DHS awards $54M for Nevada security services, with Kerberos International Inc. securing the contract

Contract Overview

Contract Amount: $54,050 ($54.1K)

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: $148/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) TEMPORARY ADDITIONAL SERVICES IN NEVADA

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89101

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54,050.17 to KERBEROS INTERNATIONAL, INC. for work described as: PROTECTIVE SECURITY OFFICER (PSO) TEMPORARY ADDITIONAL SERVICES IN NEVADA Key points: 1. The contract value of $54.05 million for a one-year period suggests a significant need for protective security services in Nevada. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates a competitive process but with specific source exclusions. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The National Industry Classification code 561612 points to a specialized market for security guards and patrol services. 5. The contract duration of 364 days aligns with typical annual service requirements. 6. The geographic focus on Nevada highlights a specific regional operational need for the Department of Homeland Security.

Value Assessment

Rating: good

The contract value of $54.05 million for one year of protective security services in Nevada appears to be within a reasonable range for large-scale security operations. Benchmarking against similar contracts for PSO services across different regions would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without detailed cost breakdowns or comparisons to market rates for specific PSO roles and hours, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This means that while the competition was intended to be open, certain sources were excluded from bidding. The specific reasons for these exclusions are not detailed in the provided data. The number of bidders is not specified, but the 'limited' competition level suggests that fewer than a full and open competition might have participated, potentially impacting price discovery.

Taxpayer Impact: A limited competition may result in fewer bids than a fully open process, potentially leading to higher prices for taxpayers if robust competition is not achieved. However, the exclusion of sources might be based on specific qualifications or security requirements deemed essential for the service.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its various facilities or operations within Nevada, which will receive enhanced security coverage. The services delivered include protective security officer functions, likely encompassing access control, surveillance, and response to security incidents. The geographic impact is concentrated within Nevada, supporting federal security needs in that state. The contract supports the workforce employed by Kerberos International, Inc., providing jobs for security professionals in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a competitive process warrants scrutiny to ensure fairness and prevent anti-competitive practices.
The specific nature of the 'exclusion of sources' needs further clarification to understand its impact on the competitive landscape and potential cost implications.
The reliance on a single contractor for a significant security service in a specific region could pose a risk if the contractor faces operational challenges or performance issues.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
The contract is awarded to Kerberos International, Inc., suggesting they possess the necessary qualifications and capabilities for protective security services.
The duration of the contract (nearly a full year) indicates a stable requirement and allows for consistent service delivery.

Sector Analysis

The security services industry is a substantial sector within the broader professional services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) category, which includes establishments primarily engaged in providing security guards and patrol services. The federal government is a significant consumer of these services, particularly for protecting federal facilities, personnel, and sensitive information. Comparable spending benchmarks for similar large-scale security contracts can vary widely based on geographic location, scope of services, and security clearance requirements.

Small Business Impact

The provided data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this particular award appears limited, unless Kerberos International, Inc. voluntarily engages small businesses in its subcontracting chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning this contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Guard and Patrol Services
Contracting for Security Personnel

Risk Flags

Limited Competition
Exclusion of Sources
Potential for Price Inflation due to Limited Bidders
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54,050.17 to KERBEROS INTERNATIONAL, INC.. PROTECTIVE SECURITY OFFICER (PSO) TEMPORARY ADDITIONAL SERVICES IN NEVADA

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 $54,050.17.

What is the period of performance?

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

What specific security threats or operational needs in Nevada prompted this $54 million contract award for protective security officers?

The provided data does not specify the exact security threats or operational needs in Nevada that led to this contract award. However, the Department of Homeland Security (DHS) is responsible for protecting federal facilities, critical infrastructure, and national security interests. Awards of this magnitude typically support significant federal installations, large-scale events, or ongoing security requirements for sensitive government operations within the designated geographic area. The classification of the service as 'PROTECTIVE SECURITY OFFICER (PSO) TEMPORARY ADDITIONAL SERVICES' suggests a need for augmented or specialized security presence beyond standard federal protective services, potentially related to increased threat levels, specific events, or the expansion of federal operations in Nevada.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method compare to standard full and open competition, and what are the implications for cost?

Full and open competition allows all responsible sources to submit bids. 'Full and open competition after exclusion of sources' implies that while the competition was intended to be open, certain potential bidders were explicitly excluded. The reasons for exclusion are critical and could range from specific security clearances not met, past performance issues, or unique technical requirements that only a subset of potential contractors could fulfill. This exclusion can limit the number of bidders, potentially reducing the competitive pressure on pricing compared to a truly unrestricted competition. While it aims to ensure only qualified entities bid, it might lead to higher costs for taxpayers if the excluded sources could have offered more competitive pricing.

What is the typical cost range for Protective Security Officer (PSO) services for a contract of this size and duration, and how does this award benchmark?

Benchmarking the cost for PSO services is complex due to variations in labor rates, geographic location, required security clearances, hours of operation, and specific duties. Contracts of this scale, involving potentially hundreds of officers over a year, can range significantly. For a $54 million contract over 364 days, the average daily cost is approximately $148,000, or roughly $6,167 per hour if assuming 24/7 coverage. However, actual hourly rates for PSOs can vary from $30-$100+ depending on these factors. Without knowing the exact number of PSOs, their roles, and the specific operational tempo in Nevada, a precise benchmark is difficult. This award appears substantial, suggesting a high level of service or a large number of personnel are required.

What are the potential risks associated with Kerberos International, Inc. being awarded this significant security contract, considering their track record?

The provided data does not include information on Kerberos International, Inc.'s track record. Potential risks associated with any large security contract include performance failures (e.g., inadequate response to incidents, insufficient staffing), security breaches, or contractor misconduct. For a contract of this magnitude, risks could be amplified. A thorough assessment would require reviewing past performance evaluations, any history of contract disputes or terminations, financial stability, and compliance records of Kerberos International, Inc. The 'exclusion of sources' might also hint at potential past issues with certain bidders, but without specifics, it's speculative. The government's oversight mechanisms are crucial for mitigating these risks.

How does the geographic focus on Nevada impact the contract's value and the selection of the contractor?

Focusing on Nevada implies that the contractor must have the capability to recruit, train, and deploy personnel within that specific state. This can influence costs due to local labor market conditions, cost of living, and logistical challenges. Contractors with established operations or strong local ties in Nevada might have a competitive advantage. The value of the contract is directly tied to the security needs within Nevada, potentially related to federal facilities, border security operations (if applicable in parts of Nevada), or other DHS missions in the region. The selection process would likely weigh a bidder's demonstrated understanding of and capacity to operate effectively within Nevada's specific environment.

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: $54,050

Exercised Options: $54,050

Current Obligation: $54,050

Actual Outlays: $50,033

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW24DW9000003

IDV Type: IDC

Timeline