security service contracts awarded by DHS or other federal agencies?

The total contract value is $21,209,706.47 over 182 days. This equates to approximately $116,537 per day. To benchmark this effectively, one would need to compare this daily rate against similar contracts for security guard and patrol services awarded by DHS or other federal agencies, considering factors such as the number of guards, hours of coverage, specific security requirements (e.g., armed vs. unarmed, specialized equipment), and geographic location. Without access to a database of comparable contract line item details and pricing, a precise per-day cost comparison is difficult. However, the provided data does indicate a 'br' (benchmark rate) of 116537, which matches the calculated daily rate, suggesting this figure might be a pre-established benchmark or a result of the competitive bidding process aligning with expectations.

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

Key risks include potential service disruptions due to the short contract duration, contractor performance issues, or unforeseen security threats. Mitigation strategies are likely embedded within the contract terms. The firm-fixed-price structure incentivizes Paragon Systems Inc. to manage costs and deliver services efficiently. The full and open competition process aims to select a capable and reliable contractor. DHS oversight, including performance monitoring and potential penalties for non-compliance, would further mitigate risks. The limited duration also inherently reduces long-term exposure to contractor performance issues, though it necessitates careful transition planning.

What is the expected impact of these security services on the operational effectiveness and safety of the targeted DHS facilities in New York?

These security services are expected to significantly enhance the operational effectiveness and safety of the targeted Department of Homeland Security facilities in New York. By providing professional security guards and patrol services, the contract aims to deter unauthorized access, protect personnel and assets, respond to emergencies, and maintain a secure environment. This allows DHS personnel to focus on their core missions without undue concern for physical security. The presence of trained security personnel contributes to a robust safety posture, ensuring compliance with security regulations and mitigating risks associated with potential threats.

How has DHS spending on security guard and patrol services evolved over the past five years, and where does this contract fit within that trend?

Analyzing DHS spending on security guard and patrol services over the past five years would reveal trends in demand, contractor landscape, and average contract values. This $21.2 million task order for a 182-day period represents a substantial, but short-term, expenditure. If DHS spending in this category has been consistently high or increasing, this contract aligns with that trend. Conversely, if spending has been declining, this award might represent a specific, urgent need or a shift in procurement strategy. Without historical spending data for this specific NAICS code (561612) within DHS, it's challenging to place this contract precisely within a broader trend, but it signifies a continued reliance on contracted security personnel.

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: $21,209,706

Exercised Options: $21,209,706

Current Obligation: $21,209,706

Actual Outlays: $13,971,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP118DE2000001

IDV Type: IDC

Timeline