Centerra Group awarded base operating support services contract for Navy Region Singapore activities

Photo By Petty Officer 2nd Class Christopher Veloicaza | SINGAPORE (July, 21, 2016) - Rashid Osman, logistics technician for First Defense Services (FDS) manages supply information at Navy Region Singapore's (NRS) supply warehouse. First Defense Services is the outgoing contractor for the region while the Centerra Group, out of Palm Beach Gardens, Fla, was awarded a $72,185,337 Fixed Price Incentive contract (N62472-16-D-3600) for the region's base operating support services June 29, 2016. The Centerra Group will undergo a three-month mobilization and phase-in period with FDS which will take place from July 1 to Sept. 30, 2016.  

SINGAPORE

07.18.2016

Story by Christopher Veloicaza 

Singapore Area Coordinator

SINGAPORE (July 18, 2016) – The Centerra Group, Palm Beach Gardens, Fla., was awarded a $72,185,337 Fixed Price Incentive contract (N62472-16-D-3600) for base operating support services at Navy Region Singapore (NRS) June 29, 2016.

This is an eight year contract with performance beginning on Oct. 1, 2016 and includes a six-month base period with seven one-year options.

The Centerra Group will undergo a three-month mobilization and phase-in period with the outgoing contractor, First Defense Services, which will take place from July 1 to Sept. 30, 2016. A Centerra Group project manager team is expected to be on-site towards the end of July to start the transition with full performance of contract work beginning on Oct. 1, 2016.

“The highlight of this type of contract is that it allows the contractor to meet the needs of the customer, in this case Navy Region Singapore and supported Tenant Commands more consistently by being incentivized to stay at or under target costs,” said Shane Schmidt, contracting officer, Public Works Department (PWD), Singapore.

Any cost overruns or underruns are split 50/50 between the contractor and the U.S. government and any profit gains for Centerra are therefore dependent on whether they manage their target costs and performance effectively. For example, if Centerra completes a project $200,000 under budget, that amount is split between them and the U.S. government with half of the amount going to Centerra and the other half being returned to federal funding. If they are $200,000 over budget, Centerra would stand to lose half of that overage amount with the U.S. government picking up the other half.

“This is a first for Navy Region Singapore. Working together as a team both as Government Agencies and with the new BOS Contractor we will realize significant performance improvements while ultimately saving tax payer dollars,” according to Lt. Cmdr. Cort Stringham, public works officer, PWD Singapore.

Meanwhile, Centerra’s work will encompass 17 different Annexes to include air operations, supply services, housing service, and base support of vehicles and equipment. According to Centerra’s official website (www.centerragroup.com), the company provides comprehensive BOS services to the federal government to include military installations around the world and employs more than 2000 skilled professionals for large-scale BOS contracts with the Department of Defense.



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• Date Taken: 07.18.2016
• Date Posted: 07.27.2016 04:18
• Story ID: 205174
• Location: SG