DOJ's $217.6M Guard Services Contract Awarded to Centerra Group, LLC for District of Columbia

Contract Overview

Contract Amount: $217,588,122 ($217.6M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Justice

Start Date: 2011-09-28

End Date: 2019-12-31

Contract Duration: 3,016 days

Daily Burn Rate: $72.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOJ GUARD SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $217.6 million to CENTERRA GROUP, LLC for work described as: DOJ GUARD SERVICES Key points: 1. Contract value represents significant investment in physical security for federal facilities. 2. Competition dynamics for guard services can influence pricing and service quality. 3. Duration of the contract (over 8 years) suggests a need for stable, long-term security solutions. 4. Fixed-price contract type aims to control costs, but requires careful scope management. 5. Geographic concentration in DC highlights the critical nature of security for national government operations. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The total award of over $217 million for guard services over an eight-year period appears substantial, reflecting the high-security needs of the Department of Justice in the nation's capital. Benchmarking this against similar large-scale federal security contracts is challenging without more granular data on service levels and geographic coverage. However, the firm fixed-price structure suggests an attempt to manage cost predictability. Further analysis would require comparing per-hour rates or per-guard costs against industry standards for comparable government facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. With six bids received, this suggests a reasonably competitive environment for this significant contract. A healthy number of bidders generally supports price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of this competition.

Taxpayer Impact: Full and open competition with multiple bidders typically benefits taxpayers by driving down prices and encouraging innovation among service providers, leading to better value for the funds expended.

Public Impact

Federal law enforcement and government agencies within the District of Columbia benefit from enhanced physical security. Services include patrol, access control, and monitoring to protect federal personnel and property. The contract directly impacts the safety and operational continuity of critical government functions. Workforce implications include employment opportunities for security personnel in the DC metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor could limit future competition.
Scope creep in fixed-price contracts can lead to cost overruns if not managed tightly.
Ensuring consistent service quality across all locations and shifts requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a broad market response.
Firm fixed-price contract provides cost certainty for the government.
Long contract duration suggests a stable and reliable security posture for DOJ facilities.

Sector Analysis

The security guard services sector is a significant component of the broader facilities management industry. Federal contracts for guard services are substantial due to the extensive security needs of government agencies. This contract, valued at over $217 million, represents a considerable portion of federal spending in this specific North American Industry Classification System (NAICS) code (561612). The market is characterized by both large, established players and smaller regional providers, with competition often driven by price, experience, and security clearances.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SS: false, SB: false). This suggests that the scale and requirements of the contract favored larger, established companies capable of meeting the extensive security demands across multiple DOJ facilities. Further investigation into subcontracting plans would be necessary to determine if small businesses have opportunities to participate in fulfilling parts of this contract, thereby contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Justice's contracting and security divisions. Accountability measures are typically embedded in the contract's performance work statement (PWS), outlining specific service requirements and quality standards. Transparency is facilitated through contract award databases, though detailed performance metrics and inspection reports may not always be publicly accessible. The Inspector General's office for the DOJ would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security Guard Services
General Services Administration Federal Protective Service Contracts
Department of State Diplomatic Security Service Contracts
Department of Defense Guard Services

Risk Flags

Long contract duration may reduce future competition.
Potential for scope creep in fixed-price contracts.
Personnel security and turnover risks inherent in guard services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $217.6 million to CENTERRA GROUP, LLC. DOJ 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 Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $217.6 million.

What is the period of performance?

Start: 2011-09-28. End: 2019-12-31.

What is Centerra Group, LLC's track record with federal security contracts, particularly with the Department of Justice?

Centerra Group, LLC has a significant history of providing security and mission support services to various government agencies, including the Department of Justice. Their experience often encompasses a wide range of security operations, from physical security and access control to specialized protective services. For the DOJ, Centerra has likely been involved in contracts similar to this one, providing guard services for federal buildings and facilities. A review of their past performance ratings, any past performance issues or awards on federal contracts, and their specific experience within the District of Columbia would provide a clearer picture of their capabilities and reliability for this particular award. Their ability to manage large-scale contracts with stringent security requirements is a key factor in their success.

How does the per-unit cost or hourly rate for this contract compare to similar guard services contracts awarded by the federal government?

Determining the precise per-unit cost or hourly rate requires access to the detailed pricing structure within the contract, which is often not publicly available. However, the total award of $217.6 million over approximately 8 years (3016 days) suggests an average annual value of roughly $27.2 million. To benchmark, one would need to compare the number of guard hours or posts covered by this contract against the total value. For instance, if the contract covers 1,000,000 guard hours annually, the average hourly rate would be around $27.20. This rate needs to be compared against prevailing federal contract rates for similar security services in the high-cost DC metropolitan area, considering factors like security clearance requirements, shift differentials, and the specific duties performed. Without these details, a direct comparison is speculative, but the rate should be evaluated against GSA schedules or other benchmarked contracts for similar services.

What are the primary risks associated with a long-term, high-value guard services contract like this one?

Several risks are associated with a long-term, high-value guard services contract. Firstly, there's the risk of contractor performance degradation over time, where initial high standards may slip without diligent oversight. Secondly, the firm fixed-price nature, while good for cost control, can lead to issues if the scope of work changes or expands, potentially leading to disputes or the contractor cutting corners to maintain profitability. Thirdly, there's a risk of 'contractor lock-in,' where the incumbent contractor's deep knowledge of the facilities and operations might make it difficult for new competitors to displace them in future procurements, potentially reducing future competition and innovation. Finally, personnel-related risks, such as high turnover, inadequate training, or security breaches by guards, are inherent in security services and require constant vigilance and management.

How effective are the oversight mechanisms in place to ensure the quality and integrity of the guard services provided?

The effectiveness of oversight mechanisms hinges on the specific protocols established by the Department of Justice for this contract. Typically, federal contracts include performance work statements (PWS) with measurable metrics, regular performance reviews, site inspections, and a designated contract COR (Contracting Officer's Representative). The presence of an active Inspector General's office within DOJ also provides an independent layer of oversight to investigate potential issues. However, the true effectiveness depends on the resources allocated to oversight, the diligence of the COR, the responsiveness of the contractor to identified deficiencies, and the clarity of the PWS. Without specific details on DOJ's oversight procedures for this contract, it's difficult to definitively assess their effectiveness, but the structure generally aims to ensure quality and integrity.

What is the historical spending trend for guard services within the Department of Justice, and how does this contract fit into that pattern?

Historical spending on guard services by the Department of Justice has likely been substantial and relatively consistent, given the ongoing need to secure federal facilities and personnel. Contracts for security services are often long-term due to the nature of the work and the investment required in personnel and training. This $217.6 million contract, awarded in 2011 and ending in 2019, represents a significant but potentially typical investment for a large agency like DOJ operating primarily in a high-security environment like Washington D.C. Analyzing prior and subsequent contracts for similar services would reveal if this award represents an increase, decrease, or stable level of spending. Factors like changes in threat levels, agency growth, or shifts in security policy could influence these spending patterns over time.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Constellis Holdings, LLC (UEI: 966133477)

Address: 13530 DULLES TECHNOLOGY DR STE 500, 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: $219,138,239

Exercised Options: $219,138,239

Current Obligation: $217,588,122

Actual Outlays: $9,388,882

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F5548P

IDV Type: FSS

Timeline