DHS awards $2.5M contract for armed protective security services in Puerto Rico

Contract Overview

Contract Amount: $2,528,663 ($2.5M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-05-01

End Date: 2025-09-30

Contract Duration: 152 days

Daily Burn Rate: $16.6K/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 $2.5 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 awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is approximately 5 months, indicating a short-term need for services. 3. The services are for armed protective security officers, a critical function for border protection. 4. The awardee, Kerberos International, Inc., will provide services across various CBP locations. 5. The contract type is Firm Fixed Price, which helps manage cost certainty for the government. 6. The base contract value is over $2.5 million, reflecting the scale of security operations.

Value Assessment

Rating: good

The contract value of $2.5 million for approximately five months of armed protective security services appears reasonable given the critical nature of Customs and Border Protection operations. Benchmarking against similar contracts for security services in high-risk or remote areas would provide further context. The firm fixed-price structure helps mitigate cost overruns, but the specific pricing per officer or per hour is not detailed here. Without more granular data on service levels and specific location requirements, a definitive value-for-money assessment is challenging, but the competitive award suggests a fair market price was likely achieved.

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 competition was broad, specific sources may have been excluded prior to the final award. The number of bidders is not specified, but the designation suggests a robust competitive process was intended. This level of competition generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down prices through market forces. It signals that multiple companies were vying for the contract, likely resulting in a more favorable price for the government.

Public Impact

Benefits Customs and Border Protection (CBP) by enhancing security at various locations. Ensures the safety and integrity of border operations within Puerto Rico. Provides essential armed protective security services, potentially deterring illicit activities. Supports the federal government's mission to secure U.S. borders. May indirectly impact the local workforce through employment opportunities with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues given the critical nature of armed security.
Ensuring consistent adherence to strict protocols for armed personnel is paramount.
Managing multiple locations across Puerto Rico could present logistical challenges.
The 'after exclusion of sources' clause warrants further investigation into the rationale for exclusions.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm Fixed Price contract type provides cost certainty.
Contract supports a vital government function (border security).
Contractor is providing services across multiple CBP locations, suggesting scalability.
Short contract duration may indicate flexibility in adapting to changing needs.

Sector Analysis

The security services sector is a significant part of the federal contracting landscape, with agencies like DHS consistently requiring protective services. This contract falls under the Security Guards and Patrol Services NAICS code (561612). The market for these services is competitive, with numerous providers ranging from large corporations to smaller specialized firms. Federal spending in this area is driven by national security needs, border management, and protection of federal facilities. The value of this specific contract, approximately $2.5 million, is moderate within the broader context of federal security contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Kerberos International, Inc., is likely a larger entity. There is no explicit information regarding subcontracting requirements or goals for small businesses within this award. This suggests that opportunities for small businesses may be limited unless they are direct subcontractors to Kerberos International, Inc., and such arrangements are not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically the Customs and Border Protection (CBP) contracting officers and program managers responsible for security services in Puerto Rico. The contract's performance will likely be monitored through regular reporting, site inspections, and performance evaluations. While no specific Inspector General (IG) jurisdiction is mentioned, the DHS Office of Inspector General typically has oversight over DHS spending and contracts to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Customs and Border Protection Security Services
Department of Homeland Security Protective Services
Federal Law Enforcement Support Contracts
Armed Guard Services Contracts
Puerto Rico Federal Security Contracts

Risk Flags

Potential performance risks associated with armed security personnel.
Logistical challenges of managing services across multiple locations.
Need for strict adherence to use-of-force policies.
Ensuring consistent quality and training of security officers.
Rationale for 'exclusion of sources' in competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.5 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 $2.5 million.

What is the period of performance?

Start: 2025-05-01. End: 2025-09-30.

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

Assessing the track record of Kerberos International, Inc. requires a review of their past performance on federal contracts, particularly those involving armed protective security services. Information on past performance can often be found in federal procurement databases like SAM.gov or through agency performance evaluation reports. Key indicators to examine include their history of successful contract completion, any instances of contract disputes or terminations, client satisfaction ratings, and their experience with similar operational environments and security requirements. A strong track record with agencies like CBP or other components of DHS would indicate a lower performance risk for this new contract. Conversely, a history of issues could signal potential challenges in service delivery, adherence to protocols, or overall reliability.

How does the awarded price compare to market rates for armed protective security officers in Puerto Rico?

Determining the precise market rate for armed protective security officers in Puerto Rico requires detailed analysis of prevailing wages, benefits, insurance costs, and overhead specific to the region. This contract's firm fixed-price nature suggests a negotiated rate. To benchmark, one would typically compare the contract's hourly or daily rates (if derivable) against industry surveys, data from similar federal or state contracts in Puerto Rico, and potentially private sector security provider quotes. Factors such as the level of armament, required training, security clearances, and the specific threat environment influence pricing. Without access to the detailed pricing structure or specific service level agreements, a direct comparison is difficult, but the competitive award process implies the price is likely within a reasonable market range.

What are the specific risks associated with providing armed security services at multiple CBP locations in Puerto Rico?

Providing armed security services at multiple Customs and Border Protection (CBP) locations in Puerto Rico presents several specific risks. Logistically, managing personnel and equipment across various sites on an island can be complex, requiring robust coordination and communication. Security risks include the potential for unauthorized access, theft, or threats to personnel and government assets, especially given the sensitive nature of border operations. There's also the risk of incidents involving armed personnel, necessitating strict adherence to rules of engagement and use-of-force policies. Furthermore, environmental factors unique to Puerto Rico, such as weather events or local conditions, could impact operations. Ensuring consistent training, background checks, and adherence to all federal regulations for armed guards is critical to mitigating these risks.

What is the expected effectiveness of these security services in enhancing border protection operations?

The expected effectiveness of these armed protective security services in enhancing border protection operations hinges on several factors. Primarily, the presence of armed officers serves as a deterrent against illegal activities, smuggling, and unauthorized entry at designated CBP locations. Their role in surveillance, access control, and immediate response to security breaches is crucial. The effectiveness will depend on the strategic deployment of these officers, their training, the quality of equipment provided, and their integration with existing CBP security protocols. When properly executed, these services should bolster the overall security posture, improve response times to incidents, and contribute to the integrity of border management within Puerto Rico.

How does this contract's value and duration compare to historical federal spending on similar security services in Puerto Rico?

Comparing this $2.5 million, 5-month contract to historical federal spending requires access to historical contract data for security services in Puerto Rico, specifically for CBP or DHS. Generally, federal spending on security services fluctuates based on threat assessments, operational needs, and budget allocations. A contract of this size suggests a focused, short-term requirement rather than a large, long-term security infrastructure investment. Historical data would reveal if this award represents an increase or decrease in spending for similar services, whether it's a one-time need or part of an ongoing security strategy, and how it aligns with broader federal security expenditures in the region. Without specific historical figures, it's difficult to provide a precise comparison, but it appears to be a moderate-sized award for a defined period.

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

Solicitation ID: 70RFP120RE2000002

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: $2,528,663

Exercised Options: $2,528,663

Current Obligation: $2,528,663

Actual Outlays: $1,475,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP121DE2000001

IDV Type: IDC

Timeline