DoD's $32M Facilities Support Contract with Centerra Facility Services Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $32,073,794 ($32.1M)
Contractor: Centerra Facility Services LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-01
End Date: 2014-03-31
Contract Duration: 1,216 days
Daily Burn Rate: $26.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PMEL FUNCTIONS
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $32.1 million to CENTERRA FACILITY SERVICES LLC for work described as: PMEL FUNCTIONS Key points: 1. The contract awarded to Centerra Facility Services for PMEL Functions represents a significant expenditure of $32 million. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of 1216 days (over 3 years) indicates a long-term commitment for essential services. 4. The absence of small business participation warrants further investigation into contracting opportunities. 5. The fixed-price contract type aims to control costs, but the overall value needs assessment.
Value Assessment
Rating: fair
The $32 million award for facilities support services over approximately three years requires benchmarking against similar contracts. Without specific performance metrics or detailed cost breakdowns, assessing the value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the widest possible participation and competitive pricing. However, the final price achieved depends on the effectiveness of the solicitation and the number and quality of bids received.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment. The actual taxpayer impact is contingent on the price negotiated relative to market rates.
Public Impact
Military readiness and operational efficiency are directly supported by the facilities maintenance and support services provided under this contract. The contract impacts the local economy through employment opportunities generated by Centerra Facility Services. The Department of the Air Force relies on these services to maintain critical infrastructure at its installations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for cost overruns despite fixed-price contract if scope creep occurs.
- Need for robust performance monitoring to ensure service quality.
Positive Signals
- Awarded under full and open competition.
- Fixed-price contract type helps manage cost certainty.
- Long contract duration provides stability for essential services.
Sector Analysis
Facilities Support Services (NAICS 561210) are crucial for maintaining government installations. Spending in this sector can vary widely based on the size and complexity of the facilities managed. This $32 million contract is substantial for a single award.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that either small businesses were not solicited, did not bid, or were not awarded a subcontract. Further analysis is needed to understand if this aligns with small business contracting goals.
Oversight & Accountability
Oversight of this contract would involve monitoring Centerra Facility Services' performance against contract requirements and ensuring compliance with federal regulations. The Department of the Air Force is responsible for this oversight.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of transparency on specific services and cost breakdown.
- Uncertainty regarding the competitiveness of the bidding process.
- Absence of small business participation.
- Need for performance validation against mission objectives.
- Potential for scope creep impacting the fixed-price contract.
Tags
facilities-support-services, department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.1 million to CENTERRA FACILITY SERVICES LLC. PMEL FUNCTIONS
Who is the contractor on this award?
The obligated recipient is CENTERRA FACILITY SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $32.1 million.
What is the period of performance?
Start: 2010-12-01. End: 2014-03-31.
What specific facilities support services are included under PMEL FUNCTIONS, and how do they align with the $32 million cost?
PMEL (Precision Measurement Equipment Laboratory) functions typically involve calibration, maintenance, and repair of highly accurate measurement and diagnostic equipment essential for military operations. The $32 million cost likely encompasses labor, specialized tools, facility overhead, and potentially management fees for a comprehensive service package over several years. A detailed breakdown of service categories and associated costs would be needed for a precise value assessment.
Given the full and open competition, what was the competitive landscape like, and did it result in optimal pricing?
While 'full and open competition' indicates a broad solicitation, the actual competitive landscape is unknown without bid data. The number of bids received and the price spread among them would reveal how competitive the process truly was. If only a few bids were submitted, or if the winning bid was significantly higher than others, it might suggest suboptimal price discovery despite the open competition.
How effectively are the services contributing to the Air Force's mission objectives, and are there performance metrics to validate this?
The effectiveness of these facilities support services is critical for maintaining the operational readiness of the Air Force. Without access to performance metrics, quality assurance reports, or mission impact assessments, it's difficult to definitively state how effectively the services are contributing. Robust oversight mechanisms and clearly defined Key Performance Indicators (KPIs) are essential to ensure the services meet or exceed mission requirements.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA860110R0012
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7121 FAIRWAY DR STE 301, WEST PALM BEACH, FL, 90
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,128,136
Exercised Options: $32,128,136
Current Obligation: $32,073,794
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-12-01
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 00:00:00
Last Modified: 2014-08-21
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