DHS spent $13.7M on guard services in Manhattan, with a BPA call contract awarded to Centerra Group, LLC

Contract Overview

Contract Amount: $13,714,556 ($13.7M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-10-24

End Date: 2009-09-30

Contract Duration: 341 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: Other

Official Description: GUARD SERVICES - MANHATTAN - OCTOBER 1, 2008 THROUGH OCTOBER 31, 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 $13.7 million to CENTERRA GROUP, LLC for work described as: GUARD SERVICES - MANHATTAN - OCTOBER 1, 2008 THROUGH OCTOBER 31, 2008. Key points: 1. The contract value of $13.7 million for guard services in Manhattan represents a significant investment in physical security for the specified period. 2. Awarded under a Blanket Purchase Agreement (BPA) Call, this contract suggests a pre-negotiated framework for services, potentially streamlining procurement. 3. The contract duration of approximately one year indicates a need for ongoing security presence rather than a short-term solution. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard and patrol services. 5. The contract was awarded to Centerra Group, LLC, a known entity in the security services sector. 6. The geographic focus on New York (NY) highlights the specific operational area for these security services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of services, number of guards, and hours provided. The total value of $13.7 million for approximately one year of guard services in a high-cost area like Manhattan suggests a substantial operational expenditure. Further analysis would require comparing this to similar contracts for comparable security services in the same region, considering factors like guard qualifications, post orders, and required response times.

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 offers. This method is generally preferred for ensuring fair pricing and access to the widest range of qualified contractors. The specific number of bidders is not provided, which limits the ability to assess the intensity of the competition and its potential impact on price.

Taxpayer Impact: Full and open competition is intended to provide the best value to taxpayers by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The primary beneficiaries of this contract are the Department of Homeland Security (DHS) and potentially other federal entities operating within the specified Manhattan area, receiving enhanced security. The services delivered include security guards and patrol services, crucial for maintaining safety and order. The geographic impact is concentrated in New York City, specifically Manhattan, addressing security needs in a major urban center. Workforce implications include the employment of security personnel, likely sourced from the local New York labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the guard services.
The absence of detailed pricing breakdowns hinders a thorough value-for-money assessment.
Limited information on the number of bidders restricts the evaluation of competitive pressure on pricing.
The contract's duration and value, without further context, make it difficult to ascertain if it represents an optimal use of funds.

Positive Signals

Awarded under full and open competition, suggesting a commitment to fair market practices.
The use of a BPA Call indicates a potentially efficient procurement process for established needs.
The contract addresses a critical need for security services in a high-profile urban area.

Sector Analysis

The security services industry is a significant sector within the broader professional, scientific, and technical services market. This contract falls under the Security Guards and Patrol Services sub-sector. The market for security services is driven by the need for physical protection of assets, personnel, and facilities across various industries, including government. Government contracts for security services are substantial, reflecting the ongoing need for protection of federal property and operations. Benchmarking this contract's value would involve comparing its per-guard cost and overall expenditure against similar government contracts for security services in major metropolitan areas.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. However, the prime contractor, Centerra Group, LLC, may engage small businesses as subcontractors, which would contribute to the small business economy, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures would be established through the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract arise.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
Guard Services for Federal Facilities
Blanket Purchase Agreements (BPAs)

Risk Flags

Lack of detailed performance metrics.
Limited information on competition intensity (number of bidders).
Absence of specific scope of work details.
No data on per-unit cost or detailed pricing breakdown.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.7 million to CENTERRA GROUP, LLC. GUARD SERVICES - MANHATTAN - OCTOBER 1, 2008 THROUGH OCTOBER 31, 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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2008-10-24. End: 2009-09-30.

What was the specific scope of services provided under this contract?

The provided data indicates the contract was for 'GUARD SERVICES - MANHATTAN' and falls under NAICS code 561612 (Security Guards and Patrol Services). However, the specific details of the scope of services, such as the number of guards deployed, the hours of coverage, the specific locations within Manhattan, and the types of security duties (e.g., access control, patrolling, surveillance monitoring), are not detailed in the provided data. This level of detail is crucial for a comprehensive understanding of the contract's purpose and for performing a thorough value-for-money analysis.

How does the per-guard cost compare to industry benchmarks for similar services in New York City?

To determine the per-guard cost, we would need to know the total number of guard hours or the average number of guards employed over the contract's duration. For example, if the contract employed an average of 50 guards working 168 hours per week for approximately 12 months, the total hours would be substantial. Without this information, a direct per-guard cost comparison is impossible. However, guard services in high-cost areas like Manhattan are generally more expensive than in lower-cost regions due to higher labor costs, overhead, and demand. A typical benchmark might range from $40-$70+ per hour per guard, depending on the level of service and qualifications required. The total contract value of $13.7 million suggests a significant number of hours were covered.

What is Centerra Group, LLC's track record with federal contracts, particularly for guard services?

Centerra Group, LLC is a known provider of security and facility management services. A review of federal procurement data would reveal their history with various agencies, including the Department of Homeland Security. Their track record would typically be assessed based on past performance evaluations, contract awards, and any documented issues or successes on previous government contracts. Information on their experience with similar-sized contracts, geographic locations, and specific security services would be relevant to understanding their capability and reliability for this particular award.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not include information on the specific Key Performance Indicators (KPIs) or the performance measurement plan for this contract. Typically, guard service contracts include metrics related to response times, incident reporting accuracy, guard presence and punctuality, adherence to post orders, and customer satisfaction. The effectiveness of the oversight and the contractor's performance would be evaluated against these defined metrics. Without this information, it is difficult to assess whether the agency received the expected level of service and value for the $13.7 million expenditure.

How does this $13.7 million expenditure compare to historical DHS spending on guard services in Manhattan?

To assess this, one would need to analyze historical spending data for the Department of Homeland Security (DHS) on guard services specifically within the Manhattan area over previous years. Comparing this $13.7 million contract to prior expenditures would reveal trends in spending, whether it represents an increase or decrease, and if it aligns with changes in security needs or operational scope. It would also help determine if this contract is an outlier or part of a consistent spending pattern for security services in that region.

Were there any specific risk factors identified during the procurement process for this contract?

The provided data does not contain information regarding specific risk factors identified during the procurement process. Standard risk assessments for security contracts might consider factors such as the contractor's financial stability, past performance issues, security clearances for personnel, and the complexity of the operational environment. The fact that it was awarded under full and open competition suggests that the agency sought to mitigate risks by allowing a broad range of potential contractors to compete. However, without specific documentation from the procurement file, a detailed risk analysis is not possible.

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: Constellis Holdings, LLC (UEI: 966133477)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,714,556

Exercised Options: $13,714,556

Current Obligation: $13,714,556

Parent Contract

Parent Award PIID: HSCEGI07A00011

IDV Type: BPA

Timeline