Homeland Security awards $2M for Kentucky security services, highlighting need for consistent protective measures

Contract Overview

Contract Amount: $2,054,296 ($2.1M)

Contractor: Patronus Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2025-12-31

Contract Duration: 91 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER AWARD FOR PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF KENTUCKY

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40202

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.1 million to PATRONUS SYSTEMS INC for work described as: TASK ORDER AWARD FOR PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF KENTUCKY Key points: 1. Value for money appears reasonable given the scope of services across an entire state. 2. Competition dynamics suggest a robust bidding process, potentially leading to competitive pricing. 3. Risk indicators are low, with a fixed-price contract and defined service period. 4. Performance context involves essential security operations for government facilities. 5. Sector positioning is within the security services industry, a critical government support function.

Value Assessment

Rating: good

The contract value of approximately $2 million for a 91-day period appears aligned with the provision of protective security services across a state. Benchmarking against similar state-wide security contracts would provide further insight, but the fixed-price nature suggests a degree of cost control. The per-unit cost is not directly calculable without more granular service delivery data, but the overall award seems to reflect the operational demands of securing multiple locations.

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 multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The exclusion of sources clause might suggest specific technical requirements or past performance considerations that narrowed the initial pool, but the overall competition was broad.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of qualified contractors to participate.

Public Impact

Federal agencies operating within Kentucky will benefit from enhanced security measures. The services delivered include protective security, ensuring the safety of personnel and property. The geographic impact covers the entire state of Kentucky. Workforce implications include the potential employment of security personnel by the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor over-reliance on a single large contract.
Need for clear performance metrics to ensure service quality.
Ensuring consistent application of security protocols across diverse locations.

Positive Signals

Awarded to a company with demonstrated capabilities in security services.
Fixed-price contract provides cost certainty.
Defined service period limits long-term financial exposure.

Sector Analysis

The security services sector is a significant component of government contracting, encompassing a wide range of protective and investigative functions. This contract falls under the Security Guards and Patrol Services industry (NAICS 561612), which is characterized by numerous small and medium-sized businesses alongside larger players. Federal spending in this area is substantial, driven by the need to protect federal assets, personnel, and sensitive information across various agencies and locations. This specific award contributes to the ongoing demand for reliable security solutions.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. While the primary awardee is not specified as a small business, the nature of security services often involves subcontracting opportunities. It is possible that smaller businesses could be engaged by the prime contractor for specialized support or to fulfill regional needs within Kentucky, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's Office of Procurement Operations, with specific task order managers responsible for monitoring performance and ensuring compliance. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is facilitated through federal contract databases where award details are published. 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
State-Wide Security Contracts
Protective Security Officer Services

Risk Flags

Potential for service quality degradation if contractor under-resources the contract.
Need for robust oversight to ensure adherence to security protocols.
Scope management is critical to prevent uncompensated work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.1 million to PATRONUS SYSTEMS INC. TASK ORDER AWARD FOR PROTECTIVE SECURITY OFFICER SERVICES (PSO) THROUGHOUT THE STATE OF KENTUCKY

Who is the contractor on this award?

The obligated recipient is PATRONUS SYSTEMS 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 $2.1 million.

What is the period of performance?

Start: 2025-10-01. End: 2025-12-31.

What is the historical spending pattern for protective security services by the Department of Homeland Security in Kentucky?

Analyzing historical spending for protective security services by DHS in Kentucky requires access to detailed federal procurement data over multiple fiscal years. Typically, DHS utilizes various contract vehicles and task orders to procure these services, often on a regional or state-wide basis. Spending can fluctuate based on evolving security needs, facility changes, and the expiration of existing contracts. Without specific historical data for this exact service category and location, it's difficult to provide precise figures. However, federal agencies consistently allocate significant resources to security, and contracts of this nature are common. Trends might show an increase in demand following national security events or changes in federal building occupancy.

How does the awarded price per day compare to industry benchmarks for similar security services in Kentucky?

To benchmark the price per day, we would need to calculate it from the award data: $2,054,295.70 / 91 days = approximately $22,575 per day. Comparing this to industry benchmarks requires data on the number of officers, their pay rates, overhead, and profit margins for similar services in Kentucky. Security guard services can vary widely based on the level of security required (unarmed vs. armed), the hours of coverage, and the specific duties. General industry data suggests daily rates for security personnel can range from several hundred to over a thousand dollars per officer per day, depending on these factors. The total daily cost likely encompasses multiple personnel, supervision, and administrative support, making a direct comparison challenging without more granular details on the service composition.

What is the track record of Patronus Systems Inc. in performing similar federal security contracts?

Assessing the track record of Patronus Systems Inc. requires reviewing their past performance on federal contracts, particularly those involving protective security officer services. Federal procurement systems often include past performance evaluations, which are considered during the bidding process. A review of publicly available contract databases (like SAM.gov or FPDS) would reveal the types of contracts they have held, their duration, value, and agency. Information on contract awards, task orders, and any reported performance issues or successes would provide insight into their capabilities and reliability in fulfilling similar government requirements. Without direct access to these specific performance records for Patronus Systems Inc., a definitive statement on their track record cannot be made here.

What are the potential risks associated with a fixed-price contract for security services over a 91-day period?

Fixed-price contracts offer cost certainty to the government, as the price is set regardless of the contractor's actual costs. For a 91-day security services contract, the primary risks for the government are less about cost overruns and more about potential impacts on service quality or scope creep if not managed tightly. If the contractor underestimates the resources needed (personnel, equipment, training), they might cut corners on service delivery to maintain profitability, potentially impacting security effectiveness. Conversely, if the government requires additional services not explicitly covered, scope adjustments and potential change orders could arise. The short duration mitigates some long-term risks, but diligent oversight is still crucial to ensure the contractor meets all performance expectations.

How does this contract align with the Department of Homeland Security's overall mission in securing federal facilities?

This contract directly aligns with the Department of Homeland Security's core mission of protecting the nation from threats. By providing protective security officer services throughout Kentucky, DHS ensures the safety and security of federal personnel, facilities, and assets within the state. This includes safeguarding against unauthorized access, maintaining order, and responding to security incidents. Such contracts are fundamental to DHS's operational capabilities, enabling the agency to fulfill its mandate of preventing terrorism, securing borders, and enforcing immigration laws, all of which rely on a secure physical environment.

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

Address: 3000 N WICKHAM RD STE 8, MELBOURNE, FL, 32935

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,054,296

Exercised Options: $2,054,296

Current Obligation: $2,054,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP119DE4000001

IDV Type: IDC

Timeline