DHS Awards $11.6M for PA Protective Security Officers, Competition Limited by Source Exclusion

Contract Overview

Contract Amount: $11,601,127 ($11.6M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-01

End Date: 2024-07-31

Contract Duration: 304 days

Daily Burn Rate: $38.2K/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 THROUGHOUT THE STATE OF PENNSYLVANIA

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16501

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.6 million to KERBEROS INTERNATIONAL, INC. for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF PENNSYLVANIA Key points: 1. Contract awarded to Kerberos International, Inc. for PSO services in Pennsylvania. 2. Significant spending of $11.6M over 10 months. 3. Competition method involved exclusion of sources, raising potential concerns about price discovery. 4. Sector is Security Guards and Patrol Services, a critical area for government operations.

Value Assessment

Rating: fair

The contract's fixed price of $11.6M for 304 days of service appears high without further benchmarking. The 'exclusion of sources' competition method suggests potential for inflated pricing compared to a fully open market.

Cost Per Unit: $38,162 per day

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This limited competition method may have restricted the pool of potential bidders and potentially impacted the government's ability to secure the lowest possible price.

Taxpayer Impact: Taxpayer funds are being used for essential security services, but the limited competition raises questions about whether the best value was achieved.

Public Impact

Ensures physical security for government facilities and personnel in Pennsylvania. Supports critical infrastructure protection through dedicated security personnel. Potential for increased costs due to limited competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Security Guards and Patrol Services sector is vital for government operations, ensuring safety and security. Spending benchmarks vary widely based on location, service level, and contract duration, but $11.6M for 10 months is substantial.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Analysis of small business participation is not possible from the provided data.

Oversight & Accountability

The 'Office of Procurement Operations' within DHS is responsible for this award. Oversight should focus on the justification for excluding sources and ensuring fair pricing despite limited competition.

Related Government Programs

Risk Flags

Tags

security-guards-and-patrol-services, department-of-homeland-security, pa, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.6 million to KERBEROS INTERNATIONAL, INC.. PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF PENNSYLVANIA

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 $11.6 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-07-31.

What was the specific justification for excluding sources in this procurement, and how did it impact the final price?

The justification for excluding sources is critical for understanding the procurement's integrity. If sources were excluded for non-essential reasons, it could indicate a lack of due diligence in seeking competitive pricing. The impact on price is likely negative, as fewer bidders generally lead to higher costs for the government.

How does the per-unit cost of $38,162 per day compare to similar PSO contracts in Pennsylvania or other states?

Benchmarking this per-unit cost is essential for assessing value. Without comparative data from similar contracts, it's difficult to determine if $38,162 per day is reasonable or excessive. A thorough analysis would require access to historical data and market research on PSO service rates.

What measures are in place to ensure the effectiveness and accountability of Kerberos International, Inc. in delivering PSO services?

Effectiveness and accountability are paramount for security contracts. DHS should have performance standards, regular reporting requirements, and quality assurance checks. Contract managers must actively monitor service delivery, address any deficiencies promptly, and ensure compliance with all contract terms to guarantee taxpayer value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING 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: $11,601,127

Exercised Options: $11,601,127

Current Obligation: $11,601,127

Actual Outlays: $11,208,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP323DE3000002

IDV Type: IDC

Timeline

Start Date: 2023-10-01

Current End Date: 2024-07-31

Potential End Date: 2024-07-31 00:00:00

Last Modified: 2025-12-16

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