DHS awards $55.2M for armed protective security services in California, continuing a multi-year contract

Contract Overview

Contract Amount: $55,193,490 ($55.2M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $151.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CALIFORNIA AND SURROUNDING AREAS TASK ORDER AWARD FOR OPTION YEAR 3

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $55.2 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CALIFORNIA AND SURROUNDING AREAS TASK ORDER AWARD FOR OPTION YEAR 3 Key points: 1. The contract value represents a significant investment in securing federal facilities and personnel in a major metropolitan area. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness and service quality. 3. Performance history and contractor reliability are key indicators for the successful execution of security services. 4. This award falls within the broader context of federal security spending to protect critical infrastructure. 5. The IT sector is not directly involved, but robust security is essential for protecting IT assets. 6. The contract duration of one year for this option period suggests a need for ongoing, reliable security support.

Value Assessment

Rating: good

The total award of $55.2 million over its potential duration indicates a substantial commitment. Benchmarking against similar large-scale security contracts for federal facilities in high-cost areas like Los Angeles is necessary for a precise value-for-money assessment. Given the fixed-price nature, the government aims to control costs, but the overall price should be evaluated against the scope and quality of services provided. The previous option year's spending and performance metrics would offer a more direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The number of bidders is not specified, but this approach generally fosters a competitive environment, driving down prices and encouraging innovation. A robust competition typically leads to better value for the government by allowing the selection of the most capable and cost-effective provider.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overspending associated with less competitive or sole-source procurements.

Public Impact

Federal employees and government facilities in Los Angeles and surrounding areas will benefit from enhanced security. The services delivered include armed protective security, crucial for maintaining a safe environment. The geographic impact is concentrated in Southern California, specifically the Los Angeles region. This contract supports the employment of security personnel, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep in future option years if competition diminishes.
Ensuring consistent service quality across all shifts and locations requires diligent oversight.
Reliance on a single contractor for critical security functions can pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Fixed-price contract type helps to control costs and provides budget certainty.
The contract is for essential protective services, addressing a core government need.

Sector Analysis

The security services sector is a critical component of the broader professional, scientific, and technical services industry. Federal spending in this area is substantial, driven by the need to protect government personnel, facilities, and sensitive information. This contract for armed protective security officers falls within the Security Systems Services sub-sector. Comparable spending benchmarks would involve analyzing other large federal contracts for security services in major metropolitan areas, considering factors like the number of personnel required and the specific security threats addressed.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, Paragon Systems Inc., will likely handle the majority of the work directly. Further analysis would be needed to determine if any subcontracting opportunities exist within the scope of this contract and if small businesses are being engaged.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's Office of Procurement Operations, potentially with support from contracting officers' representatives (CORs) at the operational level. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational oversight mechanisms are generally internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Armed Guard Services
Physical Security Contracts
Law Enforcement Support Services

Risk Flags

Potential for performance degradation over time
Reliance on contractor for critical security functions
Need for continuous monitoring of market rates for security personnel

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55.2 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES FOR LOS ANGELES, CALIFORNIA AND SURROUNDING AREAS TASK ORDER AWARD FOR OPTION YEAR 3

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 $55.2 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending trend for this specific contract or similar security services by DHS in California?

Analyzing historical spending for this contract requires access to data from previous option years and potentially prior contract vehicles. For instance, if this $55.2 million award is for option year 3, understanding the spending in years 1 and 2, as well as any baseline contract value, would reveal trends. Generally, federal spending on security services, particularly in high-cost areas like California, tends to be stable or increase gradually, reflecting inflation, evolving security needs, and contract adjustments. Without specific historical data for this task order, we can infer that DHS maintains a consistent need for these services, as evidenced by the continuation of the contract through option periods. Benchmarking against other DHS security contracts in similar geographic regions could provide further context on spending patterns.

How does the per-hour rate for these armed protective security officers compare to market rates in the Los Angeles area?

Determining the precise per-hour rate requires dividing the total contract value by the estimated hours of service over the contract period. Given the total award of $55,193,489.71 and a duration of 364 days (approximately 8,736 hours if operating 24/7, which is unlikely for a single post), a more accurate calculation would involve the number of officers and their shifts. However, general market rates for armed security personnel in a high-cost-of-living area like Los Angeles can range significantly, often from $40 to $70+ per hour depending on the level of training, equipment, and specific duties. If the calculated effective hourly rate falls within or below this range, it suggests competitive pricing. Conversely, rates significantly above this benchmark might warrant further investigation into the necessity of specialized skills or potential inefficiencies.

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

Paragon Systems Inc. has a notable history of providing security services to various federal agencies, including the Department of Homeland Security (DHS). Their contract portfolio often includes protective security officer (PSO) services, access control, and other security-related functions. A review of federal procurement data (e.g., FPDS) would likely show multiple awards to Paragon Systems for similar services across different geographic locations. Assessing their track record involves examining past performance evaluations, any documented instances of contract disputes or terminations, and their overall success in meeting contract requirements. Generally, a company awarded multi-year, high-value contracts like this one indicates a level of established performance and reliability recognized by the contracting agency.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of these security services?

Key Performance Indicators (KPIs) for armed protective security services typically focus on reliability, responsiveness, and adherence to security protocols. Common KPIs include: post orders compliance (ensuring officers follow established procedures), incident response time (how quickly officers react to security events), report accuracy and timeliness (documentation of activities and incidents), uniform and appearance standards, and minimal security breaches or unauthorized access incidents. The government will likely monitor metrics such as the number of security incidents, response times to alarms, and the quality of daily logs and reports submitted by the contractor. Performance evaluations, often conducted quarterly or annually, assess the contractor's ability to meet these KPIs, influencing decisions on future contract options or renewals.

Are there any specific security threats or vulnerabilities in the Los Angeles area that necessitate this level of armed security?

The need for armed protective security services in the Los Angeles area, as with any major metropolitan hub, is driven by a combination of factors including the presence of federal facilities, potential for civil unrest, high population density, and general crime rates. Federal buildings and personnel are often targets or potential collateral during large-scale events. While specific threat intelligence is often classified, the consistent award of such contracts suggests an ongoing assessment by DHS of credible risks that warrant the presence of armed personnel to deter threats, protect assets, and respond to incidents. This includes safeguarding against terrorism, theft, vandalism, and ensuring orderly access to federal property.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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: $55,193,490

Exercised Options: $55,193,490

Current Obligation: $55,193,490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW22DW9000002

IDV Type: IDC

Timeline