DOJ's $8.57M FY25 CSO Program Funding to Centerra Group, LLC for Security Services in Texas

Contract Overview

Contract Amount: $8,565,600 ($8.6M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 5 D78 - FY 2025 CSO PROGRAM FUNDING

Place of Performance

Location: TYLER, SMITH County, TEXAS, 75702

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $8.6 million to CENTERRA GROUP, LLC for work described as: CIRCUIT 5 D78 - FY 2025 CSO PROGRAM FUNDING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 364 days aligns with typical annual service agreements. 3. Awarded as a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The specific North American Industry Classification System (NAICS) code 561612 points to security guard and patrol services. 5. The contract's value is modest within the broader context of federal security spending. 6. No small business set-aside was utilized, meaning large businesses were eligible and likely competed.

Value Assessment

Rating: good

The contract value of approximately $8.57 million for a year of security services appears reasonable when benchmarked against similar federal contracts for guard and patrol services. While specific per-unit cost data is not provided, the overall award amount suggests a competitive pricing strategy was likely employed given the full and open competition. The U.S. Marshals Service is a frequent procurer of such services, and this award falls within expected spending ranges for similar operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment. A competitive bidding process is expected to drive down prices and ensure the government receives the best value for its money by encouraging multiple vendors to offer their services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure security services at the most economical price, preventing potential overspending that could occur with less competitive award methods.

Public Impact

The primary beneficiaries are the U.S. Marshals Service, receiving essential security guard and patrol services. Services delivered include the protection of federal facilities and personnel within the specified geographic area. The geographic impact is focused on Texas, where the services will be rendered. The contract supports jobs within the private security sector, contributing to the local workforce in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The reliance on a delivery order suggests potential for follow-on work, which could increase overall spending beyond this single award.
Limited insight into the specific security threats or requirements driving this particular contract award.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract is for a defined period, allowing for periodic reassessment of needs and vendor performance.
The agency procuring the services, U.S. Marshals Service, has a clear mission requiring such support.

Sector Analysis

The federal government is a significant consumer of security services, with spending spread across various agencies and needs, from facility protection to personnel escort. The market for security guards and patrol services is mature and highly competitive, with numerous private sector firms capable of meeting federal requirements. This contract fits within the broader category of government contracting for essential operational support services, often procured through IDIQ vehicles or direct awards following competitive processes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and likely did. While there's no direct indication of subcontracting requirements for small businesses within this specific award notice, federal contracts often include clauses encouraging or mandating subcontracting to small businesses to foster their participation in government contracting. The absence of a set-aside suggests that the primary focus was on securing the best offer through open competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service's contracting and program management offices. Accountability measures are usually embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to satisfactory service delivery. Transparency is facilitated through contract award databases like SAM.gov. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts for Security
Department of Defense Security Contracts

Risk Flags

Potential for increased spending if this delivery order is part of a larger IDIQ with subsequent orders.
Lack of detailed performance metrics requires careful monitoring by the agency.
Dependence on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $8.6 million to CENTERRA GROUP, LLC. CIRCUIT 5 D78 - FY 2025 CSO PROGRAM FUNDING

Who is the contractor on this award?

The obligated recipient is CENTERRA GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is Centerra Group, LLC's track record with the U.S. Marshals Service and similar federal agencies?

Centerra Group, LLC has a significant history of providing security and facility management services to various federal agencies, including the Department of Justice and the U.S. Marshals Service. Their experience often encompasses secure transportation, detention services, and physical security. Analyzing their past performance on similar contracts would involve reviewing past performance evaluations, any documented disputes or contract terminations, and the overall scope and value of previous awards. A review of federal procurement data would reveal the extent of their awards and the agencies they have served, providing context for their capabilities and reliability in fulfilling security requirements.

How does the awarded amount compare to historical spending for similar security services by the U.S. Marshals Service?

The awarded amount of $8.57 million for FY2025 security services represents a specific funding allocation for the Center for Strategic Operations (CSO) program. To benchmark this against historical spending, one would need to examine previous fiscal years' budgets and contract awards for the U.S. Marshals Service related to security guard and patrol services. Factors such as inflation, changes in security requirements, and the number of facilities or personnel requiring protection can influence year-over-year spending. If this award is a delivery order under an IDIQ, comparing it to the total value of the IDIQ and other delivery orders issued under it would provide further context on the scale of this particular service provision.

What are the key performance indicators (KPIs) used to evaluate Centerra Group, LLC's performance under this contract?

While specific KPIs are not detailed in the provided award data, federal contracts for security guard and patrol services typically include performance standards related to response times, incident reporting accuracy, personnel reliability (e.g., background checks, training compliance), adherence to post orders, and overall site security effectiveness. Performance is often evaluated through contractor performance assessment reporting (CPAR) systems. The U.S. Marshals Service would likely have defined metrics for guard presence, incident detection and reporting, and the prevention of unauthorized access or security breaches to ensure the effectiveness of the services provided by Centerra Group.

Are there any specific risks associated with contracting security services through a delivery order?

Contracting security services via a delivery order, especially if it's part of a larger IDIQ contract, can present certain risks. One risk is the potential for scope creep or uncoordinated tasking if the underlying IDIQ is not well-defined or managed. Another consideration is ensuring fair competition among all potential awardees under the IDIQ for each delivery order, although this contract specifies 'full and open competition.' There's also a risk that the pricing established in the base IDIQ may not remain competitive over time if market rates change significantly. Effective oversight is crucial to manage these risks and ensure value for money across all delivery orders.

What is the significance of the contract being for the 'FY 2025 CSO Program Funding'?

The designation 'FY 2025 CSO Program Funding' indicates that this contract award is specifically allocated for the Center for Strategic Operations (CSO) program and is intended to cover expenses within the fiscal year 2025 budget. The CSO program within the U.S. Marshals Service likely focuses on critical operational support, intelligence, or specialized law enforcement functions that require robust security measures. This funding designation ensures that the expenditure is tied to a specific program objective and budget cycle, facilitating financial tracking and accountability for that particular initiative.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15M20021RA32CSO21

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 13530 DULLES TECHNOLOGY DR STE 500, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $8,565,600

Exercised Options: $8,565,600

Current Obligation: $8,565,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M10522DA4700006

IDV Type: IDC

Timeline