DoD Awards $177.7M for Security Guards, Facing Potential Overpricing Concerns
Contract Overview
Contract Amount: $20,611,715 ($20.6M)
Contractor: Chenega Integrated Systems LLC
Awarding Agency: Department of Defense
Start Date: 2005-04-21
End Date: 2007-10-08
Contract Duration: 900 days
Daily Burn Rate: $22.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200510!500254!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0037 ! !20050421!20051031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !+000005113517!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E! !5!B!S! ! ! !20200930!B! ! !A! !A!Y!J!1!001!B! !C!N!Z! ! !N!A!N!N!E! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $20.6 million to CHENEGA INTEGRATED SYSTEMS LLC for work described as: 200510!500254!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0037 ! !20050421!20051031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!30760!215!13!FORT BENNING !MUSC… Key points: 1. The contract for security guard services was awarded to Chenega Integrated Systems LLC. 2. The total value of the contract is $177,674,665. 3. Competition was full and open, but the pricing assessment raises concerns. 4. The sector is primarily security services, a common area for government contracting.
Value Assessment
Rating: questionable
The contract's total value is substantial for security guard services. Without specific per-unit cost data, it's difficult to benchmark against similar contracts, but the high total value warrants scrutiny for potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the final awarded amount and the lack of detailed cost breakdowns make it hard to assess if the price discovery was fully optimized.
Taxpayer Impact: Taxpayers may be impacted if the contract's pricing is not cost-effective, despite the competitive award process.
Public Impact
Citizens rely on these services for base security and safety. The significant expenditure impacts the defense budget, potentially diverting funds from other critical areas. Transparency in pricing for such large contracts is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential overpricing due to lack of detailed cost analysis.
- Contract duration and value may exceed actual needs.
- Limited visibility into specific service delivery metrics.
Positive Signals
- Awarded through full and open competition.
- Contract aims to ensure essential security services.
Sector Analysis
This contract falls within the security and protective services sector. Government spending in this area is consistent, but the scale of this award suggests a need for careful cost management and performance monitoring to ensure value for money.
Small Business Impact
While this specific award went to a larger entity, the security services sector often involves subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight is critical to ensure Chenega Integrated Systems LLC delivers the contracted security services effectively and within budget. Regular performance reviews and audits are necessary to maintain accountability.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value.
- Potential for cost overruns.
- Limited transparency on cost breakdown.
- Need for robust performance monitoring.
Tags
security-guards-and-patrol-services, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to CHENEGA INTEGRATED SYSTEMS LLC. 200510!500254!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0037 ! !20050421!20051031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!30760!215!13!FORT BENNING !MUSCOGEE !GEORGIA !+000005113517!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E! !5!B!S! ! ! !202
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 $20.6 million.
What is the period of performance?
Start: 2005-04-21. End: 2007-10-08.
What specific metrics were used to justify the $177.7 million contract value for security guard services?
The provided data does not detail the specific metrics used to justify the contract's value. Typically, such justifications would include the number of guards required, hours of service, specific security protocols, geographic coverage, and any specialized skills needed. Without this granular information, it's challenging to independently verify the cost-effectiveness.
How does the awarded price compare to industry benchmarks for similar security guard services, considering the contract's duration and scope?
Benchmarking this contract requires detailed cost data per guard hour and specific service requirements, which are not fully available. The total value of $177.7 million over approximately 2.5 years suggests a significant investment. A thorough analysis would compare the implied hourly rates and service levels against publicly available data for comparable government and commercial security contracts.
What mechanisms are in place to ensure the effectiveness and efficiency of the security services provided under this contract?
The contract likely includes performance standards and reporting requirements. However, the data doesn't specify the oversight mechanisms. Effective oversight would involve regular performance evaluations, site inspections, and feedback channels to address any deficiencies promptly, ensuring the security services meet the Department of Defense's needs.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: 2005-04-21
Current End Date: 2007-10-08
Potential End Date: 2007-10-08 00:00:00
Last Modified: 2008-05-16
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