FEMA's $16.7M contract for armed security guard services awarded to Centerra Group, LLC, with 10 bids received

Contract Overview

Contract Amount: $16,699,331 ($16.7M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2006-11-22

End Date: 2012-05-14

Contract Duration: 2,000 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED SECURITY GUARD SERVICES

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.7 million to CENTERRA GROUP, LLC for work described as: ARMED SECURITY GUARD SERVICES Key points: 1. Value for money assessed through pricing against market benchmarks and comparable contracts. 2. Competition dynamics indicate a robust bidding process with 10 offers. 3. Risk indicators include contract type and performance history. 4. Performance context is within the scope of emergency management support. 5. Sector positioning is within the security services industry supporting federal agencies.

Value Assessment

Rating: good

The contract's total value of $16.7 million over its period of performance suggests a significant investment in security services. Benchmarking against similar contracts for armed security guard services would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure generally provides cost certainty. The number of bids received (10) suggests a competitive market, which can lead to more favorable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The receipt of 10 bids suggests a healthy level of competition within the security services market for this type of requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices through market forces, ensuring the government received competitive bids for the security services.

Public Impact

Benefits the Department of Homeland Security (FEMA) by ensuring the security of facilities and personnel. Delivers essential armed security guard services, crucial for maintaining order and safety. Geographic impact is primarily within Alabama (AL), where the contract was performed. Workforce implications include the employment of security personnel by Centerra Group, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical security functions.
Need for continuous monitoring of contractor performance to ensure service quality and adherence to standards.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides cost predictability.
Receipt of 10 bids suggests market interest and a competitive environment.

Sector Analysis

The security services industry is a significant sector supporting federal operations, encompassing a wide range of protective services. This contract for armed guard services falls under the broader category of facility support and security. Comparable spending benchmarks for similar security contracts across federal agencies would provide further context on the scale and pricing of this award.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if any were pursued by the prime contractor, Centerra Group, LLC. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and contract specialists within FEMA. Performance monitoring, quality assurance checks, and invoice review are standard accountability measures. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Contracts
Federal Emergency Management Agency Contracts
Security Guard Services
Armed Guard Services
Definitive Contracts

Risk Flags

Contract Duration
Performance Monitoring
Cost Reasonableness

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.7 million to CENTERRA GROUP, LLC. ARMED SECURITY GUARD SERVICES

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 (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2006-11-22. End: 2012-05-14.

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

Centerra Group, LLC has a history of providing security services to various government entities. Their experience often includes managing large-scale security operations, personnel, and equipment. A detailed review of their past performance on similar federal contracts, including any past performance evaluations or awards/debarments, would be crucial to fully assess their capability and reliability for this specific FEMA contract. This includes examining their ability to meet security requirements, manage personnel effectively, and adhere to strict federal regulations and standards.

How does the pricing of this contract compare to similar armed security guard services procured by the federal government?

A direct comparison of pricing requires access to detailed cost breakdowns and market data for comparable contracts. However, the firm fixed-price nature of this contract provides a degree of cost certainty. The fact that 10 bids were received suggests a competitive market, which generally pressures prices downward. To definitively assess value, one would need to benchmark the per-hour or per-guard rates against other federal solicitations and awards for similar services in the same geographic region, considering factors like the level of security, required personnel qualifications, and operational tempo.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance deficiencies by the contractor, such as inadequate guard presence, insufficient training, or failure to respond effectively to security incidents. Another risk could be cost overruns if the firm fixed-price structure doesn't adequately account for unforeseen operational demands, though this is less likely with FFP. Mitigation strategies typically involve robust contract oversight by FEMA, including performance monitoring, regular site inspections, and clear communication channels. Contractual clauses for remedies in case of non-performance and the potential for termination for default also serve as risk mitigators.

How effective has Centerra Group, LLC been in fulfilling its contractual obligations for this specific FEMA contract?

Assessing the effectiveness requires reviewing performance metrics, user feedback, and any formal performance evaluations conducted by FEMA during the contract's period of performance (November 22, 2006, to May 14, 2012). Without access to these specific performance records, it's challenging to provide a definitive assessment. However, the contract's completion without apparent major issues (based on available data) suggests a level of satisfactory performance. A deeper dive into contract close-out documentation and any contractor performance assessment reporting system (CPARS) entries would offer more insight.

What are the historical spending patterns for armed security guard services by FEMA or DHS?

Historical spending patterns for armed security guard services by FEMA and DHS can be analyzed by examining contract awards over several fiscal years. This would involve looking at the total dollar amounts awarded, the number of contracts, the types of services procured (e.g., fixed posts, mobile patrols), and the primary contractors. Such analysis could reveal trends in demand, pricing fluctuations, and the concentration of spending among specific vendors. Understanding these patterns helps in budgeting, forecasting future needs, and identifying potential areas for cost savings or efficiency improvements.

What is the significance of the 'Definitive Contract' award type in this context?

A 'Definitive Contract' is a standard, legally binding contract that specifies all terms and conditions, including price, quantity, and delivery schedule. In this context, it signifies a fully negotiated agreement with Centerra Group, LLC for armed security guard services. Unlike other contract types like basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts, a definitive contract typically represents a single, complete procurement action. Its use here suggests a clear scope of work and defined requirements were established upfront for the duration of the contract.

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

Solicitation ID: HSHQSL-06-R-00002

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S Integrated Services Gmbh (UEI: 079659453)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,805,070

Exercised Options: $16,722,202

Current Obligation: $16,699,331

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline