Department of Energy Spends $279M on Guard Services with Centerra Group, LLC
Contract Overview
Contract Amount: $279,267,609 ($279.3M)
Contractor: Centerra Group, LLC
Awarding Agency: Department of Energy
Start Date: 2006-06-01
End Date: 2012-01-31
Contract Duration: 2,070 days
Daily Burn Rate: $134.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: GUARD SERVICES
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89193
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $279.3 million to CENTERRA GROUP, LLC for work described as: GUARD SERVICES Key points: 1. Significant contract value of $279.3 million over its life. 2. Awarded under full and open competition, suggesting market availability. 3. Contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. The North American Industry Classification System (NAICS) code 561612 indicates a focus on security guards and patrol services.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for performance incentives, but the total award value of $279.3 million over 2070 days suggests a substantial investment. Benchmarking against similar large-scale security contracts would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The substantial spending on guard services represents a significant allocation of taxpayer funds towards ensuring facility security.
Public Impact
Ensures security at Department of Energy facilities, protecting sensitive assets and personnel. Supports jobs within the security services industry. The large contract value highlights the ongoing need for robust security measures in government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require diligent monitoring to ensure costs remain reasonable and award fees are justified.
- The long duration of the contract (2070 days) may limit flexibility in adapting to changing security needs or market conditions.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- The contract aims to provide essential security services for critical government infrastructure.
Sector Analysis
The security services sector is competitive, with numerous providers offering guard and patrol services. Spending benchmarks for similar government contracts of this scale are typically in the hundreds of millions, reflecting the critical nature of security for federal agencies.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scale and requirements of the contract were likely better suited for larger, established security firms.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong government oversight to manage costs, verify performance against award criteria, and ensure fair pricing. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost Plus Award Fee structure requires robust oversight.
- Long contract duration may limit flexibility.
- No indication of small business participation.
- High total contract value.
Tags
security-guards-and-patrol-services, department-of-energy, nv, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $279.3 million to CENTERRA GROUP, LLC. GUARD SERVICES
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 $279.3 million.
What is the period of performance?
Start: 2006-06-01. End: 2012-01-31.
What specific performance metrics were used to determine award fees for Centerra Group, LLC under this contract?
The specific performance metrics for award fees are not detailed in the provided data. Typically, Cost Plus Award Fee contracts link bonuses to achieving predefined performance standards, such as response times, incident resolution rates, personnel qualifications, and adherence to security protocols. A thorough review of the contract's statement of work and award fee plan would be required to identify these metrics.
How does the per-unit cost of guard services under this contract compare to industry benchmarks for similar government facilities?
Without specific details on the number of guards, hours worked, or specific service levels provided, a direct per-unit cost comparison is not feasible. However, the total contract value of $279.3 million over approximately 5.7 years suggests a significant investment. Benchmarking would require detailed cost breakdowns and comparison with contracts for comparable security services at similar federal facilities.
What is the potential risk associated with the long contract duration and the Cost Plus Award Fee structure?
The long duration (2070 days) can lead to vendor complacency or a lack of adaptability to evolving security threats and technologies. The Cost Plus Award Fee structure, while incentivizing performance, carries a risk of cost overruns if not meticulously managed and overseen. There's also a potential for inflated costs if the award fee criteria are not sufficiently stringent or if the government's oversight is inadequate.
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: 9
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Constellis Holdings, LLC (UEI: 966133477)
Address: 7121 FAIRWAY DRIVE, SUITE 301, PALM BEACH GARDENS, FL, 33418
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $279,267,609
Exercised Options: $279,267,609
Current Obligation: $279,267,609
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-06-01
Current End Date: 2012-01-31
Potential End Date: 2018-04-09 00:00:00
Last Modified: 2018-04-10
More Contracts from Centerra Group, LLC
- Protective Force Security Services for the Department of Energy's Savannah River Site — $1.4B (Department of Energy)
- Federal Contract — $361.3M (Department of Energy)
- Federal Contract — $287.5M (Department of Energy)
- Nevada Site Office (NSO) - Security Protective Force and Systems Services — $269.8M (Department of Energy)
- DOJ Guard Services — $217.6M (Department of Justice)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)