DHS Awards $29.4M for South Texas Security Guards, Competition Was Full and Open
Contract Overview
Contract Amount: $29,407,746 ($29.4M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-10-01
End Date: 2026-06-30
Contract Duration: 2,098 days
Daily Burn Rate: $14.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PSO SERVICES THROUGHOUT SOUTH TEXAS
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77002
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $29.4 million to PARAGON SYSTEMS INC for work described as: PSO SERVICES THROUGHOUT SOUTH TEXAS Key points: 1. Contract value of $29.4M over nearly 7 years. 2. Competition was full and open, indicating potential for competitive pricing. 3. Risk appears moderate given the nature of security services. 4. Sector is primarily government services, specifically security. 5. Spending benchmark of $14M suggests this contract is above average.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. The awarded amount of $29.4M for nearly 7 years of security services appears reasonable, especially with full and open competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows all responsible sources to submit offers. This method is expected to yield fair market value.
Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment for contract awards.
Public Impact
Ensures security presence in critical South Texas region. Supports Department of Homeland Security's operational needs. Provides employment opportunities for security personnel in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for service quality variations across different security personnel.
- Geographic scope may present logistical challenges for service delivery.
Positive Signals
- Full and open competition drives value.
- Long-term contract provides stability for service provision.
- Firm fixed price limits cost overruns.
Sector Analysis
This contract falls within the government services sector, specifically security and protective services. The benchmark of $14M suggests this contract is of significant size within its sub-sector.
Small Business Impact
While the contract was awarded under full and open competition, there is no explicit indication of small business participation or set-asides. Further analysis would be needed to determine if small businesses had a fair opportunity to compete.
Oversight & Accountability
The Office of Procurement Operations managed this award, suggesting established procurement processes. Oversight will be crucial to ensure service delivery meets DHS requirements throughout the contract duration.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for service quality variability.
- Geographic coverage challenges.
- Dependence on contractor's personnel management.
- Need for continuous performance monitoring.
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 $29.4 million to PARAGON SYSTEMS INC. PSO SERVICES THROUGHOUT SOUTH TEXAS
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 $29.4 million.
What is the period of performance?
Start: 2020-10-01. End: 2026-06-30.
What is the typical cost per guard hour for similar security services in South Texas?
Determining the precise cost per guard hour requires detailed market research and comparison with other government and commercial contracts for security services in the South Texas region. Factors like guard qualifications, hours of operation, and specific security requirements influence pricing. Without access to a comprehensive database of comparable contracts, providing an exact benchmark is challenging, but the overall contract value suggests a significant operational scale.
What are the key performance indicators (KPIs) for this security guard contract?
Key performance indicators for this contract would likely include metrics related to guard presence and punctuality, incident response times, adherence to post orders, and overall effectiveness in preventing unauthorized access or incidents. The Department of Homeland Security would establish specific KPIs in the contract's performance work statement to ensure adequate security coverage and responsiveness in South Texas.
How will the effectiveness of Paragon Systems Inc.'s services be measured and evaluated?
Effectiveness will likely be measured through regular performance reviews, site inspections, and feedback from DHS personnel overseeing the security operations. The agency will track adherence to KPIs, incident reports, and overall compliance with the contract's requirements. Any deficiencies or failures to meet performance standards could lead to corrective actions or penalties as outlined in the contract.
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: $29,589,477
Exercised Options: $29,589,477
Current Obligation: $29,407,746
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP420DE7000001
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-14
More Contracts from Paragon Systems Inc
- DOJ Security Guard Services — $191.0M (Department of Justice)
- Armed Guard Services — $152.6M (Department of Health and Human Services)
- C2F Security Services — $63.6M (Department of Defense)
- FOR Other Functions — $58.5M (Department of Health and Human Services)
- Armed Protective Security Officer (PSO) Services for LOS Angeles, California and Surrounding Areas Task Order Award for Option Year 3 — $55.2M (Department of Homeland Security)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)