Department of Energy's $23.3M IT support contract awarded to Chenega Government Consulting, LLC
Contract Overview
Contract Amount: $23,334,779 ($23.3M)
Contractor: Chenega Government Consulting, LLC
Awarding Agency: Department of Energy
Start Date: 2012-06-18
End Date: 2015-04-30
Contract Duration: 1,046 days
Daily Burn Rate: $22.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR OFFICE OF UNCLASSIFIED OPERATIONS - NA-IM-40.
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $23.3 million to CHENEGA GOVERNMENT CONSULTING, LLC for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR OFFICE OF UNCLASSIFIED OPERATIONS - NA-IM-40. Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Duration of over 1000 days suggests a need for sustained IT support. 3. The contract's value falls within a moderate range for IT support services. 4. Awarded under the 'Other Computer Related Services' NAICS code. 5. Performance located in New Mexico, indicating a specific geographic focus. 6. No small business set-aside was applied to this procurement.
Value Assessment
Rating: fair
The contract value of approximately $23.3 million over its period of performance is moderate for IT support services. Benchmarking against similar contracts for IT support within the Department of Energy or other federal agencies would provide a clearer picture of value for money. The 'Time and Materials' contract type can sometimes lead to higher costs if not managed closely, as it reimburses direct labor and indirect costs plus a fee. Without detailed cost breakdowns or comparisons to market rates for specific services rendered, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded using a sole-source justification, meaning it was not competed openly. This approach is typically used when only one responsible source can satisfy the agency's needs. The lack of competition means that potential cost savings that could arise from a competitive bidding process were not realized. The agency would have had to demonstrate why other sources were not capable of meeting the requirement.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively awarded contracts, as the government does not benefit from the price pressures inherent in a competitive environment.
Public Impact
The Office of Unclassified Operations within the Department of Energy benefits from essential IT support. Ensures the continuity and efficiency of critical IT infrastructure and services. Services are delivered within New Mexico, impacting the local IT workforce and economy. Supports the agency's mission by maintaining reliable technological operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Time and Materials contract type requires diligent oversight to control costs.
- Lack of publicly available performance metrics makes assessing effectiveness difficult.
Positive Signals
- Contract awarded to a known entity, Chenega Government Consulting, LLC.
- Sustained IT support indicates a recognized need and ongoing operational requirement.
- Awarded by the Department of Energy, a major federal agency.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The federal IT services market is vast, with agencies consistently procuring support for infrastructure, software, cybersecurity, and general IT operations. Contracts of this size are common for specialized IT support, especially when tailored to specific agency needs. Benchmarking would involve comparing this award to other IT support contracts within the federal government, considering factors like service scope, duration, and contractor expertise.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific procurement were limited. The prime contractor, Chenega Government Consulting, LLC, is likely a larger entity, and the absence of set-asides suggests a focus on acquiring specialized services without the explicit goal of fostering small business participation through this particular award.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers responsible for the Office of Unclassified Operations. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs is crucial to ensure fair pricing and prevent cost overruns. Transparency is limited by the sole-source nature of the award and the lack of publicly detailed performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal IT Services
- Department of Energy IT Procurement
- Information Technology Support
- Sole Source Contracts
- Time and Materials Contracts
Risk Flags
- Sole-source award lacks competitive justification.
- Time and Materials contract type poses cost control risks.
- Limited public data on performance metrics hinders value assessment.
Tags
it-services, department-of-energy, chenega-government-consulting-llc, sole-source, time-and-materials, new-mexico, computer-related-services, office-of-unclassified-operations, federal-contract, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $23.3 million to CHENEGA GOVERNMENT CONSULTING, LLC. INFORMATION TECHNOLOGY SUPPORT SERVICES FOR OFFICE OF UNCLASSIFIED OPERATIONS - NA-IM-40.
Who is the contractor on this award?
The obligated recipient is CHENEGA GOVERNMENT CONSULTING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2012-06-18. End: 2015-04-30.
What is the track record of Chenega Government Consulting, LLC with the Department of Energy and other federal agencies?
Chenega Government Consulting, LLC has a significant history of receiving federal contracts across various agencies, including the Department of Defense and the Department of Homeland Security, in addition to the Department of Energy. Their contract portfolio often includes IT services, logistics, and professional support. Analyzing their past performance on similar IT support contracts, particularly those with a Time and Materials structure, would be crucial. This includes reviewing past performance evaluations, any contract disputes or terminations, and their ability to deliver services within budget and schedule. A review of their financial stability and any past compliance issues would also be pertinent to understanding their reliability as a contractor for this specific Department of Energy award.
How does the value of this contract compare to similar IT support contracts awarded by the Department of Energy?
The approximate value of $23.3 million for this IT support contract over its duration is within a moderate range for federal IT services. To provide a precise comparison, one would need to identify other Department of Energy (DOE) contracts for similar IT support services, ideally with comparable scopes of work, durations, and contract types (e.g., Time and Materials). Factors such as the specific IT services provided (e.g., network management, help desk, cybersecurity support, software development), the geographic location of service delivery, and the complexity of the supported environment are critical for a meaningful benchmark. Without access to detailed contract line item data and performance metrics for comparable DOE contracts, it is difficult to definitively state whether this award represents excellent, fair, or questionable value for money.
What are the primary risks associated with a sole-source Time and Materials contract for IT support?
The primary risks associated with a sole-source Time and Materials (T&M) contract for IT support are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than if the contract were competed. The government does not benefit from the price discovery process that occurs in a competitive bidding environment. Secondly, the T&M contract type, while flexible, carries inherent risks of cost escalation if not managed meticulously. It reimburses the contractor for direct labor hours at specified rates and for the cost of materials, plus a fee or profit. This structure can incentivize longer task durations or higher labor rates if robust oversight, clear task definitions, and effective cost controls are not rigorously applied by the agency. This combination requires strong contract administration to ensure value and prevent overspending.
What is the typical duration and cost range for federal IT support contracts of this nature?
Federal IT support contracts vary widely in duration and cost depending on the scope of services, agency needs, and contract type. Contracts can range from short-term projects lasting a few months to long-term sustainment efforts spanning several years, often with option periods. Costs can range from tens of thousands to hundreds of millions of dollars. For IT support services similar to those likely provided under this contract (NAICS 541519), multi-year contracts in the low to mid-millions of dollars are common for specific offices or programs. Longer durations, like the over 1000 days for this contract, are typical for ongoing operational support. The 'Time and Materials' aspect means costs are driven by labor hours and material usage, making precise cost prediction challenging without defined task orders and performance metrics.
How does the 'Other Computer Related Services' NAICS code (541519) typically encompass IT support functions?
The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide array of IT support functions not specifically covered by more specialized codes like Custom Computer Programming Services (541511) or Computer Systems Design Services (541512). This includes services such as IT support and help desk services, network management, IT consulting (when not primarily focused on system design), data processing services, disaster recovery services, and IT project management. Essentially, if an IT service involves the operation, maintenance, or support of computer systems and infrastructure, and doesn't fit neatly into other categories, it often falls under 541519. This broadness allows agencies to procure a diverse range of IT support needs under a single classification.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Chenega Corporation (UEI: 622692994)
Address: 609 INDEPENDENCE PKWY STE 210, CHESAPEAKE, VA, 23320
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, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,334,779
Exercised Options: $23,334,779
Current Obligation: $23,334,779
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2012-06-18
Current End Date: 2015-04-30
Potential End Date: 2015-04-30 00:00:00
Last Modified: 2015-08-12
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