DoD Awards $177.7M for Security Guards, Sole-Source Contract to Chenega Integrated Systems

Contract Overview

Contract Amount: $11,436,298 ($11.4M)

Contractor: Chenega Integrated Systems LLC

Awarding Agency: Department of Defense

Start Date: 2005-04-18

End Date: 2007-10-08

Contract Duration: 903 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200507!500141!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0036 ! !20050418!20061031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000002395646!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E! !5!B!S! ! !C!20080821!B! ! !N!Z!B!N!J!1!001!N!5A!C!N!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79906

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to CHENEGA INTEGRATED SYSTEMS LLC for work described as: 200507!500141!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0036 ! !20050418!20061031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!50000!001!11!WASHINGTON !DIST… Key points: 1. The contract is for security guard services, a common requirement across government agencies. 2. Chenega Integrated Systems LLC, the sole awardee, has a history of securing government contracts. 3. The sole-source nature of this award raises questions about competition and potential cost savings. 4. The sector is dominated by a few large players, but smaller businesses can still find niches.

Value Assessment

Rating: fair

The contract value of $177.7 million over approximately two years appears high for security guard services. Benchmarking against similar contracts is crucial to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition could lead to inflated prices, impacting the efficient use of taxpayer funds for essential security services.

Public Impact

Taxpayers may be overpaying for security services due to the absence of competitive bidding. The reliance on a single vendor could create a dependency and limit flexibility in service provision. Ensuring adequate service quality and performance from the sole-source provider is critical.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Potentially high price
  • Limited competition

Positive Signals

  • Established vendor
  • Essential service provision

Sector Analysis

Security guard services fall under the broader professional services sector. Spending in this area is generally stable, driven by federal agency needs for physical security and access control.

Small Business Impact

While large contracts like this are often awarded to established prime contractors, there may be opportunities for small businesses to subcontract for specialized security services or support roles.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and satisfactory performance. Agencies should document the justification for sole-source awards thoroughly.

Related Government Programs

  • Security Guards and Patrol Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award limits competition.
  • Potential for overpayment due to lack of competitive pricing.
  • Dependency on a single contractor.
  • Need for strong performance oversight.

Tags

security-guards-and-patrol-services, department-of-defense, tx, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to CHENEGA INTEGRATED SYSTEMS LLC. 200507!500141!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0036 ! !20050418!20061031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000002395646!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E! !5!B!S! ! !C!200

Who is the contractor on this award?

The obligated recipient is CHENEGA INTEGRATED SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2005-04-18. End: 2007-10-08.

What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of qualified sources. Without further details, it's difficult to assess if alternative competitive strategies were explored. A thorough review of the justification documentation is necessary to understand the rationale and ensure it aligns with federal procurement regulations.

How does the per-unit cost of these security guard services compare to industry benchmarks and similar government contracts?

Benchmarking the per-unit cost is essential for evaluating value. If this contract's pricing significantly exceeds industry averages or comparable government contracts, it suggests potential overpayment. Further analysis would require access to detailed pricing structures and comparative data for similar security guard services.

What mechanisms are in place to ensure the quality and effectiveness of the security services provided by Chenega Integrated Systems LLC under this sole-source contract?

Robust performance monitoring and quality assurance mechanisms are crucial for sole-source contracts. This includes clear performance standards, regular evaluations, and defined remedies for deficiencies. The government should actively track key performance indicators to ensure the contractor meets all contractual obligations and provides effective security services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation (UEI: 622692994)

Address: 1509 ST ANDREWS BOULEVARD, PANAMA CITY, FL, 02

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DABJ0103D0010

IDV Type: IDC

Timeline

Start Date: 2005-04-18

Current End Date: 2007-10-08

Potential End Date: 2007-10-08 00:00:00

Last Modified: 2010-03-13

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