DoD's $54M Facilities Support Contract Awarded to Centerra Integrated Facilities Services

Contract Overview

Contract Amount: $54,165,599 ($54.2M)

Contractor: Centerra Integrated Facilities Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-01

End Date: 2023-12-31

Contract Duration: 729 days

Daily Burn Rate: $74.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USAG STUTTGART BASOPS SERVICES CONSOLIDATED ORDER

Plain-Language Summary

Department of Defense obligated $54.2 million to CENTERRA INTEGRATED FACILITIES SERVICES, LLC for work described as: USAG STUTTGART BASOPS SERVICES CONSOLIDATED ORDER Key points: 1. Contract provides comprehensive facilities support services for USAG Stuttgart. 2. Awarded under a full and open competition, suggesting a competitive bidding process. 3. The contract duration is 729 days, indicating a medium-term service requirement. 4. Services include a range of facility management and maintenance tasks. 5. The firm-fixed-price contract type aims to control costs for the government. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $54.2 million over two years for consolidated facilities services at a major US military installation appears reasonable. Benchmarking against similar large-scale base operations support contracts, the per-diem cost for services falls within expected ranges. The firm-fixed-price structure provides cost certainty for the Department of Defense, although it places the risk of cost overruns on the contractor. Without specific line-item details or performance metrics, a definitive value-for-money assessment is challenging, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. A robust competition typically leads to better pricing and service offerings as contractors vie for the award. The use of a Best Practices Agreement (BPA) Call suggests a pre-negotiated framework was leveraged, potentially streamlining the competition process while still allowing for multiple bids.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality for the services rendered, maximizing the value of federal dollars.

Public Impact

Military personnel and their families stationed at USAG Stuttgart benefit from well-maintained and functional facilities. Essential services such as facility maintenance, repair, and operations are delivered. The geographic impact is concentrated at the USAG Stuttgart installation in Germany. The contract supports jobs within the facilities management and support services sector, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed-price bid underestimated actual service costs.
Dependence on a single contractor for critical base facilities could pose a risk if performance falters.
Limited transparency on specific performance metrics and quality control measures post-award.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type provides budget certainty for the government.
Consolidated services may lead to efficiencies and streamlined operations.
Contractor has experience in integrated facilities services.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. This sector is critical for government operations, particularly for large installations like USAG Stuttgart. Spending in this area is substantial across federal agencies, with significant market activity driven by both government and private sector demand. Comparable contracts often involve multi-year durations and significant dollar values, reflecting the complexity and scale of managing large facilities.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific small business subcontracting requirements explicitly detailed in the provided data. This means that large businesses were the primary focus of this procurement. While this can sometimes lead to economies of scale, it may limit opportunities for small businesses to participate directly in providing these essential services. Further investigation into subcontracting plans would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army at USAG Stuttgart. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting are standard mechanisms to ensure contractor compliance. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Installation Support Services
Facilities Maintenance and Repair
Logistics and Support Services
Department of Defense Contracts

Risk Flags

Potential for performance degradation if contractor faces financial difficulties.
Risk of service gaps if consolidation is not managed effectively.
Dependence on contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to CENTERRA INTEGRATED FACILITIES SERVICES, LLC. USAG STUTTGART BASOPS SERVICES CONSOLIDATED ORDER

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $54.2 million.

What is the period of performance?

Start: 2022-01-01. End: 2023-12-31.

What is the track record of Centerra Integrated Facilities Services, LLC in performing similar large-scale government contracts?

Centerra Integrated Facilities Services, LLC has a history of performing large-scale government contracts, particularly in base operations and facilities management. They have been awarded significant contracts with various branches of the U.S. military and other federal agencies. Their experience often includes a broad spectrum of services such as maintenance, repair, logistics, and security. Analyzing their past performance ratings, any contract modifications, and the number of past performance issues or disputes on similar contracts would provide a clearer picture of their reliability and capability in executing complex service agreements like the one for USAG Stuttgart. A review of their contract history can indicate their ability to manage budgets, meet deadlines, and maintain quality standards.

How does the awarded price compare to similar facilities support contracts awarded by the Department of Defense?

The awarded value of approximately $54.2 million over two years for consolidated facilities support services at USAG Stuttgart needs to be benchmarked against comparable contracts. Factors such as the scope of services, geographic location (including cost of living and labor), installation size, and specific requirements (e.g., security levels, environmental compliance) significantly influence pricing. Contracts for similar services at other major overseas installations or large domestic bases can serve as benchmarks. Without detailed service breakdowns and performance metrics, a precise comparison is difficult. However, the firm-fixed-price nature and full and open competition suggest an effort to achieve market-competitive pricing. Further analysis would involve comparing per-square-foot maintenance costs or per-service-unit costs against industry standards and historical government spending patterns for similar support functions.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns for the contractor under the firm-fixed-price structure, which could lead to performance degradation if not managed effectively. Service disruptions due to contractor performance issues or unforeseen events are another significant risk, impacting the daily operations of USAG Stuttgart. Dependence on a single provider for critical infrastructure management also poses a risk. Mitigation strategies typically involve robust performance monitoring by the government, clearly defined service level agreements (SLAs), penalties for non-performance, and contingency planning. The contracting officer's representative (COR) plays a crucial role in overseeing daily operations and ensuring compliance. The contract's duration and the competitive award process also implicitly mitigate risks by selecting a presumably capable provider.

How effective is the consolidated approach to facilities services in achieving efficiencies and cost savings for the government?

Consolidating various facilities support services under a single contract, as done for USAG Stuttgart, is generally intended to achieve economies of scale, streamline management, and reduce administrative overhead compared to managing multiple separate contracts. This approach can lead to cost savings through bulk purchasing, integrated maintenance schedules, and a unified point of contact for service delivery. The effectiveness hinges on the contractor's ability to manage the diverse service requirements efficiently and the government's oversight in ensuring that consolidation does not lead to service gaps or reduced quality in specific areas. The success of this consolidated model is often evaluated based on performance metrics, cost savings realized against previous separate contract structures, and overall user satisfaction within the installation.

What is the historical spending trend for facilities support services at USAG Stuttgart or similar installations?

Historical spending on facilities support services at major military installations like USAG Stuttgart typically shows a consistent and significant investment. These costs are driven by the need to maintain aging infrastructure, comply with evolving environmental and safety standards, and support a growing or changing military population. Spending often increases over time due to inflation, increased operational tempo, and the introduction of new technologies or requirements. Analyzing past budgets and contract awards for base operations and facilities management at similar installations can reveal trends in cost escalation, the types of services most heavily funded, and the impact of major infrastructure projects or base realignments. Fluctuations may also correlate with geopolitical events or shifts in defense spending priorities.

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 NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Constellis Holdings, LLC

Address: 13530 DULLES TECHNOLOGY DR SUITE 500,, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $84,008,289

Exercised Options: $58,029,021

Current Obligation: $54,165,599

Actual Outlays: $6,043,037

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91WFU21A0001

IDV Type: BPA

Timeline