DHS Awards $11.6M for PA Protective Security Officers, Competition Limited by Source Exclusion
Contract Overview
Contract Amount: $11,601,127 ($11.6M)
Contractor: Kerberos International, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2023-10-01
End Date: 2024-07-31
Contract Duration: 304 days
Daily Burn Rate: $38.2K/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 THROUGHOUT THE STATE OF PENNSYLVANIA
Place of Performance
Location: ERIE, ERIE County, PENNSYLVANIA, 16501
Plain-Language Summary
Department of Homeland Security obligated $11.6 million to KERBEROS INTERNATIONAL, INC. for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF PENNSYLVANIA Key points: 1. Contract awarded to Kerberos International, Inc. for PSO services in Pennsylvania. 2. Significant spending of $11.6M over 10 months. 3. Competition method involved exclusion of sources, raising potential concerns about price discovery. 4. Sector is Security Guards and Patrol Services, a critical area for government operations.
Value Assessment
Rating: fair
The contract's fixed price of $11.6M for 304 days of service appears high without further benchmarking. The 'exclusion of sources' competition method suggests potential for inflated pricing compared to a fully open market.
Cost Per Unit: $38,162 per day
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This limited competition method may have restricted the pool of potential bidders and potentially impacted the government's ability to secure the lowest possible price.
Taxpayer Impact: Taxpayer funds are being used for essential security services, but the limited competition raises questions about whether the best value was achieved.
Public Impact
Ensures physical security for government facilities and personnel in Pennsylvania. Supports critical infrastructure protection through dedicated security personnel. Potential for increased costs due to limited competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- High contract value
- Short performance period for significant cost
Positive Signals
- Essential service provision
- Clear performance location
Sector Analysis
The Security Guards and Patrol Services sector is vital for government operations, ensuring safety and security. Spending benchmarks vary widely based on location, service level, and contract duration, but $11.6M for 10 months is substantial.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Analysis of small business participation is not possible from the provided data.
Oversight & Accountability
The 'Office of Procurement Operations' within DHS is responsible for this award. Oversight should focus on the justification for excluding sources and ensuring fair pricing despite limited competition.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency in source exclusion.
- Potential for price not reflecting true market value.
- High contract value requires close monitoring.
Tags
security-guards-and-patrol-services, department-of-homeland-security, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.6 million to KERBEROS INTERNATIONAL, INC.. PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF PENNSYLVANIA
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 $11.6 million.
What is the period of performance?
Start: 2023-10-01. End: 2024-07-31.
What was the specific justification for excluding sources in this procurement, and how did it impact the final price?
The justification for excluding sources is critical for understanding the procurement's integrity. If sources were excluded for non-essential reasons, it could indicate a lack of due diligence in seeking competitive pricing. The impact on price is likely negative, as fewer bidders generally lead to higher costs for the government.
How does the per-unit cost of $38,162 per day compare to similar PSO contracts in Pennsylvania or other states?
Benchmarking this per-unit cost is essential for assessing value. Without comparative data from similar contracts, it's difficult to determine if $38,162 per day is reasonable or excessive. A thorough analysis would require access to historical data and market research on PSO service rates.
What measures are in place to ensure the effectiveness and accountability of Kerberos International, Inc. in delivering PSO services?
Effectiveness and accountability are paramount for security contracts. DHS should have performance standards, regular reporting requirements, and quality assurance checks. Contract managers must actively monitor service delivery, address any deficiencies promptly, and ensure compliance with all contract terms to guarantee taxpayer value.
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: $11,601,127
Exercised Options: $11,601,127
Current Obligation: $11,601,127
Actual Outlays: $11,208,466
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70RFP323DE3000002
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2025-12-16
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