Justice Department awards $3.3M for FY26 security services, with Centerra Group as prime contractor

Contract Overview

Contract Amount: $3,343,661 ($3.3M)

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: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CIRCUIT 5 D95 - 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 $3.3 million to CENTERRA GROUP, LLC for work described as: CIRCUIT 5 D95 - 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 year, indicating a need for ongoing security support. 4. The contract is for security guards and patrol services, a critical function for federal agencies. 5. Virginia is the primary location for service delivery, impacting local workforce and economy. 6. This award is part of a larger program funding initiative for the U.S. Marshals Service.

Value Assessment

Rating: good

The contract value of approximately $3.34 million for a one-year period for security guard and patrol services appears reasonable given the scope. Benchmarking against similar contracts for security services for federal law enforcement agencies would provide a more precise value-for-money assessment. However, the absence of extensive modifications or a lengthy performance history suggests a standard service delivery model.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is expected to drive fair pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the designation suggests a healthy level of market interest.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the efficient use of public funds.

Public Impact

The U.S. Marshals Service benefits from continuous and reliable security guard and patrol services. Federal facilities and personnel in Virginia are protected by these essential security measures. The contract supports jobs within the security services sector in the Virginia region. Ensures the safe and secure operation of critical law enforcement functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor if future renewals are not competitively bid.
Need for robust performance monitoring to ensure service quality meets expectations.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Clear definition of services (Security Guards and Patrol Services) reduces ambiguity.
Defined performance period (one year) allows for regular reassessment of needs and contractor performance.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. Federal contracts for security guards and patrol services are common across many agencies, particularly those with physical assets or personnel requiring protection. This contract fits within the established pattern of federal spending on security, with annual outlays often in the billions across various departments. The market is characterized by a mix of large, established providers and smaller, specialized firms.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further investigation into the solicitation documents would be needed to determine if any small business participation goals were established or achieved. Without this information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service, with potential involvement from the Department of Justice's Office of Inspector General. Performance standards and service level agreements outlined in the contract documents would serve as key accountability measures. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Department of Justice Security Contracts
U.S. Marshals Service Operations Support
Federal Law Enforcement Security Services
Virginia State Security Contracts

Risk Flags

Potential for performance issues impacting security.
Need for vigilant oversight to ensure service quality.
Risk of price increases in future contract renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.3 million to CENTERRA GROUP, LLC. CIRCUIT 5 D95 - 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 $3.3 million.

What is the period of performance?

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

What is the historical spending trend 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 requires accessing historical contract data. Typically, agencies like the Marshals Service maintain consistent needs for security, suggesting that annual spending in this category would likely fluctuate based on operational requirements, facility expansions or consolidations, and overall budget allocations. A review of past fiscal years would reveal if this $3.34 million award for FY2026 is an increase, decrease, or consistent with previous years' investments. Factors such as inflation, changes in security threat levels, and the number of facilities managed can all influence these spending patterns. Without specific historical data, it's presumed that security services represent a stable and necessary expenditure for the agency.

How does the per-unit cost of this contract compare to similar federal security contracts?

Determining the precise per-unit cost comparison for this contract is challenging without detailed breakdowns of labor hours, rates, and specific service deliverables. The contract is for 'Security Guards and Patrol Services' with a total value of $3.34 million for a 364-day period. To benchmark effectively, one would need to compare this against contracts with similar scope, geographic location, and security levels. For instance, comparing the average hourly rate paid to guards or the cost per square foot of secured area across multiple federal contracts would be informative. Given the 'full and open competition' designation, it suggests the pricing was vetted against market rates. However, without access to the specific bid data or detailed performance metrics, a definitive per-unit cost comparison remains qualitative.

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

Centerra Group, LLC has a significant track record in providing security and facility management services to various federal agencies. Their experience often includes complex security operations, detention management, and protective services. A review of federal procurement databases would likely show numerous awards to Centerra for similar services across different departments, including defense, justice, and homeland security. Their past performance, including any documented successes or challenges, would have been a key consideration during the evaluation of bids for this U.S. Marshals Service contract. Assessing their performance history, including client satisfaction and adherence to contract terms on prior engagements, is crucial for understanding the reliability of their service delivery.

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

Primary risks associated with this type of security services contract include potential lapses in security coverage due to staffing shortages or contractor performance issues, which could compromise facility safety and personnel security. There's also a risk of cost overruns if unforeseen operational needs arise or if contract terms are not strictly managed. Ensuring consistent quality of service across all shifts and personnel is another challenge. Furthermore, the potential for security breaches, theft, or vandalism, even with contracted services, remains a concern. Effective risk mitigation relies on robust contract oversight, clear performance metrics, and strong communication channels between the agency and the contractor.

How does the geographic focus on Virginia impact the contract's value and execution?

The geographic focus on Virginia for this security services contract means that the contract's value and execution are directly tied to the specific security needs and operational footprint of the U.S. Marshals Service within that state. This concentration allows for potentially more efficient service delivery and oversight compared to a geographically dispersed contract. It also implies that the contractor, Centerra Group, LLC, must have a strong presence or the capability to rapidly deploy resources in Virginia. The local labor market in Virginia will influence staffing costs and availability. Furthermore, the specific facilities or operations being secured within Virginia will dictate the level and type of security required, influencing the overall contract value and the specific performance expectations.

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: $3,343,661

Exercised Options: $3,343,661

Current Obligation: $3,343,661

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