DOJ's $8.5M contract for security services in Tennessee awarded to Metropolitan Security Services, Inc

Contract Overview

Contract Amount: $8,468,526 ($8.5M)

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: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 9 D97 - 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 $8.5 million to METROPOLITAN SECURITY SERVICES, INC. for work described as: CIRCUIT 9 D97 - FY 2026 CSO PROGRAM FUNDING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is one year, with a potential for follow-on work. 3. Services are for security guards and patrol, a critical function for the U.S. Marshals Service. 4. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contract is labor hour based, which can be flexible but requires careful monitoring of hours worked. 6. The base contract value is approximately $8.5 million for the base period.

Value Assessment

Rating: fair

The contract value of $8.5 million for a one-year security services contract appears within a reasonable range for the scope of work. However, without specific details on the number of personnel, hours, and geographic coverage, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for security services in Tennessee or for the U.S. Marshals Service would provide better context. The labor hour pricing structure necessitates close oversight to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The U.S. Marshals Service likely sought to maximize value by allowing a broad range of qualified security firms to compete for this requirement.

Taxpayer Impact: Taxpayers benefit from a competitive process that is intended to secure the best possible price for essential security services, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the U.S. Marshals Service, which will receive enhanced security for its facilities and operations. The contract ensures the provision of security guard and patrol services, contributing to public safety and law enforcement support. Services are geographically focused within Tennessee, impacting local security operations. The contract supports jobs within the security services industry in Tennessee.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hour pricing if not closely managed.
Dependence on a single contractor for critical security functions requires robust performance monitoring.
The specific details of the security requirements are not fully elaborated, making it difficult to assess the full scope of risk.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
The contract is for essential security services, indicating a clear and defined need.
The contractor, Metropolitan Security Services, Inc., is likely experienced in providing such services.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services industry. This contract falls under the Security Guards and Patrol Services sub-sector (NAICS 561612). The federal government is a major consumer of security services, with spending often driven by the need to protect federal facilities, personnel, and sensitive information. Benchmarking this contract against other federal security contracts would reveal if the pricing and terms are competitive within the market.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on full and open competition. While large businesses may compete, there is no explicit requirement for subcontracting to small businesses within the provided data. The impact on the small business ecosystem would depend on whether smaller firms were able to compete or if they are typically subcontractors to larger firms in this space.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Marshals Service contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Labor Hour Pricing Requires Close Monitoring
Potential for Undefined Scope Creep
Dependence on Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $8.5 million to METROPOLITAN SECURITY SERVICES, INC.. CIRCUIT 9 D97 - 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 $8.5 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 by the U.S. Marshals Service in Tennessee for security services would provide crucial context for this $8.5 million contract. Without specific historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of investment. Past contracts could reveal trends in pricing, contractor performance, and the types of security services most frequently procured. Understanding this history would help assess whether the current contract's value is consistent with previous expenditures or if there are significant deviations that warrant further investigation into the reasons behind them, such as changes in security needs or market conditions.

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

A key aspect of assessing the value of this labor-hour contract is comparing the per-hour labor rates to industry benchmarks. While the total contract value is $8.5 million, the actual cost will depend on the total hours worked. If the per-hour rates are significantly higher than the average for security guards with similar qualifications and experience in Tennessee, it could indicate a potential overpayment or a less competitive bid. Conversely, rates below the market average might suggest a highly competitive bid or potentially lower service quality. Accessing data from sources like the Bureau of Labor Statistics or industry salary surveys for Tennessee would be necessary for a robust comparison.

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

Investigating the track record of Metropolitan Security Services, Inc. with federal contracts, especially those awarded by the Department of Justice, is essential for risk assessment. Information on past performance, including any history of contract disputes, performance issues, or successful contract completions, would provide insight into the contractor's reliability and capability. Examining their past federal awards can also reveal patterns in contract types and values, helping to determine if this $8.5 million delivery order is consistent with their typical engagement level. A review of past performance evaluations, if publicly available, would offer direct feedback on their service delivery.

What specific security risks or threats is this contract intended to mitigate for the U.S. Marshals Service in Tennessee?

Understanding the specific security risks or threats that this $8.5 million contract aims to mitigate is crucial for evaluating its necessity and effectiveness. The U.S. Marshals Service operates in environments that can involve high-risk individuals and sensitive operations, necessitating robust security measures. Identifying the particular threats—such as unauthorized access, potential for violence, or protection of critical infrastructure—would clarify the scope and importance of the security guard and patrol services. This context helps in assessing whether the allocated funds are commensurate with the identified risks and if the chosen security approach is appropriate.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract to ensure service quality?

The effectiveness of any service contract hinges on measurable performance. For this $8.5 million security services contract, it is vital to know if specific performance metrics or Key Performance Indicators (KPIs) are in place. These might include response times, incident reporting accuracy, personnel punctuality, and adherence to post orders. Without clearly defined and monitored KPIs, it is challenging to objectively assess whether Metropolitan Security Services, Inc. is delivering the required quality of service. The U.S. Marshals Service should have mechanisms to track these metrics and hold the contractor accountable for meeting or exceeding them.

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: $8,468,526

Exercised Options: $8,468,526

Current Obligation: $8,468,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M10523DA4700068

IDV Type: IDC

Timeline