FCC awards $6.4M contract for Enterprise Technology Services to Chenega Agile Real-Time Solutions LLC

Contract Overview

Contract Amount: $6,389,829 ($6.4M)

Contractor: Chenega Agile Real-Time Solutions LLC

Awarding Agency: Federal Communications Commission

Start Date: 2025-08-18

End Date: 2026-08-31

Contract Duration: 378 days

Daily Burn Rate: $16.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FEDERAL COMMUNICATIONS COMMISSION (FCC) ENTERPRISE TECHNOLOGY SERVICES (FETS)

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $6.4 million to CHENEGA AGILE REAL-TIME SOLUTIONS LLC for work described as: FEDERAL COMMUNICATIONS COMMISSION (FCC) ENTERPRISE TECHNOLOGY SERVICES (FETS) Key points: 1. The contract value is $6.4 million, awarded to Chenega Agile Real-Time Solutions LLC. 2. The service category is Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. 3. The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a potential lack of broad competition. 4. The contract is a definitive contract with a firm fixed price, awarded to a large business. 5. The contract duration is 378 days, ending August 31, 2026.

Value Assessment

Rating: fair

The contract value of $6.4 million for enterprise technology services appears to be within a reasonable range for a federal agency of the FCC's size. However, without specific details on the scope of services and performance metrics, a precise pricing assessment against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED UNDER SAP,' suggesting it was likely awarded through a limited competition or sole-source justification. This method may limit price discovery and potentially lead to higher costs compared to a full and open competition.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential technology services.

Public Impact

Ensures continued operation of critical IT infrastructure for the FCC. Supports the agency's mission in telecommunications regulation and oversight. Potential for increased costs due to limited competition. Lack of transparency in the procurement process for public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of transparency in procurement

Positive Signals

Definitive contract type
Firm fixed price

Sector Analysis

The Federal Communications Commission (FCC) operates within the government services sector, specifically focusing on IT and data processing. Spending benchmarks for similar computing infrastructure and hosting services can vary widely based on agency size and specific needs, but a $6.4 million contract for enterprise-level services is substantial.

Small Business Impact

This contract was awarded to a large business and there is no indication that small businesses were involved in the subcontracting plan. This represents a missed opportunity to support small business participation in federal contracting.

Oversight & Accountability

The contract is a definitive contract, suggesting a formal agreement with clear terms. However, the limited competition and lack of transparency in the procurement process warrant further oversight to ensure accountability and value for taxpayer money.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Federal Communications Commission Contracting
Federal Communications Commission Programs

Risk Flags

Limited competition may result in higher costs.
Lack of transparency in the procurement process.
Potential for missed small business subcontracting opportunities.
Insufficient information to fully assess value for money.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $6.4 million to CHENEGA AGILE REAL-TIME SOLUTIONS LLC. FEDERAL COMMUNICATIONS COMMISSION (FCC) ENTERPRISE TECHNOLOGY SERVICES (FETS)

Who is the contractor on this award?

The obligated recipient is CHENEGA AGILE REAL-TIME SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-08-31.

What specific services are included in the Enterprise Technology Services (FETS) contract, and how do they align with the FCC's core mission?

The contract falls under the category of Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. These services are crucial for the FCC's operations, enabling the agency to manage its data, host its web presence, and maintain the underlying IT infrastructure necessary for its regulatory and enforcement functions in telecommunications.

What is the justification for not competing this contract under SAP, and what are the potential risks to cost-effectiveness?

The justification for not competing under SAP is not provided, but it implies a limited or sole-source award. This lack of broad competition increases the risk that the FCC may not have achieved the most cost-effective solution, as competitive bidding typically drives down prices and encourages innovation.

How will the effectiveness of Chenega Agile Real-Time Solutions LLC's performance be measured and ensured throughout the contract period?

Effectiveness will be measured through the terms outlined in the definitive contract, likely including service level agreements (SLAs) and performance metrics. The firm fixed price structure incentivizes the contractor to meet these requirements efficiently. However, ongoing oversight by the FCC is crucial to ensure consistent performance and address any potential issues.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 273FCC25R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10505 FURNACE RD STE 205, LORTON, VA, 22079

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $25,775,840

Exercised Options: $6,389,829

Current Obligation: $6,389,829

Actual Outlays: $1,760,881

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline