DHS awards $7.4M for Washington State security services to Kerberos International, Inc

Contract Overview

Contract Amount: $7,420,233 ($7.4M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-02-28

Contract Duration: 150 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECTION 2(D): NON-COVERED CONTRACT. THIS TASK ORDER IS BEING ISSUED FOR PROTECTIVE SECURITY OFFICER SERVICES IN WASHINGTON STATE.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98101

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.4 million to KERBEROS INTERNATIONAL, INC. for work described as: SECTION 2(D): NON-COVERED CONTRACT. THIS TASK ORDER IS BEING ISSUED FOR PROTECTIVE SECURITY OFFICER SERVICES IN WASHINGTON STATE. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs for the government. 3. Services are for protective security officers in Washington State. 4. The contract duration is 150 days, indicating a short-term need. 5. The award is a delivery order under a larger contract vehicle. 6. The North American Industry Classification System (NAICS) code is 561612 for Security Guards and Patrol Services.

Value Assessment

Rating: fair

The contract value of $7.4 million for 150 days of security services appears to be within a reasonable range for specialized protective services. Benchmarking against similar contracts for security officers in Washington State would provide a clearer picture of value for money. The firm-fixed-price structure helps mitigate cost overruns, but the specific per-unit cost of an officer's service is not detailed here, making a precise value assessment challenging without further data.

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.' While this indicates an initial intent for broad competition, the 'Exclusion of Sources' clause suggests specific reasons for limiting the pool of eligible bidders, which warrants further investigation. The number of bidders is not specified, but the 'full and open' designation implies multiple potential offerors were considered.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. However, the exclusion of certain sources may limit the potential for the most competitive pricing.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced security services. Protective security officer services are delivered within Washington State. The contract supports the operational security needs of federal facilities or personnel in the region. The contract may have implications for the local security services workforce in Washington State.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause requires clarification to understand potential limitations on competition.
Lack of detailed performance metrics makes it difficult to assess service effectiveness.
The short duration (150 days) may indicate a temporary need or a gap-filling measure, requiring potential follow-on contracts.

Positive Signals

Awarded under a firm-fixed-price contract, which helps control costs.
Utilizes a full and open competition framework, promoting market participation.
Specific NAICS code (561612) clearly defines the service category.

Sector Analysis

The security services sector is a significant component of the broader professional, scientific, and technical services industry. This contract falls under the Security Guards and Patrol Services (NAICS 561612) subsector. The market for federal security services is substantial, with agencies like DHS being major consumers. Competition within this sector can be robust, but contracts often require specific clearances and capabilities, which can influence the number of viable bidders.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, larger contracts often have subcontracting requirements that can benefit small businesses, provided they have the necessary qualifications and are actively sought by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The specific terms of the delivery order and the underlying contract vehicle would dictate reporting requirements and performance monitoring. Transparency is generally facilitated through contract award databases, but detailed operational oversight mechanisms are internal to the agency.

Related Government Programs

DHS Protective Security Services
Federal Security Guard Contracts
Washington State Government Contracts

Risk Flags

Potential limitation of competition due to 'Exclusion of Sources'.
Short contract duration may indicate a temporary need or require follow-on procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.4 million to KERBEROS INTERNATIONAL, INC.. SECTION 2(D): NON-COVERED CONTRACT. THIS TASK ORDER IS BEING ISSUED FOR PROTECTIVE SECURITY OFFICER SERVICES IN WASHINGTON STATE.

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 $7.4 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-02-28.

What specific services are included under 'Protective Security Officer Services' for this contract?

Protective Security Officer Services typically encompass a range of duties aimed at safeguarding personnel, property, and information. This can include access control, screening individuals and packages, patrolling designated areas, monitoring surveillance systems, responding to alarms and emergencies, and enforcing security regulations. The exact scope for this specific contract, awarded to Kerberos International, Inc. by DHS, would be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS) attached to the delivery order. These documents outline the specific tasks, performance standards, reporting requirements, and operational hours expected from the security officers.

What does 'Full and Open Competition After Exclusion of Sources' mean in this context?

This contracting term indicates that the agency intended to compete the contract broadly among all responsible sources ('Full and Open Competition'). However, it also specifies that certain sources were excluded from consideration. This exclusion could be due to various reasons, such as specific security clearances required, unique capabilities possessed by only a few firms, or prior performance issues with certain contractors. While it aims for competition, the exclusion clause suggests a deliberate narrowing of the potential bidder pool, which could impact the level of price competition achieved compared to a purely unrestricted full and open competition.

How does the firm-fixed-price (FFP) contract type benefit the government for security services?

A Firm-Fixed-Price (FFP) contract is advantageous for the government in service contracts like this because it establishes a set price regardless of the contractor's actual costs. This shifts the risk of cost overruns from the government to the contractor. For security services, where labor hours and operational needs can be relatively predictable, an FFP contract provides budget certainty and simplifies financial management. It incentivizes the contractor to manage its resources efficiently to maximize profit, as any cost savings achieved benefit the contractor directly.

What is the significance of the NAICS code 561612?

The North American Industry Classification System (NAICS) code 561612 specifically identifies 'Security Guards and Patrol Services.' This classification is crucial as it defines the primary business activity for which the contract is awarded. It helps in categorizing government spending, understanding the market landscape for security services, and identifying potential competitors. Agencies use NAICS codes to ensure they are soliciting bids from appropriately qualified companies and to track spending within specific industry sectors.

What are the potential implications of a 150-day contract duration?

A 150-day contract duration (approximately 5 months) suggests a short-term requirement. This could be for a specific event, a temporary surge in security needs, filling a gap while a longer-term contract is being procured, or as a pilot program. For the contractor, it offers a defined period of work. For the government, it provides flexibility but may necessitate future procurement actions if the need extends beyond this period. It also means less opportunity for long-term relationship building and performance optimization compared to multi-year contracts.

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: 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: $7,420,233

Exercised Options: $7,420,233

Current Obligation: $7,420,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFPW23DWA000001

IDV Type: IDC

Timeline