HHS Awards $34.2M Contract for Strategic National Stockpile Protective Guard Services to Paragon Systems Inc
Contract Overview
Contract Amount: $34,203,622 ($34.2M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2025-08-22
End Date: 2026-08-21
Contract Duration: 364 days
Daily Burn Rate: $94.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: STRATEGIC NATIONAL STOCKPILE PROTECTIVE GUARD SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $34.2 million to PARAGON SYSTEMS INC for work described as: STRATEGIC NATIONAL STOCKPILE PROTECTIVE GUARD SERVICES Key points: 1. The contract value of $34.2 million for security guard services is significant. 2. Paragon Systems Inc. is the sole awardee under a full and open competition. 3. The contract duration is one year, with potential for extensions. 4. This spending supports critical infrastructure protection for the Strategic National Stockpile.
Value Assessment
Rating: good
The award amount of $34.2 million for a one-year contract appears reasonable given the scope of protective guard services for a national stockpile. Benchmarking against similar large-scale security contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method typically leads to competitive pricing.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure necessary services at a fair market price.
Public Impact
Ensures the security and integrity of the Strategic National Stockpile, vital for national health emergencies. Supports the operational readiness of critical medical supplies and equipment. Provides employment opportunities within the security services sector.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Contract supports critical national security/health infrastructure.
Sector Analysis
This contract falls within the Security Guards and Patrol Services sector, a segment often characterized by labor-intensive operations. Spending benchmarks for similar government security contracts can vary widely based on location, scope, and required security clearances.
Small Business Impact
The data indicates this contract was awarded through full and open competition, and there is no specific mention of small business participation or set-asides. Further analysis would be needed to determine if small businesses had an opportunity to compete or subcontract.
Oversight & Accountability
The Department of Health and Human Services (HHS) is responsible for this contract. Oversight would typically involve contract performance monitoring, financial reviews, and ensuring compliance with all terms and conditions.
Related Government Programs
- Security Guards and Patrol Services
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential for cost creep in Time and Materials contracts.
- Reliance on a single vendor (Paragon Systems Inc.) for critical security.
- Need for robust performance monitoring to ensure service quality.
Tags
security-guards-and-patrol-services, department-of-health-and-human-services, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.2 million to PARAGON SYSTEMS INC. STRATEGIC NATIONAL STOCKPILE PROTECTIVE GUARD SERVICES
Who is the contractor on this award?
The obligated recipient is PARAGON SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $34.2 million.
What is the period of performance?
Start: 2025-08-22. End: 2026-08-21.
What is the historical cost performance of Paragon Systems Inc. on similar government contracts?
Analyzing Paragon Systems Inc.'s past performance on comparable government contracts is crucial for assessing value. This includes reviewing their track record on cost overruns, adherence to budgets, and overall efficiency in delivering security services. A history of successful, cost-effective contract execution would bolster confidence in this current award.
What are the specific security requirements and personnel qualifications mandated for this contract?
Understanding the specific security requirements and personnel qualifications is key to evaluating risk. High-level security needs, specialized training, or extensive background checks for guards could justify higher costs and impact the competitive landscape. Conversely, basic security needs might suggest a lower price point is achievable.
How does the awarded price compare to the government's independent cost estimate for these services?
Comparing the awarded price to the government's independent cost estimate provides a direct measure of value and potential savings. If the awarded price is significantly below the estimate, it suggests strong competition and good negotiation. If it's above, it warrants further investigation into the estimate's accuracy and the necessity of the services provided.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75A50325Q00012
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $93,415,530
Exercised Options: $42,830,463
Current Obligation: $34,203,622
Actual Outlays: $14,898,257
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QSWA20D0010
IDV Type: FSS
Timeline
Start Date: 2025-08-22
Current End Date: 2026-08-21
Potential End Date: 2026-08-22 00:00:00
Last Modified: 2026-03-17
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