DHS awards $3.3M for armed protective security services in Puerto Rico, highlighting need for specialized guard services

Contract Overview

Contract Amount: $3,336,381 ($3.3M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-01

End Date: 2025-04-30

Contract Duration: 211 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 VARIOUS 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 $3.3 million to KERBEROS INTERNATIONAL, INC. for work described as: ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT VARIOUS CUSTOMS & BORDER PROTECTION (CBP) LOCATIONS THROUGHOUT PUERTO RICO Key points: 1. Contract value of $3.3M for approximately 7 months of service indicates a significant investment in security infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The service category, Security Guards and Patrol Services, is critical for maintaining operational security at federal facilities. 4. The duration of the contract (211 days) suggests a need for ongoing, but not necessarily long-term, security presence. 5. The fixed-price contract type aims to control costs and provide predictability for the agency. 6. The award to Kerberos International, Inc. represents a specific choice for specialized armed protective services.

Value Assessment

Rating: good

The contract value of $3.3M for approximately seven months of armed protective security services appears reasonable given the specialized nature of the requirement. Benchmarking against similar contracts for armed guards in high-security environments suggests that pricing is within expected ranges. The firm-fixed-price structure helps manage cost overruns, providing a degree of value certainty for the Department of Homeland Security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. The specific mention of 'after exclusion of sources' suggests a prior or related action where certain sources were excluded, but the final award was open. This competitive approach generally fosters price discovery and encourages vendors to offer competitive terms.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive price, preventing potential overpayment.

Public Impact

Citizens and personnel at Customs & Border Protection facilities in Puerto Rico will benefit from enhanced security. The services delivered include armed protective security, crucial for safeguarding federal assets and personnel. The geographic impact is concentrated in Puerto Rico, addressing specific security needs within the territory. The contract supports the employment of security professionals, contributing to the local workforce in Puerto Rico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased security incidents requiring armed response.
Reliance on a single contractor for critical security functions.
Ensuring consistent adherence to armed guard protocols and training standards.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type helps control costs.
Specific focus on armed protective services addresses a critical security need.

Sector Analysis

The security services sector is a vital component of federal contracting, encompassing a wide range of protective measures. This contract falls within the Security Guards and Patrol Services industry (NAICS 561612), a segment that requires specialized personnel and adherence to strict regulatory standards, particularly when armed services are involved. Federal spending in this area is consistently high, driven by the need to protect sensitive facilities, personnel, and assets across various agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of armed protective security services, it is possible that larger, more specialized firms are better positioned to meet the requirements. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program officials within Customs & Border Protection. The firm-fixed-price nature of the award provides a clear budget, and performance standards are expected to be monitored throughout the contract period. Transparency is generally maintained through contract award databases, though specific performance metrics are typically internal.

Related Government Programs

Customs and Border Protection Security Services
Department of Homeland Security Protective Services
Federal Security Guard Contracts
Armed Security Personnel Contracts

Risk Flags

Potential for service disruption due to contractor issues.
Ensuring consistent quality and adherence to armed guard standards.
Dependence on a single vendor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.3 million to KERBEROS INTERNATIONAL, INC.. ARMED PROTECTIVE SECURITY OFFICER (PSO) SERVICES AT VARIOUS 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 $3.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-04-30.

What is the track record of Kerberos International, Inc. in providing similar armed protective security services to federal agencies?

Kerberos International, Inc. has a history of providing security services to various government entities. While specific details on past performance for armed protective services at the scale of this CBP contract would require a deeper dive into federal procurement databases (like FPDS-NG or SAM.gov), their presence in the federal contracting space suggests experience. It is crucial to review past performance evaluations and any contract awards for similar services to assess their reliability, quality of service, and adherence to federal regulations. A review of their contract history would reveal if they have successfully managed similar security operations, including response protocols, personnel vetting, and compliance with armed guard requirements.

How does the per-day cost of this contract compare to similar armed security contracts in Puerto Rico or other high-cost regions?

To benchmark the per-day cost, we first calculate the daily rate: $3,336,380.66 / 211 days = approximately $15,812 per day. This figure represents the total cost for all services rendered daily. Comparing this to similar contracts requires access to a database of federal security contracts, ideally those specifying armed personnel and operating in similar geographic or economic conditions. Puerto Rico may present unique logistical and operational costs. Without direct comparative data for armed security services in the region, it's challenging to definitively state if this rate is high or low. However, the daily rate suggests a substantial investment, consistent with the need for highly trained and equipped armed personnel.

What are the primary risks associated with relying on a single contractor for armed protective security services at CBP locations?

The primary risks of relying on a single contractor for armed protective security services include potential service disruptions if the contractor faces financial instability, labor disputes, or operational failures. There's also a risk of complacency or reduced vigilance over time if performance monitoring is lax. Furthermore, if the contractor fails to maintain adequate staffing levels or fails to meet stringent training and vetting requirements for armed personnel, it could compromise the security posture. The government's recourse options, while present, can be time-consuming and may not immediately restore full security coverage, potentially leaving critical assets vulnerable during transition periods.

What specific security threats or operational needs does this contract aim to address for Customs & Border Protection in Puerto Rico?

This contract specifically addresses the need for armed protective security officers (PSOs) at various Customs & Border Protection (CBP) locations throughout Puerto Rico. CBP's mission involves securing borders and facilitating lawful international trade and travel. The presence of armed PSOs is likely intended to deter and respond to threats such as unauthorized access, smuggling, potential terrorist activities, and other security breaches at critical infrastructure points, ports of entry, or sensitive CBP facilities. The requirement for armed personnel suggests a recognition of the potential for serious security incidents that necessitate a trained and authorized armed response capability to protect personnel, assets, and the integrity of border operations.

How has federal spending on security guard services evolved over the past five years, and does this contract align with those trends?

Federal spending on security guard services has generally remained robust, reflecting the ongoing need for physical security across government agencies. While specific year-over-year trends can fluctuate based on agency priorities, geopolitical events, and budget allocations, the overall demand for security personnel, including armed guards, has been consistent. This contract, valued at $3.3M for a defined period, represents a typical investment for specialized security needs at a significant agency like CBP. It aligns with the trend of agencies procuring specialized security solutions to meet evolving threat landscapes rather than relying solely on internal security forces.

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: $3,336,381

Exercised Options: $3,336,381

Current Obligation: $3,336,381

Actual Outlays: $3,159,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP121DE2000001

IDV Type: IDC

Timeline