Commerce Department's $82.7M security contract with Centerra Group, LLC, awarded for 5 years

Contract Overview

Contract Amount: $82,663,107 ($82.7M)

Contractor: Centerra Group, LLC

Awarding Agency: Department of Commerce

Start Date: 2019-09-16

End Date: 2025-08-14

Contract Duration: 2,159 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SECURITY GUARD SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $82.7 million to CENTERRA GROUP, LLC for work described as: SECURITY GUARD SERVICES Key points: 1. Value for money appears fair given the extended duration and scope of services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with performance context tied to ongoing security needs. 4. Sector positioning places this contract within the broader government security services market. 5. The contract's duration of over 3 years provides stability for both the agency and contractor.

Value Assessment

Rating: fair

The total contract value of $82.7 million over approximately 5 years averages to about $16.5 million annually. This figure needs to be benchmarked against similar large-scale security contracts for federal agencies to determine true value. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the duration suggests a strategic, long-term need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This process is designed to foster price discovery and ensure the government receives competitive offers. The presence of two bids suggests a reasonable level of competition, though more bidders would typically indicate stronger price pressure.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the selected contractor offers the best value proposition.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from enhanced security measures. Services include security guard and patrol functions to protect federal property and personnel. The geographic impact is primarily within Virginia, where the USPTO facilities are located. Workforce implications include the direct employment of security personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate oversight.
Dependence on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring consistent service quality across all shifts and locations requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Long contract duration provides service continuity and allows for contractor investment in personnel and training.
The contract is for essential security services, directly supporting the agency's mission.

Sector Analysis

The federal government is a significant consumer of security services, with spending concentrated in areas like physical security, cybersecurity, and protective services. This contract falls under the Security Guards and Patrol Services NAICS code (561612), a segment characterized by numerous providers ranging from small businesses to large corporations. The market is competitive, driven by government procurement vehicles and agency needs for reliable security solutions.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award to Centerra Group, LLC, a larger entity, suggests that small businesses may not have been primary bidders or recipients of this specific award, though they could potentially be involved in lower-tier subcontracting.

Oversight & Accountability

Oversight is typically managed by the contracting officer's representative (COR) at the U.S. Patent and Trademark Office, who monitors performance against contract requirements. Accountability measures are embedded in the contract terms, including performance standards and potential remedies for non-compliance. Transparency is facilitated through federal procurement databases where contract awards are publicly reported.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Contracts
General Services Administration Schedules for Security Services

Risk Flags

Potential for performance issues if contractor fails to maintain adequate staffing levels.
Risk of security breaches if guard training or oversight is insufficient.
Contract value is substantial, requiring diligent financial oversight to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $82.7 million to CENTERRA GROUP, LLC. 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 Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $82.7 million.

What is the period of performance?

Start: 2019-09-16. End: 2025-08-14.

What is the historical spending pattern for security services at the U.S. Patent and Trademark Office?

Analyzing historical spending for security services at the USPTO is crucial for understanding the context of this $82.7 million award. Without specific historical data, it's difficult to determine if this contract represents an increase, decrease, or stable level of spending. Typically, agencies maintain multi-year contracts for security due to the continuous nature of these needs. Trends in federal spending on security services overall, influenced by threat levels and agency priorities, would also provide a broader perspective. A detailed review of past USPTO solicitations and awards for similar services would reveal if this contract is a continuation, expansion, or a new initiative, and whether the pricing is consistent with previous procurements.

How does the per-hour labor cost for security guards under this contract compare to industry benchmarks?

Determining the per-hour labor cost requires access to the detailed pricing structure of the contract, which is not fully provided in the summary data. However, if the contract specifies labor hours and rates, these could be compared against Department of Labor wage data for security guards in the relevant geographic area (Virginia) and against rates for similar federal contracts. Factors such as the level of security clearance required, the specific duties performed (e.g., armed vs. unarmed, supervisory roles), and the experience level of the guards would influence the benchmark. A significant deviation from established benchmarks could indicate either exceptional value or potential overpricing, warranting further investigation.

What is Centerra Group, LLC's track record with federal security contracts?

Centerra Group, LLC has a substantial history of providing security and facility management services to various government agencies, including defense and civilian departments. Their track record often includes managing large-scale, complex security operations. Performance reviews and past performance evaluations from previous federal contracts are key indicators of their reliability and effectiveness. Agencies typically consider a contractor's history of meeting performance standards, managing costs, and adhering to security protocols when making new awards. A review of their contract history, including any documented performance issues or commendations, would provide insight into their suitability for this USPTO contract.

What are the key performance indicators (KPIs) used to measure the success of this security contract?

Key Performance Indicators (KPIs) for a security guard services contract typically focus on measurable aspects of performance. These often include metrics such as response times to incidents, the number of security breaches or incidents (and their severity), adherence to post orders, guard attendance and punctuality, and customer satisfaction surveys from agency personnel. The contract likely specifies these KPIs and the acceptable performance thresholds. Regular performance reviews between the USPTO and Centerra Group, LLC would assess performance against these KPIs, informing decisions about contract modifications, renewals, or potential corrective actions.

Are there any specific risks associated with the geographic location or type of facility being secured?

The contract is for security services at the U.S. Patent and Trademark Office facilities, primarily located in Virginia. Risks associated with the geographic location might include local labor market conditions affecting guard availability and wages, or specific regional security concerns. The type of facility—a high-profile government agency dealing with intellectual property—presents risks related to potential espionage, theft of sensitive information, and the need for stringent access control. The security plan must address these specific threats, requiring guards with appropriate training and the implementation of robust physical and procedural security measures tailored to the USPTO's unique operational environment.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $91,668,648

Exercised Options: $82,663,107

Current Obligation: $82,663,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F5548P

IDV Type: FSS

Timeline