DHS Awards $11.4M for Illinois PSO Services to Paragon Systems Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $11,413,808 ($11.4M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-01-01

End Date: 2024-06-30

Contract Duration: 181 days

Daily Burn Rate: $63.1K/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 $11.4 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 value is $11.4 million for 181 days of service. 2. Paragon Systems Inc. is the sole awardee. 3. The contract falls under Security Guards and Patrol Services (NAICS 561612). 4. The award was made under full and open competition.

Value Assessment

Rating: good

The contract value of $11.4 million for approximately six months of service appears reasonable given the scope of armed protective security officer services across a state. Benchmarking against similar state-level contracts would provide further validation.

Cost Per Unit: $63,060 (total contract value / duration in days)

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method allows multiple vendors to bid, fostering competition and potentially leading to better pricing for the government.

Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the security services rendered.

Public Impact

Ensures security for state facilities and personnel. Supports critical infrastructure protection within Illinois. Provides employment opportunities for security professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Security Guards and Patrol Services sector is competitive, with numerous providers offering a range of services. Spending in this sector is driven by the need for physical security across government and private entities.

Small Business Impact

While the awardee is Paragon Systems Inc., a large business, the use of full and open competition theoretically allows small businesses to participate if they meet the qualifications. Further analysis would be needed to determine if small businesses were subcontractors.

Oversight & Accountability

The Department of Homeland Security's Office of Procurement Operations managed this award. Oversight would involve monitoring service delivery, performance, and adherence to contract terms to ensure accountability.

Related Government Programs

Risk Flags

Tags

security-guards-and-patrol-services, department-of-homeland-security, il, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.4 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 $11.4 million.

What is the period of performance?

Start: 2024-01-01. End: 2024-06-30.

What is the expected level of service and performance metrics for these armed protective security officers?

The contract details would specify the required qualifications, training, and operational procedures for the armed protective security officers. Performance metrics likely include response times, incident reporting accuracy, and adherence to post orders. DHS would monitor these metrics to ensure effective service delivery and compliance with federal standards.

What are the potential risks associated with relying on a single vendor for armed security services in Illinois?

Risks include vendor performance issues, potential for price increases in future contracts, and lack of flexibility if needs change rapidly. A single vendor could also face staffing shortages or operational disruptions, impacting security coverage. Contingency planning and strong contract management are crucial to mitigate these risks.

How does the $11.4 million contract value compare to similar state-wide security contracts awarded by other federal agencies?

Benchmarking this contract against similar state-wide security contracts requires access to aggregated federal procurement data. Factors like the number of posts, hours of coverage, and specific security requirements vary significantly, making direct comparisons challenging without detailed analysis of comparable solicitations and awards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING 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: $11,413,808

Exercised Options: $11,413,808

Current Obligation: $11,413,808

Actual Outlays: $10,495,180

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: 2024-06-30

Potential End Date: 2024-06-30 00:00:00

Last Modified: 2025-10-31

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