EPA's $7.9M security contract for Edison, NJ center awarded to Chenega Global Protection

Contract Overview

Contract Amount: $7,922,621 ($7.9M)

Contractor: Chenega Global Protection, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2023-02-01

End Date: 2027-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMED SECURITY GUARD SERVICES FOR U.S. EPA EDISON ENVIRONMENTAL CENTER IN EDISON, NJ. THE PERIOD OF PERFORMANCE (POP) INCLUDES A BASE PERIOD OF 12 MONTH, WITH 4 ADDITIONAL OPTION PERIODS, EACH 12 MONTHS IN DURATION.

Place of Performance

Location: EDISON, MIDDLESEX County, NEW JERSEY, 08837

State: New Jersey Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $7.9 million to CHENEGA GLOBAL PROTECTION, LLC for work described as: ARMED SECURITY GUARD SERVICES FOR U.S. EPA EDISON ENVIRONMENTAL CENTER IN EDISON, NJ. THE PERIOD OF PERFORMANCE (POP) INCLUDES A BASE PERIOD OF 12 MONTH, WITH 4 ADDITIONAL OPTION PERIODS, EACH 12 MONTHS IN DURATION. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract includes a base period and four 12-month option periods, allowing for flexibility. 3. The North American Industry Classification System (NAICS) code 561612 suggests a focus on security guard services. 4. The contract was not competed, raising questions about potential cost savings through competition. 5. The awardee, Chenega Global Protection, LLC, is a known entity in the government contracting space. 6. The contract duration spans approximately four years, providing long-term security coverage. 7. The total contract value is $7,922,620.87 over its potential full term.

Value Assessment

Rating: fair

The contract's value of $7.9 million over nearly four years for security services at a single EPA center appears within a reasonable range for such specialized services. However, without direct comparable contracts for similar facilities or specific security requirements, a precise value-for-money assessment is challenging. The firm-fixed-price structure helps control costs, but the lack of competition limits the ability to benchmark against market rates derived from competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach can be justified for various reasons, such as specific contractor capabilities or urgent needs. However, it limits the opportunity for multiple bidders to offer their services, potentially leading to higher prices than might be achieved in a competitive environment. The EPA did not provide specific justification for the sole-source award in the provided data.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as the government did not leverage competitive pressure to drive down costs.

Public Impact

The primary beneficiaries are the U.S. Environmental Protection Agency (EPA) personnel and facilities at the Edison Environmental Center, ensuring a secure working environment. The contract delivers essential armed security guard services, including patrols and access control, to protect government property and personnel. The geographic impact is localized to Edison, New Jersey, where the environmental center is located. The contract supports jobs within the private security sector, specifically for Chenega Global Protection, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability in the procurement process.
Limited data provided on the specific security requirements and performance metrics.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Multiple option periods offer flexibility for continued service.
Awardee is a known entity in government contracting.

Sector Analysis

The security services sector is a significant component of the broader government contracting market. This contract falls under the security guards and patrol services industry (NAICS 561612). While specific market size data for armed security at federal environmental centers is not readily available, the overall federal spending on security services is substantial, encompassing physical security, cybersecurity, and personnel security across various agencies. This contract represents a small portion of that overall spending, focused on a specific facility.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, it does not directly contribute to small business subcontracting goals or provide direct opportunities for small businesses to compete for the prime contract. The awardee, Chenega Global Protection, LLC, is likely a larger entity, and its subcontracting practices would need further investigation to determine any impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Environmental Protection Agency's contracting and program management offices. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight. Performance monitoring would be crucial to ensure the security services meet the required standards. Transparency is limited due to the sole-source nature of the award, and there is no specific mention of Inspector General jurisdiction in the provided data, though the EPA OIG would generally have oversight over EPA contracts.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Contracts
General Services Administration (GSA) Schedule Contracts for Security Services
EPA Facility Management Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Limited performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $7.9 million to CHENEGA GLOBAL PROTECTION, LLC. ARMED SECURITY GUARD SERVICES FOR U.S. EPA EDISON ENVIRONMENTAL CENTER IN EDISON, NJ. THE PERIOD OF PERFORMANCE (POP) INCLUDES A BASE PERIOD OF 12 MONTH, WITH 4 ADDITIONAL OPTION PERIODS, EACH 12 MONTHS IN DURATION.

Who is the contractor on this award?

The obligated recipient is CHENEGA GLOBAL PROTECTION, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2023-02-01. End: 2027-01-31.

What is the track record of Chenega Global Protection, LLC with the EPA and other federal agencies?

Chenega Global Protection, LLC has a significant presence in federal contracting, often securing contracts for security services across various agencies. While specific details of their past performance with the EPA are not provided in this data snippet, their general track record suggests experience in fulfilling similar requirements. A deeper dive into contract databases like FPDS-NG or SAM.gov would reveal the extent and nature of their previous awards, including any performance evaluations or past disputes. This information is crucial for assessing their reliability and capability to fulfill the current contract effectively and efficiently.

How does the per-year cost of this contract compare to similar security contracts for federal facilities?

The annual cost of this contract, approximately $1.98 million ($7.9M / ~4 years), is difficult to benchmark precisely without more context on the specific security requirements, number of guards, hours of coverage, and geographic location's labor costs. However, general industry data suggests that armed security services for federal facilities can range significantly. Contracts for similar-sized facilities or those with comparable security levels often fall within a similar annual expenditure range. The lack of competition for this specific award means a direct price comparison based on competitive bids is not possible, making it harder to ascertain if this represents optimal value.

What are the specific risks associated with a sole-source award for security services?

The primary risk of a sole-source award for security services is the potential for inflated costs due to the absence of competitive pressure. Taxpayers may end up paying more than necessary compared to a scenario where multiple vendors bid for the contract. Another risk is a potential reduction in service quality if the awarded contractor faces less incentive to maintain high standards. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning, potentially overlooking more cost-effective or capable providers. Transparency is also reduced, making it harder to justify the expenditure to the public.

What are the performance expectations and metrics for the armed security guards under this contract?

The provided data does not detail the specific performance expectations or metrics for the armed security guards. Typically, such contracts would outline requirements related to guard presence, response times, incident reporting, access control procedures, and adherence to post orders. Performance would likely be monitored through regular reports, site visits, and potentially through a government-appointed Quality Assurance Surveillance Plan (QASP). The effectiveness of the security services would be evaluated based on the contractor's ability to prevent unauthorized access, respond to emergencies, and maintain a secure environment as defined in the contract's statement of work.

What is the historical spending trend for security services at the EPA's Edison Environmental Center?

Historical spending data for security services specifically at the EPA's Edison Environmental Center is not available in the provided snippet. To assess spending trends, one would need to examine past contracts awarded for security at this location. This would involve searching federal procurement databases for previous awards, noting their values, durations, and awardees. Analyzing this historical data would help determine if the current $7.9 million contract represents an increase, decrease, or stable level of spending for security at this facility over time, and whether previous awards were competed or sole-sourced.

Are there any specific security threats or vulnerabilities at the Edison Environmental Center that justify this contract?

The provided data does not specify the particular security threats or vulnerabilities at the EPA's Edison Environmental Center that necessitate this armed security guard contract. However, federal environmental centers often house sensitive research, equipment, and data, making them potential targets for theft, vandalism, or unauthorized access. The presence of armed guards suggests a perceived need for a robust security presence to deter such activities and respond to potential incidents. A comprehensive risk assessment by the EPA would have informed the decision to procure these services, likely considering factors like the value of assets, the nature of the work conducted, and the surrounding environment.

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

Solicitation ID: 68HE0223R0002

Offers Received: 1

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: $11,049,062

Exercised Options: $7,922,621

Current Obligation: $7,922,621

Actual Outlays: $5,845,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline