DHS Awards $12.6M for Armed Guard Services in VA/MD, Competition Excluded Sources
Contract Overview
Contract Amount: $12,561,438 ($12.6M)
Contractor: Kerberos International, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMED GUARD II SERVICES IN NORTHERN VIRGINIA & MARYLAND
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $12.6 million to KERBEROS INTERNATIONAL, INC. for work described as: ARMED GUARD II SERVICES IN NORTHERN VIRGINIA & MARYLAND Key points: 1. Spending: $12.6 million over 1 year. 2. Competition: Full and open, but sources were excluded. 3. Risk: Potential for reduced price discovery due to source exclusion. 4. Sector: Security services.
Value Assessment
Rating: fair
The contract's price is set at a firm fixed price. Benchmarking against similar contracts for armed guard services in the region is needed to assess value, especially given the exclusion of sources.
Cost Per Unit: $34,509 (annualized)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, but sources were excluded. This exclusion may limit the pool of bidders and potentially impact the effectiveness of price discovery.
Taxpayer Impact: Taxpayer funds are being used for security services. The impact depends on whether the exclusion of sources led to a higher price than could have been achieved otherwise.
Public Impact
Ensures security presence in critical DHS facilities in Northern Virginia and Maryland. Supports federal agency operations by providing essential protective services. Potential for increased costs due to limited competition or source exclusion.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Source exclusion in a full and open competition.
- Limited duration of the contract.
- No small business participation noted.
Positive Signals
- Addresses a clear need for armed guard services.
- Firm fixed price contract type can provide cost certainty.
Sector Analysis
This contract falls within the security services sector, which is crucial for government facility protection. Benchmarks for similar services vary widely based on location, threat level, and specific requirements.
Small Business Impact
There is no indication of small business participation in this contract. Further analysis would be needed to determine if opportunities were missed or if the nature of the requirement precluded small business involvement.
Oversight & Accountability
The Department of Homeland Security, Office of Procurement Operations, awarded this contract. Oversight should focus on the justification for excluding sources and ensuring the price remains competitive despite this.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for reduced competition due to source exclusion.
- Lack of transparency regarding the reasons for source exclusion.
- No stated small business participation.
- Short contract duration may indicate a need for re-competition or potential instability.
Tags
security-guards-and-patrol-services, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $12.6 million to KERBEROS INTERNATIONAL, INC.. ARMED GUARD II SERVICES IN NORTHERN VIRGINIA & MARYLAND
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 $12.6 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What was the justification for excluding specific sources from the full and open competition?
The justification for excluding sources from a full and open competition is critical for understanding the procurement's integrity. Agencies typically require a compelling reason, such as national security concerns, unique capabilities, or specific technical requirements that only certain sources can meet. Without this justification, the exclusion raises questions about fairness and potential favoritism, impacting the perceived value for taxpayer money.
How does the per-unit cost compare to industry benchmarks for similar armed guard services in the region?
Comparing the annualized per-unit cost of $34,509 to industry benchmarks is essential for assessing value. Factors like the number of guards, hours of service, required certifications, and specific security protocols influence pricing. A detailed benchmark analysis against comparable contracts in Northern Virginia and Maryland would reveal if this price is competitive or if the source exclusion led to inflated costs.
What is the potential impact of source exclusion on the long-term effectiveness and cost of security services?
Excluding sources, even in a nominally full and open competition, can limit innovation and drive up costs over time. It may prevent the agency from benefiting from potentially more cost-effective or capable providers. This could lead to a less competitive market for future procurements and potentially higher prices for essential security services, impacting the agency's budget and operational efficiency.
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
Solicitation ID: 70RFP221REC000003
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, Economically Disadvantaged Women Owned Small Business, 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: $12,998,819
Exercised Options: $12,998,819
Current Obligation: $12,561,438
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP222DEC000003
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-13
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