Department of Energy's $150M contract with Centerra Group, LLC for Nevada operations, awarded in 1999
Contract Overview
Contract Amount: $150,446,152 ($150.4M)
Contractor: Centerra Group, LLC
Awarding Agency: Department of Energy
Start Date: 1999-10-15
End Date: 2005-06-30
Contract Duration: 2,085 days
Daily Burn Rate: $72.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89030
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $150.4 million to CENTERRA GROUP, LLC for work described as: Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance but requires careful monitoring to ensure value. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of over 2000 days indicates a long-term commitment, requiring sustained oversight. 4. Awarded in 1999, the contract predates many modern procurement standards, necessitating a review of its current relevance. 5. The 'NV' sector code suggests a focus on Nevada-specific operations, potentially related to national security or energy infrastructure. 6. The absence of small business set-aside flags indicates a focus on large prime contractors for this significant award.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its age and specific service nature. The cost-plus-award-fee (CPAF) pricing model allows for flexibility but can lead to higher costs if not managed stringently. Without comparable contracts from the same period or detailed performance metrics, assessing the exact value-for-money is difficult. The initial award amount of $150 million over its duration suggests a substantial investment, but the final cost and efficiency depend heavily on the award fee structure and contractor performance.
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 generally favorable for price discovery and ensuring the government receives competitive offers. The presence of two bidders, as indicated by 'no': 2, suggests a reasonable level of competition, though more bidders would typically indicate stronger price pressure.
Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.
Public Impact
The Department of Energy benefits from the contracted services, likely related to managing or securing facilities or operations in Nevada. The contract supports critical infrastructure or national security missions within the Nevada region. The workforce in Nevada may be impacted through employment opportunities with the prime contractor or its subcontractors. The geographic focus on Nevada ensures specialized services are delivered to a specific, potentially sensitive, government interest area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPAF structure requires diligent oversight to prevent cost overruns and ensure performance targets are met.
- The long contract duration necessitates ongoing evaluation to ensure continued relevance and efficiency.
- The specific nature of 'NV' operations may involve unique risks that need continuous assessment.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent initial selection process.
- The contractor, Centerra Group, LLC, likely possesses specialized expertise relevant to the DOE's mission in Nevada.
- The contract's structure, while requiring oversight, aims to incentivize high performance through award fees.
Sector Analysis
This contract falls within the broader category of government services and support, specifically for the Department of Energy's operations in Nevada. The energy sector, particularly concerning national laboratories or sensitive sites, often requires specialized security, maintenance, and operational support. Comparable spending benchmarks would typically involve contracts for facility management, security services, and operational support at large government installations, which can range from tens to hundreds of millions of dollars depending on scope and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses ('sb': false). This suggests the scope of work was likely too large or required specialized capabilities typically held by larger firms. There is no explicit information on subcontracting plans, but for a contract of this magnitude and nature, it is probable that small businesses could be involved as subcontractors, contributing to the broader small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The cost-plus-award-fee structure necessitates detailed performance monitoring and auditing to ensure the contractor meets defined objectives and manages costs effectively. Transparency would be facilitated through contract reporting requirements and potentially through the DOE's Inspector General's office, which investigates fraud, waste, and abuse in DOE programs.
Related Government Programs
- Department of Energy Facility Management Contracts
- Nevada National Security Site Support Services
- Government Security Services Contracts
- Cost-Plus-Award-Fee Contracts
Risk Flags
- Contract awarded in 1999 may lack modern procurement safeguards.
- CPAF structure requires diligent oversight to ensure value for money.
- Long contract duration necessitates ongoing relevance assessment.
Tags
department-of-energy, centerra-group-llc, nevada, cost-plus-award-fee, full-and-open-competition, large-contract, security-services, facility-management, national-security, energy-sector, historical-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $150.4 million to CENTERRA GROUP, LLC. See the official description on USAspending.
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 $150.4 million.
What is the period of performance?
Start: 1999-10-15. End: 2005-06-30.
What specific services were provided under this contract?
While the specific details of the services provided under this $150 million Department of Energy contract with Centerra Group, LLC are not fully detailed in the provided data, the context of 'NV' (Nevada) and the DOE suggests services related to the operation, security, and maintenance of government facilities or sites within Nevada. This could encompass a wide range of activities, including physical security, infrastructure maintenance, environmental services, emergency response, and potentially support for research or operational missions conducted by the DOE in the region. The 'COST PLUS AWARD FEE' (CPAF) contract type indicates that the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance against specific criteria. This implies a focus on achieving defined performance objectives critical to the DOE's mission in Nevada.
How does the $150 million value compare to similar DOE contracts in Nevada during that period?
Comparing the $150 million value of this 1999 Department of Energy contract with Centerra Group, LLC to similar contracts in Nevada during that period requires access to historical procurement databases and specific contract details. However, large-scale operational and security contracts for government facilities, especially those related to national security or energy infrastructure, often represent significant investments. Given the duration of over 2000 days (approximately 5.7 years), the annual value would be around $26 million. This figure is substantial and aligns with the scale of support required for major government installations. Without specific comparable data points from the late 1990s for Nevada-based DOE sites, it's difficult to definitively benchmark, but the amount suggests a critical and extensive support role.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude, like the $150 million Department of Energy contract with Centerra Group, LLC, revolve around cost control and performance definition. For the government, the risk is that the contractor may incur higher costs than necessary, as the fee is added on top of reimbursed costs. While the award fee mechanism is designed to incentivize performance, poorly defined metrics or subjective evaluation criteria can lead to disputes or the contractor receiving a higher fee than warranted. For the contractor, the risk lies in not meeting the performance objectives, which would result in a reduced award fee, impacting their overall profit. Effective oversight, clear performance metrics, and robust auditing are crucial to mitigate these risks.
What does the 'NV' sector code signify in the context of this contract?
The 'NV' sector code, in the context of this $150 million Department of Energy contract awarded to Centerra Group, LLC, most likely signifies operations or services specifically related to the state of Nevada. Given the Department of Energy's presence in Nevada, particularly with facilities like the Nevada National Security Site (NNSS), 'NV' likely points to contracts supporting these critical national security and energy research operations. These services could range from site management, security, environmental remediation, to specialized technical support. The code helps categorize the contract's geographic focus and operational domain, allowing for better tracking and analysis of spending within specific regions and mission areas relevant to the DOE's strategic objectives in Nevada.
How has Centerra Group, LLC's performance been on similar government contracts?
Assessing Centerra Group, LLC's performance on similar government contracts requires access to detailed performance reviews, past performance databases, and contract award histories, which are not fully provided in the initial data. However, as a contractor that has held significant government contracts, particularly in areas like security and facility management, Centerra Group, LLC would typically be evaluated on factors such as cost control, schedule adherence, quality of service, and compliance. Past performance is a critical factor in federal procurement, and agencies maintain records of contractor performance. For this specific $150 million DOE contract, the CPAF structure implies that performance was formally evaluated, and the award fee determined based on those evaluations. A review of publicly available contract data or agency reports would be necessary for a comprehensive assessment of their track record.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
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
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 1999-10-15
Current End Date: 2005-06-30
Potential End Date: 2005-06-30 00:00:00
Last Modified: 2014-01-24
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