DHS awards $26.3M contract for security services in South Texas to Paragon Systems Inc
Contract Overview
Contract Amount: $26,288,374 ($26.3M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2023-10-01
End Date: 2024-09-30
Contract Duration: 365 days
Daily Burn Rate: $72.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES - SOUTH TEXAS REGION 7
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77002
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $26.3 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES - SOUTH TEXAS REGION 7 Key points: 1. Contract Value: $26.3 million over one year. 2. Incumbent Contractor: Paragon Systems Inc. is the awardee. 3. Competition: Awarded under full and open competition. 4. Sector: Security Guards and Patrol Services.
Value Assessment
Rating: good
The contract value of $26.3 million for one year of security services appears reasonable given the scope. Benchmarking against similar DHS contracts for armed protective services in other regions would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary security services.
Public Impact
Ensures security at federal facilities in South Texas. Supports approximately 365 days of continuous security operations. Provides employment opportunities within the security sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in subsequent years.
- Dependence on a single contractor for critical security functions.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and defined services.
Sector Analysis
This contract falls within the Security Guards and Patrol Services sector, which is a common area of federal spending. Benchmarks for similar services vary widely based on location, armed status, and specific requirements.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Homeland Security, Office of Procurement Operations, managed this award. Standard oversight mechanisms for contract performance and financial management are expected to be in place.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Contract duration is one year, requiring potential re-competition soon.
- No specific small business participation noted.
- Reliance on a single awardee for critical security functions.
Tags
security-guards-and-patrol-services, department-of-homeland-security, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $26.3 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER SERVICES - SOUTH TEXAS REGION 7
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 $26.3 million.
What is the period of performance?
Start: 2023-10-01. End: 2024-09-30.
What is the historical performance of Paragon Systems Inc. with DHS for similar services?
Assessing Paragon Systems Inc.'s past performance with DHS on comparable contracts is crucial. Reviewing past performance evaluations, any documented issues, and their track record in delivering security services on time and within budget will provide insight into their reliability and the potential risks associated with this award. This information helps gauge the likelihood of successful contract execution.
How does the per-unit cost of security personnel compare to regional averages?
Benchmarking the per-unit cost of security personnel against regional averages for armed guards is essential for value assessment. If the awarded rates are significantly higher than market rates, it could indicate potential overpricing or unique service requirements. Conversely, rates below market might raise concerns about service quality or contractor viability.
What are the key performance indicators (KPIs) for this contract and how will they be measured?
Understanding the specific Key Performance Indicators (KPIs) and their measurement methodologies is vital for evaluating contract effectiveness. Clear, measurable KPIs ensure that the contractor meets the required service levels, such as response times, post orders adherence, and incident reporting accuracy. Effective oversight relies on robust performance tracking against these defined metrics.
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: $26,288,374
Exercised Options: $26,288,374
Current Obligation: $26,288,374
Actual Outlays: $26,098,083
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP420DE7000001
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-03-20
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