DOJ's U.S. Marshals Service awards $19M for security services in Tennessee, emphasizing labor hours

Contract Overview

Contract Amount: $19,055,826 ($19.1M)

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: $52.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 2 D54 - 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 $19.1 million to METROPOLITAN SECURITY SERVICES, INC. for work described as: CIRCUIT 2 D54 - FY 2026 CSO PROGRAM FUNDING Key points: 1. Contract value of $19.06 million for a one-year period suggests a significant need for security personnel. 2. The award to Metropolitan Security Services, Inc. indicates a focus on established providers for critical security functions. 3. The use of 'labor hours' as the contract type implies flexibility in staffing but requires careful monitoring of hours worked. 4. The contract's duration of 364 days aligns with typical annual security service procurements. 5. The North American Industry Classification System (NAICS) code 561612 points to a specialized security guard and patrol services market. 6. The contract is a delivery order under a larger contract vehicle, suggesting a streamlined procurement process for existing agreements.

Value Assessment

Rating: good

The contract value of approximately $19 million for one year of security services appears reasonable given the scope of 'Security Guards and Patrol Services' for the U.S. Marshals Service. Benchmarking against similar contracts for federal security personnel in the Southeast region would provide a more precise value-for-money assessment. The 'labor hours' pricing structure necessitates close oversight to ensure efficient use of resources and prevent cost overruns, but it allows for adaptability to fluctuating security needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and allows the government to select the most capable and cost-effective provider. The U.S. Marshals Service's decision to use full and open competition suggests confidence in the market's ability to meet their security requirements.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

The primary beneficiaries are the U.S. Marshals Service, which will receive essential security and patrol services to support its law enforcement operations. The services delivered include security guard and patrol functions, crucial for protecting federal facilities, personnel, and assets. The geographic impact is concentrated in Tennessee (ST: TN, SN: TENNESSEE), where the services will be rendered. The contract supports jobs within the security services industry, potentially benefiting security guards and supervisory staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if labor hours are not meticulously tracked and managed.
Reliance on a single delivery order may limit long-term strategic planning for security needs.
The 'labor hours' pricing model requires robust performance monitoring to ensure efficiency and prevent overbilling.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
The contract is a delivery order, implying it's part of a pre-vetted contract vehicle, potentially reducing administrative burden.
The specific NAICS code indicates a focus on specialized security services, suggesting the contractor has relevant expertise.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal spending on security guards and patrol services is substantial, driven by the need to protect government facilities, personnel, and sensitive information. This contract, valued at $19.06 million, represents a portion of the U.S. Marshals Service's overall security budget. Comparable contracts in this sector often involve extensive background checks, specialized training, and adherence to strict operational protocols, reflecting the critical nature of the services provided.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor, Metropolitan Security Services, Inc., is likely not a small business, or if it is, the contract was not specifically set aside for small business participation. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Further analysis would be needed to determine if subcontracting opportunities exist or are mandated under the parent contract vehicle.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Marshals Service contracting officer and contract specialists. Performance monitoring will be crucial, especially given the 'labor hours' pricing structure, to ensure that services are delivered as specified and that hours billed are accurate and necessary. Transparency is facilitated by the public nature of contract awards, but detailed performance metrics and financial breakdowns may not be publicly available. The Inspector General for the Department of Justice would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts
Law Enforcement Support Services
Department of Justice Operational Support

Risk Flags

Labor Hours Pricing Model Requires Close Monitoring
Potential for Unforeseen Cost Increases
Performance Verification is Critical

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $19.1 million to METROPOLITAN SECURITY SERVICES, INC.. CIRCUIT 2 D54 - 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 $19.1 million.

What is the period of performance?

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

What is the track record of Metropolitan Security Services, Inc. with federal contracts, particularly with the Department of Justice or U.S. Marshals Service?

A review of federal procurement data would be necessary to fully assess Metropolitan Security Services, Inc.'s track record. Key indicators to examine include the number of past federal awards, their values, performance ratings (if available), and any history of contract disputes or terminations. Specifically, understanding their experience with similar security guard and patrol services, especially for law enforcement agencies like the U.S. Marshals Service, would provide insight into their capability and reliability. A history of successful contract performance, positive past performance evaluations, and timely delivery of services would indicate a lower risk associated with this award. Conversely, any significant past issues could raise concerns about the contractor's ability to meet the current contract's requirements effectively and efficiently.

How does the awarded amount of $19.06 million compare to similar security service contracts awarded by the U.S. Marshals Service or other federal agencies in the past year?

To benchmark the $19.06 million award, one would compare it against recent contracts for security guard and patrol services procured by the U.S. Marshals Service and other federal agencies, particularly those with similar scope, duration, and geographic focus. For instance, contracts for similar services in other states or for agencies with comparable security needs (e.g., FBI, DEA) could serve as benchmarks. The 'labor hours' pricing structure also requires comparison with contracts using similar payment terms. If this contract's per-hour rate or total value significantly deviates from the average for comparable services, it could indicate either exceptional value or potential overpricing. Without specific comparative data, it's difficult to definitively assess value for money, but the amount suggests a substantial requirement for security personnel over the 364-day period.

What are the primary risks associated with a 'labor hours' contract type for security services, and how are they mitigated?

The primary risk with a 'labor hours' contract type is the potential for cost overruns if the number of labor hours required exceeds initial estimates or if hours are not diligently tracked and managed. This can lead to the contractor billing more than anticipated, impacting the overall value for money. Mitigation strategies typically involve robust oversight by the government, including detailed monitoring of hours worked, verification of tasks performed, and comparison against established performance standards. The U.S. Marshals Service would likely implement strict reporting requirements, conduct regular audits of timesheets, and ensure that contract officers representative (CORs) are actively engaged in overseeing the contractor's performance and resource utilization. Clear definitions of tasks and expected efficiency levels are also crucial for managing this risk.

What is the expected effectiveness of Metropolitan Security Services, Inc. in fulfilling the U.S. Marshals Service's security needs in Tennessee?

The expected effectiveness hinges on several factors, including the contractor's demonstrated experience, the quality of their personnel, their training programs, and the effectiveness of the oversight mechanisms in place. As the contract was awarded through full and open competition, it implies that Metropolitan Security Services, Inc. was deemed capable of meeting the U.S. Marshals Service's requirements. The specific nature of the U.S. Marshals Service's needs—which often involve protecting federal courthouses, witnesses, and sensitive operations—demands highly reliable and professional security personnel. The effectiveness will ultimately be measured by the contractor's ability to prevent security incidents, maintain order, and respond appropriately to emergencies, all while adhering to the terms of the contract and federal security standards.

How does this $19.06 million award fit into the broader historical spending patterns for security services by the Department of Justice or the U.S. Marshals Service?

This $19.06 million award represents a significant, but likely typical, annual expenditure for security services by a major law enforcement agency like the U.S. Marshals Service. The Department of Justice, encompassing various agencies, consistently allocates substantial funds towards security to protect its personnel, facilities, and operations nationwide. Historical spending data would reveal whether this award is consistent with previous years' expenditures for similar services in Tennessee or nationally. Factors such as changes in threat levels, expansion of facilities, or shifts in security strategies could influence year-over-year spending. Understanding this context helps determine if the current award reflects stable requirements or a notable increase or decrease in security service needs.

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: $19,055,826

Exercised Options: $19,055,826

Current Obligation: $19,055,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M10523DA4700066

IDV Type: IDC

Timeline