DHS awards $8.3M for Nevada security services, with competition impacting price discovery

Contract Overview

Contract Amount: $8,328,451 ($8.3M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-08-31

Contract Duration: 334 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEVADA PROTECTIVE SECURITY OFFICER SERVICES NEW TASK ORDER

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89101

State: Nevada Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.3 million to KERBEROS INTERNATIONAL, INC. for work described as: NEVADA PROTECTIVE SECURITY OFFICER SERVICES NEW TASK ORDER Key points: 1. Value for money assessed through firm-fixed-price structure and competition. 2. Competition dynamics indicate potential for competitive pricing. 3. Risk indicators include contract type and duration. 4. Performance context is set by the need for protective security services. 5. Sector positioning within security services is clear. 6. Spending is concentrated in Nevada for this specific task order.

Value Assessment

Rating: good

The firm-fixed-price contract type suggests a defined cost structure. Benchmarking against similar security guard contracts would provide a clearer picture of value. The award amount of $8.3 million for a 334-day period appears reasonable for specialized protective services, but a detailed cost breakdown and comparison to market rates for similar services in Nevada would be beneficial for a more precise assessment.

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,' indicating that while the initial exclusion might have narrowed the field, the subsequent competition was open. The number of bidders is not specified, but the 'full and open' designation suggests a robust competitive process was intended, which generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The open competition, even with an initial exclusion, aims to ensure taxpayers receive competitive pricing by allowing multiple qualified vendors to bid on the requirement.

Public Impact

Benefits the Department of Homeland Security by ensuring protective security services in Nevada. Delivers essential security guard and patrol services. Geographic impact is focused on Nevada. Workforce implications include potential employment for security personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if competition was not robust despite 'full and open' designation.
Dependence on contractor performance for critical security functions.
Limited duration of the task order may necessitate future re-competition and transition costs.

Positive Signals

Firm-fixed-price contract limits cost overrun risks for the government.
Full and open competition generally promotes competitive pricing.
Clear service requirements for security guards and patrol.

Sector Analysis

The security services sector is a significant part of government contracting, encompassing a wide range of protective and investigative services. This contract falls within the Security Guards and Patrol Services sub-sector. Government spending in this area is consistent, driven by the need for physical security at federal facilities and events nationwide. Comparable spending benchmarks would involve analyzing other contracts for similar security services across different agencies and geographic locations.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific task order, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that larger, established firms were likely the primary bidders, and the impact on the small business ecosystem for this particular award is minimal unless they were part of a larger prime contractor's team.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officer and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities may not be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Protective Security Officer Contracts
Government Security Guard Services

Risk Flags

Potential for limited competition despite 'full and open' designation.
Contract duration may require future re-competition.
Dependence on contractor performance for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.3 million to KERBEROS INTERNATIONAL, INC.. NEVADA PROTECTIVE SECURITY OFFICER SERVICES NEW TASK ORDER

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 $8.3 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-08-31.

What is the historical spending pattern for Kerberos International, Inc. with the Department of Homeland Security?

Analyzing the historical spending patterns of Kerberos International, Inc. with the Department of Homeland Security (DHS) is crucial for understanding their track record and relationship with the agency. A review of federal procurement data would reveal the total value and number of contracts awarded to Kerberos International by DHS over time. This analysis should identify trends in contract types (e.g., firm-fixed-price, cost-plus), the services or goods provided, and the specific components or offices within DHS that have utilized their services. Significant or consistent awards might indicate a strong performance history and established relationship, while sporadic or declining awards could suggest otherwise. Comparing their DHS awards to awards from other federal agencies would also provide context on their overall federal market presence and specialization.

How does the per-unit cost of these security services compare to similar contracts awarded in other states?

To benchmark the per-unit cost of these security services, we would need to identify comparable contracts for security guards and patrol services awarded by federal agencies in other states. Key metrics for comparison would include the hourly rate for a security officer, the cost per post per day, or a blended rate factoring in different security levels and responsibilities. Factors such as prevailing wage rates, cost of living, and specific security requirements (e.g., armed vs. unarmed, specialized equipment) in Nevada versus other states must be considered. If this contract's per-unit costs are significantly higher than the average for similar services in comparable geographic or economic regions, it could indicate a potential value-for-money concern. Conversely, costs in line with or below the benchmark would suggest competitive pricing.

What are the primary risks associated with a 'Full and Open Competition After Exclusion of Sources' contract type?

The 'Full and Open Competition After Exclusion of Sources' contract type presents a nuanced risk profile. The 'exclusion of sources' element implies that certain potential offerors were initially deemed ineligible or were not solicited, which could limit the breadth of competition. While the subsequent 'full and open' phase aims to maximize competition among the remaining eligible sources, there's a residual risk that the initial exclusion might have inadvertently removed highly competitive vendors, potentially leading to suboptimal pricing or innovation. The primary risks include: 1) Reduced competitive pressure if the pool of eligible bidders is still small, potentially leading to higher prices than true full and open competition. 2) Potential for protests or challenges from excluded sources if the exclusion criteria are perceived as unjustified. 3) Increased administrative burden in justifying the initial exclusion. The government must ensure the exclusion was legally sound and that the subsequent competition was genuinely robust to mitigate these risks.

What is the expected effectiveness of these security services in fulfilling DHS's mission in Nevada?

The effectiveness of these security services in fulfilling DHS's mission in Nevada hinges on several factors. The contract specifies 'Protective Security Officer Services' and 'Security Guards and Patrol Services,' indicating a need for physical security presence and monitoring. Assuming Kerberos International, Inc. has a strong track record and the personnel deployed are adequately trained, vetted, and equipped, these services should contribute to securing DHS assets, personnel, and facilities within their area of responsibility in Nevada. The effectiveness will be measured by the contractor's ability to prevent unauthorized access, respond to security incidents, maintain situational awareness, and adhere to all performance standards outlined in the contract. The firm-fixed-price nature incentivizes the contractor to deliver services efficiently, but the ultimate effectiveness depends on the quality of execution and the alignment of services with specific DHS security requirements.

How does the $8.3 million award compare to the total federal spending on security guards and patrol services nationwide?

The $8.3 million award for Nevada Protective Security Officer Services represents a specific task order within the broader category of Security Guards and Patrol Services. Nationwide federal spending on this category is substantial, often running into billions of dollars annually, encompassing contracts across numerous agencies (e.g., GSA, DoD, DHS, DoJ) and locations. This $8.3 million award, while significant for a single task order, is a relatively small fraction of the total federal expenditure on security services. It highlights the decentralized nature of federal procurement, where specific needs are met through numerous individual contracts and task orders. Understanding this context helps in assessing the scale and significance of this particular award within the larger federal security services market.

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: $8,328,451

Exercised Options: $8,328,451

Current Obligation: $8,328,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW24DW9000003

IDV Type: IDC

Timeline