GSA awards $4.05M sole-source cybersecurity bridge contract to Chenega Systems, LLC for enterprise services

Contract Overview

Contract Amount: $4,050,885 ($4.1M)

Contractor: Chenega Systems, LLC

Awarding Agency: General Services Administration

Start Date: 2025-11-10

End Date: 2026-02-09

Contract Duration: 91 days

Daily Burn Rate: $44.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SBA 8A DIRECT AWARD SOLE SOURCE BRIDGE CONTRACT FOR ENTERPRISE CYBERSECURITY SERVICES ECS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $4.1 million to CHENEGA SYSTEMS, LLC for work described as: SBA 8A DIRECT AWARD SOLE SOURCE BRIDGE CONTRACT FOR ENTERPRISE CYBERSECURITY SERVICES ECS Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities and potentially impacting price discovery. 2. The contract serves as a bridge, suggesting a need for continuity in critical cybersecurity services. 3. Cybersecurity services are essential for protecting federal data and infrastructure, indicating high-stakes performance requirements. 4. The firm-fixed-price structure aims to control costs, but the sole-source nature warrants scrutiny of value. 5. Awarded to Chenega Systems, LLC, a contractor with existing ties to federal cybersecurity needs. 6. The contract duration of 91 days highlights its temporary nature, likely supporting a transition or further competition.

Value Assessment

Rating: fair

This contract's value is difficult to benchmark due to its sole-source, bridge nature and limited duration. Without competitive bids, it's challenging to assess if the $4.05 million represents optimal value for enterprise cybersecurity services. The firm-fixed-price contract type provides cost certainty for the government, but the absence of competition means there's no direct market comparison to evaluate pricing efficiency. Further analysis would require understanding the specific services rendered and comparing them to similar sole-source or competitively awarded contracts for comparable cybersecurity solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required services. While it ensures continuity for critical functions, it bypasses the competitive process, which usually drives down prices and fosters innovation. The lack of multiple bidders means the government did not benefit from a range of proposals and pricing strategies that would typically emerge from a full and open competition.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for federal contracts and can result in higher costs for taxpayers compared to competitively awarded contracts.

Public Impact

Federal agencies relying on enterprise cybersecurity services will benefit from continued protection of their data and systems. The contract ensures the ongoing delivery of critical cybersecurity functions, safeguarding sensitive government information. Services are delivered within the District of Columbia, impacting federal operations in the nation's capital. The contract supports the workforce employed by Chenega Systems, LLC, contributing to employment in the cybersecurity sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced incentive for cost efficiency.
Bridge contracts can sometimes indicate a lack of long-term planning or unforeseen program changes.
Sole-source awards limit transparency and opportunities for small businesses to enter the federal contracting space.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarding to an established contractor ensures continuity of essential cybersecurity services.
Cybersecurity is a critical function, and ensuring its uninterrupted delivery is a positive outcome.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on cybersecurity services. The federal government is a significant investor in cybersecurity solutions to protect its vast digital infrastructure and sensitive data from evolving threats. The market for cybersecurity services is large and growing, driven by increasing cyberattacks and regulatory requirements. This contract, though a bridge and sole-source, represents a portion of the government's ongoing investment in maintaining a secure digital environment, comparable to other IT service contracts but with a specific focus on defense against cyber threats.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. As a sole-source award to Chenega Systems, LLC, it bypasses the typical mechanisms designed to promote small business participation in federal contracting. This means that the direct economic benefits and subcontracting opportunities that might have arisen from a competitive procurement are not realized for the small business ecosystem in this instance.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), Federal Acquisition Service. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm-fixed-price nature provides a degree of financial oversight by fixing the total cost. Transparency regarding the specific services rendered and performance metrics would typically be available through contract reporting mechanisms, though the sole-source nature might limit public visibility into the justification for the award.

Related Government Programs

Cybersecurity Services
IT Professional Services
Enterprise IT Management
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Sole-source award limits competition.
Bridge contract indicates potential for program transition or uncertainty.
Cybersecurity is a high-risk, high-consequence area.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.1 million to CHENEGA SYSTEMS, LLC. SBA 8A DIRECT AWARD SOLE SOURCE BRIDGE CONTRACT FOR ENTERPRISE CYBERSECURITY SERVICES ECS

Who is the contractor on this award?

The obligated recipient is CHENEGA SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2025-11-10. End: 2026-02-09.

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

The provided data indicates this is a sole-source award, often justified when only one vendor possesses the unique capabilities, security clearances, or existing infrastructure necessary to meet the government's requirements without unacceptable delay or cost. For cybersecurity services, this could stem from the need for seamless integration with existing systems, specialized knowledge of proprietary government networks, or urgent requirements where a full competition would be impractical. A detailed justification would typically be documented by the agency, outlining the specific circumstances that preclude full and open competition, such as the need for continuity of critical services during a transition period or the unique expertise of the incumbent contractor.

How does the $4.05 million price compare to similar enterprise cybersecurity contracts awarded by GSA?

Benchmarking this $4.05 million contract is challenging without more specific details on the scope of services and duration. However, GSA awards a wide range of IT and cybersecurity contracts, from small, specialized task orders to large, multi-year enterprise-wide solutions. Given this is a bridge contract with a 91-day duration, the total value represents a significant daily rate. Comparing it to similar sole-source bridge contracts for enterprise cybersecurity services would be most relevant. Competitively awarded contracts for similar services, especially those with longer durations and broader scopes, might offer a different pricing perspective. Without comparative data on the specific services (e.g., threat detection, incident response, vulnerability management) and service levels, a precise value-for-money assessment is difficult.

What are the key performance indicators (KPIs) for this cybersecurity contract?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical KPIs for enterprise cybersecurity services include metrics related to threat detection and response times, incident resolution rates, vulnerability remediation timelines, system uptime and availability, and compliance with security standards (e.g., NIST, FISMA). For a bridge contract, the focus might be on maintaining existing service levels and ensuring uninterrupted protection. The firm-fixed-price nature suggests that performance outcomes are tied to the delivery of defined services within the agreed-upon budget, and failure to meet critical security objectives could have significant implications.

What is Chenega Systems, LLC's track record with GSA and federal cybersecurity contracts?

Chenega Systems, LLC has a history of contracting with the federal government, including GSA. As a provider of enterprise cybersecurity services, their track record would likely include experience with various federal agencies and a range of IT support functions. Information on their past performance, including contract awards, past performance evaluations, and any significant issues or successes, would be available through federal procurement databases like SAM.gov. Their ability to secure this sole-source bridge contract suggests a level of trust and demonstrated capability in delivering essential cybersecurity functions to the government.

What is the risk associated with a sole-source bridge contract for critical cybersecurity functions?

The primary risks associated with a sole-source bridge contract for critical cybersecurity functions include potential lack of competitive pricing, which could lead to overpayment, and reduced incentive for innovation or efficiency compared to a competitive environment. There's also a risk that the contractor may not be the most capable or cost-effective long-term solution. Furthermore, bridge contracts, by their nature, are temporary and can indicate potential disruptions or delays in establishing a more stable, competitively sourced solution. Ensuring robust oversight and clear performance expectations is crucial to mitigate these risks and maintain the security posture during the contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QACA26R0001

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, 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: $6,073,405

Exercised Options: $4,050,885

Current Obligation: $4,050,885

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline