Interior Department awards $30M guard services contract to Centerra Group, LLC for Main Interior Building

Contract Overview

Contract Amount: $29,958,835 ($30.0M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of the Interior

Start Date: 2021-05-01

End Date: 2026-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: GUARD SERVICES FOR THE MAIN INTERIOR BUILDING IN WASHINGTON, DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20240

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $30.0 million to CENTERRA GROUP, LLC for work described as: GUARD SERVICES FOR THE MAIN INTERIOR BUILDING IN WASHINGTON, DC Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests potential for competitive pricing. 3. Performance risk is moderate, typical for security guard services. 4. Contract duration of five years provides stability for service delivery. 5. This contract falls within the broader security services sector for federal facilities.

Value Assessment

Rating: good

The contract value of approximately $30 million over five years for guard services at the Main Interior Building in Washington, D.C. appears to be within a reasonable range for such a critical facility. Benchmarking against similar contracts for large federal buildings in the D.C. area suggests that the overall cost is competitive. The pricing structure, based on labor hours, allows for flexibility while maintaining cost control, provided effective management and oversight are in place.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were invited to bid. With seven bidders participating, the level of competition was robust. This broad participation generally leads to better price discovery and ensures that the government receives offers from a wide range of qualified providers, fostering a competitive environment that can drive down costs.

Taxpayer Impact: A competitive bidding process for guard services helps ensure that taxpayer dollars are used efficiently by securing services at market-competitive rates. The presence of multiple bidders suggests that the government is likely to obtain the best value for its investment in facility security.

Public Impact

The primary beneficiaries are the Department of the Interior and its personnel, ensuring a secure working environment. Services delivered include physical security, access control, and patrol services for the Main Interior Building. The geographic impact is concentrated in Washington, D.C., specifically at the Main Interior Building. The contract supports jobs within the security services industry, likely benefiting local D.C. residents.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional security needs arise beyond the initial contract.
Ensuring consistent quality of service across all shifts and personnel requires diligent oversight.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
The five-year duration provides service continuity and allows the contractor to build institutional knowledge.
The contract is for a well-defined service (guard services) at a specific location, reducing ambiguity.

Sector Analysis

The federal government is a significant consumer of security services, with spending concentrated in areas like facility protection, personnel security, and cybersecurity. The market for security guard services is mature and competitive, with numerous private sector firms capable of providing these essential functions. This contract for the Department of the Interior fits within the broader category of facility support services, a substantial segment of federal contracting.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While Centerra Group, LLC is a large business, there is potential for subcontracting opportunities for small businesses within the security services sector, depending on the prime contractor's strategy. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officer and contract specialists. Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Guard Services
General Services Administration Facility Management Contracts

Risk Flags

Potential for high personnel turnover in security roles.
Need for rigorous quality assurance to ensure consistent service delivery.
Dependence on contractor's ability to adapt to evolving security threats.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $30.0 million to CENTERRA GROUP, LLC. GUARD SERVICES FOR THE MAIN INTERIOR BUILDING IN WASHINGTON, DC

Who is the contractor on this award?

The obligated recipient is CENTERRA GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-04-30.

What is Centerra Group, LLC's track record with federal contracts, particularly for security services?

Centerra Group, LLC has a significant history of performing federal contracts, including extensive experience in security services, facility management, and base operations support for various government agencies. They have held numerous contracts with departments such as Defense, Homeland Security, and Justice. Their past performance often includes providing security personnel, access control, perimeter security, and emergency response services at federal facilities, including courthouses, detention centers, and administrative buildings. While specific performance metrics for each contract are not publicly detailed, their continued award of large-scale federal contracts suggests a generally satisfactory performance history. However, a deeper dive into past performance evaluations and any documented disputes or corrective actions would provide a more comprehensive understanding of their reliability and effectiveness.

How does the awarded price compare to similar guard services contracts for federal buildings in the Washington D.C. metropolitan area?

The awarded contract value of approximately $30 million over five years, averaging $6 million annually, for guard services at the Main Interior Building is generally in line with market rates for similar large-scale federal facilities in the Washington D.C. area. Contracts for security personnel at major government buildings often involve significant costs due to the need for 24/7 coverage, highly trained personnel, and adherence to stringent security protocols. Benchmarking against contracts for facilities of comparable size and security requirements, such as those managed by the General Services Administration (GSA) or other cabinet-level departments, indicates that this pricing is competitive. Factors influencing cost include the number of personnel required, the level of security clearance, specialized training, and the specific security technologies employed.

What are the primary risks associated with this type of security guard services contract?

The primary risks associated with this security guard services contract include personnel-related issues such as high turnover, inadequate training, or misconduct, which can compromise security effectiveness. There's also a risk of performance deficiencies, where the contractor may fail to meet the required service levels, leading to security gaps. Contract management risks involve potential cost overruns if labor hours are not managed efficiently or if scope creep occurs without proper modification. Furthermore, security threats and unforeseen emergencies pose inherent risks that require robust contingency planning and rapid response capabilities from the contractor. Ensuring consistent quality and adherence to strict protocols across all shifts and personnel is a continuous management challenge.

What is the historical spending pattern for guard services at the Main Interior Building?

Historical spending data for guard services specifically at the Main Interior Building prior to this contract award would provide valuable context. Without access to that specific historical data, we can infer that the Department of the Interior has consistently required guard services for this prominent facility. Federal agencies typically maintain ongoing contracts for facility security, often renewing or re-competing them every few years. If previous contracts were for similar durations and scopes, the current award of $30 million over five years suggests a stable and consistent level of investment in securing the building. Analyzing past contract values, durations, and any significant changes in service requirements would reveal trends in spending and potential cost efficiencies or increases over time.

How does the 'full and open competition' impact the value proposition for taxpayers?

The 'full and open competition' approach significantly enhances the value proposition for taxpayers by fostering a competitive marketplace. When multiple qualified vendors are allowed to bid, it drives down prices as companies strive to offer the most attractive bid to win the contract. This process also encourages innovation and efficiency, as contractors aim to differentiate themselves through better service delivery or cost-saving measures. Furthermore, it ensures that the government is not locked into a single provider, which could lead to complacency and higher costs over time. The robust competition observed in this case, with seven bidders, suggests that the government is likely to secure these essential security services at a fair and competitive market price, maximizing the return on taxpayer investment.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0421Q0047

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Contractor Details

Address: 13530 DULLES TECHNOLOGY DR, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,829,022

Exercised Options: $30,597,029

Current Obligation: $29,958,835

Actual Outlays: $29,279,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F5548P

IDV Type: FSS

Timeline