Air Force's $25.7M fire protection contract with Centerra Group awarded via full and open competition

Contract Overview

Contract Amount: $25,703,527 ($25.7M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Defense

Start Date: 2008-05-14

End Date: 2012-03-31

Contract Duration: 1,417 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRE PROTECTION SERVICES-BASELINE (FY09) TAS::57 3400::TAS

Place of Performance

Location: CANAVERAL AIR STATION, BREVARD County, FLORIDA, 32925, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to CENTERRA GROUP, LLC for work described as: FIRE PROTECTION SERVICES-BASELINE (FY09) TAS::57 3400::TAS Key points: 1. Contract awarded for fire protection services, indicating a need for essential safety infrastructure. 2. The firm-fixed-price structure suggests predictable costs for the government. 3. Awarded to Centerra Group, LLC, a contractor with existing federal service experience. 4. The contract duration of 1417 days (approx. 3.8 years) points to a medium-term service requirement. 5. The contract was competed fully and openly, suggesting a competitive pricing environment. 6. The absence of small business set-aside flags may indicate limited opportunities for smaller firms in this specific award.

Value Assessment

Rating: good

The contract's total value of $25.7 million over approximately 3.8 years averages to about $6.76 million annually. Benchmarking this against similar large-scale fire protection contracts for federal facilities is challenging without more specific service scope details. However, the firm-fixed-price nature suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a degree of competition, though the exact number of bids received is not specified. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a market-driven price, as multiple companies vied for the contract, driving down the cost through competitive bidding.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel, who receive essential fire protection services. Services delivered include fire prevention, suppression, and emergency response, crucial for maintaining operational readiness and safety. The contract is geographically focused on Florida (ST: FL, SN: FLORIDA), impacting local emergency response capabilities and potentially local employment. The contract supports a specialized workforce in fire protection and emergency services within the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor consolidation in the fire protection services market.
Reliance on a single contractor for critical safety services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Firm-fixed-price contract type helps manage cost predictability for the government.
Contractor has experience in federal service provision, potentially indicating a lower execution risk.

Sector Analysis

The fire protection services sector is a critical component of facility management and public safety across various industries. For the federal government, ensuring adequate fire safety at its installations is paramount. This contract falls under the broader 'All Other Support Services' NAICS code (561990), which encompasses a wide range of non-professional services. Spending in this area is consistent with the government's need to maintain secure and safe operational environments.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false), and there are no explicit mentions of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and opportunities for small businesses may be limited to direct subcontracting roles, if any, which are not detailed here. The absence of set-asides could mean the scope of work was deemed too large or specialized for typical small business capabilities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Federal Fire Protection Contracts
Department of Defense Support Services
Air Force Facility Management
Emergency Response Services Contracts
Support Services for Government Installations

Risk Flags

Potential for service quality degradation if contractor understaffs or cuts corners.
Risk of service disruption if contractor faces financial or operational issues.
Dependence on a single contractor for critical safety functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to CENTERRA GROUP, LLC. FIRE PROTECTION SERVICES-BASELINE (FY09) TAS::57 3400::TAS

Who is the contractor on this award?

The obligated recipient is CENTERRA GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2008-05-14. End: 2012-03-31.

What is Centerra Group, LLC's track record with federal fire protection contracts?

Centerra Group, LLC has a significant history of providing security, fire protection, and emergency response services to various federal agencies, including the Department of Defense and Department of Energy. Their experience often involves large-scale contracts for critical infrastructure and government facilities. Analyzing their past performance on similar contracts, including any past performance evaluations or awards/debarments, would provide further insight into their reliability and capability for this specific fire protection services contract. Their extensive portfolio suggests they are a well-established player in this niche federal contracting space.

How does the $25.7 million value compare to similar fire protection contracts?

The $25.7 million total contract value over approximately 3.8 years (1417 days) represents an average annual expenditure of roughly $6.76 million. This figure is substantial and indicative of a large-scale requirement, likely encompassing multiple facilities or a significant installation. To benchmark effectively, one would need to compare it against other fire protection contracts awarded by the Air Force or DoD for similar geographic regions or facility types. Without more granular data on the scope of services (e.g., number of personnel, equipment provided, specific response capabilities), a precise value-for-money comparison is difficult. However, the fact that it was competed suggests the price was deemed reasonable within the competitive landscape at the time of award.

What are the primary risks associated with this contract?

Key risks include potential performance deficiencies by Centerra Group, LLC, which could impact the safety and operational readiness of Air Force facilities in Florida. Given the critical nature of fire protection, any lapse in service could have severe consequences. Another risk is contractor over-reliance; if Centerra were to face significant operational challenges or financial instability, the Air Force might face difficulties in transitioning to a new provider quickly. Furthermore, the firm-fixed-price structure, while offering cost certainty, could incentivize the contractor to cut corners on service quality if not adequately monitored. Finally, the lack of explicit small business subcontracting requirements might limit economic opportunities for smaller local businesses.

How effective are fire protection services contracts in ensuring facility safety?

Fire protection services contracts are generally effective in ensuring facility safety when properly scoped, competed, and overseen. They provide a structured mechanism for the government to procure specialized expertise and resources necessary for comprehensive fire prevention, detection, and suppression. The effectiveness hinges on clear performance standards, regular monitoring, and the contractor's adherence to best practices and regulatory requirements. For the Air Force, these contracts are vital for maintaining compliance with safety regulations and protecting personnel and assets. The competitive nature of this award suggests a commitment to obtaining quality services at a fair price, contributing to overall effectiveness.

What is the historical spending trend for fire protection services by the Air Force?

Historical spending on fire protection services by the Air Force, and the DoD broadly, tends to be substantial and consistent, reflecting the ongoing need to secure numerous installations worldwide. While this specific contract represents $25.7 million over its term, broader trends show significant annual outlays across various regions. Analyzing historical data would reveal fluctuations based on base consolidation, new construction, changes in threat assessments, and evolving safety standards. The Air Force often utilizes both firm-fixed-price and cost-plus contract types depending on the specific service requirements and associated risks, with a general preference for fixed-price when scope is well-defined to control costs.

What does the 'All Other Support Services' classification imply for this contract?

The classification under NAICS code 561990, 'All Other Support Services,' indicates that this contract encompasses services that do not fit neatly into more specific categories. For fire protection, this broad classification suggests the contract might include a comprehensive suite of services beyond basic firefighting, potentially encompassing fire prevention programs, inspections, maintenance of fire suppression systems, emergency medical response, and specialized training. It implies a flexible contract structure designed to meet diverse support needs for the Air Force installation(s) in Florida, rather than a narrowly defined, single-purpose service.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA252107R8503

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 7121 FAIRWAY DR STE 301, PALM BEACH GARDENS, FL, 33418

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,337,095

Exercised Options: $26,148,638

Current Obligation: $25,703,527

Contract Characteristics

Cost or Pricing Data: NO

Timeline