FEMA awards $12.3M contract for armed security guards in Hawaii, highlighting critical disaster support infrastructure

Contract Overview

Contract Amount: $12,311,416 ($12.3M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-16

End Date: 2025-10-15

Contract Duration: 730 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THIS CONTRACT PROVIDES LEVEL II ARMED SECURITY GUARD SERVICES FOR FEDERAL EMERGENCY MANAGEMENT AGENCY FACILITIES SUPPORTING DISASTER 4724 HAWAII

Place of Performance

Location: AIEA, HONOLULU County, HAWAII, 96701

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.3 million to PARAGON SYSTEMS INC for work described as: THIS CONTRACT PROVIDES LEVEL II ARMED SECURITY GUARD SERVICES FOR FEDERAL EMERGENCY MANAGEMENT AGENCY FACILITIES SUPPORTING DISASTER 4724 HAWAII Key points: 1. Contract value of $12.3M over two years suggests a significant need for ongoing security services. 2. The award was made under full and open competition, indicating a robust bidding process. 3. The contractor, PARAGON SYSTEMS INC, has secured a substantial federal contract, implying a track record of performance. 4. Services are categorized under Security Guards and Patrol Services (NAICS 561612), a common requirement for federal facilities. 5. The contract duration of 730 days (2 years) provides stability for both the agency and the contractor. 6. The contract type is a Definitive Contract, typically used for straightforward procurement with defined terms.

Value Assessment

Rating: good

The contract value of $12.3 million over two years for armed security guard services appears reasonable given the scope and duration. Benchmarking against similar contracts for security services at federal facilities, especially those supporting disaster relief operations, would provide a more precise value-for-money assessment. The absence of specific performance metrics or detailed cost breakdowns in the provided data makes a granular price assessment challenging, but the competitive nature of the award suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bids indicates a moderate level of competition for this specific requirement. While not an exceptionally high number of bidders, full and open competition generally fosters better price discovery and encourages contractors to offer competitive terms compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for essential security services. The competition helps ensure that the awarded price reflects market rates and avoids potential overpayment that could occur with less competitive solicitations.

Public Impact

Federal Emergency Management Agency (FEMA) facilities in Hawaii benefit from enhanced security. The contract ensures the provision of Level II armed security guard services. This service is critical for supporting disaster response and recovery operations managed by FEMA. The geographic impact is focused on facilities within Hawaii. The contract supports employment for security personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if labor rates or operational demands escalate beyond initial projections.
Reliance on a single contractor for critical security functions could pose a risk if performance issues arise.
The specific threat landscape in Hawaii may require adaptive security measures not fully detailed in the contract summary.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract duration provides stability and allows for consistent service delivery.
The contractor's selection implies they met the necessary qualifications and performance standards.

Sector Analysis

The security services sector is a significant component of the federal procurement landscape, encompassing a wide range of protective services. This contract falls within the Security Guards and Patrol Services industry (NAICS 561612). Federal agencies consistently procure these services to protect personnel, property, and sensitive information. Spending in this sector is driven by national security needs, disaster preparedness, and the general operational requirements of government facilities. Comparable spending benchmarks would involve analyzing other federal contracts for similar security guard services across different agencies and geographic locations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is PARAGON SYSTEMS INC, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether Paragon Systems actively seeks small business subcontractors for specialized services or supplies, which is not detailed here. Further investigation into the contractor's subcontracting goals would be necessary to assess this impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security (DHS). The contract's definitive nature suggests clear performance standards and deliverables. Accountability measures would be tied to the terms and conditions of the Definitive Contract, including service level agreements and payment schedules. Transparency is facilitated by the contract award notice, which is publicly available. Inspector General jurisdiction would likely reside with the DHS Office of Inspector General, which investigates fraud, waste, and abuse in DHS programs and contracts.

Related Government Programs

FEMA Disaster Relief Operations
Department of Homeland Security Facilities Management
Federal Security Guard Services
Armed Guard Contracts
Emergency Preparedness and Response Contracts

Risk Flags

Potential for performance issues with security personnel.
Risk of security breaches or incidents.
Dependence on contractor for critical security functions.
Potential for cost overruns if scope or requirements change.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.3 million to PARAGON SYSTEMS INC. THIS CONTRACT PROVIDES LEVEL II ARMED SECURITY GUARD SERVICES FOR FEDERAL EMERGENCY MANAGEMENT AGENCY FACILITIES SUPPORTING DISASTER 4724 HAWAII

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 (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2023-10-16. End: 2025-10-15.

What is the track record of PARAGON SYSTEMS INC in providing similar security services to federal agencies, particularly FEMA?

PARAGON SYSTEMS INC is a known provider of security services to the federal government. While specific details on their past performance with FEMA are not provided in this data snippet, their ability to win a $12.3 million contract suggests they have a demonstrated capacity to meet federal requirements. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would reveal their contract history, past performance evaluations, and any potential issues or commendations related to similar security guard services. Understanding their experience with disaster support environments would be particularly relevant for this FEMA contract.

How does the per-unit cost or hourly rate for these security guards compare to market rates or other federal contracts?

The provided data does not include specific per-unit costs or hourly rates for the security guards, making a direct comparison difficult. The total contract value of $12.3 million over 730 days averages approximately $16,850 per day or roughly $2,000 per guard per day if assuming 8-hour shifts and a team of 10 guards, which is a very rough estimate. To benchmark effectively, one would need to know the number of guards, their hours, and their specific labor categories (e.g., Level II armed guard). Comparing these figures to publicly available data on federal security guard contracts (e.g., GSA schedules or other agency awards) and private sector security firm pricing in Hawaii would be necessary to assess value for money.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data summary does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for Level II armed security guard services, typical KPIs would likely include response times to incidents, adherence to post orders, guard attentiveness and professionalism, incident reporting accuracy, and compliance with all relevant laws and regulations. SLAs would define the expected level of service, such as the number of guards on duty at specific times, required qualifications (e.g., certifications, background checks), and reporting frequencies. These details are crucial for assessing the contractor's performance and ensuring FEMA receives adequate protection.

What is the historical spending pattern for security guard services by FEMA, and how does this contract fit within that trend?

Without specific historical spending data for FEMA's security guard services, it's challenging to place this $12.3 million contract within a precise trend. However, FEMA's mission involves extensive facility management and disaster response, both of which necessitate robust security. It is reasonable to assume that FEMA has ongoing requirements for security services across its various facilities, particularly those involved in disaster staging and operations. This contract represents a significant, multi-year investment in securing critical infrastructure in Hawaii, suggesting either a sustained need or an expansion of security provisions in that region. Analyzing FEMA's broader procurement history for security services would reveal if this award is consistent with, or an increase/decrease from, previous spending levels.

Are there any specific risks identified by the agency or the Office of Inspector General related to this type of security service or contractor?

The provided data does not explicitly mention any specific risks identified by the agency or the Office of Inspector General (OIG) related to this contract or contractor. However, risks inherent in armed security contracts generally include potential for excessive force, security breaches, inadequate guard training or vetting, and contractor performance failures. The Department of Homeland Security OIG routinely audits and investigates various contracts, including security services, to identify vulnerabilities. A review of DHS OIG reports and contract performance databases would be necessary to determine if any specific concerns have been raised regarding PARAGON SYSTEMS INC or similar security contracts.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FBR923Q00000062

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,311,416

Exercised Options: $12,311,416

Current Obligation: $12,311,416

Actual Outlays: $11,943,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline