Justice Department awards $5M+ for security services, with Centerra Group LLC securing the FY2026 CSO Program Funding

Contract Overview

Contract Amount: $5,031,566 ($5.0M)

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: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 5 D77 - 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 $5.0 million to CENTERRA GROUP, LLC for work described as: CIRCUIT 5 D77 - FY 2026 CSO PROGRAM FUNDING Key points: 1. Contract value exceeds $5 million for a one-year period, indicating a significant investment in security operations. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Security Guards and Patrol Services are the core function, essential for maintaining secure facilities and operations. 5. The contract duration of 364 days aligns with typical annual security service agreements. 6. The specific National Item Identification Number (NAICS) 561612 points to a specialized service within the security sector.

Value Assessment

Rating: good

The contract value of approximately $5 million for a one-year security guard service contract appears reasonable given the scope of services typically required by the U.S. Marshals Service. Benchmarking against similar contracts for security guard services at federal facilities suggests that this award falls within expected pricing ranges. The absence of specific performance metrics or detailed cost breakdowns in the provided data makes a precise value-for-money assessment challenging, but the competitive nature of the award provides some assurance of fair pricing.

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 number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that likely drove pricing towards market rates. This approach is generally favored for ensuring the government receives the best value by allowing a wide range of qualified contractors to compete.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

The U.S. Marshals Service benefits directly through the provision of essential security guard and patrol services. These services are critical for maintaining the safety and security of federal facilities and personnel. The contract supports operational continuity for the Marshals Service, enabling them to carry out their law enforcement and judicial security missions. The geographic impact is likely concentrated around the facilities managed by the U.S. Marshals Service in Virginia, where the contract is stated to be. Workforce implications include employment opportunities for security personnel employed by Centerra Group, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical security functions.
Lack of detailed performance metrics in the summary data makes it difficult to assess service quality proactively.
The contract's value, while significant, may not fully capture the total cost of security if additional services or extensions are required.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Centerra Group, LLC is an established government contractor with experience in security services.
The contract duration is clearly defined, providing a predictable period for service delivery.

Sector Analysis

The security services sector is a substantial part of the federal contracting landscape, encompassing a wide range of protective services. This contract falls within the security guards and patrol services sub-sector, which is characterized by numerous providers ranging from small, specialized firms to large, diversified companies like Centerra Group. Federal spending in this area is consistently high due to the government's responsibility for securing numerous facilities and assets nationwide. Comparable spending benchmarks would typically involve analyzing the cost per guard hour or cost per square foot protected across similar federal contracts.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). This suggests that the contract was not specifically targeted to encourage small business participation. While Centerra Group, LLC may utilize small businesses for subcontracting, there is no explicit requirement or set-aside mentioned in this data. The impact on the small business ecosystem is neutral to potentially negative if small businesses were capable of performing these services but were not afforded a specific opportunity through a set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service contracting officer and contract specialists. Accountability measures are embedded within the contract terms, requiring adherence to service level agreements and performance standards. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply in cases of 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
Department of Defense Security Services
Bureau of Prisons Security Contracts

Risk Flags

Potential for service disruption if contractor personnel are not adequately vetted or trained.
Risk of non-compliance with security protocols leading to security breaches.
Dependency on contractor performance for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.0 million to CENTERRA GROUP, LLC. CIRCUIT 5 D77 - 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 $5.0 million.

What is the period of performance?

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

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

Centerra Group, LLC has a significant history of performing security and facility management services for various U.S. federal agencies. They have held numerous contracts across different departments, including defense, justice, and homeland security. Their experience often involves providing a broad spectrum of services, such as physical security, access control, perimeter security, and emergency response. While specific performance ratings for individual contracts are not detailed here, their continued success in winning federal bids suggests a generally positive track record and capability in meeting government requirements. It is advisable to review past performance evaluations and contract histories for specific details on their reliability and quality of service delivery.

How does the awarded amount compare to similar security contracts?

The awarded amount of approximately $5 million for a one-year security guard contract for the U.S. Marshals Service in Virginia is within a typical range for such services. Federal security contracts can vary widely based on the number of personnel required, the complexity of the facilities, the hours of coverage, and the specific security measures mandated. Contracts for high-security environments or those requiring specialized personnel can command higher prices. Without detailed scope of work and personnel requirements, a precise comparison is difficult, but the value appears consistent with industry standards for government security services.

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

Primary risks associated with this type of security contract include potential lapses in security coverage due to personnel shortages or turnover, inadequate training of security guards, failure to adhere to strict protocols, and the possibility of security breaches. There's also a risk of cost overruns if the scope of work expands beyond the initial contract terms or if unforeseen security challenges arise. Contractor performance issues, such as a decline in service quality or non-compliance with regulations, represent a significant risk to the agency's operational security and mission effectiveness. Ensuring robust oversight and clear performance standards are crucial to mitigating these risks.

How effective are full and open competitions in ensuring value for taxpayer money in security services?

Full and open competitions are generally considered an effective mechanism for ensuring value for taxpayer money in security services. By allowing all responsible sources to bid, the government can solicit a wide range of proposals and pricing structures, fostering competition that typically drives down costs and encourages innovation. This process helps identify the most capable contractors at the most competitive prices. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately define its needs. A poorly defined scope or unrealistic evaluation criteria can still lead to suboptimal outcomes, even with open competition.

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

Historical spending trends for security guard services by the U.S. Marshals Service (USMS) generally show a consistent and significant investment in these services due to their critical law enforcement and judicial security mission. While specific year-over-year data for the USMS alone is not provided here, federal spending on security services across agencies has been substantial and often increases with heightened security concerns or expanded operational requirements. The USMS relies heavily on contracted security personnel to supplement its own law enforcement officers in protecting courthouses, detention facilities, and other sensitive locations. Annual outlays can fluctuate based on specific facility needs, contract renewals, and budget allocations.

What are the implications of this contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' implies that it is a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts provide a flexible framework for agencies to procure services over a period of time, with specific quantities and delivery schedules defined by individual task orders. This approach allows for streamlined procurement once the initial IDIQ contract has been awarded through competition. For taxpayers, this can mean more efficient procurement processes and potentially better pricing due to the established relationship and pre-negotiated terms under the IDIQ. However, it also means that the total spending under the overarching IDIQ contract could be significantly higher than this single delivery order.

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: $5,031,566

Exercised Options: $5,031,566

Current Obligation: $5,031,566

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