DHS awards $17.8M contract for security services in South Texas, highlighting need for ongoing protection

Contract Overview

Contract Amount: $17,850,268 ($17.9M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2025-10-31

Contract Duration: 213 days

Daily Burn Rate: $83.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES - SOUTH TEXAS SECTION 2(D)

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77002

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.9 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES - SOUTH TEXAS SECTION 2(D) Key points: 1. Contract value represents a significant investment in safeguarding federal facilities and personnel in a key region. 2. The award to Paragon Systems Inc. suggests a competitive selection process for critical security functions. 3. Performance period of approximately seven months indicates a focus on immediate or short-term security needs. 4. The security guard and patrol services sector is essential for maintaining operational integrity across government agencies. 5. Fixed-price contract type aims to provide cost certainty for the government. 6. The geographic focus on South Texas may reflect specific regional security challenges or facility concentrations.

Value Assessment

Rating: good

The contract value of $17.8 million for approximately seven months of security services appears reasonable given the scope. Benchmarking against similar contracts for armed protective security officers in Texas or other border regions would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging without further context on service levels and outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters competitive pricing and encourages a wider pool of qualified contractors to participate. The specific number of bidders is not provided, but the full and open nature suggests a robust competition that should have driven a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and price for essential security services, reducing the risk of overpayment.

Public Impact

Federal facilities and personnel in South Texas will receive enhanced security coverage. The contract supports the Department of Homeland Security's mission to secure the nation. Local employment opportunities may arise for armed protective security officers in the South Texas region. The services provided are critical for maintaining the safety and operational continuity of government operations in the area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting security coverage.
Ensuring consistent adherence to armed guard protocols and training standards.
Managing contract modifications or scope changes effectively over the performance period.

Positive Signals

Award to an established contractor suggests a degree of confidence in their capabilities.
Firm fixed-price contract provides budget predictability.
Full and open competition indicates a thorough vetting process.

Sector Analysis

The security guard and patrol services industry is a vital component of the broader security and defense sector, encompassing a wide range of services from unarmed monitoring to highly specialized armed protection. This contract falls within the government's significant spending on security services, which is driven by the need to protect federal assets, personnel, and critical infrastructure across the nation. Comparable spending benchmarks would typically involve analyzing the average cost per guard hour or per facility secured within similar geographic and threat environments.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While Paragon Systems Inc. may be a large business, the contract's structure does not preclude subcontracting opportunities. However, without explicit set-aside goals or subcontracting plans detailed in the award, the direct impact on the small business ecosystem is not immediately clear and may be limited unless Paragon actively engages small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though detailed performance reports and specific oversight activities are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services
Security Services for Federal Facilities
Border Security Support Contracts

Risk Flags

Short contract duration may indicate temporary need or bridge to longer-term solution.
Performance metrics and quality assurance details not readily available for full assessment.
Potential for increased costs if contractor performance issues necessitate emergency procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.9 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER SERVICES - SOUTH TEXAS SECTION 2(D)

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 $17.9 million.

What is the period of performance?

Start: 2025-04-01. End: 2025-10-31.

What is the historical spending pattern for security services by the Department of Homeland Security in South Texas?

Analyzing historical spending patterns for security services by DHS in South Texas requires access to detailed procurement data over multiple fiscal years. This contract, valued at approximately $17.8 million for a seven-month period, represents a significant, albeit short-term, investment. To understand the pattern, one would need to aggregate spending on similar security guard and patrol services (NAICS 561612) within the South Texas region by DHS components. This would involve identifying previous contracts, their values, durations, and the specific services rendered. A trend analysis could reveal whether spending has been consistent, increasing, or decreasing, and whether this award represents a typical expenditure or an anomaly driven by specific security needs or facility expansions in the region. Without this historical data, it's difficult to contextualize the current award's scale and duration.

How does the cost per day for this contract compare to industry benchmarks for armed security services?

To compare the cost per day, we first calculate the daily rate. The contract value is $17,850,268.45, and the duration is approximately 213 days (from April 1, 2025, to October 31, 2025). This yields a daily cost of roughly $83,804. Industry benchmarks for armed security services can vary significantly based on location, threat level, number of personnel, and specific duties. However, a typical rate for an armed guard can range from $50 to $100+ per hour. Assuming an average of 10 guards working 12-hour shifts (120 guard-hours per day), the daily cost for personnel alone could be between $6,000 and $12,000. The contract's daily cost of $83,804 suggests it covers a substantial number of guards, extensive operational support, management, and potentially specialized equipment or services beyond basic guard presence, or it reflects a higher-than-average market rate for the specific region and requirements.

What specific risks are associated with relying on a single contractor for armed protective security services in a sensitive region like South Texas?

Relying on a single contractor, even if selected through full and open competition, introduces several risks. Foremost is the potential for service disruption if the contractor experiences financial instability, labor disputes, or significant operational failures. This could leave critical federal facilities vulnerable. Another risk is complacency; the contractor might reduce quality or oversight if they perceive little threat of losing future business, especially if competition for subsequent contracts is limited. Furthermore, a single point of failure can complicate contingency planning. If the contractor's performance degrades, the government's options for immediate remediation might be limited, potentially requiring emergency procurements at higher costs or accepting substandard services while a new contract is established. Effective contract management and performance monitoring are crucial to mitigate these risks.

What is Paragon Systems Inc.'s track record with federal contracts, particularly for security services?

Paragon Systems Inc. has a significant track record with federal contracts, particularly in providing security services. A review of federal procurement data (e.g., FPDS) would reveal numerous awards to Paragon from various agencies, including the Department of Homeland Security, Department of Defense, and others, for guard services, physical security, and related protective measures. Their history likely includes both successes and potential challenges, as is common with large federal contractors. Key aspects to examine would include contract performance ratings (if available), any past performance disputes or corrective actions, and the scale and complexity of previously managed security contracts. Understanding their experience with similar requirements in terms of personnel, geographic scope, and security protocols is essential for assessing their capability to fulfill this South Texas contract effectively.

How does the duration of this contract (approx. 7 months) inform the nature of the security requirement?

The relatively short duration of approximately seven months (April 1, 2025, to October 31, 2025) suggests that this contract is likely intended to fulfill a specific, time-bound security need rather than a long-term, ongoing requirement. This could indicate several scenarios: it might be covering a period of heightened security alert, a temporary surge in personnel or facility needs, or it could be a bridge contract to maintain services while a longer-term, potentially larger, contract is being competed or finalized. Alternatively, it might be part of an annual or cyclical security requirement that is re-competed frequently. The short term also implies that the government may be seeking flexibility or is uncertain about future needs beyond this period, making a longer commitment less desirable.

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: $18,546,729

Exercised Options: $18,546,729

Current Obligation: $17,850,268

Actual Outlays: $13,209,873

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP420DE7000001

IDV Type: IDC

Timeline