DHS awards $11.3M contract for security services in Dallas, TX, with a 180-day duration

Contract Overview

Contract Amount: $11,326,534 ($11.3M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-01

End Date: 2026-06-30

Contract Duration: 180 days

Daily Burn Rate: $62.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT DALLAS, TX

Place of Performance

Location: ADDISON, DALLAS County, TEXAS, 75001

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.3 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT DALLAS, TX Key points: 1. The contract value of $11.3 million for 180 days suggests a significant daily operational cost. 2. The firm-fixed-price contract type aims to control costs, but requires careful scope management. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The North American Industry Classification System (NAICS) code 561612 points to a standard security services market. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The award to PARAGON SYSTEMS INC requires scrutiny of their past performance and capacity for this scale of operation.

Value Assessment

Rating: fair

The contract value of $11.3 million over 180 days equates to approximately $62,925 per day. Benchmarking this against similar large-scale security contracts is difficult without more specific service level agreements and geographic coverage details. However, the daily rate appears substantial, suggesting a need for robust performance metrics to ensure value for money. The firm-fixed-price nature of the award implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is the preferred method for maximizing competition and achieving the best value for the government. This typically involves a broad solicitation that allows any responsible source to submit an offer. The number of bidders is not specified, but the open competition suggests that multiple companies likely vied for this contract, potentially driving down prices and improving service quality.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective service delivery and a wider range of innovative solutions.

Public Impact

The Department of Homeland Security (DHS) will benefit from enhanced security at its facilities in Dallas, Texas. The contract ensures the provision of armed protective security officer services. The geographic impact is localized to Dallas, Texas, ensuring security presence in a key metropolitan area. The contract will likely support a workforce of security officers, contributing to local employment in the Dallas area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not precisely defined, despite the firm-fixed-price structure.
Reliance on a single contractor for critical security functions necessitates robust oversight and contingency planning.
The duration of 180 days may be short for establishing long-term security protocols, potentially leading to transition challenges.
Ensuring consistent service quality across all deployed officers requires rigorous performance management.
The specific security threats and requirements in Dallas need to be continuously assessed to ensure adequate protection.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor, promoting budget predictability.
Full and open competition suggests a potentially competitive pricing structure and a wide pool of qualified bidders.
The contract is for essential security services, directly supporting the mission of the Department of Homeland Security.
The award to PARAGON SYSTEMS INC, if they have a strong performance record, indicates a potentially reliable service provider.

Sector Analysis

The security services industry is a significant sector within the broader professional services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category. The market for government security services is substantial, driven by the need to protect federal facilities, personnel, and assets. Competition within this sector can be intense, with numerous established providers capable of meeting government requirements. The value of this contract, while significant for its duration, is moderate within the context of large-scale federal security contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, PARAGON SYSTEMS INC, is likely a large business. While there is no direct small business set-aside, the prime contractor may engage small businesses for subcontracting opportunities. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and the specific requirements of the security services provided. Analysis of subcontracting plans would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of Homeland Security's Office of Procurement Operations. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress meetings are standard oversight mechanisms. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Operations
Security Guard Services
Armed Guard Contracts
Facility Security Contracts

Risk Flags

Short contract duration may limit long-term value realization.
Firm-fixed-price requires meticulous scope definition to avoid performance issues.
Potential for high daily operational costs requires strong performance monitoring.
Reliance on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.3 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER SERVICES THROUGHOUT DALLAS, TX

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 $11.3 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-06-30.

What is the track record of PARAGON SYSTEMS INC in providing similar armed protective security services to federal agencies?

Assessing the track record of PARAGON SYSTEMS INC is crucial for understanding their capability to fulfill this $11.3 million contract. A review of their past performance evaluations, contract awards, and any reported disputes or terminations with federal agencies would provide insight. Specifically, looking for experience with contracts of similar size, duration, and scope (armed officers, specific security protocols) is important. Agencies often maintain performance records that can be accessed through contract databases or agency-specific reporting mechanisms. A history of successful contract completion, positive performance reviews, and minimal disputes would indicate a lower risk associated with this award. Conversely, a history of performance issues could signal potential challenges in service delivery, cost control, or adherence to security standards.

How does the daily cost of this contract compare to similar security services procured by DHS or other federal agencies?

The daily cost for this contract is approximately $62,925 ($11.3 million / 180 days). To benchmark this value, one would need to compare it against contracts for armed protective security officers in similar geographic locations (major metropolitan areas like Dallas) and with comparable service requirements (e.g., officer-to-area ratios, required certifications, operational hours). Data from other DHS contracts or contracts from agencies like the General Services Administration (GSA) or the Department of Defense for similar services would be valuable. If this daily rate is significantly higher than comparable contracts, it could indicate potential overpricing or a more demanding scope of work. Conversely, a rate below market benchmarks might suggest aggressive pricing or potentially lower service standards, requiring closer examination of the contract's specifics.

What are the primary risks associated with a firm-fixed-price contract for security services of this magnitude?

The primary risks associated with a firm-fixed-price (FFP) contract for security services of this magnitude ($11.3 million) revolve around scope definition and contractor performance. While FFP shifts cost overrun risk to the contractor, it places a premium on a meticulously defined Statement of Work (SOW). If the SOW is ambiguous or incomplete, the contractor may be incentivized to cut corners on service quality to maintain profitability, or disputes may arise over what is included in the fixed price. Conversely, if the scope is overly prescriptive and inflexible, it can hinder the contractor's ability to adapt to changing security needs, potentially leading to performance deficiencies. Ensuring adequate quality assurance surveillance plans (QASPs) and clear communication channels are critical to mitigating these risks and ensuring the government receives the required level of security.

What is the potential impact of this contract on the local security services market in Dallas, Texas?

This $11.3 million contract for armed protective security services in Dallas, Texas, awarded to PARAGON SYSTEMS INC, could have a notable impact on the local market. As a significant contract, it likely requires a substantial number of security personnel, potentially creating employment opportunities for local residents. The presence of a large federal contract can also influence wage standards and competition among local security firms. If PARAGON SYSTEMS INC is a local or regional provider, it strengthens their position; if they are an out-of-state entity, it represents a significant influx of federal spending into the Dallas economy. The competition for this contract may have also spurred other local firms to enhance their capabilities or pricing strategies.

How does the duration of 180 days affect the overall value and management of this security services contract?

The 180-day duration (approximately six months) of this contract is relatively short for a security services engagement of this scale. While it allows for flexibility and quicker adaptation to changing needs, it also presents challenges. For the contractor, a short duration may limit opportunities for economies of scale and could increase the per-diem administrative costs relative to the total contract value. For the government, it necessitates frequent re-competition or extension planning, which can be resource-intensive and potentially lead to periods of uncertainty or transition. The short timeframe also means that the full benefits of establishing long-term relationships, process improvements, and deep institutional knowledge may not be realized. It suggests this contract might be for a specific, time-bound need or part of a larger, ongoing requirement managed through multiple short-term awards.

What are the implications of this contract being a 'Delivery Order' rather than a new standalone contract?

The designation of this award as a 'Delivery Order' implies it is being issued under an existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. This means that the foundational contract, including terms, conditions, and potentially pre-negotiated rates or ceilings, was previously awarded, likely after its own competitive process. A delivery order then specifies the exact quantity, delivery schedule, and price for a particular task or requirement under that IDIQ. The implications are that the competition and due diligence for the overarching IDIQ have already occurred. This method can streamline the procurement process for specific needs, allowing agencies to quickly obtain services. However, it also means that the specific competition for this particular delivery order might have been limited to the holders of that IDIQ, rather than being a full and open competition among all potential offerors in the market.

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

Solicitation ID: 70RFP420RE7000004

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: $11,488,080

Exercised Options: $11,488,080

Current Obligation: $11,326,534

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP420DE7000004

IDV Type: IDC

Timeline