DOJ's U.S. Marshals Service awards $12.1M for security services, highlighting a competitive procurement

Contract Overview

Contract Amount: $12,101,412 ($12.1M)

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: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 3 D50 - 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 $12.1 million to METROPOLITAN SECURITY SERVICES, INC. for work described as: CIRCUIT 3 D50 - FY 2026 CSO PROGRAM FUNDING Key points: 1. The contract value of $12.1 million for FY2026 indicates a significant investment in security operations. 2. Competition dynamics suggest a healthy market for security guard services, potentially driving better pricing. 3. Performance context is tied to the U.S. Marshals Service's critical mission, implying high stakes for service delivery. 4. Sector positioning places this contract within the broader security and protective services industry. 5. Risk indicators are moderate, given the reliance on labor hours and the need for consistent guard performance.

Value Assessment

Rating: good

The contract value of $12.1 million for a 364-day period appears reasonable for specialized security services. Benchmarking against similar contracts for security guards and patrol services by federal agencies would provide a clearer picture of value for money. 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 considered. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and service terms to win the award. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of service options, maximizing the value of federal dollars spent on essential security services.

Public Impact

Federal law enforcement operations, specifically the U.S. Marshals Service, will benefit from enhanced security coverage. The services delivered include security guards and patrol, crucial for protecting federal facilities and personnel. The geographic impact is concentrated in Tennessee (ST: TN, SN: TENNESSEE), where the services will be deployed. Workforce implications include the creation of jobs for security personnel, likely sourced locally within Tennessee.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent guard performance if not adequately supervised.
Reliance on labor hours could lead to cost escalation if not managed tightly.
Ensuring consistent adherence to security protocols across all shifts and personnel.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Supports critical law enforcement functions of the U.S. Marshals Service.
Clear performance period (FY2026) allows for focused resource allocation.

Sector Analysis

The security and protective services sector is a significant component of federal contracting, encompassing a wide range of services from physical security to cybersecurity. This contract, focused on security guards and patrol services (NAICS 561612), falls within a mature market segment. Federal spending in this area is consistently high, driven by the need to protect government assets and personnel across various agencies. Comparable spending benchmarks would involve analyzing other contracts for similar guard services awarded by agencies like the GSA, DHS, or DOD.

Small Business Impact

The data indicates that small business participation (SB: false, SS: false) was not a primary focus for this specific award, as it was not set aside for small businesses and the prime contractor is not identified as a small business. This suggests that the competition was likely dominated by larger, established security firms. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided information. The impact on the small business ecosystem is neutral to potentially negative if larger firms capture the entire contract value without significant subcontracting.

Oversight & Accountability

Oversight for this contract 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 standards and delivery requirements. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and oversight reports may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Security Contracts
Department of Defense Guard Services

Risk Flags

Labor Hours Contract Type Risk
Performance Monitoring Intensity Required
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.1 million to METROPOLITAN SECURITY SERVICES, INC.. CIRCUIT 3 D50 - 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 $12.1 million.

What is the period of performance?

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

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

Analyzing historical spending data for the U.S. Marshals Service on security guard services would reveal trends in contract values, award types, and contractor performance over previous fiscal years. This analysis could identify any significant increases or decreases in spending, potential shifts in service requirements, or changes in the competitive landscape. For instance, a consistent year-over-year increase might suggest growing security needs or inflationary pressures, while a decrease could indicate efficiency gains or reduced operational scope. Understanding these patterns provides context for the current $12.1 million award, helping to determine if it aligns with historical investment levels or represents a notable deviation. Without specific historical data, it's challenging to ascertain if this award is part of a stable, growing, or shrinking budget for these services.

How does the per-unit cost of this contract compare to similar federal security contracts?

Benchmarking the per-unit cost of this contract against similar federal security contracts is crucial for assessing value for money. Since the contract is awarded on a labor hours basis (PT: LABOR HOURS), a relevant comparison would involve analyzing the average hourly rates paid to security guards across other federal contracts with similar requirements (e.g., level of security clearance, geographic location, specific duties). If the hourly rates in this $12.1 million award are significantly higher than the federal average, it could indicate potential overpricing or unique service demands. Conversely, rates below the average might suggest a highly competitive bid or potentially lower service quality. Access to a comprehensive database of federal contract pricing, broken down by service type and location, is necessary for an accurate per-unit cost comparison.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Key Performance Indicators (KPIs) for a security guard contract typically revolve around guard presence, response times, incident reporting accuracy, and adherence to post orders. For this contract with the U.S. Marshals Service, specific KPIs would be detailed in the Performance Work Statement (PWS). Measurement methods might include regular site inspections, review of daily logs and incident reports, supervisor assessments, and potentially electronic monitoring systems. For example, a KPI could be '98% guard attendance rate' or 'response to alarm within 5 minutes.' Failure to meet these KPIs could result in contractually defined remedies, such as price reductions or termination for default. The effectiveness of oversight by the U.S. Marshals Service in monitoring these KPIs directly impacts the realization of value and security objectives.

What is the track record of Metropolitan Security Services, Inc. with federal contracts of similar size and scope?

Evaluating the track record of Metropolitan Security Services, Inc. (CO: METROPOLITAN SECURITY SERVICES, INC.) is essential for understanding their capability to fulfill this $12.1 million contract. A review of their past federal contract awards, particularly those for security guard and patrol services (NAICS 561612) with agencies like the Department of Justice or similar law enforcement bodies, would be informative. Key aspects to examine include their performance history (e.g., past performance ratings, any contract disputes or terminations), their experience with contracts of comparable dollar values and durations, and their demonstrated ability to manage labor-hour based contracts effectively. A strong track record suggests a lower risk of performance issues, while a history of problems might warrant closer scrutiny of this new award and its oversight.

What are the potential risks associated with the 'labor hours' contract type for this security service?

The 'labor hours' contract type (PT: LABOR HOURS) for this security service carries inherent risks, primarily related to cost control and contractor efficiency. Unlike fixed-price contracts, labor hour contracts reimburse the contractor for the actual hours worked at pre-negotiated rates. This can lead to cost overruns if the contractor is inefficient, requires more hours than anticipated, or if labor rates escalate unexpectedly. For the government, effective oversight is paramount to ensure that only necessary and productive hours are billed. This requires diligent monitoring of work performed, verification of timesheets, and strong contract management to prevent 'gold-plating' or unnecessary work. The U.S. Marshals Service must have robust systems in place to track and validate all labor hours claimed by Metropolitan Security Services, Inc. to mitigate these risks and ensure fair pricing.

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: 15M20021RA32CSO21

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: $12,101,412

Exercised Options: $12,101,412

Current Obligation: $12,101,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M10522DA4700004

IDV Type: IDC

Timeline