DHS awards $27.8M for Georgia protective security services to Paragon Systems Inc

Contract Overview

Contract Amount: $27,834,882 ($27.8M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $76.5K/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

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.8 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA Key points: 1. Contract value represents a significant investment in state-wide security infrastructure. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract is one year, allowing for regular performance reviews. 5. The service category is security guards and patrol, a critical function for agency operations. 6. The awardee, Paragon Systems Inc., has a history of providing similar services.

Value Assessment

Rating: good

The contract value of $27.8 million for one year of protective security services across Georgia appears reasonable given the scope. Benchmarking against similar large-scale security contracts for federal agencies in other states would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control. Without specific per-unit cost data or detailed service level agreements, a definitive assessment of pricing efficiency is challenging, but the competitive award process suggests market-driven pricing.

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 offers. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which is expected to lead to better pricing and service quality. The agency's commitment to open competition suggests a desire to leverage the broadest possible market for these essential security services.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and a wider array of service options, ensuring the government receives the best value for its investment in protective security.

Public Impact

Federal facilities and personnel throughout Georgia will receive enhanced security coverage. The services ensure the safety and protection of government assets and operations within the state. The contract supports the Department of Homeland Security's mission to secure the nation. Geographic impact is statewide, covering all areas where DHS operates in Georgia. The contract likely supports local employment through the hiring of security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues if not adequately monitored.
Reliance on a single contractor for critical security functions statewide.
Need for clear performance metrics and robust oversight to ensure service quality.

Positive Signals

Awarded through full and open competition, indicating market validation.
Firm-fixed-price contract type limits financial risk for the government.
Contract duration allows for performance evaluation and potential renewal based on merit.

Sector Analysis

The security services sector is a substantial part of the federal contracting landscape, with significant spending allocated to guarding and patrol services. This contract fits within the broader category of facility support services, which are essential for government operations. Comparable spending benchmarks for similar statewide security contracts can vary widely based on the number of facilities, square footage, and specific security requirements, but this award appears to be within a typical range for a large-scale federal security contract.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside criterion for this contract (sb: false). There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis of the contractor's subcontracting plan would be needed to assess its impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Statewide Security Guard Contracts
General Services Administration (GSA) Schedule Contracts for Security

Risk Flags

Potential for performance degradation due to geographic dispersion.
Need for strong quality assurance to ensure consistent service levels.
Contractor's ability to recruit and retain qualified personnel statewide.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.8 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT THE STATE OF GEORGIA

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 $27.8 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

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

Paragon Systems Inc. has a significant history of providing security services to various federal agencies, including the Department of Homeland Security (DHS). Their contract portfolio often includes protective security officer services, access control, and security system monitoring. Analyzing past performance evaluations, any past performance issues or awards, and the volume of work performed for DHS and other agencies would provide a clearer picture of their reliability and capability. A review of contract databases and agency performance reports would be necessary to fully assess their track record. For instance, if they have successfully managed multiple large-scale, multi-year contracts for similar services without significant performance deficiencies, it indicates a strong capability to meet the requirements of this new award.

How does the awarded price compare to historical spending for protective security services in Georgia?

To compare the awarded price of $27.8 million to historical spending for protective security services in Georgia, one would need to access historical contract data for similar services within the state, specifically for federal agencies. This would involve identifying previous contracts awarded by DHS or other federal entities for security guard and patrol services in Georgia, noting their duration, scope, and total value. If previous contracts were for a similar duration and scope, a direct comparison of annual spending could be made. For example, if historical annual spending for comparable services in Georgia averaged $20 million, then $27.8 million might represent an increase, potentially due to inflation, expanded scope, or increased security needs. Conversely, if historical spending was higher, this award might represent cost savings or efficiencies.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The key performance indicators (KPIs) for this protective security officer services contract are not explicitly detailed in the provided data but are typically outlined in the Performance Work Statement (PWS). Common KPIs for such contracts include response times to incidents, adherence to post orders, guard attentiveness and professionalism, incident reporting accuracy and timeliness, and successful prevention of unauthorized access. Measurement methods often involve regular site inspections, review of daily logs and incident reports, supervisor observations, and potentially electronic monitoring systems. The government's quality assurance personnel would be responsible for monitoring these KPIs and ensuring the contractor meets the established standards. Failure to meet KPIs can lead to contract deficiencies, penalties, or even termination.

What is the potential risk associated with the firm-fixed-price contract type for this service?

The firm-fixed-price (FFP) contract type generally shifts most of the risk to the contractor, as the price is set and not subject to adjustment based on the contractor's cost experience. For protective security services, an FFP contract is often preferred because the scope of work is relatively well-defined and predictable. The primary risk for the government under an FFP contract is that the contractor may cut corners on service quality to maintain profitability if their costs exceed expectations. However, this risk is mitigated by robust performance monitoring and quality assurance clauses within the contract. The risk for the contractor is that unforeseen circumstances or increased operational costs could reduce their profit margin or lead to a loss if not managed effectively.

How does the geographic scope (statewide Georgia) impact the management and oversight of this contract?

The statewide geographic scope of this contract presents unique management and oversight challenges. It requires the contractor to deploy and manage personnel across numerous locations throughout Georgia, potentially including urban centers, rural areas, and remote facilities. This necessitates a robust logistical and supervisory structure for the contractor. For the government, oversight becomes more complex, requiring contracting officers' representatives (CORs) or quality assurance personnel to conduct inspections and monitor performance at various sites. This may involve travel and coordination across different regions within Georgia. The agency must ensure that the contractor has adequate management depth and communication channels to effectively serve all designated locations and maintain consistent service quality statewide.

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: $27,834,882

Exercised Options: $27,834,882

Current Obligation: $27,834,882

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP123DE4000001

IDV Type: IDC

Timeline