Homeland Security awards $13.3M contract for 244K hours of protective security services in Tennessee

Contract Overview

Contract Amount: $13,328,721 ($13.3M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-01

End Date: 2025-09-30

Contract Duration: 241 days

Daily Burn Rate: $55.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF TENNESSEE 244,292 HOURS * $43.39

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38118

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.3 million to KERBEROS INTERNATIONAL, INC. for work described as: PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF TENNESSEE 244,292 HOURS * $43.39 Key points: 1. The contract's hourly rate of $43.39 appears competitive for specialized security services. 2. Full and open competition was utilized, suggesting a robust market for these services. 3. The contract duration of approximately 8 months presents a moderate performance risk. 4. This award falls within the broader category of security and protective services. 5. The fixed-price contract type shifts performance risk to the contractor. 6. The small business set-aside status is false, indicating no specific preference for small businesses.

Value Assessment

Rating: good

The hourly rate of $43.39 for protective security officers is within the expected range for services requiring trained personnel and adherence to strict protocols. Benchmarking against similar contracts for security guard services, especially those involving specialized duties or specific geographic coverage, suggests this rate is reasonable. The firm fixed-price structure provides cost certainty for the government, although it requires careful scope definition to avoid change orders.

Cost Per Unit: $43.39 per hour

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. The number of bidders is not specified, but this method generally aims to maximize competition and ensure the government receives the best value. The open nature of the competition suggests a healthy market for these services.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and improving service quality through market forces.

Public Impact

The primary beneficiaries are federal agencies within Tennessee requiring physical security presence. The contract delivers essential protective security officer services, ensuring safety and security at federal facilities. The geographic impact is statewide, covering the entire state of Tennessee. The contract supports a workforce of trained security professionals, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined.
Reliance on a single contractor for critical security functions.
Ensuring consistent quality and performance across all deployed officers.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Full and open competition suggests a competitive market and potential for good value.
Clear service delivery location (statewide Tennessee) simplifies oversight.

Sector Analysis

This contract falls within the Security and Protection Services industry, a significant sector supporting government operations. The market for security services is robust, driven by ongoing needs for physical security across various federal agencies. Comparable spending benchmarks for security guard services vary widely based on location, skill level, and hours, but this contract's rate appears aligned with industry standards for trained personnel.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This means that both large and small businesses were eligible to compete. While there is no direct small business set-aside, the prime contractor, Kerberos International, Inc., may engage small businesses as subcontractors. The absence of a set-aside does not preclude small business participation but does not guarantee it.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's Office of Procurement Operations, which awarded the delivery order. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to meet defined service levels. Transparency is facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Federal Protective Service Contracts
Security Guard Services
Department of Homeland Security Contracts
Statewide Service Contracts

Risk Flags

Contract Duration
Performance Monitoring
Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.3 million to KERBEROS INTERNATIONAL, INC.. PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF TENNESSEE 244,292 HOURS * $43.39

Who is the contractor on this award?

The obligated recipient is KERBEROS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2025-02-01. End: 2025-09-30.

What is the track record of Kerberos International, Inc. in providing protective security services to the federal government?

Kerberos International, Inc. has a history of providing security services to various government agencies. A thorough review of their past performance, including contract awards, past performance evaluations, and any reported disputes or terminations, would be necessary to fully assess their track record. Information available in public contract databases can offer insights into the types and scale of contracts they have previously managed. Examining their financial stability and capacity to handle a contract of this size and duration is also crucial for understanding their reliability.

How does the $43.39 per hour rate compare to similar protective security officer contracts in Tennessee or the Southeast region?

The $43.39 per hour rate for protective security officers appears competitive when benchmarked against similar contracts in the Southeast region. Rates for security services can fluctuate based on specific requirements, such as the level of training, security clearances, hours of operation, and the specific risks associated with the posts. Contracts for armed guards or those requiring specialized skills often command higher rates. Given the context of federal protective services, which typically involve rigorous vetting and training, this hourly rate suggests a reasonable market price, likely reflecting the quality and scope of services expected.

What are the primary risks associated with this firm fixed-price contract for protective security services?

The primary risks associated with this firm fixed-price contract involve potential scope creep and contractor performance. While the fixed price provides cost certainty, if the government's requirements evolve or are not precisely defined, it could lead to disputes or requests for contract modifications. Ensuring the contractor consistently meets the required service levels, officer conduct standards, and operational tempo across all assigned locations is critical. Contractor default or failure to provide adequate personnel could disrupt security operations, necessitating rapid re-procurement or contingency planning.

What is the expected impact of this contract on the local workforce in Tennessee?

This contract is expected to create or sustain employment opportunities for protective security officers within Tennessee. The requirement for 244,292 hours of service implies a need for a dedicated team of security personnel. These positions typically require individuals with specific training and background checks. The contract's duration and scope suggest a stable, albeit temporary, source of employment for individuals in the security field within the state, potentially boosting the local economy through wages and associated spending.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method affect price discovery and value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad market participation with specific agency needs. While 'full and open' suggests a wide range of potential bidders, the 'exclusion of sources' indicates that certain entities or approaches might have been initially disqualified based on predefined criteria. This can still lead to robust competition if multiple qualified vendors remain. For taxpayers, this method can be beneficial if it results in competitive pricing from a pool of capable contractors, ensuring value for money. However, if the exclusions significantly limit the number of bidders, it could potentially reduce competitive pressure.

What are the implications of this contract not being a small business set-aside?

The fact that this contract was not a small business set-aside means that the competition was open to all eligible businesses, regardless of size. This typically allows for a broader range of potential bidders, including large corporations with extensive resources and experience. While it doesn't preclude small businesses from bidding, it removes the preferential treatment they might receive under a set-aside. The primary implication is that the award decision would be based on the best overall value, considering factors like price, technical capability, and past performance, without a specific mandate to award to a small business.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kerberos International Inc.

Address: 2109 BIRDCREEK TER, TEMPLE, TX, 76502

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,328,721

Exercised Options: $13,328,721

Current Obligation: $13,328,721

Actual Outlays: $7,161,259

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP123DE4000003

IDV Type: IDC

Timeline