DHS Awards $15.4M for Manhattan Security Services to Paragon Systems Inc
Contract Overview
Contract Amount: $15,423,704 ($15.4M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2025-10-01
End Date: 2026-01-31
Contract Duration: 122 days
Daily Burn Rate: $126.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT MANHATTAN
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 $15.4 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT MANHATTAN Key points: 1. Contract value of $15.4M for 122 days of service. 2. Paragon Systems Inc. is the sole awardee. 3. Services are for armed protective security officers in Manhattan. 4. The contract falls under the Security Guards and Patrol Services NAICS code.
Value Assessment
Rating: fair
The contract value of $15.4M for approximately 4 months of service appears high. Benchmarking against similar contracts for security services is difficult without more granular data on officer hours and specific security requirements.
Cost Per Unit: $126,424 per month (estimated)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the short duration and specific location may have limited the number of responsive bidders.
Taxpayer Impact: Taxpayers are funding essential security services for a federal agency, with the cost effectiveness being a key consideration given the contract's value and duration.
Public Impact
Ensures security for federal facilities and personnel in a high-traffic urban area. Supports critical homeland security operations by providing physical protection. Creates jobs within the security services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-month cost for a short-duration contract.
- Limited contract duration may not reflect long-term needs or allow for economies of scale.
Positive Signals
- Awarded under full and open competition.
- Addresses a clear need for armed security services.
Sector Analysis
The Security Guards and Patrol Services sector is competitive, but contracts often depend on specific geographic locations, security clearances, and the level of armed personnel required. This contract's value is significant for its short duration.
Small Business Impact
The data does not indicate if small businesses were involved in this specific award, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Homeland Security, Office of Procurement Operations, managed this award. Oversight would focus on service delivery, adherence to contract terms, and financial accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- High cost relative to contract duration.
- Potential for limited competition despite 'full and open' status due to specific requirements.
- Short contract duration may indicate an interim solution or an urgent need.
- Reliance on a single contractor for critical security functions.
Tags
security-guards-and-patrol-services, department-of-homeland-security, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $15.4 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT MANHATTAN
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 $15.4 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-01-31.
What is the specific hourly rate or daily rate for the armed protective security officers under this contract, and how does it compare to market rates in Manhattan?
The provided data does not specify the hourly or daily rates for the officers. The total contract value of $15.4M over approximately 122 days suggests a substantial daily cost. A detailed breakdown is needed to compare against market rates in Manhattan, which can vary significantly based on experience, certifications, and the specific security environment.
Given the short contract duration (122 days), what is the justification for a firm-fixed-price contract, and were there any risks associated with price fluctuations or service continuity?
A firm-fixed-price contract is typically used when the scope of work is well-defined, aiming to shift risk to the contractor. For a short duration, it simplifies pricing. However, risks could include the contractor not being able to secure adequate personnel for the short term or potential price increases if the market rate escalates rapidly within that period, though the fixed price aims to mitigate this.
How effectively will Paragon Systems Inc. meet the armed protective security needs for the Department of Homeland Security in Manhattan over the specified period?
Effectiveness will depend on Paragon Systems Inc.'s ability to deploy qualified and vetted armed officers promptly, maintain high standards of professionalism and vigilance, and adapt to any evolving security threats within Manhattan. Performance metrics and regular oversight by DHS will be crucial in assessing their effectiveness throughout the contract period.
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: $15,423,704
Exercised Options: $15,423,704
Current Obligation: $15,423,704
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP118DE2000001
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2026-02-24
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