DHS awarded $13.2M for Manhattan guard services, raising questions about value and competition

Contract Overview

Contract Amount: $13,241,387 ($13.2M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-10-31

End Date: 2008-09-30

Contract Duration: 335 days

Daily Burn Rate: $39.5K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: Other

Official Description: GUARD SERVICES - MANHATTAN - NOVEMBER 1, 2007 THROUGH SEPTEMBER 30, 2008.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.2 million to CENTERRA GROUP, LLC for work described as: GUARD SERVICES - MANHATTAN - NOVEMBER 1, 2007 THROUGH SEPTEMBER 30, 2008. Key points: 1. The contract's value appears high relative to its duration and scope. 2. Limited competition may have inflated pricing. 3. The contractor has a history of similar service awards. 4. Performance context is minimal, making effectiveness difficult to assess. 5. This falls within the security and protective services sector. 6. The award was a call against a larger agreement, obscuring direct competition details.

Value Assessment

Rating: fair

The awarded amount of $13.2 million for a 335-day period for guard services in Manhattan suggests a daily rate of approximately $39,527. This daily rate seems high when compared to typical security guard service contracts, especially considering the scope might not involve highly specialized security personnel. Without more granular data on the number of guards, hours, and specific duties, a precise value-for-money assessment is challenging, but the initial benchmark indicates potential overpayment.

Cost Per Unit: Approximately $39,527 per day, which appears to be above market rates for standard guard services.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, but it was a call against a Blanket Purchase Agreement (BPA). This means the initial competition for the BPA itself may have been robust, but the specific competition for this individual call order is not detailed. The number of bidders for this specific call order is unknown, which limits the ability to assess if competitive pressure was effectively applied at the time of award.

Taxpayer Impact: While the BPA was competed broadly, the lack of transparency on the specific competition for this call order means taxpayers may not have received the best possible price. Further details on the bidding for this specific call would be needed to confirm competitive pricing.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by providing essential security services. Ensures the safety and security of federal facilities and personnel in the Manhattan area. Supports the operational continuity of ICE's mission in a major metropolitan hub. Indirectly impacts the local workforce through employment opportunities for security guards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost raises concerns about potential overspending.
Lack of specific details on competition for this BPA call limits price discovery assessment.
Short contract duration for a significant sum may indicate urgency or a less strategic approach.

Positive Signals

Awarded under full and open competition, suggesting a baseline of market consideration.
Contractor has experience in providing similar security services.
The service is critical for the agency's operational security.

Sector Analysis

This contract falls within the broader security and protective services industry, a significant sector within the federal procurement landscape. The market for guard services is competitive, with numerous providers ranging from large corporations to smaller specialized firms. Federal spending in this area is consistent, driven by the need to secure government facilities nationwide. Benchmarking this contract's daily rate against similar federal guard service contracts in major metropolitan areas would be crucial for a definitive value assessment.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific award is likely minimal, unless the prime contractor engages in significant small business subcontracting not detailed here.

Oversight & Accountability

Oversight would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. Transparency is limited as this was a call against a BPA, with specific details of the competition and performance metrics not readily available in the provided data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Guard Services
Immigration and Customs Enforcement Security Operations
General Services Administration (GSA) Schedules for Security Services

Risk Flags

High Daily Rate
Limited Competition Transparency
Potential Value for Money Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.2 million to CENTERRA GROUP, LLC. GUARD SERVICES - MANHATTAN - NOVEMBER 1, 2007 THROUGH SEPTEMBER 30, 2008.

Who is the contractor on this award?

The obligated recipient is CENTERRA GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2007-10-31. End: 2008-09-30.

What is the track record of Centerra Group, LLC in providing guard services to the federal government?

Centerra Group, LLC has a significant track record of providing security and facility management services to various government agencies, including the Department of Homeland Security (DHS), Department of Defense (DoD), and others. They have been awarded numerous contracts for guard services, detention management, and base operations support. Their experience spans multiple locations and contract types, indicating a capacity to handle large-scale federal requirements. However, like many large contractors, they may have faced scrutiny or performance issues on specific contracts, which would require a deeper dive into contract performance reports and any associated corrective actions or disputes.

How does the daily rate of $39,527 compare to similar guard service contracts in New York City?

The daily rate of approximately $39,527 for guard services is exceptionally high when benchmarked against typical contracts for security guards and patrol services, even in a high-cost-of-living area like New York City. Standard guard services, depending on the number of personnel and hours, usually range from a few hundred to a few thousand dollars per day. A rate this high suggests either a very large number of personnel deployed, highly specialized security roles (e.g., armed guards with specific tactical training, K9 units, or executive protection), or potentially a significant markup. Without detailed specifications on the service level, number of guards, and specific duties, it's difficult to definitively justify this rate, indicating a potential for overvaluation.

What are the primary risks associated with this type of contract award?

The primary risks associated with this contract include potential cost overruns due to the high daily rate, inadequate service delivery if performance is not closely monitored, and a lack of competitive pressure if the BPA call process was not sufficiently competitive. There's also a risk of vendor lock-in if Centerra Group, LLC becomes the sole provider for extended periods without re-competition. Furthermore, if the scope of work is not clearly defined or if requirements change frequently, it can lead to contract modifications and increased costs. Ensuring robust oversight and performance metrics are in place is crucial to mitigate these risks.

How effective is the 'BPA Call' contract vehicle for ensuring competitive pricing for guard services?

Blanket Purchase Agreements (BPAs) are designed to streamline the procurement process for recurring needs by establishing pre-negotiated terms and conditions with one or more vendors. A 'BPA Call' or 'Order Against a BPA' leverages this established agreement. While the initial competition for the BPA itself can be robust, the competition for individual calls can vary. If multiple vendors are allowed to bid on each call, it can foster competition. However, if a BPA is established with only one vendor, or if the call process doesn't actively solicit multiple quotes, it can limit price discovery and potentially lead to higher prices than a direct, full-and-open competition for each individual requirement. The effectiveness hinges on the specific BPA's structure and the agency's adherence to competitive procedures for call orders.

What is the historical spending trend for guard services by U.S. Immigration and Customs Enforcement (ICE)?

Historical spending data for guard services by U.S. Immigration and Customs Enforcement (ICE) would likely show consistent and substantial investment in security personnel to protect its facilities, detention centers, and personnel across the country. ICE, being a large law enforcement agency within DHS, relies heavily on contracted security services. Spending patterns would typically reflect the agency's operational footprint, the number of facilities managed, and evolving security requirements. Analyzing past ICE contracts for similar services in different regions could provide a valuable benchmark for assessing the current award's value and necessity, revealing trends in contract values, durations, and contractor choices 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: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 7121 FAIRWAY DRIVE, SUITE 301, PALM BEACH GARDENS, FL, 33418

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: HSCEGI07A00011

IDV Type: BPA

Timeline