DHS Awards $11.4M for Illinois PSO Services to Paragon Systems Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $11,413,808 ($11.4M)
Contractor: Paragon Systems Inc
Awarding Agency: Department of Homeland Security
Start Date: 2024-01-01
End Date: 2024-06-30
Contract Duration: 181 days
Daily Burn Rate: $63.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60612
State: Illinois Government Spending
Plain-Language Summary
Department of Homeland Security obligated $11.4 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS Key points: 1. The contract value is $11.4 million for 181 days of service. 2. Paragon Systems Inc. is the sole awardee. 3. The contract falls under Security Guards and Patrol Services (NAICS 561612). 4. The award was made under full and open competition.
Value Assessment
Rating: good
The contract value of $11.4 million for approximately six months of service appears reasonable given the scope of armed protective security officer services across a state. Benchmarking against similar state-level contracts would provide further validation.
Cost Per Unit: $63,060 (total contract value / duration in days)
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method allows multiple vendors to bid, fostering competition and potentially leading to better pricing for the government.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the security services rendered.
Public Impact
Ensures security for state facilities and personnel. Supports critical infrastructure protection within Illinois. Provides employment opportunities for security professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (6 months) may lead to frequent re-competition and potential disruption.
- Reliance on a single vendor for critical security services.
Positive Signals
- Awarded under full and open competition.
- Clear contract scope and defined service period.
Sector Analysis
The Security Guards and Patrol Services sector is competitive, with numerous providers offering a range of services. Spending in this sector is driven by the need for physical security across government and private entities.
Small Business Impact
While the awardee is Paragon Systems Inc., a large business, the use of full and open competition theoretically allows small businesses to participate if they meet the qualifications. Further analysis would be needed to determine if small businesses were subcontractors.
Oversight & Accountability
The Department of Homeland Security's Office of Procurement Operations managed this award. Oversight would involve monitoring service delivery, performance, and adherence to contract terms to ensure accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Short contract duration
- Single awardee
- Potential for price increases in future
- Reliance on vendor staffing levels
Tags
security-guards-and-patrol-services, department-of-homeland-security, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.4 million to PARAGON SYSTEMS INC. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS
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 $11.4 million.
What is the period of performance?
Start: 2024-01-01. End: 2024-06-30.
What is the expected level of service and performance metrics for these armed protective security officers?
The contract details would specify the required qualifications, training, and operational procedures for the armed protective security officers. Performance metrics likely include response times, incident reporting accuracy, and adherence to post orders. DHS would monitor these metrics to ensure effective service delivery and compliance with federal standards.
What are the potential risks associated with relying on a single vendor for armed security services in Illinois?
Risks include vendor performance issues, potential for price increases in future contracts, and lack of flexibility if needs change rapidly. A single vendor could also face staffing shortages or operational disruptions, impacting security coverage. Contingency planning and strong contract management are crucial to mitigate these risks.
How does the $11.4 million contract value compare to similar state-wide security contracts awarded by other federal agencies?
Benchmarking this contract against similar state-wide security contracts requires access to aggregated federal procurement data. Factors like the number of posts, hours of coverage, and specific security requirements vary significantly, making direct comparisons challenging without detailed analysis of comparable solicitations and awards.
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
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: $11,413,808
Exercised Options: $11,413,808
Current Obligation: $11,413,808
Actual Outlays: $10,495,180
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP418DE5000001
IDV Type: IDC
Timeline
Start Date: 2024-01-01
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2025-10-31
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