Homeland Security awards $33.1M contract for armed facility guards to Centerra Group, LLC

Contract Overview

Contract Amount: $33,132,342 ($33.1M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-06

End Date: 2025-03-07

Contract Duration: 457 days

Daily Burn Rate: $72.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ARMED FACILITY GUARDS - TUCSON, AZ REGION

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.1 million to CENTERRA GROUP, LLC for work described as: ARMED FACILITY GUARDS - TUCSON, AZ REGION Key points: 1. Contract awarded via GSA Federal Supply Schedule (FSS) for security guard services. 2. Centerra Group, LLC, a large business, is the sole awardee. 3. The contract duration is 457 days, indicating a medium-term need. 4. The contract is for armed facility guards, a critical security function. 5. The award was made under full and open competition. 6. The contract type is Labor Hours, suggesting flexibility in service delivery.

Value Assessment

Rating: good

The contract value of $33.1 million over approximately 1.5 years appears reasonable for armed facility guard services, especially considering the scope likely involves multiple locations and personnel. Benchmarking against similar contracts for security services by agencies like DHS would provide a more precise value-for-money assessment. The use of a GSA Schedule BPA Call suggests pre-negotiated rates, which can offer some level of price control.

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 offers. This method generally promotes a competitive environment, leading to better pricing and service options for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential security services, reducing the risk of overpayment and ensuring a high standard of protection for federal facilities.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving enhanced security for their facilities. The services delivered include armed guarding and patrol, crucial for maintaining secure operational environments. The contract is geographically focused on the Tucson, AZ region, impacting local security infrastructure and personnel. The contract supports jobs for armed security personnel in the Tucson area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess the quality of services delivered.
The contract's reliance on a BPA Call might limit flexibility if specific, unique security needs arise that were not anticipated during the initial schedule negotiation.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The use of a GSA Schedule BPA Call indicates adherence to established procurement vehicles, often associated with streamlined processes and pre-vetted contractors.
The contract is for a critical security function, demonstrating the agency's commitment to facility protection.

Sector Analysis

This contract falls within the security and protective services sector, a significant market driven by government and private sector needs for physical security. The market includes a wide range of services from unarmed guards to highly specialized armed personnel. Government spending in this area is substantial, with agencies like DHS and CBP consistently requiring robust security solutions to protect personnel, assets, and facilities.

Small Business Impact

The data indicates this contract was awarded to Centerra Group, LLC, a large business. There is no explicit mention of small business set-asides or subcontracting goals within the provided information. Therefore, the direct impact on small businesses through this specific award is likely minimal, though subcontracting opportunities may exist if Centerra Group chooses to engage smaller firms.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection contracting officers and program managers within DHS. As a GSA Schedule BPA Call, it leverages existing GSA oversight mechanisms for the schedule itself. Transparency is generally facilitated through contract award databases like FPDS. Specific performance monitoring and accountability measures would be detailed in the contract's Performance Work Statement (PWS).

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Customs and Border Protection Facility Operations
GSA Schedule 00CORP - Professional Services - Security and Protection

Risk Flags

Potential for performance gaps if staffing levels are not maintained.
Risk of security incidents due to human error or inadequate training.
Dependence on a single large contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.1 million to CENTERRA GROUP, LLC. ARMED FACILITY GUARDS - TUCSON, AZ REGION

Who is the contractor on this award?

The obligated recipient is CENTERRA GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $33.1 million.

What is the period of performance?

Start: 2023-12-06. End: 2025-03-07.

What is the historical spending pattern for armed facility guards by U.S. Customs and Border Protection in the Tucson region?

Analyzing historical spending for armed facility guards by CBP in the Tucson region requires access to detailed procurement data over several fiscal years. Without specific historical contract data for this region and service type, it's challenging to establish a precise pattern. However, CBP, as a major component of DHS, consistently requires significant security services across its numerous ports of entry and facilities. Spending in this area is often driven by operational needs, threat assessments, and facility requirements. Trends might show an increase in spending due to heightened border security concerns or shifts in operational posture. Comparing this $33.1 million award to previous contracts of similar scope and duration would reveal if this represents an increase, decrease, or stable level of investment in armed guarding services for the Tucson area.

How does the awarded price per labor hour compare to market rates for armed facility guards?

To compare the awarded price per labor hour to market rates, we would need to know the specific labor categories and associated rates within the contract. The provided data indicates a 'LABOR HOURS' contract type but does not detail the number of hours or the rates for different personnel (e.g., guard, supervisor). If this information were available, it could be benchmarked against industry surveys, GSA Schedule pricing for similar services, or publicly available data from other federal or state contracts. Generally, armed guards command higher rates than unarmed guards due to training, licensing, and risk. Market rates can vary significantly by geographic location, experience required, and the specific security firm. A preliminary assessment suggests that rates for armed guards can range from $40 to over $100 per hour, depending on these factors.

What is Centerra Group, LLC's track record with Department of Homeland Security contracts?

Centerra Group, LLC has a significant track record of performing contracts for the Department of Homeland Security and its components, including U.S. Customs and Border Protection. They are known for providing a range of security, facility management, and mission support services. Past performance reviews and contract awards databases would detail the types and values of contracts they have held. Generally, large companies like Centerra have extensive experience with federal contracting requirements, including security clearances, operational protocols, and reporting. Their history with DHS suggests they have met the agency's requirements in previous engagements, although specific performance quality on past contracts would require a deeper dive into contract performance reports and any associated award or termination data.

What are the key performance indicators (KPIs) used to measure the effectiveness of these armed facility guard services?

Key Performance Indicators (KPIs) for armed facility guard services are crucial for ensuring the effectiveness and value of the contract. While not detailed in the summary data, typical KPIs would likely include metrics related to response times to incidents, successful prevention of unauthorized access, adherence to post orders, incident reporting accuracy and timeliness, personnel reliability (e.g., attendance, punctuality), and compliance with all relevant laws and regulations. For CBP facilities, specific KPIs might also relate to maintaining operational continuity and ensuring the security of sensitive areas or assets. The contracting officer's representative (COR) would typically monitor these KPIs throughout the contract period, using them as a basis for performance evaluations and potential award adjustments.

Are there any specific risks associated with relying on Centerra Group, LLC for these critical security functions?

Risks associated with relying on any contractor for critical security functions, including Centerra Group, LLC, generally fall into categories such as performance failures, personnel issues, and security breaches. Specific risks could include inadequate staffing levels leading to gaps in coverage, insufficient training or vetting of guards, failure to respond effectively to security incidents, or potential security lapses by contractor personnel themselves. Given Centerra's size and experience, the risk of outright contractor failure might be lower, but performance degradation or localized issues are always possible. The government mitigates these risks through robust contract oversight, clearly defined performance standards (KPIs), background checks for personnel, and contingency planning. Reviewing Centerra's past performance history, including any past issues or corrective actions related to DHS contracts, would provide a more granular risk assessment.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $33,132,342

Exercised Options: $33,132,342

Current Obligation: $33,132,342

Actual Outlays: $33,132,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70B01C23A00000008

IDV Type: BPA

Timeline