NRC awards $33.6M for facilities guard services to Centerra Group, LLC over 5 years

Contract Overview

Contract Amount: $33,579,703 ($33.6M)

Contractor: Centerra Group, LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2008-04-01

End Date: 2013-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $16.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITIES GUARDS SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $33.6 million to CENTERRA GROUP, LLC for work described as: FACILITIES GUARDS SERVICES Key points: 1. Contract value represents a significant investment in physical security infrastructure. 2. Centerra Group, LLC has a substantial history in providing security services. 3. The contract's firm-fixed-price structure aims to control costs and provide predictability. 4. Performance is located in Maryland, indicating a focus on specific NRC facilities. 5. The duration of the contract suggests a need for sustained security operations. 6. This award falls under the broader category of security and protective services.

Value Assessment

Rating: good

The total award of $33.6 million over five years for security guard services appears reasonable when benchmarked against similar federal contracts for facility protection. While specific per-unit cost data is not provided, the firm-fixed-price nature of the contract suggests that the agency has negotiated a set rate, which aids in budget predictability. Comparing this to other large-scale security contracts awarded by agencies like the Department of Defense or Department of Energy, the pricing seems to be within a competitive range for the scope of services, which includes security guards and patrol services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid on the requirement. The fact that it was competed suggests a healthy level of market interest and potential for price discovery. The Nuclear Regulatory Commission (NRC) likely utilized a competitive process to ensure they received the best value for their security needs. The presence of multiple bidders generally leads to more favorable pricing and service offerings for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price competition among qualified security service providers.

Public Impact

The primary beneficiaries are the Nuclear Regulatory Commission facilities requiring robust security. Services delivered include security guards and patrol services to maintain a secure environment. The geographic impact is concentrated in Maryland, where the NRC facilities are located. This contract supports jobs within the security services industry, particularly in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical security functions.
Ensuring consistent quality and performance across all guard posts throughout the contract duration.
Managing potential cost escalations if unforeseen security threats require increased personnel or resources.

Positive Signals

Award to a known entity, Centerra Group, LLC, suggests a level of established capability.
Firm-fixed-price contract provides cost certainty for the NRC.
Competitive award process indicates potential for good value and service.

Sector Analysis

The security services sector is a significant component of the federal contracting landscape, encompassing a wide range of protective services for government facilities and assets. This contract for guard services fits within the broader market for physical security, which includes personnel, technology, and monitoring. Federal spending in this area is consistently high due to the critical nature of protecting sensitive government sites, including those managed by the Nuclear Regulatory Commission. Benchmarks for similar contracts often show significant annual expenditures, reflecting the ongoing need for reliable security.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary award went to Centerra Group, LLC, a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether Centerra Group, LLC engages small businesses for any subcontracted portions of the work, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Nuclear Regulatory Commission. Accountability measures are embedded within the contract's performance work statement, requiring adherence to specific security protocols and service levels. Transparency is generally maintained through contract award databases and public reporting, although specific operational details of security services are often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

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

Risk Flags

Contract duration may lead to complacency if not actively managed.
Dependence on a single contractor for critical security functions.
Potential for performance degradation over a long contract term.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $33.6 million to CENTERRA GROUP, LLC. FACILITIES GUARDS 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 $33.6 million.

What is the period of performance?

Start: 2008-04-01. End: 2013-09-30.

What is Centerra Group, LLC's track record in providing security services to federal agencies, particularly for sensitive facilities?

Centerra Group, LLC has a significant history of providing security and protective services to various federal agencies, including those with critical infrastructure and sensitive operations. Their experience often spans across departments like Defense, Energy, and Homeland Security. For facilities requiring specialized security protocols, such as those managed by the Nuclear Regulatory Commission, Centerra's background typically includes compliance with stringent regulatory requirements and the management of highly trained security personnel. Their past performance on similar contracts would be a key factor in the NRC's decision-making process, aiming to ensure reliability and adherence to security standards.

How does the $33.6 million contract value compare to historical NRC spending on security guard services?

To accurately compare the $33.6 million contract value to historical NRC spending, one would need to analyze the agency's budget allocations and contract awards for security guard services over previous fiscal years. This contract, awarded from April 2008 to September 2013, represents a substantial, multi-year investment. If the NRC has historically awarded similar-sized contracts for comparable facilities and service levels, this award would be consistent. However, if previous contracts were significantly smaller or shorter in duration, this $33.6 million award might indicate an expansion of security needs, an increase in service scope, or a rise in market rates for such services over time.

What are the primary risk indicators associated with a contract of this nature and duration?

Key risk indicators for a long-term security guard services contract include potential performance degradation over time, contractor personnel turnover impacting service consistency, and the risk of security breaches due to unforeseen threats or lapses in protocol. For a contract valued at $33.6 million and spanning five years, there's also a financial risk if the firm-fixed-price structure doesn't adequately account for inflation or unexpected operational costs. Furthermore, ensuring continuous compliance with evolving security regulations and maintaining the highest level of personnel vetting and training are critical risk areas that require diligent oversight from the contracting agency.

How effective are firm-fixed-price contracts in ensuring value for money in security guard services?

Firm-fixed-price (FFP) contracts are generally considered effective in ensuring value for money for services like security guards, as they place the risk of cost overruns on the contractor. This structure incentivizes the contractor to manage their costs efficiently to maintain profitability. For the NRC, an FFP contract provides budget certainty, as the price is set upfront. The value for money is realized if the contractor delivers the required services at the agreed-upon price without compromising quality. However, the agency must ensure the initial price is competitive and that the contract includes clear performance standards to prevent a reduction in service quality to cut costs.

What is the typical market size for federal security guard services, and how does this contract fit within it?

The federal market for security guard services is substantial, often measured in billions of dollars annually, encompassing a wide array of agencies and facility types. Contracts range from small, localized guard posts to large, complex security operations at critical infrastructure sites. This $33.6 million contract with Centerra Group, LLC for NRC facilities represents a significant, but not exceptionally large, award within this broader market. It signifies a dedicated allocation of resources for the specific security needs of the Nuclear Regulatory Commission, fitting into the segment of federal spending focused on protecting high-security government installations.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

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, 33418

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

Financial Breakdown

Contract Ceiling: $33,579,704

Exercised Options: $33,579,703

Current Obligation: $33,579,703

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F5548P

IDV Type: FSS

Timeline