DoD awards $177.7M for Security Guards, but competition is limited
Contract Overview
Contract Amount: $12,616,314 ($12.6M)
Contractor: Chenega Integrated Systems LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-13
End Date: 2007-10-08
Contract Duration: 755 days
Daily Burn Rate: $16.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200512!500365!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0050 ! !20050913!20060706!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. !+000000478585!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E! !5!B!S! ! ! !20200930!B! ! !N!Z!B!U!J!1!001!N!5A!C!N!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20012
Plain-Language Summary
Department of Defense obligated $12.6 million to CHENEGA INTEGRATED SYSTEMS LLC for work described as: 200512!500365!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0050 ! !20050913!20060706!177674665!177674665!622692994!N!CHENEGA INTERGRATED SYSTEMS LL!1509 SAINT ANDREWS BLVD !PANAMA CITY !FL!32405!50000!001!11!WASHINGTON !DIST… Key points: 1. Contract awarded for security guard services to Chenega Integrated Systems LLC. 2. Significant value of $177.7 million over a 755-day period. 3. Limited competition raises questions about price discovery and taxpayer value. 4. Sector is Security Guards and Patrol Services, a common government need.
Value Assessment
Rating: questionable
The contract value of $177.7 million for security guard services appears high given the limited competition. Benchmarking against similar contracts for security services is crucial to assess if this price represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition award. This significantly restricts price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: Limited competition can result in inflated prices, meaning taxpayers may be paying more than necessary for these essential security services.
Public Impact
Taxpayers may be overpaying for security services due to lack of competition. Government reliance on a single provider for critical security functions could pose a risk. The long duration of the contract limits opportunities for future cost savings through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Essential service provided
- Established contractor
Sector Analysis
The Security Guards and Patrol Services sector is a consistent area of government spending. Benchmarks for similar contracts are essential to evaluate the reasonableness of this award's value.
Small Business Impact
The contract was awarded to Chenega Integrated Systems LLC, a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the government secured the best possible price and value. Accountability for the justification of limited competition is key.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for inflated pricing
- Lack of transparency in award justification
- Long contract duration without re-competition
Tags
security-guards-and-patrol-services, department-of-defense, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to CHENEGA INTEGRATED SYSTEMS LLC. 200512!500365!2100!W911S0!ACA, NRCC - GENERAL SUPPORT DIVI!DABJ0103D0010 !A!N! !Y!0050 ! !20050913!20060706!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. !+000000478585!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 $12.6 million.
What is the period of performance?
Start: 2005-09-13. End: 2007-10-08.
What is the justification for limiting competition on this significant security services contract?
The justification for limited competition is critical. Without a clear and compelling reason, such as unique capabilities or urgent need, taxpayers are exposed to potentially higher costs. Further investigation into the 'NOT AVAILABLE FOR COMPETITION' status is warranted to ensure fair and open processes were considered.
How does the per-unit cost of these security services compare to industry benchmarks?
A detailed analysis of the per-unit cost is necessary to determine value. Comparing the cost per guard hour or per service provided against established industry benchmarks and similar government contracts will reveal if the $177.7 million award is reasonable or inflated due to the lack of competition.
What are the risks associated with awarding a large, long-term contract with limited competition?
The primary risks include potential overpayment, reduced service quality due to lack of competitive pressure, and a missed opportunity to foster innovation and cost savings through open competition. It also limits the government's ability to switch providers if performance issues arise or better solutions become available.
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: 2005-09-13
Current End Date: 2007-10-08
Potential End Date: 2007-10-08 00:00:00
Last Modified: 2010-03-13
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