DOJ's $9.1M contract for security services in Tennessee awarded to Metropolitan Security Services, Inc

Contract Overview

Contract Amount: $9,148,902 ($9.1M)

Contractor: Metropolitan Security Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 7 D24 - FY 2026 CSO PROGRAM FUNDING

Place of Performance

Location: CHATTANOOGA, HAMILTON County, TENNESSEE, 37402

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $9.1 million to METROPOLITAN SECURITY SERVICES, INC. for work described as: CIRCUIT 7 D24 - FY 2026 CSO PROGRAM FUNDING Key points: 1. The contract value represents a significant investment in security infrastructure for the U.S. Marshals Service in Tennessee. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for taxpayer savings. 3. Risk indicators are evaluated based on contractor performance history and the nature of security services. 4. Performance context is established by comparing this award to similar security contracts within the federal government. 5. The sector positioning highlights the importance of private security firms in supporting federal law enforcement operations.

Value Assessment

Rating: good

The contract value of approximately $9.1 million over one year for security services appears reasonable given the scope of supporting the U.S. Marshals Service. Benchmarking against similar federal contracts for security guards and patrol services in regions with comparable cost of living and security needs would provide a more precise value-for-money assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific details on the number of personnel or hours, a direct per-unit cost comparison is challenging, but the overall award seems aligned with market rates for specialized security support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive down prices and improve service quality. The U.S. Marshals Service likely sought proposals that met stringent security requirements, and the competitive process allowed for the selection of the most advantageous offer based on a combination of price and technical merit.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to compete, potentially leading to lower costs and better services than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the U.S. Marshals Service, which will receive enhanced security support for its operations in Tennessee. The contract ensures the provision of essential security guard and patrol services, contributing to the safety and security of federal personnel and facilities. The geographic impact is focused on Tennessee, where the services will be deployed. Workforce implications include the creation of jobs for security personnel within the selected contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical security functions.
Ensuring consistent service quality and adherence to security protocols across all deployed personnel.
Managing labor costs effectively within the 'labor hours' pricing model to maintain value.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration of one year allows for periodic re-evaluation of performance and market conditions.
Focus on a specific geographic region (Tennessee) allows for tailored security solutions.

Sector Analysis

The federal security services market is substantial, encompassing a wide range of needs from physical guarding to cybersecurity. This contract falls within the physical security sub-sector, specifically focusing on security guards and patrol services (NAICS code 561612). The U.S. Marshals Service, as a component of the Department of Justice, relies heavily on such services to maintain the security of courthouses, detention facilities, and personnel. Spending in this area is often driven by evolving threat landscapes and the need to supplement federal law enforcement capabilities with specialized private sector expertise. Comparable spending benchmarks would involve analyzing other contracts for similar security services awarded to federal agencies across different regions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary award went to Metropolitan Security Services, Inc., a presumably larger entity. While there is no direct small business set-aside, the prime contractor may have subcontracting opportunities for small businesses, depending on their own procurement practices and the specific requirements of the services. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Marshals Service contracting officer and their representatives. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would extend to investigating any potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule 70 - IT Professional Services (if security tech is involved)
Department of Defense Security Contracts

Risk Flags

Contract awarded based on labor hours, requiring diligent oversight to manage costs.
Potential for performance variability in security services depending on personnel quality and training.
Need for robust quality assurance to ensure consistent service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.1 million to METROPOLITAN SECURITY SERVICES, INC.. CIRCUIT 7 D24 - FY 2026 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 $9.1 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

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

Analyzing historical spending data for the U.S. Marshals Service in Tennessee for security services would provide crucial context for the current $9.1 million award. This involves examining previous contract awards for similar services (NAICS 561612) within the state over the past 5-10 fiscal years. Key metrics to review would include the number of contracts awarded, the total dollar value obligated annually, the primary contractors, and the contract types (e.g., fixed-price, labor hour). Understanding whether this $9.1 million represents an increase, decrease, or stable level of spending compared to historical averages can indicate changes in security needs, operational scope, or market pricing. For instance, a significant increase might signal expanded responsibilities or heightened security concerns, while a decrease could suggest efficiency gains or a shift in service delivery models. Without specific historical data, it is difficult to definitively assess if this award is an anomaly or part of a consistent trend.

How does the per-hour labor rate for this contract compare to industry benchmarks for security guards in Tennessee?

To assess the value for money, comparing the per-hour labor rate under this contract to industry benchmarks for security guards in Tennessee is essential. This requires obtaining the total contract value ($9,148,901.90) and dividing it by the estimated total labor hours (which is not explicitly provided but can be inferred if the contract is purely labor-hour based and the number of hours is known or can be estimated). Once a blended hourly rate is calculated, it should be benchmarked against data from sources like the Bureau of Labor Statistics (BLS) for security guards in the relevant Tennessee metropolitan areas, as well as data from private industry salary surveys and other federal contract awards for similar services. Factors such as the level of security clearance required, the specific duties (e.g., armed vs. unarmed, supervisory roles), and the geographic location within Tennessee (e.g., major cities vs. rural areas) will influence the appropriate benchmark. If the calculated rate is significantly higher than benchmarks, it may indicate potential overpricing or a need for closer scrutiny of the labor hours and associated costs.

What is Metropolitan Security Services, Inc.'s track record with federal contracts, particularly with the Department of Justice?

Evaluating Metropolitan Security Services, Inc.'s track record with federal contracts, especially those awarded by the Department of Justice (DOJ) or its components like the U.S. Marshals Service, is critical for assessing performance risk. This involves reviewing the company's contract history in the Federal Procurement Data System (FPDS) or similar databases. Key aspects to examine include the number and value of previous federal awards, the types of services provided, contract performance ratings (if available), and any instances of contract disputes, terminations, or penalties. A history of successful contract performance, particularly in providing security services similar in scope and complexity to this award, would be a positive indicator. Conversely, a record of poor performance, unresolved issues, or significant contract modifications due to contractor deficiencies could raise concerns about the reliability and effectiveness of Metropolitan Security Services, Inc. in fulfilling the current $9.1 million contract.

What are the specific security risks associated with the U.S. Marshals Service operations in Tennessee that necessitate this level of funding?

Understanding the specific security risks faced by the U.S. Marshals Service (USMS) in Tennessee is crucial for justifying the $9.1 million contract award. The USMS is responsible for protecting federal judges, court officials, witnesses, federal prisoners, and ensuring the security of federal courthouses. Risks could include threats to judicial personnel, potential escape attempts during prisoner transport, security breaches at federal facilities, or civil disturbances impacting court operations. The geographic scope within Tennessee and the specific types of facilities or operations being secured (e.g., high-profile trials, sensitive witness protection activities) would dictate the level and type of security required. This contract likely funds personnel, equipment, and potentially technology to mitigate these identified risks. A detailed threat assessment or risk analysis conducted by the USMS would provide the specific context for this funding, outlining the nature, likelihood, and impact of potential security incidents that necessitate the engagement of private security services.

How does the contract duration of 364 days impact the overall value and risk for the government?

The contract duration of 364 days, essentially one year, offers a balance between providing sufficient operational time and allowing for flexibility and re-evaluation. For the government, this duration provides continuity of essential security services without long-term commitment, which can be advantageous in a dynamic threat environment or when market conditions for security services are fluctuating. It allows the U.S. Marshals Service to assess the performance of Metropolitan Security Services, Inc. over a substantial period before considering renewal or seeking alternative solutions. From a risk perspective, a shorter duration limits the government's exposure to potential long-term contractor underperformance or escalating costs. However, it also means that the procurement process for a follow-on contract must begin well in advance to ensure seamless transition and avoid any gaps in service. The value is maintained by the ability to renegotiate terms or re-compete the contract based on current needs and market rates at the end of the period.

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: $9,148,902

Exercised Options: $9,148,902

Current Obligation: $9,148,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M10523DA4700067

IDV Type: IDC

Timeline