R--Special Employer Incentive Contract Between the Department of Veteran Affairs and Paragon Systems, Inc.
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This contract establishes a sole-source agreement between the Department of Veterans Affairs (VA) and Paragon Systems, Inc. under the Special Employer Incentive (SEI) program administered by the National Capital Region Benefits Office's Vocational Rehabilitation and Employment Division (VR&E). Authorized by statute and implemented under FAR 6.302-5, this firm fixed-price contract aims to support veterans facing significant barriers to employment by reimbursing Paragon Systems up to 50% of wages paid to VR&E veterans during a six-month period. The reimbursement covers training-related expenses such as instructional materials, workplace accommodations, and productivity losses attributed to employing veterans instead of non-disabled employees. The SEI program focuses on placing veterans who are qualified but may lack specific experience or training, offering private employers incentives to provide on-the-job training or direct employment opportunities. Payments are limited to private-sector employers and exclude government entities. The total estimated government cost for this procurement is capped at $15,600. The contract’s justification and approval, certified by the VR&E Officer and Contracting Officer, confirms that the requirement is a bona fide need and that the cost is fair and reasonable based on related wage determinations. Following award, the justification document is to be publicly posted within 14 days to maintain transparency.
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