IRS awards $4.1M contract for investigative services to Chenega Defense & Aerospace Solutions

Contract Overview

Contract Amount: $4,079,581 ($4.1M)

Contractor: Chenega Defense & Aerospace Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INVESTIGATIVE SERVICES AND DATA ANALYTICS SUPPORTING IRS CI.

Place of Performance

Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89036

State: Nevada Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.1 million to CHENEGA DEFENSE & AEROSPACE SOLUTIONS, LLC for work described as: INVESTIGATIVE SERVICES AND DATA ANALYTICS SUPPORTING IRS CI. Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 364 days suggests a need for ongoing support. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. The contract is a BPA Call, indicating it's part of a larger agreement. 5. The North American Industry Classification System (NAICS) code 561611 points to specialized investigative services. 6. The award is for Nevada, suggesting a localized need for these services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparison data. The firm fixed price structure is positive for cost control. However, the lack of competition raises concerns about whether the government secured the best possible price. The contract value of approximately $4.1 million for a year of investigative and data analytics support appears within a reasonable range for specialized services, but a competitive process would have provided stronger assurance of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source BPA Call. This means that only one vendor, Chenega Defense & Aerospace Solutions, LLC, was solicited for this specific requirement. The lack of a competitive bidding process limits the government's ability to explore alternative solutions and potentially achieve lower pricing through market forces. The rationale for the sole-source award is not provided, but it typically implies a specific justification, such as unique capabilities or urgent need.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from competitive bidding. The absence of multiple offers prevents price discovery and potentially leads to higher overall expenditure for the government.

Public Impact

The Internal Revenue Service (IRS) will benefit from enhanced investigative and data analytics capabilities. Services delivered will support the IRS's Criminal Investigation (CI) division. The geographic impact is focused on Nevada. The contract supports specialized roles in investigation and data analysis, potentially impacting a niche workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency regarding the justification for sole-source award.
Potential for vendor lock-in if this is a recurring need without re-competition.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to an established entity (Chenega Defense & Aerospace Solutions) may indicate reliability.
BPA Call structure suggests an existing relationship and potentially streamlined ordering process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on investigative and data analytics support. The NAICS code 561611, 'Investigation and Personal Background Check Services,' is a niche within this broader sector. The market for such services is characterized by specialized firms with expertise in data analysis, intelligence gathering, and investigative techniques. The IRS's need for these services highlights the growing importance of data analytics in law enforcement and regulatory functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no information provided regarding subcontracting plans. Chenega Defense & Aerospace Solutions, LLC is a large business. Therefore, this award does not directly benefit the small business ecosystem through set-asides. The absence of subcontracting requirements means opportunities for small businesses to participate in fulfilling this contract are not explicitly mandated.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the IRS Criminal Investigation division. As a sole-source award, the justification and terms would be subject to review by relevant procurement authorities. Transparency is limited due to the sole-source nature and lack of public justification. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to this contract were initiated.

Related Government Programs

IRS Criminal Investigation (CI) Operations
Federal Investigative Services
Government Data Analytics Support
Contract Vehicles (BPA Calls)

Risk Flags

Sole-source award raises concerns about price competition.
Lack of detailed justification for sole-source award.
Limited public information on specific service deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.1 million to CHENEGA DEFENSE & AEROSPACE SOLUTIONS, LLC. INVESTIGATIVE SERVICES AND DATA ANALYTICS SUPPORTING IRS CI.

Who is the contractor on this award?

The obligated recipient is CHENEGA DEFENSE & AEROSPACE SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the specific nature of the investigative services and data analytics required under this contract?

The contract, identified by NAICS code 561611 (Investigation and Personal Background Check Services), suggests the services involve gathering information, conducting background checks, and potentially performing surveillance or other investigative activities. The 'Data Analytics Support' component indicates a need for processing, analyzing, and interpreting large datasets to identify patterns, trends, or anomalies relevant to IRS Criminal Investigation's mission. This could include financial data analysis, intelligence gathering, or forensic accounting support. The specific use cases are not detailed in the provided data but are critical for understanding the full scope and value of the contract.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and was awarded as a BPA Call. While this indicates it was not competed through standard simplified acquisition procedures, it doesn't explicitly state the sole-source justification. Common reasons for sole-source awards include unique capabilities possessed by only one vendor, urgent and compelling needs where competition is not feasible, or if the requirement is a follow-on to a previously competed contract where only one vendor can provide the necessary services. Without further information from the agency, the specific rationale remains unknown, which is a point of concern for transparency and potential value.

How does the $4.1 million contract value compare to similar investigative and data analytics support contracts for federal agencies?

Comparing the $4.1 million contract value requires context on the duration, scope, and specific services. For a one-year contract (364 days), this amount is substantial and suggests a significant level of support is required. Federal contracts for investigative services and advanced data analytics can range widely. For instance, contracts supporting intelligence agencies or large-scale law enforcement investigations can run into tens or hundreds of millions of dollars. However, for a localized need within a specific IRS division, $4.1 million for a year might be at the higher end, especially without competitive pricing. A more precise benchmark would necessitate comparing it to contracts with similar NAICS codes, agency types, and service complexities.

What is Chenega Defense & Aerospace Solutions, LLC's track record with the IRS or similar federal agencies for these types of services?

Chenega Defense & Aerospace Solutions, LLC is a known government contractor, often performing services across defense, intelligence, and civilian agencies. Their portfolio typically includes a range of support services, which may encompass security, logistics, and technical solutions. While the provided data confirms this award, a deeper dive into their past performance with the IRS, particularly for Criminal Investigation or data analytics functions, would be necessary to fully assess their track record. Examining past contract performance evaluations (e.g., CPARS) and their history with similar complex requirements would provide insight into their reliability, quality of service, and ability to meet demanding government needs.

What are the potential risks associated with a sole-source award for investigative services?

The primary risk of a sole-source award for investigative services is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or provide exceptional value. Taxpayers may end up paying more than necessary. Additionally, it limits the government's ability to explore alternative solutions or vendors that might offer better technology, expertise, or cost-effectiveness. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, making future transitions more difficult and costly. Transparency is reduced, making it harder to justify the expenditure to oversight bodies and the public.

How does this contract align with the IRS's broader mission and spending patterns in technology and investigative support?

This contract directly supports the IRS Criminal Investigation (CI) division's mission to investigate financial crimes, tax fraud, and other offenses. The increasing reliance on data analytics for such investigations aligns with broader government trends towards leveraging technology for enhanced enforcement and efficiency. IRS spending on investigative and data analytics support is likely to be a consistent requirement, reflecting the complexity of the modern financial landscape and the need for sophisticated tools to combat illicit activities. This $4.1 million award represents a specific investment in bolstering those capabilities within a particular geographic area or operational focus.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 360D QUALITY CIR NW # STE400, HUNTSVILLE, AL, 35806

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,079,581

Exercised Options: $4,079,581

Current Obligation: $4,079,581

Actual Outlays: $1,007,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2032H824A00022

IDV Type: BPA

Timeline