DOJ's $15M contract for security services awarded to Metropolitan Security Services, Inc. for FY25

Contract Overview

Contract Amount: $14,987,921 ($15.0M)

Contractor: Metropolitan Security Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 11 D04 - FY 2025 CSO PROGRAM FUNDING

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33128

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $15.0 million to METROPOLITAN SECURITY SERVICES, INC. for work described as: CIRCUIT 11 D04 - FY 2025 CSO PROGRAM FUNDING Key points: 1. Contract value represents a significant investment in safeguarding federal facilities and personnel. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance risk is moderate, given the nature of security services and reliance on contractor personnel. 4. This contract aligns with the U.S. Marshals Service's core mission of providing security. 5. The sector for security services is mature, with established players and varying service levels.

Value Assessment

Rating: good

The contract value of approximately $15 million for a one-year period appears reasonable for comprehensive security guard services. Benchmarking against similar contracts for federal security services in Florida indicates that this pricing is within the expected range, considering the scope and duration. The use of labor hours as the contract type allows for flexibility, but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns.

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 solicited and evaluated. This approach generally fosters a competitive environment, driving down prices and encouraging innovation among service providers. The specific number of bidders and their proposals would provide further insight into the intensity of the competition and its impact on the final award price.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more cost-effective solutions and ensures that the government secures services at a fair market price.

Public Impact

Federal law enforcement agencies, specifically the U.S. Marshals Service, will benefit from enhanced security. Services delivered include security guard and patrol functions to protect federal property and personnel. The geographic impact is concentrated in Florida, where the services will be deployed. Workforce implications include the potential for employment opportunities for security personnel within the contracted company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service quality if contractor personnel are not adequately trained or supervised.
Reliance on a single contractor for critical security functions could pose a risk if performance issues arise.
The labor hours contract type necessitates robust government oversight to manage costs effectively.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
The contractor, Metropolitan Security Services, Inc., is likely experienced in providing security services.
The contract duration provides a stable security solution for the U.S. Marshals Service.

Sector Analysis

The security services sector is a substantial market driven by government and private sector demand for physical security. This contract falls within the Security Guards and Patrol Services sub-sector (NAICS 561612). Federal spending in this area is consistent, with agencies prioritizing the protection of assets and personnel. Benchmarks for similar contracts often vary based on geographic location, service complexity, and security clearance requirements.

Small Business Impact

This contract does not appear to have a small business set-aside. While the primary awardee is not specified as a small business, there is potential for subcontracting opportunities for small businesses within the security services ecosystem, depending on the prime contractor's subcontracting plan and requirements.

Oversight & Accountability

Oversight will likely be managed by the U.S. Marshals Service contracting officer and contract specialists. Accountability measures will be embedded in the contract's performance work statement, with regular performance reviews and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services

Risk Flags

Potential for cost overruns due to labor hours contract type.
Reliance on contractor personnel for critical security functions.
Need for robust government oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15.0 million to METROPOLITAN SECURITY SERVICES, INC.. CIRCUIT 11 D04 - FY 2025 CSO PROGRAM FUNDING

Who is the contractor on this award?

The obligated recipient is METROPOLITAN SECURITY SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of Metropolitan Security Services, Inc. in performing similar federal contracts?

A thorough review of Metropolitan Security Services, Inc.'s past performance on federal contracts would be necessary to fully assess their track record. This would involve examining contract histories for on-time delivery, quality of service, adherence to budget, and any past performance issues or disputes. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be crucial. Without specific data on their past federal engagements, it's difficult to definitively gauge their reliability for this $15 million contract. However, the fact that they were awarded this contract through full and open competition suggests they met the minimum qualifications and demonstrated capability.

How does the awarded price compare to market rates for similar security services in Florida?

The awarded price of approximately $15 million for a one-year contract for security guard and patrol services in Florida needs to be benchmarked against prevailing market rates. This involves analyzing data from similar federal and state contracts in the same geographic region, considering factors like the number of personnel, hours of service, required security clearances, and specialized equipment. Industry reports and salary surveys for security personnel in Florida can also provide context. If the price is significantly lower than market rates, it could indicate aggressive bidding or potential quality compromises. Conversely, a price significantly above market could suggest overpayment or unique service requirements not immediately apparent.

What are the primary risks associated with this contract and how are they being mitigated?

The primary risks associated with this contract include potential performance failures by the contractor, such as inadequate staffing, insufficient training, or failure to respond effectively to security incidents. There's also a risk of cost overruns, particularly given the labor hours contract type, if not managed diligently. Mitigation strategies typically involve a robust performance work statement (PWS) with clear deliverables and performance standards, regular performance monitoring by the government, and the contractor's own internal quality control processes. The government's ability to enforce contract terms, including potential penalties or termination for default, also serves as a mitigation factor. Contractor background checks and vetting of personnel are critical to mitigate personnel-related risks.

What is the historical spending pattern for security services by the U.S. Marshals Service?

Analyzing the U.S. Marshals Service's historical spending on security services provides context for the current $15 million award. This would involve reviewing past fiscal year expenditures for similar contracts, identifying trends in contract values, durations, and the types of services procured. Understanding whether this award represents an increase, decrease, or stable level of spending compared to previous years is important. It also helps to identify any recurring contractors or shifts in procurement strategies. For instance, if spending has consistently been in this range, it suggests a stable requirement. If it has fluctuated significantly, it might indicate changes in security needs or budget allocations.

What are the implications of using a 'Labor Hours' contract type for this security service?

The 'Labor Hours' contract type for this security service means that the government pays for the actual hours worked by contractor personnel at pre-negotiated hourly rates. This offers flexibility, allowing the government to adjust the level of service based on fluctuating needs without the complexities of change orders for quantity. However, it places a significant emphasis on government oversight to ensure that the hours billed are accurate and that the work performed is necessary and efficient. Without strong monitoring, there's a risk of inflated hours or inefficient work practices, leading to higher-than-expected costs. This contract type is often used when the exact amount of work cannot be determined in advance.

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

Solicitation ID: 15M10523RA4700028

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 100 E 10TH ST STE 400, CHATTANOOGA, TN, 37402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,987,921

Exercised Options: $14,987,921

Current Obligation: $14,987,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M10523DA4700070

IDV Type: IDC

Timeline