Paragon to secure DHS
By L. Samuel Pfeifle
Updated Thu April 13, 2006
WASHINGTON--Paragon Systems, a guarding firm and subsidiary of publicly held Tri-S Security Corp., announced this week a five-year, $29 million contract to secure the Department of Homeland Security's Washington, D.C., headquarters. Paragon will provide armed guards, dispatchers, desk sergeants and alarm monitors, starting this August.
Tri-S chief executive officer Ronald Farrell attributes the contract to a new management team, featuring ex-FBI and other government agency employees, installed at Paragon last July. "It's about as high-profile as you can get," Farrell said of the contract. "That's where [Michael] Chertoff works. It will be nice that every time the Secretary of Homeland Security goes in and out of his offices, he'll see Paragon there."
News of the deal led to first-day trading of one million shares of Tri-S stock, half of the 2.2 million outstanding. The share price rose as high as $4.10, after starting at $2.79. Tri-S also owns the Cornwall Group, which does guarding for the private sector. Farrell said Tri-S is actively looking to acquire more guarding firms.
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