DHS Awards $2M Proprietary Solution to Paragon Solutions for ICE Computer Systems Design
Contract Overview
Contract Amount: $2,000,000 ($2.0M)
Contractor: Paragon Solutions (US) Inc
Awarding Agency: Department of Homeland Security
Start Date: 2024-09-30
End Date: 2025-09-29
Contract Duration: 364 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS AWARD IS FOR A FULLY CONFIGURED PROPRIETARY SOLUTION INCLUDING LICENSE, HARDWARE, WARRANTY, MAINTENANCE AND TRAINING.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536
Plain-Language Summary
Department of Homeland Security obligated $2.0 million to PARAGON SOLUTIONS (US) INC for work described as: THIS AWARD IS FOR A FULLY CONFIGURED PROPRIETARY SOLUTION INCLUDING LICENSE, HARDWARE, WARRANTY, MAINTENANCE AND TRAINING. Key points: 1. The award covers a comprehensive proprietary solution including licenses, hardware, warranty, maintenance, and training. 2. Competition was not solicited for this purchase, raising questions about price discovery and potential value. 3. The contract's fixed-price nature aims to control costs, but the lack of competition limits benchmarking. 4. This spending falls within the IT sector, specifically Computer Systems Design Services.
Value Assessment
Rating: questionable
The contract value of $2 million for a fully configured proprietary solution is difficult to assess without competitive bids. The lack of comparison makes it challenging to determine if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This approach can lead to higher prices and reduced innovation compared to open competition.
Taxpayer Impact: Without competitive bidding, taxpayers may not be receiving the best possible value for this $2 million expenditure.
Public Impact
Immigration and Customs Enforcement (ICE) will receive a complete IT solution, potentially improving operational efficiency. The reliance on a single vendor for a proprietary solution could lead to vendor lock-in. Citizens can expect continued support for critical immigration and customs operations funded by this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Proprietary solution
- Potential for vendor lock-in
Positive Signals
- Firm fixed price contract
- Comprehensive solution including training and maintenance
Sector Analysis
This contract falls under Computer Systems Design Services (NAICS 541512), a segment of the broader IT sector. Spending in this area is often driven by the need for specialized software, hardware, and integration services.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the opportunity to compete.
Oversight & Accountability
The Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement, is responsible for overseeing this contract. Standard procurement regulations should apply, but the sole-source nature warrants close monitoring.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Sole-source award
- Potential for overpayment due to lack of competition
- Risk of vendor lock-in
- Limited transparency on solution specifics
Tags
computer-systems-design-services, department-of-homeland-security, dc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $2.0 million to PARAGON SOLUTIONS (US) INC. THIS AWARD IS FOR A FULLY CONFIGURED PROPRIETARY SOLUTION INCLUDING LICENSE, HARDWARE, WARRANTY, MAINTENANCE AND TRAINING.
Who is the contractor on this award?
The obligated recipient is PARAGON SOLUTIONS (US) INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $2.0 million.
What is the period of performance?
Start: 2024-09-30. End: 2025-09-29.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, critical need, or lack of viable alternatives. Without this information, it's difficult to assess if this was the most appropriate procurement method. Further investigation into the specific requirements and market research conducted is necessary.
What are the long-term cost implications of relying on a proprietary solution from a single vendor?
Proprietary solutions often lead to vendor lock-in, potentially increasing long-term costs through mandatory maintenance, upgrades, and future procurements tied to that specific system. This can limit flexibility and bargaining power, making it essential to evaluate the total cost of ownership over the system's lifecycle.
How will the effectiveness of this proprietary solution be measured and validated?
Effectiveness should be measured against clearly defined performance metrics and objectives outlined in the contract. Regular performance reviews and user feedback are crucial to ensure the solution meets ICE's operational needs and delivers the intended value. Independent validation may also be beneficial.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70CTD024R00000009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14900 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
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: $2,000,000
Exercised Options: $2,000,000
Current Obligation: $2,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-09-30
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2026-01-20
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)