DOE's $51M training contract awarded to Centerra Group, LLC, lacked competition, raising value concerns
Contract Overview
Contract Amount: $51,140,724 ($51.1M)
Contractor: Centerra Group, LLC
Awarding Agency: Department of Energy
Start Date: 2004-08-16
End Date: 2007-02-15
Contract Duration: 913 days
Daily Burn Rate: $56.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: PROFESSIONAL MANAGEMENT AND TECHNICAL TRAINING SUPPORT SERVICES FOR DOE AT THE NATIONAL TRAINING CENTER LOCATED IN ALBUQUERQUE, NEW MEXICO.
Place of Performance
Location: PALM BEACH GARDENS, PALM BEACH County, FLORIDA, 33418
State: Florida Government Spending
Plain-Language Summary
Department of Energy obligated $51.1 million to CENTERRA GROUP, LLC for work described as: PROFESSIONAL MANAGEMENT AND TECHNICAL TRAINING SUPPORT SERVICES FOR DOE AT THE NATIONAL TRAINING CENTER LOCATED IN ALBUQUERQUE, NEW MEXICO. Key points: 1. The contract's value of over $51 million over its period of performance suggests a significant investment in professional and management development. 2. The absence of a competitive bidding process raises questions about whether the Department of Energy secured the best possible value for taxpayer funds. 3. The contract's duration and scope indicate a long-term need for specialized training services at the National Training Center. 4. The sole-source award mechanism warrants scrutiny to ensure no viable alternatives were overlooked. 5. Performance context is limited without specific metrics on training effectiveness or participant outcomes. 6. The IT sector is not directly applicable, but the training provided likely supports technical roles within the Department of Energy.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive data. The $51.14 million awarded over approximately 2.5 years suggests an average annual spend of roughly $20.4 million. Without knowing the specific services rendered and the number of personnel trained, it's difficult to assess if this represents a fair price. However, the absence of competition inherently limits the potential for price discovery and may lead to suboptimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the Department of Energy did not conduct a competitive solicitation. This approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances like follow-on work to a previous sole-source award. The lack of multiple bidders means there was no opportunity for price negotiation or comparison against market alternatives, potentially impacting the final cost.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as they bypass the cost-saving pressures inherent in a competitive marketplace. This limits the government's ability to ensure it is receiving the most economical solution.
Public Impact
The primary beneficiaries are Department of Energy employees and potentially contractors who receive professional and management development training. The services delivered include specialized training crucial for the effective operation of the National Training Center in Albuquerque, New Mexico. The geographic impact is localized to Albuquerque, New Mexico, where the National Training Center is situated. Workforce implications include the development of skills and competencies for DOE personnel, potentially enhancing operational efficiency and safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have led to inflated pricing.
- Absence of performance metrics makes it difficult to assess training effectiveness.
- Sole-source award raises concerns about the thoroughness of the procurement process.
Positive Signals
- Contract addresses a clear need for specialized training within the Department of Energy.
- The award supports a critical function at the National Training Center.
- Long-term nature of the contract suggests a stable and reliable training provider.
Sector Analysis
The professional and management development training sector is diverse, encompassing a wide range of services aimed at enhancing employee skills and organizational effectiveness. This contract falls within the broader professional services category, specifically focusing on education and training. Comparable spending benchmarks are difficult to establish without more granular data on the specific training modules and the scale of delivery. However, government spending on training is substantial across various agencies to maintain a skilled workforce.
Small Business Impact
The provided data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no indication of small business set-asides or subcontracting requirements. Therefore, this contract does not appear to have a direct positive impact on the small business ecosystem.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the Department of Energy's contracting officers and program managers responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures would be tied to the delivery of training services as specified in the contract. Transparency is limited by the sole-source nature of the award and the lack of publicly available performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Training Programs
- Federal Professional Development Services
- Government Management Training Contracts
- National Training Center Operations
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Transparency
Tags
department-of-energy, training-services, professional-development, management-training, sole-source, albuquerque, new-mexico, labor-hours, centerra-group-llc, professional-and-management-development-training, not-competed
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $51.1 million to CENTERRA GROUP, LLC. PROFESSIONAL MANAGEMENT AND TECHNICAL TRAINING SUPPORT SERVICES FOR DOE AT THE NATIONAL TRAINING CENTER LOCATED IN ALBUQUERQUE, NEW MEXICO.
Who is the contractor on this award?
The obligated recipient is CENTERRA GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $51.1 million.
What is the period of performance?
Start: 2004-08-16. End: 2007-02-15.
What specific types of professional and management training were provided under this contract?
The contract description specifies 'PROFESSIONAL MANAGEMENT AND TECHNICAL TRAINING SUPPORT SERVICES'. While the exact curriculum is not detailed in the provided data, this typically encompasses a range of training designed to enhance leadership skills, project management capabilities, technical expertise relevant to the Department of Energy's mission, and compliance training. Given the location at the National Training Center, it's likely that the training also includes specialized technical skills pertinent to energy sector operations, safety protocols, and regulatory compliance. Further details on the training modules would be available in the contract's statement of work.
How does the cost per trainee compare to industry benchmarks for similar professional development programs?
Calculating a precise cost per trainee is not feasible with the provided data, as the total contract value ($51.14 million) and duration (approx. 2.5 years) are given, but the number of trainees or training hours is not specified. To perform such a comparison, one would need to know the total number of individuals trained or the total training hours delivered. Without this, any cost-per-trainee figure would be speculative. Furthermore, the sole-source nature of the award makes direct price comparison to competitive market rates difficult, as the government did not leverage competition to drive down costs.
What are the potential risks associated with a sole-source award for essential training services?
The primary risk of a sole-source award for essential training services is the potential for inflated costs due to the lack of competitive pressure. Without competing offers, the contractor may not have an incentive to offer the lowest possible price. Another risk is a potential reduction in the quality or innovation of training if the contractor faces no external pressure to improve. Additionally, it raises questions about whether alternative solutions or providers were adequately explored, potentially leading to a suboptimal choice for the government. This can also limit transparency in the procurement process.
What performance metrics were used to evaluate the effectiveness of the training provided?
The provided data does not include specific performance metrics or evaluation criteria for the training services. Typically, government contracts include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines measurable objectives and Key Performance Indicators (KPIs). For training contracts, these might include trainee satisfaction surveys, pre- and post-training assessments to measure knowledge gain, observed application of learned skills in the workplace, or completion rates. Without access to the full contract documentation, it is impossible to determine the specific metrics used to assess the effectiveness of Centerra Group's training.
Has Centerra Group, LLC, a history of providing similar training services to federal agencies?
While the provided data confirms Centerra Group, LLC as the contractor for this specific Department of Energy training contract, it does not offer details on their broader track record or past performance with other federal agencies. To assess their history, one would need to consult federal procurement databases like SAM.gov or FPDS, which track contract awards and performance information. A review of these databases could reveal previous contracts for training services, their value, duration, and any available past performance ratings, providing a more comprehensive view of their experience in the federal sector.
What is the historical spending trend for professional and management training at the Department of Energy's National Training Center?
The provided data only pertains to a single contract awarded from August 2004 to February 2007. It does not offer historical spending trends for professional and management training at the DOE's National Training Center. To analyze historical spending, one would need to access procurement data for previous and subsequent contracts related to training services at this facility. This would involve searching federal procurement databases for contracts awarded over multiple fiscal years, identifying the total obligated amounts, and examining the nature of the services procured to understand spending patterns and identify any significant changes over time.
Industry Classification
NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: G4S PLC (UEI: 737341631)
Address: 7121 FAIRWAY DRIVE, SUITE 301, PALM BEACH GARDENS, FL, 21
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,758,863
Exercised Options: $62,758,863
Current Obligation: $51,140,724
Timeline
Start Date: 2004-08-16
Current End Date: 2007-02-15
Potential End Date: 2007-02-15 00:00:00
Last Modified: 2010-07-09
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