Centerra Group awarded $13.6M for security guard services by the Nuclear Regulatory Commission

Contract Overview

Contract Amount: $13,630,467 ($13.6M)

Contractor: Centerra Group, LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2002-11-22

End Date: 2008-03-31

Contract Duration: 1,956 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY GUARD SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $13.6 million to CENTERRA GROUP, LLC for work described as: SECURITY GUARD SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of security services required. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over 1900 days indicates a long-term need for these services. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. The award was made by the Nuclear Regulatory Commission, indicating a focus on nuclear facility security. 6. The contractor, Centerra Group, LLC, has a significant presence in the security services sector.

Value Assessment

Rating: good

The contract value of approximately $13.6 million over nearly 2000 days suggests a daily rate in the low thousands. Benchmarking against similar large-scale security contracts for federal agencies, this appears to be within a competitive range, especially considering the specialized nature of nuclear facility security. The firm fixed-price structure implies that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 11 bidders participating, the level of competition was robust. This suggests that the Nuclear Regulatory Commission received a variety of proposals, allowing for a thorough evaluation and selection of the most advantageous offer based on price and technical merit. A higher number of bidders generally correlates with more competitive pricing.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. The government benefited from a wider range of options and potentially lower bids due to the competitive environment.

Public Impact

The primary beneficiaries are the Nuclear Regulatory Commission and the facilities it oversees, ensuring secure operations. Services delivered include essential security guard functions, patrol, and access control. The contract's geographic impact is centered in Maryland, where the services are likely performed. This contract supports a workforce of security professionals, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor complacency due to long contract duration.
Ensuring consistent quality of security personnel over the contract's lifespan.
Managing potential scope creep or changes in security requirements.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Robust competition indicates a strong market for these services.
Contractor's established presence suggests experience in security operations.

Sector Analysis

The security services industry is a significant sector within the broader government contracting landscape. This contract falls within the security guards and patrol services sub-sector. The Nuclear Regulatory Commission's need for specialized security underscores the critical role of private security firms in protecting sensitive government assets and infrastructure. Comparable spending benchmarks for large federal security contracts often run into tens or hundreds of millions of dollars annually, depending on the scope and location.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and there is no explicit mention of small business subcontracting goals. Given the scale and nature of the services, it is possible that larger, established firms like Centerra Group are better positioned to compete. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Nuclear Regulatory Commission's contracting officers and program managers. The firm fixed-price nature of the contract simplifies some aspects of oversight by focusing on deliverables rather than detailed cost accounting. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security - Security Services
General Services Administration - Federal Supply Schedule Contracts
Department of Defense - Base Operations Support Contracts

Risk Flags

Long contract duration may lead to complacency.
Potential for service degradation over time.
Ensuring consistent personnel quality and retention.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $13.6 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: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2002-11-22. End: 2008-03-31.

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

Centerra Group, LLC has a substantial history of performing federal contracts, primarily in security and facility management services. They have held numerous contracts with agencies such as the Department of Defense, Department of Energy, and Department of Justice. Their experience often involves providing security personnel, access control, and emergency response services at sensitive government installations, including correctional facilities and critical infrastructure sites. This extensive background suggests a proven capability to manage large-scale security operations and meet federal requirements, although specific performance metrics for past contracts would require deeper investigation into contract performance reports and agency evaluations.

How does the awarded price compare to similar security guard contracts awarded by the government?

The awarded value of approximately $13.6 million over roughly 1956 days (about 5.3 years) translates to an average annual cost of roughly $2.57 million. This figure needs to be contextualized by the specific services, locations, and security levels required. For large federal facilities, particularly those with high-security needs like nuclear installations, this annual rate is generally considered competitive. Contracts for similar services at military bases or federal office buildings can range widely, but a rate in the mid-single-digit millions per year for comprehensive security services is not unusual. The firm fixed-price nature also implies that the government secured a predictable cost.

What are the primary risks associated with this type of long-term, fixed-price security contract?

The primary risks for the government in a long-term, firm fixed-price security contract include potential contractor complacency leading to service degradation over time, and the risk of the contractor being unable to adapt to evolving security threats or regulatory changes without significant change order costs. For the contractor, the main risk is underestimating costs or facing unforeseen operational challenges that erode profit margins. Ensuring consistent quality of personnel, managing turnover, and maintaining morale among security staff are ongoing challenges that can impact service delivery and represent a risk to the government if not managed effectively by the contractor.

How effective is the Nuclear Regulatory Commission in overseeing its security contracts?

The Nuclear Regulatory Commission (NRC) is responsible for ensuring the safety and security of nuclear materials and facilities. Their oversight of security contracts is critical and typically involves robust performance monitoring, regular inspections, and adherence to strict regulatory requirements. The NRC employs contracting officers and technical monitors to ensure that contracted security services meet all specified standards and regulatory mandates. Given the high-stakes nature of nuclear security, the NRC's oversight mechanisms are expected to be rigorous, focusing on compliance, personnel vetting, and operational effectiveness to mitigate risks to public safety and national security.

What has been the historical spending trend for security guard services by the Nuclear Regulatory Commission?

Analyzing the historical spending trend for security guard services by the Nuclear Regulatory Commission requires access to detailed historical contract data beyond this single award. However, it can be inferred that the NRC consistently requires security services to protect its facilities and personnel. Spending in this category would likely fluctuate based on facility needs, contract renewals, and overall budget allocations. The presence of a $13.6 million contract awarded in 2002 suggests a sustained and significant investment in security services over time. A comprehensive review of past NRC solicitations and awards for security services would reveal trends in contract values, durations, and competition levels.

What are the implications of awarding a contract of this size and duration for the security services market?

Awarding a contract of this magnitude ($13.6 million over nearly 6 years) to a single entity like Centerra Group signifies a substantial commitment by the Nuclear Regulatory Commission to a particular service provider. For the market, it indicates a healthy demand for specialized security services within the federal government, particularly for critical infrastructure. Such large contracts often favor established, larger companies with the capacity and experience to manage complex operations. While it provides significant revenue for the awardee, it also represents a barrier to entry for smaller firms unless they can secure subcontracts. The full and open competition, however, suggests that multiple firms were capable of bidding, indicating a competitive market despite the large contract size.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ADM-02-153

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: G4S PLC (UEI: 737341631)

Address: 7121 FAIRWAY DRIVE, SUITE 301, PALM BEACH GARDENS, FL, 21

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $16,629,567

Exercised Options: $16,629,567

Current Obligation: $13,630,467

Contract Characteristics

Multi-Year Contract: Yes

Timeline