Homeland Security awards $11M for protective security services in Northern Virginia

Contract Overview

Contract Amount: $10,963,889 ($11.0M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-07-01

End Date: 2024-06-30

Contract Duration: 365 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN NORTHERN VIRGINIA

Place of Performance

Location: TEMPLE, BELL County, TEXAS, 76502

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.0 million to KERBEROS INTERNATIONAL, INC. for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN NORTHERN VIRGINIA Key points: 1. Contract awarded to Kerberos International, Inc. for PSO services. 2. Service area covers Northern Virginia. 3. Contract type is Firm Fixed Price. 4. Duration of the contract is one year. 5. The North American Industry Classification System (NAICS) code is 561612. 6. The Product Service Code (PSC) is not specified, but likely relates to security services.

Value Assessment

Rating: fair

The award amount of $10.96 million for one year of protective security services appears to be within a reasonable range for the scope of work, considering the complexity and sensitivity of security operations in the Northern Virginia region. Benchmarking against similar contracts for PSO services in high-cost areas would provide a more definitive assessment of value for money. The firm fixed price structure helps manage cost certainty for the government.

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 considered. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided. However, the 'full and open' designation generally suggests a competitive environment that allows for price discovery and potentially better value.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Benefits federal agencies requiring protective security services in Northern Virginia. Ensures the safety and security of government facilities and personnel. Supports the local economy through employment of security personnel. Contributes to the overall security posture of the Department of Homeland Security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data.
Potential for cost overruns if scope creep occurs, despite fixed-price contract.
Dependence on a single contractor for critical security functions.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm Fixed Price contract provides cost certainty.
Contract duration of one year allows for periodic re-evaluation of needs and performance.

Sector Analysis

The security services industry is a significant sector within the broader professional services market. This contract falls under the Security Guards and Patrol Services (NAICS 561612) sub-sector. The market for protective security services is competitive, with numerous providers ranging from large corporations to smaller specialized firms. Government contracts represent a substantial portion of this market, driven by the need for security at federal facilities nationwide.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was competed full and open, there is no explicit information on subcontracting opportunities for small businesses. The impact on the small business ecosystem would depend on whether Kerberos International, Inc. utilizes small businesses for any part of its service delivery.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of Homeland Security. Performance monitoring, adherence to contract terms, and quality assurance are key oversight functions. Transparency is facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Protective Security Officer Contracts
Government Security Guard Services

Risk Flags

Potential for performance issues if contractor is inexperienced.
Risk of price increases if contract scope expands.
Dependence on contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.0 million to KERBEROS INTERNATIONAL, INC.. PROTECTIVE SECURITY OFFICER (PSO) SERVICES IN NORTHERN VIRGINIA

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 $11.0 million.

What is the period of performance?

Start: 2023-07-01. End: 2024-06-30.

What is the track record of Kerberos International, Inc. in performing similar federal contracts?

Information regarding Kerberos International, Inc.'s specific track record on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government awards. This would help determine their experience level and reliability in delivering protective security officer services. Without this data, it's difficult to gauge their past performance effectiveness and adherence to contractual obligations.

How does the awarded price compare to market rates for similar PSO services in Northern Virginia?

The provided data does not include a direct per-unit cost benchmark or comparison to market rates. To assess value for money, the awarded amount of $10.96 million would need to be broken down into per-hour rates or per-officer costs and then compared against industry benchmarks for PSO services in the high-cost Northern Virginia region. Factors such as the number of officers, hours of coverage, required certifications, and specific security duties would influence this comparison. A detailed market analysis would be necessary for a definitive value assessment.

What are the primary risks associated with this contract award?

Key risks include potential performance deficiencies if the contractor fails to meet service level agreements, leading to security gaps. There's also a risk of cost escalation if unforeseen operational requirements arise that are not adequately covered by the firm fixed price. Furthermore, over-reliance on a single contractor for critical security functions could pose a risk if the contractor experiences financial instability or operational failures. Ensuring adequate contractor vetting and ongoing performance monitoring are crucial to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for this type of service?

This contracting method aims to ensure broad competition while allowing for specific exclusions based on pre-determined criteria, potentially streamlining the process. For PSO services, it generally encourages multiple bids, which should lead to competitive pricing. However, the effectiveness hinges on the clarity of the solicitation, the number and capability of responding bidders, and the evaluation process. If the exclusions were too narrow or the requirements too restrictive, it could limit the pool of qualified bidders, potentially impacting the competitiveness of the final price.

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

Historical spending data for protective security services by the Department of Homeland Security (DHS) is not provided in this specific award notice. To analyze historical patterns, one would need to examine DHS's procurement data over several fiscal years, looking at the total obligated amounts for NAICS code 561612 and similar security service categories. This analysis would reveal trends in spending, identify major contract vehicles, and highlight any significant fluctuations or shifts in procurement strategies for security services.

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, 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: $10,963,889

Exercised Options: $10,963,889

Current Obligation: $10,963,889

Actual Outlays: $10,873,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP223DEC000009

IDV Type: IDC

Timeline