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 Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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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