SEC awards $26.6M contract for protective services to Chenega Integrated Security Solutions, LLC

Contract Overview

Contract Amount: $26,585,711 ($26.6M)

Contractor: Chenega Integrated Security Solutions, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SERVICES (ARMED AND UNARMED GUARD SERVICES) FOR OSS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $26.6 million to CHENEGA INTEGRATED SECURITY SOLUTIONS, LLC for work described as: PROTECTIVE SERVICES (ARMED AND UNARMED GUARD SERVICES) FOR OSS Key points: 1. Contract value of $26.6 million over three years indicates a significant investment in security infrastructure. 2. The award to a single vendor suggests a focused approach to meeting specific security needs. 3. Fixed-price contract type helps manage cost certainty for the agency. 4. The duration of 1095 days provides a stable security service provision. 5. The contract falls under the Security Systems Services category, aligning with agency security requirements.

Value Assessment

Rating: good

The contract value of $26.6 million for three years of protective services appears reasonable given the scope of armed and unarmed guard services. Benchmarking against similar federal contracts for security services in the DC metropolitan area would provide a more precise value assessment. The firm fixed-price structure offers cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive process is expected to drive fair pricing and ensure the selection of a qualified contractor. This approach generally leads to better value for the government.

Taxpayer Impact: A full and open competition process ensures that taxpayer funds are used efficiently by fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

The Securities and Exchange Commission (SEC) benefits from enhanced physical security for its facilities and personnel. Services include armed and unarmed guard services, ensuring a comprehensive security posture. The contract's geographic impact is focused on the District of Columbia. This contract supports jobs within the private security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
No detailed performance metrics provided to gauge service effectiveness.
Information on specific security threats or requirements is not publicly detailed.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty.
Contract duration of three years offers stability in security services.

Sector Analysis

The federal market for security services, particularly guard services, is substantial. This contract falls within the Security Systems Services (NAICS 561621) category. The SEC's requirement for protective services is consistent with the security needs of federal agencies, especially those handling sensitive financial information. Comparable spending benchmarks for similar security contracts in the DC area would be useful for a more granular analysis.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, Chenega Integrated Security Solutions, LLC, may have its own small business subcontracting goals as part of its broader corporate strategy, but this is not specified in the award details.

Oversight & Accountability

Oversight of this contract would typically be managed by the contracting officer and the program office within the Securities and Exchange Commission. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is facilitated by the public nature of contract awards, though detailed performance reports are usually internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration Security Contracts

Risk Flags

Potential for service disruption due to contractor staffing.
Risk of inadequate performance by security personnel.
Need for continuous monitoring of contractor performance.
Ensuring compliance with all security regulations and protocols.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $26.6 million to CHENEGA INTEGRATED SECURITY SOLUTIONS, LLC. PROTECTIVE SERVICES (ARMED AND UNARMED GUARD SERVICES) FOR OSS

Who is the contractor on this award?

The obligated recipient is CHENEGA INTEGRATED SECURITY SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What is the track record of Chenega Integrated Security Solutions, LLC with federal contracts, particularly for protective services?

Chenega Integrated Security Solutions, LLC has a significant history of performing federal contracts, including those for security and protective services. As a subsidiary of Chenega Corporation, it has access to substantial resources and experience. Federal procurement databases often show numerous awards to Chenega entities across various agencies, including defense, civilian, and intelligence communities. Their performance history typically includes a range of security services, from guard forces to specialized security operations. While specific performance ratings for this particular contract are not publicly available, the company's consistent presence in the federal contracting space suggests a capacity to meet agency requirements. A deeper dive into past performance evaluations and any past performance issues would provide a more complete picture of their reliability.

How does the $26.6 million contract value compare to similar protective service contracts awarded by federal agencies?

The $26.6 million contract value for three years of protective services is a substantial award, reflecting the comprehensive nature of armed and unarmed guard services required by an agency like the SEC. To benchmark this value effectively, comparisons should be made with similar contracts awarded to security firms for federal facilities in the Washington D.C. metropolitan area. Factors such as the number of posts, hours of coverage, and the mix of armed versus unarmed personnel significantly influence pricing. Without these specific details, a direct comparison is challenging. However, for a large federal agency requiring continuous security coverage across multiple facilities, a total contract value in the tens of millions over three years is not uncommon. The firm fixed-price nature of this award also suggests that the price is intended to cover all costs and profit, making it a definitive figure for the scope of work.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks for this contract include potential service disruptions due to contractor staffing issues (e.g., high turnover, inability to fill posts), inadequate performance by security personnel, and potential cost overruns if the fixed-price model does not accurately reflect unforeseen operational needs. Mitigation strategies typically involve robust contract oversight by the SEC's contracting officer and program managers, clear performance standards and metrics outlined in the contract, and regular performance reviews. The firm fixed-price structure itself mitigates the risk of cost escalation for the government, shifting that risk to the contractor. Furthermore, the requirement for armed personnel necessitates stringent vetting and training protocols for the contractor's staff, which, if properly managed, reduces risks associated with personnel competence and conduct.

What is the expected effectiveness of these protective services in enhancing the SEC's security posture?

The expected effectiveness of these protective services is high, assuming the contractor, Chenega Integrated Security Solutions, LLC, delivers services as specified in the contract. The provision of both armed and unarmed guards is designed to create a layered security approach, deterring unauthorized access, responding to incidents, and maintaining a secure environment for SEC personnel and assets. The contract's full and open competition award suggests that the SEC has selected a vendor deemed capable of meeting its security requirements. The effectiveness will ultimately depend on the quality of the guards deployed, their training, adherence to post orders, and the responsiveness of the security team to evolving threats. Regular performance monitoring and feedback loops between the SEC and the contractor are crucial for ensuring sustained effectiveness.

How has the SEC's spending on protective services evolved over recent years?

Analyzing the SEC's historical spending on protective services requires access to detailed federal procurement data beyond this single award. However, federal agencies, particularly those with significant physical infrastructure and sensitive operations like the SEC, generally maintain consistent or increasing budgets for security services due to evolving threat landscapes and regulatory requirements. Spending patterns can fluctuate based on specific security upgrades, changes in facility needs, or shifts in contracting strategies (e.g., moving from multiple small contracts to larger, consolidated ones). Without prior contract data for the SEC's protective services, it's difficult to establish a precise trend. However, the $26.6 million award suggests a significant and ongoing commitment to maintaining a robust security presence.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 50310223Q0154

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14420 ALBEMARLE POINT PL STE 100, CHANTILLY, VA, 20151

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: $46,063,696

Exercised Options: $26,585,711

Current Obligation: $26,585,711

Actual Outlays: $20,384,640

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $196,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 50310223A0012

IDV Type: BPA

Timeline