DHS awards $12.9M for Protective Security Officer services in Virginia, with Kerberos International Inc. as prime

Contract Overview

Contract Amount: $12,930,221 ($12.9M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN VIRGINIA

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.9 million to KERBEROS INTERNATIONAL, INC. for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN VIRGINIA Key points: 1. Contract value of $12.9M over one year indicates significant demand for security services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. Security Guards and Patrol Services (NAICS 561612) is a mature market with established players. 5. The delivery order structure allows for flexibility in service deployment as needed. 6. Geographic focus on Virginia highlights regional security needs for the Department of Homeland Security.

Value Assessment

Rating: good

The total contract value of $12.9M for one year of PSO services in Virginia appears reasonable given the scope. Benchmarking against similar contracts for security services in the region would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for controlling costs. Without specific performance metrics or detailed service requirements, a definitive assessment of efficiency is challenging, but the competitive award suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, specific sources may have been excluded for defined reasons. The number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This level of competition is generally expected to drive prices towards market rates and encourage efficient service delivery.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by securing services at a fair market price. It reduces the risk of overpayment and encourages contractors to offer competitive bids.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its facilities within Virginia, which will receive essential protective security services. The services delivered include the deployment of Protective Security Officers (PSOs) to ensure safety and security. The geographic impact is concentrated within Virginia, supporting federal operations in that state. The contract supports jobs within the security services industry, potentially benefiting local workforces in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the awarded services.
The exclusion of sources, even within a full and open competition, warrants further investigation into the rationale.
Limited data on the number of bidders prevents a full understanding of the competitive intensity.
The contract duration of one year may lead to recurring contract administration efforts and potential for price increases upon renewal.

Positive Signals

The contract was awarded through a full and open competition, indicating a commitment to leveraging market forces.
The firm fixed-price contract type provides cost certainty for the government.
The award to Kerberos International, Inc. suggests they met the government's requirements for security services.
The focus on a specific geographic region (Virginia) allows for tailored security solutions.

Sector Analysis

The Security Guards and Patrol Services sector (NAICS 561612) is a significant part of the broader security and investigation services industry. This market is characterized by a mix of large, established firms and numerous smaller specialized companies. Federal spending in this sector is driven by the need for physical security at government facilities, installations, and events. The total contract value of $12.9M for one year is substantial, reflecting the critical nature of protective services for agencies like DHS. Comparable spending benchmarks would typically be assessed based on the number of officers, hours, and specific security requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Kerberos International, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this award. The absence of a small business set-aside means that opportunities for small businesses to directly participate as prime contractors on this specific award were limited, though they may still be involved as subcontractors if Kerberos International chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. The specific contracting activity was handled by the Office of Procurement Operations. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Government Facility Security Contracts
Security Guard Services
Commercial and Government Entity (CAGE) Code Contracts

Risk Flags

Potential for performance issues if contractor personnel are not adequately vetted or trained.
Risk of service disruption if the contractor faces financial or operational challenges.
Need for ongoing monitoring to ensure compliance with security standards and contract terms.
The 'Exclusion of Sources' aspect warrants understanding the specific reasons for exclusion to ensure fairness and prevent potential anti-competitive effects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.9 million to KERBEROS INTERNATIONAL, INC.. PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN VIRGINIA

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 $12.9 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the historical spending pattern for Protective Security Officer (PSO) services by the Department of Homeland Security (DHS) in Virginia?

Analyzing historical spending for PSO services by DHS in Virginia requires access to detailed federal procurement data over multiple fiscal years. Based on the provided data, this specific contract represents $12.9 million for the period of July 1, 2024, to June 30, 2025. To understand the pattern, one would need to query databases like FPDS or USASpending.gov for previous contracts awarded by DHS or its components (e.g., Federal Protective Service) for similar security guard and patrol services within the state of Virginia. This would reveal trends in contract values, durations, awardees, and competition levels over time. For instance, a consistent high level of spending might indicate a stable, ongoing need for these services, while fluctuating amounts could suggest changes in security posture, facility requirements, or budget allocations. Understanding this historical context is crucial for assessing whether the current award is in line with past investments and for forecasting future budgetary needs.

How does the pricing of this contract compare to similar security service contracts awarded by other federal agencies?

Benchmarking the pricing of this $12.9 million contract against similar security service contracts requires detailed analysis of contract line item numbers (CLINs), labor categories, hourly rates, and service levels across different agencies. The provided data indicates a firm fixed-price contract for Protective Security Officer (PSO) services in Virginia. To compare, one would need to identify contracts with comparable scopes of work, geographic locations, and security requirements awarded by agencies such as the General Services Administration (GSA), Department of Defense (DoD), or Department of Justice (DOJ). Key metrics for comparison include the average hourly rate per PSO, the cost per square foot of secured area, or the total cost per officer based on a standard work year. Without access to the detailed CLINs and specific service level agreements for this contract and comparable ones, a precise pricing comparison is difficult. However, the 'full and open competition' designation suggests the price was subject to market forces, which generally aids in achieving competitive rates.

What are the specific risks associated with relying on Kerberos International, Inc. for these critical security services?

Assessing the risks associated with Kerberos International, Inc. requires examining their past performance, financial stability, and any history of contract compliance issues. As a provider of Protective Security Officer (PSO) services, potential risks include personnel-related issues such as officer turnover, inadequate training, or background check failures, which could compromise security. There's also a risk of service disruptions due to unforeseen events or contractor performance deficiencies. While the contract was awarded competitively, indicating they met initial requirements, ongoing monitoring is crucial. A review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and any documented disputes or corrective actions would provide a clearer picture of their reliability. The firm fixed-price nature of the contract mitigates financial risk for the government regarding cost overruns, but performance failures could still necessitate costly remedies or replacement of the contractor.

What is the expected impact of this contract on the small business ecosystem in Virginia?

This contract, valued at $12.9 million, was awarded under 'Full and Open Competition After Exclusion of Sources' and was not specifically set aside for small businesses. This means that the prime contract was likely awarded to a large business, Kerberos International, Inc. Consequently, the direct impact on the small business ecosystem as prime contractors for this specific award is minimal. However, large prime contractors often engage small businesses as subcontractors to fulfill portions of their contracts. The extent to which Kerberos International, Inc. utilizes small business subcontractors for these PSO services in Virginia will determine the indirect impact. If they have robust subcontracting plans that include small businesses, it could provide valuable opportunities for them. Conversely, if the work is largely self-performed or subcontracted to other large businesses, the direct benefit to Virginia's small business ecosystem from this particular contract would be limited.

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

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad market participation with specific government needs. 'Full and Open Competition' means offers are solicited from all qualified responsible sources, which generally promotes robust price discovery by encouraging multiple bids. However, the 'Exclusion of Sources' clause indicates that certain potential offerors were intentionally excluded, presumably based on specific criteria outlined in the solicitation (e.g., security clearances, past performance, specific technical capabilities). While this exclusion might slightly narrow the competitive pool compared to pure full and open competition, it ensures that only relevant and capable vendors participate. For taxpayers, this method can still yield good value if the remaining pool of bidders is sufficiently competitive. It prevents the government from being locked into potentially less competitive scenarios while ensuring that the selected contractor meets stringent, pre-defined requirements, thereby potentially reducing risks associated with unqualified bidders.

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: $12,930,221

Exercised Options: $12,930,221

Current Obligation: $12,930,221

Actual Outlays: $10,524,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP223DEC000009

IDV Type: IDC

Timeline