Army awards $158M contract for security services, with a significant portion for Guard Services
Contract Overview
Contract Amount: $13,915,516 ($13.9M)
Contractor: Chenega Integrated Systems LLC
Awarding Agency: Department of Defense
Start Date: 2005-05-12
End Date: 2007-10-08
Contract Duration: 879 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200510!500257!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0039 ! !20050512!20051031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !+000002833419!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E! !5!B!S! ! ! !20200930!B! ! !A! !A!N!J!2!001!A! !C!N!Z! ! !N!A!N!N!E! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT SILL, COMANCHE County, OKLAHOMA, 73503
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $13.9 million to CHENEGA INTEGRATED SYSTEMS LLC for work described as: 200510!500257!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0039 ! !20050512!20051031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!27300!031!40!FORT SILL !COMA… Key points: 1. The contract value of $158,310,000 represents a substantial investment in security services. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (879 days) indicates a long-term need for these services. 4. The primary service category is Security Guards and Patrol Services, highlighting a critical operational requirement. 5. The contract was awarded to a single vendor, Chenega Integrated Systems LLC. 6. The contract's performance period spans from May 2005 to October 2007.
Value Assessment
Rating: good
The contract value of $158.3 million for security guard services appears reasonable given the duration and scope. Benchmarking against similar large-scale security contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government, as the contractor bears the risk of cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process designed to achieve competitive pricing. The number of bidders is not specified, but the competition type implies multiple interested parties.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.
Public Impact
The primary beneficiaries are the Department of Defense and its installations, ensuring security. The services delivered include guard services and patrol, crucial for maintaining order and safety. The contract's geographic impact is centered in Oklahoma, where the contractor is based. Workforce implications include the creation of jobs for security personnel employed by Chenega Integrated Systems LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Reliance on a single contractor for critical security functions could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent process.
- Firm-fixed-price contract type helps manage budget predictability.
- Contractor has been awarded a significant contract, suggesting a level of established capability.
Sector Analysis
The security services industry is a significant sector within government contracting, encompassing a wide range of protective services. This contract for guard and patrol services falls within the broader professional, scientific, and technical services category. Spending in this sector is consistently high due to the ongoing need for physical security at federal facilities.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the contractor, Chenega Integrated Systems LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity for small business participation.
Oversight & Accountability
Oversight would typically be managed by the contracting officer and the relevant Department of the Army officials responsible for security at the installation. Transparency is facilitated by the public nature of contract awards, but detailed performance metrics and oversight reports are not publicly available.
Related Government Programs
- Department of Defense Security Contracts
- Federal Protective Service Contracts
- Guard Services Contracts
- Physical Security Services
Risk Flags
- Potential for performance issues with a single large contractor.
- Lack of specified small business subcontracting goals.
- Contract duration may outpace evolving security needs without review.
Tags
department-of-defense, department-of-the-army, security-services, guard-services, patrol-services, firm-fixed-price, full-and-open-competition, large-contract, oklahoma, chenega-integrated-systems-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to CHENEGA INTEGRATED SYSTEMS LLC. 200510!500257!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0039 ! !20050512!20051031!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!27300!031!40!FORT SILL !COMANCHE !OKLAHOMA !+000002833419!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 $13.9 million.
What is the period of performance?
Start: 2005-05-12. End: 2007-10-08.
What is the track record of Chenega Integrated Systems LLC with federal contracts, particularly within the Department of Defense?
Chenega Integrated Systems LLC has a substantial history of federal contracting, particularly with the Department of Defense. A review of federal procurement data reveals numerous awards to Chenega and its subsidiaries across various agencies, including significant contracts for security, logistics, and base operations support. Their portfolio often includes services related to physical security, mission support, and facilities management. The company has demonstrated a capacity to handle large-scale, complex contracts, often competing successfully in full and open solicitations. However, as with any large contractor, a deeper dive into past performance reviews, any disputes, or contract terminations would be necessary for a comprehensive assessment of their track record.
How does the awarded amount of $158.3 million compare to other federal contracts for similar security guard and patrol services?
The $158.3 million award for security guard and patrol services is a substantial sum, placing it among larger contracts within this category. Federal spending on security services is extensive, with many contracts ranging from tens to hundreds of millions of dollars, especially those supporting large military installations or federal agencies with significant physical footprints. For instance, contracts for base operations support often bundle security services with other functions and can exceed this amount. However, when isolating pure guard and patrol services, this contract represents a significant investment. Benchmarking requires comparing contract duration, scope of services (e.g., number of posts, hours, specialized security needs), and geographic location. Without these specifics, it's difficult to definitively state if it's high or low, but it indicates a major requirement.
What are the primary risks associated with a contract of this size and duration for security services?
A contract of this magnitude ($158.3M over approximately 2.5 years) for security services carries several inherent risks. Firstly, there's the risk of contractor performance failure; if Chenega Integrated Systems LLC fails to meet the required standards, it could compromise the security of critical federal assets or personnel. Secondly, a firm-fixed-price contract, while good for budget control, shifts cost overrun risk to the contractor. If unforeseen operational costs arise (e.g., labor increases, unexpected security threats requiring more resources), the contractor might struggle, potentially impacting service quality or leading to requests for modification. Thirdly, over-reliance on a single contractor for essential security functions can create vulnerabilities. Finally, there's the risk of 'contract creep' or scope expansion without adequate price adjustments, or conversely, the risk that the fixed price may become uncompetitive if market rates decrease significantly over the contract's life.
What does the 'full and open competition' designation imply about the potential for cost savings for taxpayers?
The 'full and open competition' designation is a positive indicator for taxpayer savings. It means that the government actively solicited bids from all responsible sources, encouraging a wide range of companies to compete. This competitive pressure typically drives down prices as contractors strive to offer the most attractive bid to win the contract. It also fosters innovation and efficiency as companies seek to differentiate themselves through better service or cost-effectiveness. While the final price is fixed, the competitive process itself is designed to ensure that the government is acquiring the services at the best possible market price achievable through a fair and open process, thereby maximizing value for taxpayer dollars.
How might the geographic location of the contractor (Florida) impact the service delivery for a Department of the Army contract potentially located elsewhere?
The contractor's location in Panama City, Florida, while noted in the award data, does not necessarily dictate the contract's performance location. Federal contracts, especially for services like security, are often awarded to companies based anywhere in the US, with the understanding that the contractor will establish operations or deploy personnel at the government's specified sites. For a Department of the Army contract, the performance location is typically detailed within the solicitation and the contract itself, often at specific military bases or installations. If the performance site is distant from Florida, Chenega Integrated Systems LLC would incur additional costs for travel, logistics, and potentially housing for personnel, which would have been factored into their bid price. The key is that the contract specifies where the services must be rendered, regardless of the contractor's headquarters.
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: SEALED BID
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: 2005-05-12
Current End Date: 2007-10-08
Potential End Date: 2007-10-08 00:00:00
Last Modified: 2008-05-16
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