Department of Defense awards $330.9M contract for security services, with Centerra Group as prime

Contract Overview

Contract Amount: $60,424,141 ($60.4M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2010-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200612!CF2501!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N6247700D0043 !A!N! !N!FB00 !56 !20050930!20051230!073891921!073891921!306240649!N!WACKENHUT SERVICES INC !7121 FAIRWAY DR STE 301 !PALM BEACH GAR !FL!33418!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000771921!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561621!E! !5!B!S!A! !D!20040331!B! ! !A! !A!U!J!1!004!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!D!N! ! ! !Y!97DL!HHM402!0001! !

Place of Performance

Location: TRIANGLE, PRINCE WILLIAM County, VIRGINIA, 22172

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $60.4 million to CENTERRA GROUP, LLC for work described as: 200612!CF2501!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N6247700D0043 !A!N! !N!FB00 !56 !20050930!20051230!073891921!073891921!306240649!N!WACKENHUT SERVICES INC !7121 FAIRWAY DR STE 301 !PALM BEACH GAR !FL!33418!50000!001!11!WASHINGTON !DIST… Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1826 days indicates a long-term need for these services. 3. The prime contractor, Centerra Group, has a significant role in delivering these security services. 4. The contract is categorized under Security Systems Services, highlighting a specific area of federal need. 5. The award value of $330.9 million represents a substantial investment in security infrastructure and operations.

Value Assessment

Rating: good

The contract value of $330.9 million over approximately five years suggests a significant investment in security services. Benchmarking this against similar contracts for large-scale security operations would provide a clearer picture of value for money. The firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without detailed performance metrics or comparisons to industry standards for similar services, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this significant security services contract. A higher number of bidders generally leads to more competitive pricing and potentially better service offerings. The fact that it was competed fully is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process. This approach increases the likelihood of securing services at a fair market value.

Public Impact

The primary beneficiaries are likely Department of Defense facilities and personnel requiring robust security systems and services. Services delivered include security systems operation and maintenance, potentially encompassing surveillance, access control, and alarm monitoring. The geographic impact is likely concentrated at the specific DoD facilities where these security services are deployed, primarily in Virginia. Workforce implications include the creation or sustainment of jobs for security personnel and technicians employed by the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen security challenges or scope creep.
Dependence on a single prime contractor for critical security functions could pose a risk if performance falters.
Ensuring consistent service quality across all deployed locations and over the contract's duration requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The firm fixed-price contract structure shifts cost-related risks to the contractor.
The contract's duration suggests a stable, long-term requirement, allowing for efficient resource planning and potentially economies of scale.

Sector Analysis

This contract falls within the Security Systems Services sector, a critical component of the broader facilities management and defense support industries. The market for security services is substantial, driven by government and commercial demand for protection of assets and personnel. This specific award represents a significant portion of spending within this niche, reflecting the government's commitment to maintaining secure operational environments. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded by federal agencies for similar types of services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Centerra Group. The extent of small business subcontracting will depend on the prime contractor's strategy and any specific requirements outlined in the contract, which are not detailed here. The absence of a small business set-aside suggests the primary focus was on securing the most capable large-scale provider.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Security Services
Federal Facilities Management Contracts
Security Systems and Technology Procurement
Base Operations Support Services

Risk Flags

Long-term contract duration may require reassessment of needs and pricing.
Dependence on a single prime contractor for critical security functions.
Potential for scope creep in evolving security requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.4 million to CENTERRA GROUP, LLC. 200612!CF2501!1700!N40080!NAV FAC ENGINEERING CMD WASHINGT!N6247700D0043 !A!N! !N!FB00 !56 !20050930!20051230!073891921!073891921!306240649!N!WACKENHUT SERVICES INC !7121 FAIRWAY DR STE 301 !PALM BEACH GAR !FL!33418!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000771921!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561621!E! !5!B!S!A! !D!200

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 Navy).

What is the total obligated amount?

The obligated amount is $60.4 million.

What is the period of performance?

Start: 2005-09-30. End: 2010-09-30.

What is the historical spending pattern for security services by the Department of the Navy in the Virginia region?

Analyzing historical spending patterns for security services by the Department of the Navy in Virginia requires access to detailed federal procurement data over multiple fiscal years. This specific contract, valued at $330.9 million over its duration, represents a significant expenditure. To understand the broader pattern, one would need to aggregate data for similar North American Industry Classification System (NAICS) codes (like 561621 - Security Systems Services) awarded by the Navy in Virginia. This would reveal trends in contract values, number of awards, and dominant contractors. Without this broader dataset, it's difficult to ascertain if this award is an outlier, a continuation of a trend, or a new significant investment. Factors like base realignments, changes in security threats, and budget allocations would influence these historical patterns.

How does the per-unit cost of this contract compare to industry benchmarks for similar security services?

Determining the per-unit cost comparison for this $330.9 million contract requires breaking down the total value by specific services rendered and the volume or scope of those services. For instance, if the contract includes guard hours, the cost per guard hour could be benchmarked against industry averages for similar government contracts or commercial security services in the region. Similarly, costs associated with the installation, maintenance, or monitoring of security systems could be compared. The firm fixed-price nature means the government pays a set amount, but the underlying cost-effectiveness depends on the efficiency and pricing strategy of Centerra Group. Without a detailed breakdown of the contract's line items and associated quantities, a precise per-unit cost analysis against benchmarks is not feasible using only the provided summary data.

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

Centerra Group has a substantial track record in providing security and mission support services to various government agencies, including the Department of Defense. They have managed large, complex contracts involving physical security, access control, detention services, and emergency response. Their experience often includes operating within secure federal facilities and adhering to stringent regulatory and performance requirements. Past performance evaluations and contract histories available through federal procurement databases (like FPDS or SAM.gov) would provide specific details on their performance on previous DoD contracts, including any awards, penalties, or significant issues. This history is crucial for assessing their capability to successfully execute the current $330.9 million contract.

What are the key performance indicators (KPIs) used to measure the effectiveness of the security services provided under this contract?

Key Performance Indicators (KPIs) for a contract like this typically focus on the reliability, responsiveness, and effectiveness of the security services. Examples could include response times to security incidents, the number of security breaches or unauthorized access events, the uptime and functionality of security systems (e.g., cameras, alarms), adherence to post orders, and successful completion of security patrols. The contract's Performance Work Statement (PWS) would detail these specific KPIs, along with the acceptable performance levels and the methods for measurement and reporting. Failure to meet these KPIs could result in contractual remedies, such as price reductions or termination, underscoring their importance in ensuring value and security.

How has the scope of security services procured by the Department of the Navy evolved over the past decade?

The scope of security services procured by the Department of the Navy has likely evolved significantly over the past decade, driven by technological advancements, changing threat landscapes, and evolving operational requirements. Initially, contracts might have focused heavily on physical security personnel and basic alarm systems. However, recent trends indicate a greater emphasis on integrated security solutions, incorporating advanced surveillance technologies (CCTV, biometrics), cybersecurity measures for operational technology, data analytics for threat detection, and sophisticated access control systems. There's also a growing demand for services that blend physical security with cybersecurity and intelligence gathering. This $330.9 million contract, awarded in 2005 and potentially extended, might reflect an earlier stage of this evolution, with subsequent contracts likely incorporating more modern, technology-driven security approaches.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 7121 FAIRWAY DRIVE, SUITE, PALM BEACH GAR, FL

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: N6247700D0043

IDV Type: IDC

Timeline