NASA's $16.6M security contract with Centerra Group, awarded via full and open competition, spanned nearly a decade
Contract Overview
Contract Amount: $16,579,464 ($16.6M)
Contractor: Centerra Group, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-11-01
End Date: 2013-01-31
Contract Duration: 3,013 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS IS A FIRM FIXED PRICE PORTION OF THE HYBRID CONTRACT NND04AC17C.
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
National Aeronautics and Space Administration obligated $16.6 million to CENTERRA GROUP, LLC for work described as: THIS IS A FIRM FIXED PRICE PORTION OF THE HYBRID CONTRACT NND04AC17C. Key points: 1. The contract utilized a firm-fixed-price structure, aiming to control costs for security guard services. 2. Awarded through full and open competition, suggesting a broad market search for the best value. 3. The long duration of the contract (over 8 years) may indicate a stable, ongoing need for these services. 4. The specific NAICS code (561612) points to a specialized service area within the security industry. 5. The contract was a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for managing multiple taskings. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted to small businesses.
Value Assessment
Rating: fair
Benchmarking the value of this specific $16.6 million contract is challenging without more detailed service level agreements and performance metrics. However, firm-fixed-price contracts generally aim for cost certainty. Comparing this to other security contracts requires understanding the scope of services, geographic coverage, and specific security requirements. Given the duration and the nature of security services, the price appears to be within a plausible range for a long-term, comprehensive security solution, but a detailed cost-benefit analysis would be needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'full and open competition' procurement strategy. This means that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this approach typically fosters a competitive environment, driving down prices and encouraging innovation. The agency sought proposals from a wide range of potential contractors, indicating a desire to secure the most advantageous terms and services available in the market.
Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more competitive pricing and a wider selection of qualified vendors, ensuring that federal funds are used efficiently for essential services.
Public Impact
The primary beneficiaries are NASA facilities and personnel, who receive essential security guard and patrol services. The contract ensures the physical security and safety of government property and operations. Services were likely concentrated in California, where the contract was noted to be active. The contract supported jobs within the security services industry, contributing to the local and national workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency or reduced incentive for continuous improvement if not actively managed.
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the security services provided.
- Firm-fixed-price can be disadvantageous if unforeseen circumstances significantly increase costs, potentially leading to contractor requests for modification or reduced service quality.
Positive Signals
- Awarded through full and open competition, indicating a robust market search and potential for competitive pricing.
- Firm-fixed-price structure provides cost certainty for the government, simplifying budget management.
- The contract's long performance period suggests a successful, ongoing relationship meeting NASA's security needs.
Sector Analysis
The security services industry is a significant sector within the broader professional, scientific, and technical services market. NAICS code 561612 specifically covers security guards and patrol services. This contract fits within the government's substantial spending on protective services to safeguard federal assets and personnel. Comparable spending benchmarks would involve analyzing other large-scale security contracts awarded by federal agencies for similar protective services across various locations and facility types.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award was made to a large business or that the procurement vehicle itself was not structured with small business participation goals. While direct subcontracting opportunities for small businesses are not detailed here, large prime contracts often include provisions for small business subcontracting, which would need to be assessed through contract-level data or reporting.
Oversight & Accountability
Oversight for this contract would typically fall under NASA's contracting officer and administrative contracting officer (CO/ACO) responsibilities. The firm-fixed-price nature implies that the contractor bears most of the cost risk, but performance monitoring is still crucial. Transparency is generally facilitated through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on NASA's internal policies and any identified performance issues or fraud concerns.
Related Government Programs
- Federal Protective Service Contracts
- Department of Defense Security Services
- General Services Administration (GSA) Schedule Contracts for Security
- Other Agency Security Guard Contracts
Risk Flags
- Long contract duration may warrant review for potential cost efficiencies or market changes.
- Lack of detailed performance metrics limits assessment of value for money.
- Firm-fixed-price contracts require careful monitoring to ensure service quality is maintained.
Tags
nasa, centerra-group, security-guards-and-patrol-services, firm-fixed-price, full-and-open-competition, delivery-order, california, large-contract, long-term-contract, protective-services, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $16.6 million to CENTERRA GROUP, LLC. THIS IS A FIRM FIXED PRICE PORTION OF THE HYBRID CONTRACT NND04AC17C.
Who is the contractor on this award?
The obligated recipient is CENTERRA GROUP, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2004-11-01. End: 2013-01-31.
What was the specific scope of security services provided under this contract?
The contract, identified by NAICS code 561612, covered 'Security Guards and Patrol Services.' This typically includes services such as uniformed security personnel for access control, patrolling premises, monitoring surveillance systems, responding to alarms, and providing general security presence to deter unauthorized activities and ensure the safety of personnel and property. The exact details of the services, including the number of guards, hours of coverage, specific posts, and specialized security measures (e.g., K9 units, specialized equipment), would be outlined in the contract's statement of work (SOW) and any subsequent delivery orders.
How does the total contract value of $16.6 million compare to similar security contracts awarded by NASA or other federal agencies?
Comparing the $16.6 million total value requires context regarding the contract's duration (over 8 years) and the specific services rendered. NASA, like other large federal agencies, procures significant security services. For instance, contracts for securing large research centers or space launch facilities can run into tens or hundreds of millions of dollars over similar or longer periods. Without specific details on the number of personnel, posts covered, and geographic scope, a direct comparison is difficult. However, for a long-term, comprehensive security solution at a major federal facility, $16.6 million spread over 8+ years appears to be within a reasonable range, suggesting a moderate scale of operations rather than an exceptionally large or small one.
What were the key performance indicators (KPIs) used to evaluate Centerra Group's performance?
The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Centerra Group's performance under this contract. Typically, for security guard and patrol services, KPIs might include metrics such as response times to incidents, adherence to post orders, number of security breaches or incidents, personnel reliability (e.g., attendance, background checks), customer satisfaction surveys from NASA personnel, and compliance with safety regulations. Effective oversight would involve regular performance reviews against these or similar metrics, documented in performance reports.
What is the track record of Centerra Group in providing federal security services?
Centerra Group, LLC has a significant history of providing security and facility management services to various government agencies, including the Department of Defense, Department of Energy, and NASA. Their experience often involves complex security environments, including critical infrastructure protection and personnel security. While this specific contract highlights their work with NASA, their broader portfolio demonstrates substantial experience in meeting federal security requirements. A deeper dive into past performance evaluations and any contract disputes or awards would provide a more comprehensive view of their track record.
Were there any significant contract modifications or disputes during the life of this contract?
The provided data does not contain information regarding specific contract modifications or disputes related to this $16.6 million NASA contract with Centerra Group. Contract modifications can occur for various reasons, such as changes in scope, adjustments to pricing based on economic factors, or extensions of period of performance. Disputes typically arise from disagreements over contract terms, performance, or payments. Information on modifications and disputes is usually available through more detailed contract databases or agency procurement records.
How did the firm-fixed-price (FFP) structure impact the government's risk and the contractor's flexibility?
A Firm-Fixed-Price (FFP) contract structure places the majority of the cost risk on the contractor. Centerra Group was obligated to perform the security services for the agreed-upon price, regardless of their actual costs. This provides the government with significant cost certainty and simplifies financial management. For the contractor, it offers the potential for higher profit margins if they can manage their costs efficiently. However, it also limits their flexibility; significant unforeseen cost increases due to external factors (e.g., unexpected labor rate hikes, new regulatory requirements) could strain their profitability unless the contract included specific clauses for equitable adjustments. The government's risk is primarily related to potential underperformance if the contractor cuts corners to maintain profitability.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Constellis Holdings, LLC (UEI: 966133477)
Address: 7121 FAIRWAY DRIVE, SUITE 301, PALM BEACH GARDENS, FL, 33418
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,756,437
Exercised Options: $16,701,389
Current Obligation: $16,579,464
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NND04AC17C
IDV Type: IDC
Timeline
Start Date: 2004-11-01
Current End Date: 2013-01-31
Potential End Date: 2013-01-31 00:00:00
Last Modified: 2018-10-10
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