DOJ's FY26 CSO Program Funding contract awarded to Centerra Group, LLC for $9.1M

Contract Overview

Contract Amount: $9,108,821 ($9.1M)

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: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 5 D80 - 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 $9.1 million to CENTERRA GROUP, LLC for work described as: CIRCUIT 5 D80 - FY 2026 CSO PROGRAM FUNDING Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for security guard and patrol services, a critical function for the U.S. Marshals Service. 3. The duration of the contract is one year, indicating a need for ongoing, but not long-term, service provision. 4. The contract type is 'Delivery Order', suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. The base award amount is $2,502,400, with the total potential value for FY26 being $9,108,820.76, requiring careful monitoring of task orders. 6. The contract is for labor hours, which can introduce variability in total cost based on actual hours worked.

Value Assessment

Rating: fair

The base award of $2.5M for a year of security services appears reasonable, but the total potential value of $9.1M warrants closer examination. Without comparable contract data for similar security services provided to the U.S. Marshals Service or other DOJ components, it is difficult to definitively benchmark the value for money. The 'labor hours' pricing model means the final cost will depend on the number of hours utilized, which could lead to cost overruns if not managed effectively. The contract's duration and scope suggest a standard service requirement, but the significant difference between the base and potential award highlights the need for diligent oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit bids. This method generally promotes a competitive environment, which should theoretically lead to better pricing and service quality. The number of bidders is not specified, but the use of full and open competition suggests a robust process was intended. The effectiveness of this competition in driving down costs and ensuring optimal value is contingent on the number of actual bids received and the specific terms negotiated.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider pool of qualified vendors, potentially leading to cost savings.

Public Impact

The U.S. Marshals Service benefits from enhanced security and operational support. Services include security guards and patrol, ensuring the safety of facilities and personnel. The contract is located in Virginia, impacting the local workforce and economy. The provision of security services supports the core mission of law enforcement and judicial security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to 'labor hours' pricing model if not closely managed.
Lack of specific details on the number of bidders limits assessment of true competitive pressure.
The significant difference between base award and total potential value requires vigilant task order management.

Positive Signals

Awarded through 'full and open competition', suggesting a fair and accessible bidding process.
Contract supports critical law enforcement functions of the U.S. Marshals Service.
Clear performance period (FY26) provides defined service expectations.

Sector Analysis

The security services industry is a significant sector within government contracting, encompassing a wide range of protective services. This contract falls under the 'Security Guards and Patrol Services' category (NAICS 561612). Government spending in this area is substantial, driven by the need to protect federal facilities, personnel, and assets. Competition within this sector is typically robust, with many established providers. This contract represents a portion of the broader federal expenditure on security, which is often managed through IDIQ vehicles or specific delivery orders like this one.

Small Business Impact

The data indicates that small business participation (ss and sb flags are false) was not a specific set-aside requirement for this contract. Therefore, the primary focus is on the prime contractor, Centerra Group, LLC. There is no explicit information regarding subcontracting plans for small businesses within this specific award. The impact on the small business ecosystem would depend on whether Centerra Group, LLC has its own small business subcontracting goals and performance history, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service and the Department of Justice. As a delivery order, it is likely managed under a broader contract with established oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to performance metrics and service level agreements outlined in the contract. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this spending.

Related Government Programs

U.S. Marshals Service Operational Support Contracts
Federal Protective Service Contracts
Department of Justice Security Services
General Services Administration (GSA) Schedule Contracts for Security Services

Risk Flags

Potential for cost overruns due to labor hour pricing.
Need for diligent oversight of task orders to manage total potential value.
Dependence on contractor's performance history for risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.1 million to CENTERRA GROUP, LLC. CIRCUIT 5 D80 - 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 $9.1 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 historical spending for security guard and patrol services by the U.S. Marshals Service is crucial for context. While specific data for this contract is limited to FY26, a review of past fiscal years would reveal trends in contract awards, average contract values, and the primary contractors utilized. For instance, if spending has been consistently high or increasing, it suggests a sustained need for these services. Conversely, significant fluctuations might indicate changes in operational requirements or security postures. Understanding the historical average cost per hour or per guard for similar services would provide a benchmark against which the current contract's pricing could be evaluated. This historical perspective helps in assessing whether the $9.1M potential value for FY26 is in line with previous investments or represents a notable deviation, potentially signaling a need for further investigation into the drivers of such changes.

How does the pricing structure (labor hours) compare to fixed-price contracts for similar security services?

The 'labor hours' pricing structure for this contract means the total cost is directly tied to the number of hours worked by personnel, plus agreed-upon hourly rates. This contrasts with fixed-price contracts, where a set amount is agreed upon for a defined scope of work, regardless of the exact hours expended. Labor hour contracts offer flexibility, allowing the government to adjust service levels by increasing or decreasing hours as needed, which can be advantageous for unpredictable requirements. However, they also carry a higher risk of cost overruns if not meticulously managed and monitored, as the government pays for actual time spent. Fixed-price contracts provide greater cost certainty for the government but may be less adaptable to changing needs and can sometimes lead to contractors cutting corners to maintain profitability. For security services, labor hour contracts are common when the exact scope or duration of guard presence might fluctuate, while fixed-price might be used for clearly defined, long-term security posts.

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

Centerra Group, LLC has a significant track record in providing security and mission support services to various U.S. government agencies. Their experience often includes managing large-scale security operations, personnel, and facilities, particularly in complex or high-security environments. A review of their past performance on federal contracts would typically involve examining past performance evaluations, any documented instances of contract disputes or awards, and their history with agencies like the Department of Defense, Department of Energy, and Department of Justice. Understanding their performance history, including their ability to meet deadlines, stay within budget, and adhere to security protocols, is essential for assessing the risk associated with this new award. Positive past performance generally indicates a lower risk of execution issues, while a history of problems might warrant closer scrutiny of their current contract management approach.

What are the key performance indicators (KPIs) for security guard and patrol services contracts?

Key Performance Indicators (KPIs) for security guard and patrol services contracts are essential for measuring the effectiveness and quality of the services provided. Common KPIs include response times to incidents, the number of security breaches or incidents that occur under the contractor's watch, adherence to post orders and patrol routes, personnel punctuality and attendance rates, and the successful completion of required training and background checks for guards. For this contract with the U.S. Marshals Service, KPIs might also focus on the prevention of unauthorized access, the maintenance of secure perimeters, and the overall professionalism and vigilance of the security personnel. The contract likely specifies these KPIs, and performance against them would determine contractor payment and potential for future awards. Robust KPIs ensure accountability and provide objective measures for evaluating the contractor's value.

Are there any specific risks associated with providing security services in Virginia for the U.S. Marshals Service?

Providing security services in Virginia for the U.S. Marshals Service involves several potential risks that need to be managed. Geographically, Virginia hosts numerous federal facilities and sensitive sites, increasing the potential targets for security threats. The nature of the U.S. Marshals Service's mission, which involves protecting federal judges, court officials, and managing federal prisoners, inherently carries high risks. This could include threats from individuals or groups targeting the judicial system. Operational risks might involve the need for rapid response to security incidents, managing potentially volatile situations, and ensuring continuous security coverage. Personnel risks include ensuring guards are adequately trained, vetted, and motivated, especially given the demanding nature of the work. Centerra Group, LLC must have robust protocols for threat assessment, emergency response, and personnel management to mitigate these risks effectively.

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: $9,108,821

Exercised Options: $9,108,821

Current Obligation: $9,108,821

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