DHS Awards $2.4M for Puerto Rico Security Services to Kerberos International

Contract Overview

Contract Amount: $2,401,027 ($2.4M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-05-01

End Date: 2024-09-30

Contract Duration: 152 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT CUSTOMS & BORDER PROTECTION (CBP) LOCATIONS THROUGHOUT PUERTO RICO

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Homeland Security obligated $2.4 million to KERBEROS INTERNATIONAL, INC. for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT CUSTOMS & BORDER PROTECTION (CBP) LOCATIONS THROUGHOUT PUERTO RICO Key points: 1. Contract awarded to Kerberos International, Inc. for PSO services. 2. Services to be provided at CBP locations in Puerto Rico. 3. Contract value is $2,401,026.50. 4. Duration of the contract is 152 days. 5. NAICS code 561612 indicates Security Guards and Patrol Services.

Value Assessment

Rating: fair

The contract value of $2.4M for 152 days suggests a daily rate of approximately $15,796. This rate needs to be benchmarked against similar PSO contracts for government facilities to assess value.

Cost Per Unit: $15,796 per day (estimated)

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for security services. The limited competition raises questions about whether the most cost-effective solution was secured.

Public Impact

Ensures security at critical U.S. Customs and Border Protection facilities in Puerto Rico. Supports border security operations by providing essential protective services. Impacts federal law enforcement presence and operational continuity in the region. Potential for job creation within the security services sector in Puerto Rico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Short contract duration could lead to frequent re-competition costs.
Lack of small business participation noted.

Positive Signals

Addresses critical security needs for CBP.
Clear contract duration and location specified.
Firm fixed price contract provides cost certainty.

Sector Analysis

The security services sector is competitive, but specialized services like armed protective security officers often have fewer qualified bidders. Benchmarking against similar federal contracts for PSO services is crucial for value assessment.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the requirement precluded small business involvement.

Oversight & Accountability

The award was made by the Department of Homeland Security, Office of Procurement Operations, suggesting established oversight processes. However, the limited competition warrants scrutiny to ensure accountability and fair pricing.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Limited competition raises concerns about price reasonableness.
Potential for higher costs due to exclusion of sources.
Lack of small business participation noted.
Short contract duration may lead to inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.4 million to KERBEROS INTERNATIONAL, INC.. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT CUSTOMS & BORDER PROTECTION (CBP) LOCATIONS THROUGHOUT PUERTO RICO

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 $2.4 million.

What is the period of performance?

Start: 2024-05-01. End: 2024-09-30.

What is the benchmark daily rate for armed protective security officers at similar federal facilities, and how does this contract's rate compare?

Benchmarking the daily rate of $15,796 against similar federal contracts for armed protective security officers is essential. Rates can vary significantly based on location, threat level, required qualifications, and contract duration. A thorough analysis would involve comparing this rate to contracts with comparable scope and geographic focus to determine if it represents fair and reasonable pricing for the services rendered.

What factors led to the 'exclusion of sources' in this full and open competition, and what was the impact on the final price?

The 'exclusion of sources' typically occurs when specific capabilities, past performance, or unique requirements limit the pool of eligible bidders. Understanding these specific factors is crucial. If the exclusion was due to highly specialized needs, the price might be justified. However, if it was due to administrative reasons or overly restrictive criteria, it could have artificially limited competition, potentially inflating the price paid by taxpayers.

Given the short contract duration (152 days), what is the plan for ensuring continued security services and achieving long-term value for money?

The short duration suggests this may be a bridge contract or a requirement for immediate, short-term support. The agency's plan for follow-on contracts is critical for ensuring continuity and achieving long-term value. If this is a recurring need, a longer-term strategy, potentially including a more robust competition, should be considered to leverage economies of scale and reduce administrative burden.

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, Minority Owned Business, Other Minority Owned 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: $2,401,027

Exercised Options: $2,401,027

Current Obligation: $2,401,027

Actual Outlays: $2,363,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP121DE2000001

IDV Type: IDC

Timeline