DHS Awards $5.4M for Illinois PSO Services to Paragon Systems Inc. via Full and Open Competition
Contract Overview
Contract Amount: $5,434,229 ($5.4M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2024-01-01
End Date: 2026-01-10
Contract Duration: 740 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60612
State: Illinois Government Spending
Plain-Language Summary
Department of Homeland Security obligated $5.4 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS. Key points: 1. The contract is for armed protective security officer services across Illinois. 2. Paragon Systems Inc. is the incumbent contractor. 3. The award was made through full and open competition. 4. The total value is $5,434,229.38 over approximately two years.
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order. Pricing appears reasonable given the scope and duration, but a direct comparison is difficult without more detailed service level agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential security services.
Public Impact
Ensures continuous security for state facilities and personnel. Supports federal law enforcement and homeland security missions. Provides employment opportunities for security professionals in Illinois.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single contractor for critical security functions.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract limits cost overruns.
- Clear contract duration and defined services.
Sector Analysis
The security services sector is highly competitive, with numerous providers offering a range of specialized services. Federal spending in this area is substantial, driven by national security and public safety needs.
Small Business Impact
The contract was awarded to Paragon Systems Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The Department of Homeland Security, Office of Procurement Operations, managed this award. Standard oversight procedures for federal contracts 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
- Full and open competition
- Firm fixed price contract
- Clear contract duration
- Defined service area
Tags
security-guards-and-patrol-services, department-of-homeland-security, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $5.4 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS.
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 $5.4 million.
What is the period of performance?
Start: 2024-01-01. End: 2026-01-10.
What is the benchmark cost for armed protective security officers in Illinois?
Benchmarking the cost of armed protective security officers in Illinois requires detailed analysis of service levels, hours, geographic distribution, and specific security requirements. While the contract value is $5.4M over two years, a precise per-hour or per-officer benchmark is not readily available without comparing against similar government or private sector contracts with comparable scope and operational complexities.
What are the primary risks associated with this contract?
Key risks include potential over-reliance on a single provider for critical security functions, which could lead to service disruptions if the contractor faces issues. There's also a risk of price escalation in future contract renewals if competition diminishes or if unforeseen operational costs arise. Ensuring consistent quality and adherence to security protocols across all deployed officers is another ongoing risk.
How effectively does this contract meet the Department of Homeland Security's security needs?
The contract appears to effectively meet DHS's security needs by securing a qualified provider through a competitive process for essential protective services across Illinois. The firm-fixed-price structure provides cost certainty. However, ongoing monitoring of performance metrics and officer qualifications will be crucial to ensure sustained effectiveness and alignment with evolving security requirements.
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: $5,434,229
Exercised Options: $5,434,229
Current Obligation: $5,434,229
Actual Outlays: $5,435,976
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP418DE5000001
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2026-01-10
Potential End Date: 2026-01-10 00:00:00
Last Modified: 2026-02-11
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