DoD's $24.8M security contract awarded to Chenega Operations Services, LLC for 12 months

Contract Overview

Contract Amount: $24,797,894 ($24.8M)

Contractor: Chenega Operations Services, LLC

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2012-09-30

Contract Duration: 365 days

Daily Burn Rate: $67.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROVIDE SECURITY FORCES SUPPORT SERVICES FOR ANDERSEN AFB, GU, DAVIS-MONTHAN, AZ, EIELSON AFB, AK, ELMENDORF AFB, AK, HICKAM AFB, HI, MCCHORD AFB, WA, NELLIS/CREECH AFB, NV, SCHRIEVER AFB, CO, US AIR FORCE ACADEMY, CO, AND VANDENBERG AFB, CA AND FT RICHARDSON, AK UNDER JOINT BASE ELMENDORF-FT RICHARDSON.

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to CHENEGA OPERATIONS SERVICES, LLC for work described as: PROVIDE SECURITY FORCES SUPPORT SERVICES FOR ANDERSEN AFB, GU, DAVIS-MONTHAN, AZ, EIELSON AFB, AK, ELMENDORF AFB, AK, HICKAM AFB, HI, MCCHORD AFB, WA, NELLIS/CREECH AFB, NV, SCHRIEVER AFB, CO, US AIR FORCE ACADEMY, CO, AND VANDENBERG AFB, CA AND FT RICHARDSON, AK UNDER JOINT BASE… Key points: 1. Contract value represents a significant investment in base security across multiple Air Force installations. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of the contract is one year, indicating a need for ongoing security support. 5. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 6. The contract was awarded to a single vendor, Chenega Operations Services, LLC.

Value Assessment

Rating: good

The contract's total value of approximately $24.8 million over one year averages to roughly $2.07 million per month. Without specific benchmarks for security forces support services at these installations, a direct value-for-money assessment is challenging. However, the firm fixed-price structure suggests an effort to manage costs predictably. Further analysis would require comparing this rate to similar contracts for comparable services at other military bases or in similar geographic regions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The number of bids received is not explicitly stated, but the 'limited' competition designation suggests fewer than a fully open process. This could impact price discovery and potentially lead to higher costs compared to a broader competitive environment.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that could have been achieved through a wider bidding process. The exclusion of certain sources could have reduced the competitive pressure on the awarded contractor.

Public Impact

Provides essential security services to protect personnel, assets, and critical infrastructure at ten major Air Force installations across the United States and Guam. Ensures the safety and operational readiness of these key military bases, contributing to national security. Supports the daily operations of the Air Force by maintaining a secure environment for service members and civilian personnel. The contract has a broad geographic impact, covering bases in Alaska, Arizona, California, Colorado, Guam, Hawaii, Nevada, and Washington.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted the number of potential bidders, potentially impacting cost-effectiveness.
The 'exclusion of sources' clause warrants further investigation to understand the rationale and its effect on competition.
The firm fixed-price contract, while good for cost control, could pose risks if unforeseen circumstances significantly increase service delivery costs for the contractor.

Positive Signals

Awarded under a competitive process, indicating some level of market vetting.
The firm fixed-price contract type provides cost certainty for the government.
The contract supports critical national security functions by providing essential security services.

Sector Analysis

The security services sector is a vital component of the defense industry, encompassing a wide range of protective measures for government and private entities. This contract falls within the broader defense and government services market, where demand for security personnel and related services remains consistently high due to national security imperatives. Comparable spending benchmarks for security guard and patrol services for federal facilities can vary significantly based on location, facility size, and the specific security requirements.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and the prime contractor, Chenega Operations Services, LLC, is likely a larger entity. There is no information on subcontracting plans for small businesses within this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver specified services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support Services
Security Guard Services
Department of Defense Contracts
Air Force Installations
Federal Law Enforcement Support

Risk Flags

Limited competition may impact price discovery.
Potential for contractor cost overruns under firm fixed-price contract.
Need to verify performance quality and adherence to security standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to CHENEGA OPERATIONS SERVICES, LLC. PROVIDE SECURITY FORCES SUPPORT SERVICES FOR ANDERSEN AFB, GU, DAVIS-MONTHAN, AZ, EIELSON AFB, AK, ELMENDORF AFB, AK, HICKAM AFB, HI, MCCHORD AFB, WA, NELLIS/CREECH AFB, NV, SCHRIEVER AFB, CO, US AIR FORCE ACADEMY, CO, AND VANDENBERG AFB, CA AND FT RICHARDSON, AK UNDER JOINT BASE ELMENDORF-FT RICHARDSON.

Who is the contractor on this award?

The obligated recipient is CHENEGA OPERATIONS 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 $24.8 million.

What is the period of performance?

Start: 2011-10-01. End: 2012-09-30.

What is Chenega Operations Services, LLC's track record with similar government contracts?

Chenega Operations Services, LLC has a significant history of performing security and base support services for various government agencies, including the Department of Defense and the Department of the Air Force. Their portfolio often includes base operations, protective services, and logistical support at military installations. Reviewing their past performance evaluations and contract history can provide insight into their reliability, quality of service, and ability to manage large-scale contracts. Data from contract databases often shows multiple awards to Chenega for similar services, indicating a sustained presence and capability in this market segment. However, specific details on performance metrics for past contracts, such as on-time delivery, adherence to security protocols, and client satisfaction, would be necessary for a comprehensive assessment.

How does the per-unit cost of this contract compare to similar security contracts?

Determining a precise per-unit cost for this contract is challenging without knowing the exact scope of services and the number of personnel or hours provided. The total award of $24.8 million over 365 days averages to approximately $67,939 per day. To benchmark this, one would need to compare it against contracts for similar security guard and patrol services at other Department of Defense installations of comparable size and complexity. Factors such as geographic location (which can affect labor costs), specific security requirements (e.g., armed vs. unarmed guards, specialized surveillance), and the overall threat environment at each base play a crucial role. Without access to detailed breakdowns of service hours, personnel deployed, and specific deliverables for comparable contracts, a definitive per-unit cost comparison remains difficult.

What are the primary risks associated with this firm fixed-price contract for security services?

The primary risk associated with this firm fixed-price contract for security services lies in potential cost overruns for the contractor, Chenega Operations Services, LLC, if unforeseen circumstances significantly increase the cost of delivering the contracted services. For example, unexpected increases in labor costs, fuel prices (if transportation is involved), or the need for additional equipment not initially accounted for could strain the contractor's profit margins. While the firm fixed-price structure is beneficial for the government in terms of cost certainty, it places the financial risk on the contractor. Conversely, if the contractor finds ways to deliver services more efficiently than anticipated, they could realize higher profits. The government's risk is primarily related to ensuring the contractor maintains service quality and meets all performance requirements despite potential cost pressures.

How effective are security forces support services in maintaining base security and operational readiness?

Security forces support services are critical for maintaining base security and operational readiness. These services typically involve a range of activities, including access control, perimeter security, patrols, response to incidents, and protection of sensitive assets and personnel. The effectiveness of these services directly impacts the ability of military bases to function without disruption from threats, both internal and external. Well-executed security support ensures that military personnel can focus on their primary missions, enhances force protection, and safeguards critical infrastructure. The presence of trained security personnel acts as a deterrent to unauthorized access and potential adversaries. Ultimately, the effectiveness is measured by the absence of security breaches, the swiftness of response to incidents, and the overall secure environment that enables the base's core functions.

What has been the historical spending trend for security guard and patrol services by the Department of the Air Force?

Historical spending trends for security guard and patrol services by the Department of the Air Force (and the broader Department of Defense) generally show a consistent and significant investment in these areas. As military installations require continuous protection of personnel, assets, and facilities, the demand for these services remains robust. Spending can fluctuate based on geopolitical conditions, changes in threat assessments, base consolidation or expansion, and budget allocations. Over the years, the Air Force has awarded numerous contracts for security services, ranging from small, localized support to large, multi-base contracts similar to the one awarded to Chenega Operations Services. Analyzing historical data reveals a sustained need and a substantial financial commitment to ensuring base security across the Air Force's global footprint.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA300207R0001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation (UEI: 622692994)

Address: 5911 KINGSTOWNE VILLAGE PKWY STE 300, ALEXANDRIA, VA, 08

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,797,894

Exercised Options: $24,797,894

Current Obligation: $24,797,894

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA300207D0024

IDV Type: IDC

Timeline