DHS awards $8.6M contract for protective security services at CMS, highlighting a need for consistent guard presence

Contract Overview

Contract Amount: $8,596,997 ($8.6M)

Contractor: Kerberos International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) BASIC SERVICES AT THE CENTER FOR MEDICAID SERVICES (CMS)IN WOODLAWN, MD

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.6 million to KERBEROS INTERNATIONAL, INC. for work described as: PROTECTIVE SECURITY OFFICER (PSO) BASIC SERVICES AT THE CENTER FOR MEDICAID SERVICES (CMS)IN WOODLAWN, MD Key points: 1. The contract value of $8.6 million over one year suggests a significant investment in securing critical federal facilities. 2. The use of a firm-fixed-price contract type indicates that the government has a clear understanding of the scope and expects predictable costs. 3. The award was made under full and open competition, implying a robust bidding process and potential for competitive pricing. 4. The specific service category, Security Guards and Patrol Services, is essential for maintaining physical security at government sites. 5. The contract duration of one year with potential for extensions points to an ongoing need for these security services. 6. The geographic location in Woodlawn, MD, places the services at a key operational hub for the Centers for Medicare & Medicaid Services.

Value Assessment

Rating: good

The contract value of approximately $8.6 million for one year of protective security services appears reasonable given the scope of securing a federal facility like the Center for Medicaid Services. Benchmarking against similar contracts for security guard services at federal buildings of comparable size and security requirements would provide a more precise value assessment. The firm-fixed-price structure suggests that the government has a well-defined need and has negotiated a price that accounts for anticipated costs and profit margins.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific designation 'after exclusion of sources' suggests that while the competition was open, certain sources may have been excluded based on specific criteria, which is a common practice to ensure qualified bidders. The level of competition is generally positive for price discovery and ensures the government receives offers from multiple capable providers.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which benefits taxpayers by ensuring the government secures services at a fair market value. It also promotes a wider pool of potential contractors, fostering innovation and service quality.

Public Impact

The primary beneficiaries are the Centers for Medicare & Medicaid Services (CMS) and its personnel, who will receive enhanced physical security. The services delivered include protective security officer functions, ensuring a secure environment and deterring unauthorized access. The geographic impact is concentrated in Woodlawn, Maryland, where the CMS facility is located. The contract supports jobs within the security services industry, specifically for trained protective security officers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor over-reliance on basic security measures without proactive threat mitigation.
Ensuring consistent quality and performance across all deployed security personnel throughout the contract period.
Managing potential scope creep or unforeseen security needs that may arise during the contract term.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Clear service requirements for protective security officers indicate a well-defined need.

Sector Analysis

The security services sector is a significant component of the federal contracting landscape, encompassing a wide range of protective and investigative services. This contract falls within the 'Security Guards and Patrol Services' category, which is a mature market with numerous established providers. Federal spending in this area is consistently high due to the critical need for safeguarding government assets and personnel. The market is characterized by varying levels of competition, from large, established firms to smaller, specialized security companies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Kerberos International, Inc., is likely a larger entity. While there is no direct indication of subcontracting requirements for small businesses in the provided data, larger prime contractors often engage small businesses for specialized services or to meet broader socioeconomic goals. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the contracting officer's representative (COR) within the Department of Homeland Security's Office of Procurement Operations. Performance monitoring will be crucial to ensure the contractor meets the security requirements outlined in the contract. Transparency is generally maintained through contract award databases and public reporting, though specific operational details of security services are often sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Protective Service Contracts
Security Services for Federal Agencies
Physical Security Contracts
Department of Homeland Security Contracts
Centers for Medicare & Medicaid Services Operations

Risk Flags

Potential for performance issues if contractor personnel are not adequately trained or supervised.
Risk of security breaches if protocols are not strictly followed.
Dependency on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.6 million to KERBEROS INTERNATIONAL, INC.. PROTECTIVE SECURITY OFFICER (PSO) BASIC SERVICES AT THE CENTER FOR MEDICAID SERVICES (CMS)IN WOODLAWN, MD

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 $8.6 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

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

Assessing the track record of Kerberos International, Inc. requires a review of their past federal contract performance. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the types and scale of previous security contracts they have held. A history of successful contract completion, positive performance reviews, and adherence to federal regulations would indicate a reliable contractor. Conversely, a history of performance issues or compliance problems would raise concerns about their ability to meet the requirements of this new contract. Without specific past performance data, it is difficult to definitively assess their reliability for this particular award.

How does the awarded amount of $8.6 million compare to similar protective security contracts for federal facilities?

The awarded amount of $8.6 million for one year of protective security services at the Center for Medicaid Services (CMS) in Woodlawn, MD, needs to be benchmarked against comparable federal contracts. Factors such as the size and complexity of the facility, the number of security personnel required, the specific security protocols, and the geographic location all influence pricing. Contracts for similar-sized federal buildings or agencies in the Maryland region could serve as a benchmark. If this contract's per-officer cost or overall value significantly deviates from these benchmarks, it could indicate either exceptional value or potential overpricing. A detailed analysis would require access to a database of similar federal security contracts and their associated costs.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this protective security contract include potential lapses in security coverage, inadequate performance by security personnel, and contractor non-compliance with contract terms. Mitigation strategies typically involve robust performance monitoring by a Contracting Officer's Representative (COR), clear performance standards and metrics within the contract, and regular communication channels with the contractor. The firm-fixed-price nature of the contract helps mitigate cost overrun risks for the government. Additionally, the full and open competition process aims to select a contractor with a proven ability to deliver reliable security services. However, ongoing vigilance and proactive management are essential to address any emergent risks.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring optimal value for taxpayers?

The 'full and open competition after exclusion of sources' approach aims to balance broad market access with the need for specific qualifications. By allowing all responsible sources to bid while excluding those who do not meet certain predefined criteria, the government seeks to ensure a competitive field of highly qualified bidders. This can lead to better price discovery and service quality than a sole-source or limited competition. However, the effectiveness hinges on the justification for excluding sources; if exclusions are overly restrictive or not well-justified, it could limit competition and potentially increase costs for taxpayers. Transparency in the exclusion criteria is key to ensuring fairness and optimal value.

What is the historical spending trend for security guard services by the Department of Homeland Security or CMS?

Analyzing historical spending trends for security guard services by the Department of Homeland Security (DHS) and the Centers for Medicare & Medicaid Services (CMS) would provide context for the $8.6 million award. This involves examining annual spending data for similar security contracts over the past several years. Trends might reveal whether spending in this category is increasing, decreasing, or remaining stable. Understanding these patterns can help assess if the current award is in line with historical investment levels, if there has been a significant shift in procurement strategy, or if the current award represents a substantial increase or decrease in expenditure for these essential 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, 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: $8,596,997

Exercised Options: $8,596,997

Current Obligation: $8,596,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RFP319DE3000005

IDV Type: IDC

Timeline