DHS Awards $9.86M for Armed PSO Services to Paragon Systems Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $9,856,416 ($9.9M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2019-10-01
End Date: 2026-04-30
Contract Duration: 2,403 days
Daily Burn Rate: $4.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES - STATE OF VIRGINIA
Place of Performance
Location: DULLES, LOUDOUN County, VIRGINIA, 20101
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $9.9 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES - STATE OF VIRGINIA Key points: 1. The contract value is $9.86 million over approximately 6.7 years. 2. Paragon Systems Inc. is the sole awardee for these security guard services. 3. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 4. The sector is Security Guards and Patrol Services, a common government need.
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order, which provides cost certainty. Benchmarking against similar contracts for armed protective security services would be necessary for a more precise value assessment, but the competitive award suggests reasonable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value for the security services provided.
Public Impact
Ensures security at federal facilities, protecting personnel and assets. Supports the Department of Homeland Security's mission to safeguard the nation. Provides employment opportunities within the security services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for price increases in future contract modifications.
- Dependence on a single contractor for critical security functions.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type offers cost predictability.
- Long-term contract provides stability for security operations.
Sector Analysis
The security services sector is characterized by a mix of large and small businesses providing essential protective services. Government contracts in this area are common and often awarded through competitive processes to ensure cost-effectiveness and reliable service delivery.
Small Business Impact
The data indicates that the awardee, Paragon Systems Inc., is not a small business. There is no information provided on whether small businesses were subcontracted for this delivery order.
Oversight & Accountability
The Department of Homeland Security, specifically the Office of Procurement Operations, is responsible for overseeing this contract. Standard government oversight mechanisms should be in place to ensure contractor performance and compliance.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Contract duration is lengthy (over 6 years).
- Awardee is not a small business.
- No small business subcontracting information available.
- Potential for scope creep or unmanaged changes.
- Reliance on a single vendor for critical security functions.
Tags
security-guards-and-patrol-services, department-of-homeland-security, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $9.9 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES - STATE OF VIRGINIA
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 $9.9 million.
What is the period of performance?
Start: 2019-10-01. End: 2026-04-30.
What is the average hourly rate for these armed protective security officers compared to industry benchmarks?
Without specific details on the number of officers, hours worked, or specific service requirements, calculating an average hourly rate is not possible from the provided data. However, a firm-fixed-price contract awarded under full and open competition suggests that the pricing was deemed competitive at the time of award. Further analysis would require access to the detailed contract line item numbers and performance work statement.
What are the key performance indicators (KPIs) for this contract, and how is Paragon Systems Inc. performing against them?
The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, government contracts for security services include metrics related to response times, incident reporting accuracy, personnel qualifications, and adherence to post orders. Oversight by the Department of Homeland Security would involve monitoring these KPIs to ensure satisfactory performance and address any deficiencies.
What is the potential for cost savings if this service were re-competed today, considering market changes?
Re-competing this contract today could potentially lead to cost savings if market rates for armed security personnel have decreased or if new, more efficient service providers have emerged. However, the current firm-fixed-price contract is set to expire in April 2026. Any significant cost savings would likely be realized in a future contract award, assuming competitive market conditions persist or improve.
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: $13,517,657
Exercised Options: $13,517,657
Current Obligation: $9,856,416
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP319DE3000002
IDV Type: IDC
Timeline
Start Date: 2019-10-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-03-30
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