You can't make the elves communist, that would make them an actual outside potential threat to your community.
To make a real Paranoia fortress, you have to wipe out all other races - the whole point of Paranoia is that there is no outside threat against which people must rally. The only threat comes from within.
Communists are such a threat because they crawl amidst the ranks of your dwarves, and your dwarves must be tasked with destroying them.
(And of course, all dwarves are Communist.)
Also, you should make many, many castes with strange superpowers, and make these "mutants". Mutants are traitors, because they show that something strange is going on with their unnatural selection, and that would be proof that Your Friend Computer (A.K.A. Armok, A.K.A. You) was doing something wrong.
(And of course, all dwarves are Mutants.)
Dwarves must also be on the lookout for secret societies. They are insidious and treacherous because they imply loyalty to something other than Your Friend Computer.
(And of course, all dwarves are members of a Secret Societies that war with other Secret Societies.)
The two major problems with making a Paranoia DF is that dwarves are... well... Happy Communists, and proud. Dwarves happily share the fruits of their labors with bums who idle and party all day year, while short-sighted greed and a willingness to kill to get ahead or just for fun is the hallmark of Alpha Complex.
The other is that you aren't just some low-level grunt (unless you're an Adventurer), you're the mastermind of the whole operation, Your Friend Computer, and you have all the power. Part of what makes it Paranoia is that you have to kill and betray your own supposed teammates and allies to save your own skin, especially because they were going to kill and betray you if you didn't get them first. (That's why it's called Paranoia, after all...) When you're invincible, and nobody can touch you, and you're just struggling to keep the psychotic little twerps from murdering too many of the important ones, then the game has an entirely different flavor.