Justice Department awards $3.85M for security services, with Centerra Group as prime contractor

Contract Overview

Contract Amount: $3,852,195 ($3.9M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 5 D43 - FY 2026 CSO PROGRAM FUNDING

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $3.9 million to CENTERRA GROUP, LLC for work described as: CIRCUIT 5 D43 - FY 2026 CSO PROGRAM FUNDING Key points: 1. Contract value represents a significant investment in essential security operations. 2. Full and open competition suggests a robust market for these services. 3. Performance period spans one fiscal year, indicating a need for ongoing security support. 4. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Security services are critical for maintaining operational integrity and safety. 6. The specific services procured are classified under Security Guards and Patrol Services.

Value Assessment

Rating: good

The contract value of $3.85 million for a one-year period for security guard services appears reasonable given the scope. Benchmarking against similar contracts for security services provided to federal agencies of this size and duration is necessary for a definitive assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific comparable contract data, it's difficult to definitively state if this represents excellent value, but it falls within expected ranges for specialized security support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, driving down prices and encouraging innovation. The U.S. Marshals Service's decision to use full and open competition suggests confidence in the market's ability to meet their security needs effectively and at a fair price.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of service options. This approach ensures that the government is not locked into a single provider, promoting cost-effectiveness and service quality.

Public Impact

The U.S. Marshals Service benefits directly through the provision of essential security guard and patrol services. These services are crucial for maintaining the safety and security of federal facilities and personnel. The contract supports workforce needs within the security services sector. Geographic impact is likely concentrated in areas where the U.S. Marshals Service operates facilities requiring security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the delivery order's requirements are not precisely defined.
Reliance on labor hours can lead to cost increases if not managed effectively.
Ensuring consistent quality of service across all deployed personnel is a common challenge.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contract is for a defined period, allowing for reassessment of needs and performance.
The U.S. Marshals Service is a reputable agency with established procurement processes.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal agencies are major consumers of these services, contracting for everything from physical security guards to cybersecurity. The market is characterized by a mix of large, established players and smaller, specialized firms. This contract, for security guards and patrol services, falls into a well-defined sub-sector where competition is typically robust, driven by government requirements for reliable and cost-effective protection of assets and personnel.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Centerra Group, LLC is a large business, there is no explicit information on subcontracting plans for small businesses within this specific delivery order. Federal regulations encourage large prime contractors to utilize small businesses for subcontracting opportunities, but the extent to which this occurs is not detailed here. Further analysis would be needed to determine if small businesses are involved in fulfilling this contract's requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service contracting officer and contract specialists. Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Schedules for Security Services
Department of Defense Security Contracts

Risk Flags

Potential for cost overruns due to labor hour pricing.
Ensuring consistent service quality across all personnel.
Contractor performance monitoring challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.9 million to CENTERRA GROUP, LLC. CIRCUIT 5 D43 - FY 2026 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 $3.9 million.

What is the period of performance?

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

What is the historical spending pattern for security guard and patrol services by the U.S. Marshals Service?

Analyzing the historical spending patterns of the U.S. Marshals Service (USMS) for security guard and patrol services reveals a consistent need for these critical functions. Over the past several fiscal years, the USMS has allocated significant funds to ensure the security of its facilities, personnel, and operations. For instance, in FY2023, the USMS obligated approximately $X million across various contracts for these services, with a notable portion going to prime contractors specializing in physical security. This trend suggests a sustained demand, often met through a combination of full and open competitions and task orders under larger IDIQ vehicles. The current award of $3.85 million for FY2026 aligns with this historical commitment, indicating that the agency continues to prioritize and budget for robust security measures. Fluctuations in spending can often be attributed to changes in facility needs, threat assessments, and the expiration or consolidation of existing contracts.

How does the awarded amount compare to similar security contracts awarded by the Department of Justice?

The awarded amount of $3.85 million for FY2026 for security guard and patrol services by the U.S. Marshals Service (a component of the Department of Justice) is within a typical range for such contracts. The Department of Justice (DOJ) procures a wide array of security services across its various components, including the FBI, DEA, and Bureau of Prisons. Contracts for similar services, especially those involving 24/7 coverage at federal facilities, often range from a few hundred thousand dollars to several million annually, depending on the size and security level of the facility, as well as the specific services required (e.g., armed guards, unarmed guards, patrol). For a one-year duration, $3.85 million suggests a substantial requirement, potentially covering multiple locations or a high-security facility. Benchmarking against other DOJ awards for comparable scope and duration would confirm its reasonableness, but it does not appear to be an outlier.

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

Centerra Group, LLC has a significant track record of performing federal security contracts across various agencies, including the Department of Defense, Department of Energy, and Department of Justice. They are known for providing a range of services such as physical security, access control, emergency response, and protective services. Historically, Centerra has managed large-scale security operations, often at high-security government installations. While specific performance metrics for every contract are not publicly detailed, their continued success in winning competitive bids and securing follow-on work indicates a generally positive performance history. As with any large contractor, there may be instances of performance issues or contract disputes on specific projects, but their overall presence and longevity in the federal contracting space suggest a capability to meet demanding security requirements.

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

Several potential risks are associated with federal security services contracts like this one. A primary risk is performance failure, where the contractor may not adequately provide the required security, leading to breaches, safety incidents, or operational disruptions. This can stem from inadequate staffing, insufficient training, or poor management by the contractor. Another risk is cost overruns, particularly with labor-hour contracts, if not managed tightly; unexpected overtime, scope creep, or inefficient deployment of personnel can inflate costs beyond initial projections. Contractor personnel reliability and vetting are also critical risks; ensuring all guards are properly screened, trained, and trustworthy is paramount. Finally, there's the risk of contract disputes or protests, which can delay service delivery or lead to litigation. Effective oversight and clear performance standards are crucial to mitigating these risks.

What is the typical duration and value range for U.S. Marshals Service security contracts?

The U.S. Marshals Service (USMS) typically procures security guard and patrol services through a variety of contract vehicles, including indefinite-delivery/indefinite-quantity (IDIQ) contracts and specific task orders or delivery orders issued against those vehicles. The duration of these contracts can vary significantly. Standalone contracts or delivery orders, like the one awarded here for FY2026, often have a base period of one year, with options for renewal. The value range is also broad, heavily dependent on the specific facilities being secured, the level of security required (armed vs. unarmed guards, number of posts, hours of coverage), and the geographic location. Smaller contracts might be in the tens or hundreds of thousands of dollars, while larger, multi-year contracts for major facilities or nationwide support can reach tens or hundreds of millions of dollars. The $3.85 million for this one-year delivery order suggests a significant security requirement for one or more key USMS locations.

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: $3,852,195

Exercised Options: $3,852,195

Current Obligation: $3,852,195

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