Treasury's IRS Spends $52.8M on Consolidated Maintenance with Centerra Integrated Facilities Services
Contract Overview
Contract Amount: $52,764,214 ($52.8M)
Contractor: Centerra Integrated Facilities Services, LLC
Awarding Agency: Department of the Treasury
Start Date: 2003-10-14
End Date: 2013-02-08
Contract Duration: 3,405 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONSOLIDATED MAINTENANCE
Place of Performance
Location: HOLTSVILLE, SUFFOLK County, NEW YORK, 11742
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $52.8 million to CENTERRA INTEGRATED FACILITIES SERVICES, LLC for work described as: CONSOLIDATED MAINTENANCE Key points: 1. Significant spending on facilities support services over a decade. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration was substantial, indicating a long-term need. 4. No small business participation was reported, which could be a missed opportunity.
Value Assessment
Rating: fair
The contract value of $52.8M over approximately 9 years suggests a significant investment. Without specific per-unit cost data or benchmarks for similar consolidated maintenance contracts, a precise value assessment is difficult. However, the duration and scope imply a substantial operational cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows all responsible sources to submit offers. This method is expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds were used for this contract. The use of full and open competition aims to ensure the best value for taxpayers by fostering a competitive environment.
Public Impact
Ensures operational continuity for IRS facilities through essential maintenance. Supports the physical infrastructure necessary for tax administration. Long-term contract may indicate stable service provision but limits flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may lead to price inflexibility.
Positive Signals
- Awarded through full and open competition.
- Sufficient duration for consistent service delivery.
Sector Analysis
Facilities support services are crucial for the operational efficiency of government agencies. Spending benchmarks vary widely based on the size and complexity of facilities managed. This $52.8M contract over 9 years for IRS facilities in New York appears substantial.
Small Business Impact
The contract data indicates that no small business participation was reported. This suggests that opportunities for small businesses to contribute to this large facilities support contract were either not pursued or not successful.
Oversight & Accountability
The contract was awarded through full and open competition, which is a standard oversight mechanism. Further oversight would involve performance reviews and audits to ensure the contractor is meeting service level agreements and cost efficiencies.
Related Government Programs
- Facilities Support Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration.
- No reported small business participation.
- Lack of detailed performance metrics in provided data.
- Potential for price inflexibility over time.
Tags
facilities-support-services, department-of-the-treasury, ny, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $52.8 million to CENTERRA INTEGRATED FACILITIES SERVICES, LLC. CONSOLIDATED MAINTENANCE
Who is the contractor on this award?
The obligated recipient is CENTERRA INTEGRATED FACILITIES SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $52.8 million.
What is the period of performance?
Start: 2003-10-14. End: 2013-02-08.
What was the average annual cost for consolidated maintenance under this contract, and how does it compare to industry benchmarks for similar facilities?
The contract value of $52.8M over approximately 3405 days (about 9.3 years) averages to roughly $5.68 million per year. Comparing this to industry benchmarks requires detailed knowledge of the specific facilities managed by the IRS in New York, including square footage, types of systems maintained, and service level agreements. Without this granular data, a direct comparison is challenging, but it represents a significant annual expenditure for facilities maintenance.
What were the primary risks associated with a long-term (9+ year) consolidated maintenance contract, and how were they mitigated?
Risks of a long-term contract include potential price escalation, technological obsolescence, and reduced flexibility to adapt to changing needs. Mitigation strategies could involve firm fixed-price structures to cap costs, performance-based incentives, regular contract reviews, and clear clauses for modifications or termination if performance falters or needs change significantly. The specific mitigation tactics employed would be detailed in the contract's terms and conditions.
How effectively did the full and open competition process ensure value for money for the taxpayer in this $52.8M consolidated maintenance contract?
Full and open competition is designed to maximize value by encouraging multiple bids, which typically drives down prices and improves service quality. The effectiveness in this case depends on the number and quality of bids received, the clarity of the solicitation, and the evaluation criteria used. While the process itself promotes value, actual effectiveness is confirmed through post-award performance monitoring and comparison of the final price against estimated costs and market rates.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 12250 EL CAMINO REAL STE 300, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,849,193
Exercised Options: $52,849,193
Current Obligation: $52,764,214
Timeline
Start Date: 2003-10-14
Current End Date: 2013-02-08
Potential End Date: 2013-02-08 00:00:00
Last Modified: 2013-10-16
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