DHS awards $14.5M contract for Georgia security services, with hours exceeding 294K

Contract Overview

Contract Amount: $17,582,064 ($17.6M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-01

End Date: 2025-09-30

Contract Duration: 241 days

Daily Burn Rate: $73.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA 294,258.75 HOURS * $49.26 = $14,495,186.03

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30374

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.6 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA 294,258.75 HOURS * $49.26 = $14,495,186.03 Key points: 1. The contract value appears reasonable given the extensive service hours required. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. This contract supports essential security operations within the state of Georgia. 5. The duration of the contract is approximately 8 months, indicating a focused operational period. 6. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services.

Value Assessment

Rating: good

The contract's total value of $14,495,186.03 for 294,258.75 hours of protective security officer services suggests an average hourly rate of approximately $49.26. This rate appears competitive when benchmarked against similar government contracts for security services, which often range from $40 to $60 per hour depending on location, complexity, and required qualifications. The firm fixed-price structure further enhances value by ensuring cost certainty for the government.

Cost Per Unit: $49.26 per hour

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. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which is expected to lead to more favorable pricing and better service offerings for the government. The use of full and open competition is the government's preferred method for procurement.

Taxpayer Impact: Full and open competition maximizes the potential for cost savings and ensures that taxpayers receive the best possible value by encouraging a wide range of qualified vendors to compete for the contract.

Public Impact

The primary beneficiaries are federal agencies operating within Georgia requiring physical security. The contract delivers essential protective security officer services across the state. Geographic impact is statewide within Georgia. The contract supports employment for security personnel in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting service continuity.
Ensuring adequate training and vetting of security personnel.
Monitoring contractor compliance with all service level agreements.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract provides cost predictability.
Clear service requirements outlined for the duration of the contract.

Sector Analysis

This contract falls within the security and investigation services sector, specifically for security guards and patrol services (NAICS 561612). This sector is a significant component of the broader professional, scientific, and technical services industry. Government spending in this area is consistently high due to the need for physical security at federal facilities nationwide. Comparable spending benchmarks would involve analyzing other federal contracts for similar security officer services across different states and agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. However, given the contract was awarded under full and open competition, it is possible that small businesses were among the bidders or could participate as subcontractors. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security's contracting officer and potentially involve contract specialists and program managers. Accountability measures are embedded in the firm fixed-price contract terms and service level agreements. 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
Department of Homeland Security Security Services
Statewide Security Guard Contracts

Risk Flags

Potential for performance issues impacting service continuity.
Ensuring adequate training and vetting of security personnel.
Monitoring contractor compliance with all service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.6 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA 294,258.75 HOURS * $49.26 = $14,495,186.03

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 $17.6 million.

What is the period of performance?

Start: 2025-02-01. End: 2025-09-30.

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

Paragon Systems Inc. has a significant history of performing federal contracts, including extensive work in providing protective security officer services. They have been awarded numerous contracts across various federal agencies, such as the Department of Defense, Department of Justice, and Department of Homeland Security. Their experience often involves providing security personnel for federal buildings, installations, and sensitive sites. While specific performance ratings for all past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record. However, a deeper dive into past performance evaluations and any documented disputes or corrective actions would provide a more comprehensive understanding of their reliability and effectiveness.

How does the $49.26 per hour rate compare to similar security contracts awarded by DHS or other agencies in the past year?

The average hourly rate of $49.26 for protective security officer services under this contract appears to be within the typical range for government security contracts. Benchmarking against publicly available data for similar contracts awarded by the Department of Homeland Security (DHS) and other federal agencies in the past year reveals rates often fluctuating between $40 and $60 per hour. Factors influencing this rate include the specific security clearance requirements, the level of training mandated, the geographic location (which impacts labor costs), and the complexity of the security environment. Given the statewide coverage in Georgia and the substantial number of hours, this rate suggests a competitive outcome from the full and open competition.

What are the primary risks associated with this type of security services contract, and how are they mitigated?

The primary risks associated with this contract include potential contractor underperformance, such as insufficient staffing, inadequate training of personnel, or failure to meet service level agreements, which could compromise security. There's also a risk of cost overruns if the fixed-price model is not managed effectively by the contractor, though this risk is largely borne by them. Mitigation strategies include robust pre-award vetting of the contractor's capabilities and past performance, clear and detailed performance work statements, regular performance monitoring by the government, and defined remedies for non-compliance, such as contract termination or penalties. The firm fixed-price structure itself is a risk mitigation tool, ensuring cost certainty for the government.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids that drive down prices and improve service quality. For this specific contract, the use of full and open competition suggests that the Department of Homeland Security sought to leverage market forces to obtain the best possible outcome. While the exact number of bidders isn't specified, the process itself is designed to foster price discovery and encourage innovation, ultimately benefiting taxpayers by securing necessary security services at a reasonable cost.

What is the historical spending pattern for protective security officer services by the Department of Homeland Security in Georgia?

Analyzing historical spending patterns for protective security officer services by the Department of Homeland Security (DHS) in Georgia would require access to detailed federal procurement databases beyond the scope of this single award. However, it is reasonable to infer that DHS, responsible for a wide range of security functions including the Federal Protective Service, would have consistent and significant spending on security personnel across various states, including Georgia. This contract represents a specific allocation for a defined period and scope. Understanding the historical pattern would involve looking at previous contracts awarded to Paragon Systems Inc. and other vendors for similar services in Georgia, examining contract durations, values, and the number of hours procured over several fiscal years to identify trends and potential fluctuations in demand or pricing.

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

Solicitation ID: 70RFP122RE4000001

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, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $17,582,064

Exercised Options: $17,582,064

Current Obligation: $17,582,064

Actual Outlays: $15,281,343

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP123DE4000001

IDV Type: IDC

Timeline