DoD's $73M short-term fire, emergency services contract for Cape Canaveral awarded to Centerra Group, LLC

Contract Overview

Contract Amount: $73,070,450 ($73.1M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Defense

Start Date: 2016-08-01

End Date: 2016-09-30

Contract Duration: 60 days

Daily Burn Rate: $1.2M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CL,CT::IGF 60 DAY PHASE-IN/BASE (1 AUG - 10 SEP 16) PERIOD FOR FIRE PROTECTION, EMERGENCY MANAGEMENT AND EMERGENCY MEDICAL SERVICES FOR CAPE CANAVERAL AS, FL

Place of Performance

Location: PATRICK AFB, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $73.1 million to CENTERRA GROUP, LLC for work described as: IGF::CL,CT::IGF 60 DAY PHASE-IN/BASE (1 AUG - 10 SEP 16) PERIOD FOR FIRE PROTECTION, EMERGENCY MANAGEMENT AND EMERGENCY MEDICAL SERVICES FOR CAPE CANAVERAL AS, FL Key points: 1. The contract's short duration (60 days) suggests a transitional or interim need, potentially indicating a gap in long-term service provision. 2. Awarded under full and open competition, the contract saw 6 bidders, indicating a healthy level of market interest for these services. 3. The firm-fixed-price structure shifts cost risk to the contractor, which is generally favorable for the government in stable service environments. 4. While specific performance metrics are not detailed, the nature of emergency services implies a high-stakes environment where reliability is paramount. 5. This contract falls within the broader 'Support Services' sector, which is a significant area of federal spending. 6. The relatively high bid range (121 bids) compared to the number of bidders (6) might warrant further investigation into bid preparation costs or market dynamics.

Value Assessment

Rating: fair

The contract value of approximately $73 million for a 60-day period is substantial, averaging over $1.2 million per day. Benchmarking this against similar short-term emergency service contracts is challenging due to the specific location and scope. However, the firm-fixed-price nature suggests the government sought cost certainty. Without detailed performance data or comparison to other emergency service providers in similar high-security environments, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bidders submitting proposals. This indicates that the solicitation was widely advertised, and multiple companies were capable of providing the required services. A competitive environment like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award process for essential services like fire protection and emergency management helps ensure taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the personnel and assets at Cape Canaveral Air Force Station, FL, ensuring their safety and operational continuity. Services include fire protection, emergency management, and emergency medical services, critical for a high-risk operational environment. The geographic impact is localized to Cape Canaveral Air Force Station, FL. The contract supports a workforce skilled in emergency response and safety protocols.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short duration of the contract raises questions about the long-term strategy for these essential services.
The high daily cost, while potentially justified by the critical nature of the services, warrants scrutiny.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the services rendered.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps manage cost certainty for the government.
The contractor, Centerra Group, LLC, likely has experience in providing similar services, suggesting a degree of capability.

Sector Analysis

This contract falls under the broad category of support services, specifically focusing on emergency response and management. The aerospace and defense sector, where Cape Canaveral is a key hub, relies heavily on such specialized services to ensure operational safety and continuity. Spending in this area is often driven by the unique requirements of government installations and the critical nature of the activities conducted.

Small Business Impact

The data indicates this contract was not set aside for small businesses and does not specify subcontracting requirements for small businesses. Given the nature and scale of the services, it is likely that larger, specialized firms were the primary bidders. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

As a Department of Defense contract, it is subject to oversight from the Department of the Air Force and potentially the Department of Defense Inspector General. The firm-fixed-price nature provides some level of financial oversight. Transparency would be enhanced by public availability of performance reports and detailed justifications for contract modifications, if any.

Related Government Programs

Base Operations Support (BOS)
Emergency Medical Services Contracts
Fire Protection Services
Facility Support Contracts

Risk Flags

Short contract duration may indicate transitional need.
High daily cost warrants scrutiny.
Potential for contractor corner-cutting under FFP in critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.1 million to CENTERRA GROUP, LLC. IGF::CL,CT::IGF 60 DAY PHASE-IN/BASE (1 AUG - 10 SEP 16) PERIOD FOR FIRE PROTECTION, EMERGENCY MANAGEMENT AND EMERGENCY MEDICAL SERVICES FOR CAPE CANAVERAL AS, FL

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 $73.1 million.

What is the period of performance?

Start: 2016-08-01. End: 2016-09-30.

What is the typical duration for fire and emergency services contracts at military installations like Cape Canaveral?

Contracts for fire and emergency services at military installations can vary significantly in duration. Many are long-term, multi-year contracts (e.g., 5-10 years) to ensure stable service provision and allow contractors to amortize investments in equipment and personnel. However, short-term contracts, like the 60-day period in this case, often serve as interim solutions. This can occur during transitions between incumbent contractors, in response to unforeseen circumstances, or while a longer-term requirement is being defined and competed. The short duration here suggests it was likely an interim measure, possibly to bridge a gap until a more permanent contract was awarded or the need was re-evaluated.

How does the number of bidders (6) compare to the total bids received (121) for this type of service?

The discrepancy between the number of bidders (6) and the total bids received (121) is unusual and warrants clarification. Typically, the number of bids received is directly related to the number of unique bidders. It's possible that '121' represents the total number of bid *documents* or *proposals submitted* across all bidders, perhaps including different options or phases, or it could be an error in data reporting. If it accurately reflects 121 distinct proposals from 6 bidders, it might suggest a highly complex bidding structure or a very thorough evaluation process by the agency. However, more commonly, a higher number of bids suggests broader competition. In this case, 6 bidders for a full and open competition is a reasonable number, indicating sufficient market interest.

What are the potential risks associated with a firm-fixed-price contract for emergency services?

While firm-fixed-price (FFP) contracts are generally favored for cost control, they can introduce risks, especially in dynamic environments like emergency services. The primary risk for the government is that the contractor may cut corners on quality or staffing to maximize profit if the initial price was set too low or if unforeseen operational challenges arise. For the contractor, the risk is absorbing cost overruns if their initial estimates were inaccurate or if unexpected events significantly increase their costs. In emergency services, where lives and critical infrastructure are at stake, ensuring the contractor maintains adequate resources and quality standards throughout the contract period is crucial, even under an FFP structure. Robust performance monitoring by the government is essential to mitigate these risks.

What does the 'All Other Support Services' NAICS code (561990) imply about the contract's scope?

The NAICS code 561990, 'All Other Support Services,' is a broad category used when a business activity doesn't fit into more specific support service classifications. For this contract, it encompasses fire protection, emergency management, and emergency medical services. This code suggests that the services provided are essential support functions for the primary mission of the Air Force Station but do not fall under more defined categories like facilities maintenance, logistics, or security services. Its broadness means the specific details of the contract statement of work are critical for understanding the precise nature and extent of the support provided.

Given the short duration, was this contract likely a stop-gap measure?

Yes, the 60-day duration strongly suggests this contract served as a stop-gap or interim measure. Awarding a contract of this magnitude for such a brief period is uncommon for ongoing, essential services unless it's bridging a gap. This could be due to several reasons: the expiration of a previous contract, delays in the procurement process for a long-term successor contract, or a need to maintain services while a new requirement is being defined or assessed. The short timeframe allows the government to ensure continuity of critical services without committing to a long-term obligation during a period of uncertainty or transition.

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: FA252115R0028

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,229,380

Exercised Options: $76,304,862

Current Obligation: $73,070,450

Actual Outlays: $2,847,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline