DOE's $200M Oak Ridge Protective Force Contract Awarded to Centerra Group Faces Scrutiny
Contract Overview
Contract Amount: $199,928,237 ($199.9M)
Contractor: Centerra Group, LLC
Awarding Agency: Department of Energy
Start Date: 2007-05-03
End Date: 2013-09-30
Contract Duration: 2,342 days
Daily Burn Rate: $85.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROTECTIVE FORCE SERVICES FOR OAK RIDGE OFFICE
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $199.9 million to CENTERRA GROUP, LLC for work described as: PROTECTIVE FORCE SERVICES FOR OAK RIDGE OFFICE Key points: 1. Significant spending on security services highlights the importance of robust protection for federal facilities. 2. The contract's duration and value suggest a substantial, long-term commitment to security outsourcing. 3. Analysis needed to assess if the Time and Materials contract type allowed for optimal cost control. 4. The absence of small business participation warrants further investigation into contracting opportunities.
Value Assessment
Rating: questionable
The contract's total value of nearly $200 million over six years is substantial. Without specific benchmarks for protective force services at similar facilities, it's difficult to definitively assess value. The Time and Materials (T&M) pricing structure, while flexible, can pose risks for cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the T&M contract type may have limited the government's ability to secure fixed pricing, potentially impacting price discovery and overall cost efficiency.
Taxpayer Impact: The significant expenditure on security services represents a considerable allocation of taxpayer funds. Ensuring cost-effectiveness and value for money is crucial to maximize the benefit of this investment.
Public Impact
Ensures the physical security and safety of personnel and assets at the Oak Ridge facility. Supports critical national security missions conducted at the Department of Energy site. Provides employment for security personnel, contributing to the local economy in Tennessee.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type may lead to cost overruns.
- Lack of small business participation.
- Long contract duration could reduce flexibility for future needs.
- Potential for scope creep with T&M.
Positive Signals
- Awarded under full and open competition.
- Provides essential security services.
- Long-term contract stability for service provider.
Sector Analysis
Security guard and patrol services (NAICS 561612) are essential for protecting government facilities. Spending in this sector can vary widely based on facility size, criticality, and threat environment. This contract represents a significant investment in a core security function.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as 'sb' is false. This suggests that opportunities for small business participation were either not pursued or not met by the prime contractor, which could be a missed opportunity for economic development.
Oversight & Accountability
The Department of Energy, as the contracting agency, is responsible for overseeing this contract. The long duration and significant value necessitate robust oversight mechanisms to ensure performance, manage costs, and prevent fraud or abuse.
Related Government Programs
- Security Guards and Patrol Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Lack of small business participation.
- Long contract duration may not align with evolving security needs.
- Significant concentration of security services with one provider.
Tags
security-guards-and-patrol-services, department-of-energy, tn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $199.9 million to CENTERRA GROUP, LLC. PROTECTIVE FORCE SERVICES FOR OAK RIDGE OFFICE
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 $199.9 million.
What is the period of performance?
Start: 2007-05-03. End: 2013-09-30.
Was the Time and Materials contract structure the most cost-effective approach for these security services, or could a fixed-price contract have yielded better value?
The Time and Materials (T&M) contract offers flexibility but can lead to higher costs if not managed diligently. For routine security services, a firm-fixed-price contract might have provided better cost certainty. However, if the scope of work was highly variable or unpredictable, T&M could have been justified. A detailed review of task orders and cost performance would be needed to determine if value was maximized.
What specific risks were identified during the full and open competition that might have influenced the contract type or terms awarded to Centerra Group?
While awarded under full and open competition, the choice of a T&M contract suggests potential risks related to the scope definition or the need for flexibility. These could include unforeseen security threats, evolving operational requirements at Oak Ridge, or the complexity of integrating different security functions. The government likely sought to mitigate risks associated with defining a precise scope upfront for a long-term service.
How effectively did the Department of Energy ensure accountability and performance monitoring throughout the six-year duration of this substantial protective force contract?
Effective accountability and performance monitoring are critical for long-term service contracts, especially T&M. The Department of Energy would typically employ contract officers, technical monitors, and performance metrics to track service delivery, cost adherence, and compliance. Regular audits and performance reviews are essential to ensure the contractor meets all requirements and that taxpayer funds are used efficiently and appropriately.
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
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Constellis Holdings, LLC
Address: 7121 FAIRWAY DR STE 301, PALM BEACH GARDENS, FL, 33418
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $202,030,442
Exercised Options: $202,030,442
Current Obligation: $199,928,237
Actual Outlays: $571,813
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2007-05-03
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2022-08-26
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