DHS awards $8.2M contract for Nevada security services to Kerberos International, Inc

Contract Overview

Contract Amount: $8,202,325 ($8.2M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-01

End Date: 2025-08-31

Contract Duration: 364 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEVADA BASIC PROTECTIVE SECURITY OFFICER SERVICES.

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89101

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.2 million to KERBEROS INTERNATIONAL, INC. for work described as: NEVADA BASIC PROTECTIVE SECURITY OFFICER SERVICES. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract is for protective security officer services in Nevada, a critical function for agency operations. 3. Fixed-price contract type suggests cost certainty for the government, though it may shift risk to the contractor. 4. The duration of 364 days provides a defined period for service delivery. 5. The award amount of $8.2 million falls within a moderate spending range for such services. 6. The North American Industry Classification System (NAICS) code 561612 points to a specialized security services market.

Value Assessment

Rating: good

The contract value of $8.2 million for one year of protective security services in Nevada appears reasonable when benchmarked against similar government contracts for security personnel. While specific per-unit cost data is not provided, the overall award suggests a competitive pricing structure was achieved through the procurement process. The firm-fixed-price nature of the contract helps in budget predictability for the Department of Homeland Security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific procurement method implies that while the competition was intended to be open, certain sources were excluded prior to the final award. The exact reasons for exclusion are not detailed, but it suggests a more controlled competitive environment than a purely open solicitation. The number of bidders is not specified, making it difficult to fully assess the breadth of competition.

Taxpayer Impact: This procurement method, while allowing for competition, may limit the number of potential offerors, potentially impacting the lowest possible price achievable for taxpayers.

Public Impact

The Department of Homeland Security (DHS) will benefit from enhanced protective security services in Nevada. The contract ensures the delivery of essential security guard and patrol services. Services will be geographically focused within the state of Nevada. The contract supports jobs within the private security industry in Nevada.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed information on the exclusion of sources in the 'Full and Open Competition After Exclusion of Sources' method.
Absence of specific performance metrics or KPIs to evaluate contractor effectiveness.
No data provided on the number of bidders, making it hard to gauge the intensity of competition.
The firm-fixed-price contract could lead to contractor-driven cost-saving measures that might impact service quality if not closely monitored.

Positive Signals

Awarded through a competitive process, suggesting an effort to secure value for money.
The firm-fixed-price contract provides cost certainty for the government.
The contract duration is clearly defined, allowing for structured service delivery and oversight.
The specialized nature of the service (NAICS 561612) indicates a focus on professional security expertise.

Sector Analysis

The security services industry is a significant sector within the broader professional services market, encompassing a wide range of protective and investigative activities. Government contracts for security guards and patrol services are common, driven by the need to protect federal facilities, personnel, and assets. This contract for Nevada falls within this established market, with spending benchmarks varying based on location, service level, and contract duration. The NAICS code 561612 specifically targets establishments primarily engaged in providing guard and patrol services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The prime contractor, Kerberos International, Inc., will be responsible for delivering the services, and any subcontracting would be at their discretion and not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program officials within the Department of Homeland Security. The firm-fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the defined service requirements and performance standards outlined in the contract. Transparency is generally facilitated through contract award databases, but specific details on ongoing performance monitoring or the involvement of an Inspector General are not provided in this data.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
State-Specific Security Guard Contracts
Protective Services for Federal Facilities

Risk Flags

Competition Method Ambiguity
Lack of Performance Metrics Detail
Potential for Cost-Cutting Impacting Quality

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.2 million to KERBEROS INTERNATIONAL, INC.. NEVADA BASIC PROTECTIVE SECURITY OFFICER SERVICES.

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 $8.2 million.

What is the period of performance?

Start: 2024-09-01. End: 2025-08-31.

What is the track record of Kerberos International, Inc. in performing similar federal contracts?

Information regarding the specific track record of Kerberos International, Inc. in performing similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Federal procurement systems often contain past performance information that can shed light on a contractor's reliability, quality of service, and adherence to contract terms. Without this specific data, it is difficult to definitively assess their suitability beyond the current award.

How does the awarded price compare to market rates for security services in Nevada?

The provided data does not include a detailed breakdown of per-unit costs or specific service levels, making a direct comparison to market rates challenging. However, the total award of $8.2 million for a 364-day contract for protective security officer services in Nevada can be considered a benchmark. To assess market competitiveness, one would typically compare this to other government or large commercial contracts for similar services in the same geographic region, considering factors like the number of personnel, hours of coverage, and required security clearances. The 'Full and Open Competition After Exclusion of Sources' suggests an attempt to achieve competitive pricing, but the actual value proposition relative to market rates would require more granular cost data.

What are the primary risks associated with this contract for the Department of Homeland Security?

Key risks for DHS include potential underperformance by the contractor, leading to security gaps. Given the firm-fixed-price nature, there's a risk that Kerberos International might cut corners on staffing or training to maximize profit, impacting service quality. The 'exclusion of sources' aspect of the competition could also be a risk if it inadvertently limited the pool of highly qualified bidders, potentially leading to a less optimal outcome. Furthermore, reliance on a single contractor for critical security functions presents a concentration risk. Effective oversight and clear performance standards are crucial to mitigate these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for this type of service?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements that might necessitate excluding certain types of offerors or specific sources. For security services, this could be relevant if specific certifications, clearances, or past performance with sensitive government agencies are mandatory. While it allows for competition among the remaining eligible sources, it inherently restricts the pool compared to truly open competition. The effectiveness in ensuring optimal value depends heavily on the justification for the exclusions and the number and quality of the bidders that remained. If the exclusions were well-justified and a robust competition ensued among the eligible bidders, good value could be achieved. However, if the exclusions were overly broad or the remaining competition was weak, the value might be compromised.

What is the historical spending pattern for protective security services in Nevada by DHS?

The provided data does not include historical spending patterns for protective security services in Nevada by DHS. To analyze this, one would need to access historical contract databases and filter for similar services (NAICS 561612, security guards) awarded by DHS within the state of Nevada over previous fiscal years. This would reveal trends in contract values, durations, and the number of awards, helping to contextualize the current $8.2 million award. Understanding historical spending can inform budget planning and identify potential increases or decreases in demand for these services.

Are there specific performance metrics defined in the contract to measure the quality of security services provided?

The provided data summary does not specify the performance metrics or Key Performance Indicators (KPIs) that are part of the contract. While the contract is firm-fixed-price, effective oversight typically relies on clearly defined performance standards and metrics to ensure the contractor meets expectations. These could include response times, incident reporting accuracy, personnel appearance and conduct, and adherence to post orders. Without explicit mention of these metrics in the summary, it's assumed they are detailed within the full contract document and are subject to government oversight.

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: 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: $8,202,325

Exercised Options: $8,202,325

Current Obligation: $8,202,325

Actual Outlays: $7,975,101

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW24DW9000003

IDV Type: IDC

Timeline