DHS awards $6M for Illinois security services; Paragon Systems Inc. to provide PSO support

Contract Overview

Contract Amount: $6,076,323 ($6.1M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-01-01

End Date: 2025-06-30

Contract Duration: 180 days

Daily Burn Rate: $33.8K/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 $6.1 million to PARAGON SYSTEMS INC for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF ILLINOIS Key points: 1. Contract value represents a significant investment in state-level security infrastructure. 2. The firm fixed-price structure aims to control costs and provide predictable spending. 3. Competition dynamics for this contract will be assessed to ensure fair market pricing. 4. Performance will be monitored against established security standards and response times. 5. This contract aligns with DHS's broader mission to protect critical infrastructure. 6. The duration of the contract is relatively short, suggesting potential for re-competition or adjustments.

Value Assessment

Rating: good

The contract value of approximately $6.1 million for six months of service appears reasonable given the scope of providing armed protective security officers across an entire state. Benchmarking against similar state-wide security contracts would provide a more precise value-for-money assessment. The firm fixed-price (FFP) award type suggests that the government has a clear understanding of the required services and associated costs, aiming to transfer some risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, encouraging contractors to offer their best pricing and service levels to win the award. The specific number of bidders is not provided, but the open competition suggests a healthy market response.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures that the government receives competitive offers, maximizing the value of taxpayer dollars.

Public Impact

Federal facilities and personnel within Illinois will receive enhanced security coverage. The services provided will contribute to the overall safety and security of government operations in the state. The contract supports the employment of armed protective security officers, impacting the security services workforce. Geographic impact is statewide, covering all areas within Illinois where DHS requires PSO services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues if staffing levels are not maintained.
Ensuring consistent adherence to armed security protocols across all locations.
Managing potential cost overruns if unforeseen security needs arise beyond the FFP scope.

Positive Signals

Award to an established contractor with experience in security services.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.

Sector Analysis

The security services industry is a significant sector within the federal contracting landscape, encompassing a wide range of protective and investigative services. This contract falls within the Security Guards and Patrol Services sub-sector. Federal spending in this area is substantial, driven by the need to protect government assets, personnel, and sensitive information. Comparable contracts often involve multi-year durations and significant dollar values, depending on the geographic scope and level of security required.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was awarded under full and open competition, it does not preclude the prime contractor, Paragon Systems Inc., from subcontracting portions of the work to small businesses. The extent of small business subcontracting will depend on Paragon's own business strategy and any potential flow-down requirements.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's contracting officers and program managers. Performance standards and deliverables will be monitored to ensure compliance with the contract terms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State-Specific Security Guard Contracts
Armed Security Personnel Services

Risk Flags

Potential for inconsistent service delivery across a large geographic area.
Need for robust oversight to ensure adherence to armed security protocols.
Risk of contractor staffing shortages impacting coverage.
Dependence on contractor's ability to manage diverse state-level regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.1 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 $6.1 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-06-30.

What is the historical spending by DHS on security guard services in Illinois?

Analyzing historical spending by the Department of Homeland Security (DHS) on security guard services specifically within Illinois requires access to detailed federal procurement databases. While this specific contract is valued at approximately $6.1 million for a six-month period, understanding the broader trend involves examining previous awards for similar services in the state. Factors such as changes in security threats, shifts in agency operational needs, and the number of facilities requiring protection can influence year-over-year spending. Without specific historical data for Illinois, it's challenging to determine if this $6.1 million award represents an increase, decrease, or stable level of investment compared to prior periods. However, the current award suggests a consistent need for protective security services within the state.

How does the per-hour cost of security personnel under this contract compare to industry benchmarks?

To compare the per-hour cost of security personnel under this contract to industry benchmarks, we would need to calculate the effective hourly rate. The contract value is $6,076,323.07 for a duration of 180 days. Assuming a standard 24/7 operation for security personnel, this equates to approximately 4,320 hours per post over the contract period (180 days * 24 hours/day). If we assume a certain number of posts are required, we could derive an approximate hourly rate. However, without knowing the number of security personnel or posts, a direct per-hour calculation is not feasible. Generally, armed security personnel costs can range significantly based on location, experience, and specific duties, often falling between $40-$80+ per hour when all overhead and profit are considered. A detailed analysis would require breaking down the contract value by the number of personnel and their hours.

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

Paragon Systems Inc. has a notable track record as a federal contractor, particularly in providing security services. They have been awarded numerous contracts across various federal agencies, including the Department of Defense, Department of Justice, and Department of Homeland Security. Their experience often includes providing armed and unarmed security personnel, access control, and other protective services. Reviews of their contract history suggest they are a significant player in the federal security market. Assessing their performance on past contracts, including any past performance issues or commendations, would provide further insight into their reliability and capability for fulfilling this current DHS requirement in Illinois.

What are the key performance indicators (KPIs) for this contract?

Key Performance Indicators (KPIs) for this Armed Protective Security Officer (PSO) Services contract would typically focus on ensuring the effectiveness and reliability of the security services provided. Common KPIs include response times to security incidents, adherence to post orders and patrol routes, successful completion of access control procedures, and the overall effectiveness of threat detection and deterrence. Additionally, KPIs might measure personnel qualifications, such as maintaining required certifications and training, and punctuality/attendance rates. The Department of Homeland Security (DHS) would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs to evaluate Paragon Systems Inc.'s performance throughout the contract duration, ensuring that the required level of security is consistently maintained across the state of Illinois.

Are there any specific risks associated with providing armed security services across an entire state?

Providing armed security services across an entire state presents several inherent risks. These include logistical challenges in ensuring adequate staffing and coverage across diverse geographic areas, potentially including remote or less populated regions. Maintaining consistent training, equipment, and adherence to protocols among a dispersed workforce can be difficult. Furthermore, managing the legal and regulatory landscape, which can vary by locality within a state, adds complexity. There's also the risk of incidents involving armed personnel, which require rigorous investigation and can have significant reputational and legal consequences. Ensuring effective communication and rapid response capabilities across a large area is also a critical risk factor that needs careful management by the contractor and oversight by the agency.

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: $6,076,323

Exercised Options: $6,076,323

Current Obligation: $6,076,323

Actual Outlays: $6,076,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP418DE5000001

IDV Type: IDC

Timeline