DoD's $10.4M IT services contract awarded to Chenega Analytic Business Solutions, LLC

Contract Overview

Contract Amount: $10,447,198 ($10.4M)

Contractor: Chenega Analytic Business Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $14.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFRL/IZD - ERITS

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC for work described as: AFRL/IZD - ERITS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests defined scope and cost certainty. 3. Duration of 729 days indicates a medium-term service requirement. 4. Contractor has a significant presence, suggesting established performance. 5. Services fall under 'Other Computer Related Services', a broad IT category. 6. Awarded by the Department of the Air Force, a major DoD component.

Value Assessment

Rating: fair

The contract value of $10.4 million over two years for 'Other Computer Related Services' is difficult to benchmark without specific service details. Given the sole-source nature, a direct comparison to competitively bid contracts is not feasible. The firm fixed-price structure provides cost certainty for the government, but the absence of competition may have led to a higher price than could have been achieved otherwise. Further analysis would require understanding the specific IT services rendered and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. While sole-source awards can be justified for specific reasons such as unique capabilities or urgent needs, they inherently reduce the government's ability to secure the best possible value through market forces.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through open competition, potentially leading to higher overall expenditure for the same services.

Public Impact

The Department of the Air Force benefits from specialized IT services. Services likely support critical Air Force operations and infrastructure. The contract's geographic impact is centered in Ohio, where the contractor is located. Workforce implications include employment for Chenega Analytic Business Solutions, LLC staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award requires strong justification to ensure necessity.
Scope creep could be a risk if not managed tightly under FFP.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Contractor is established, potentially indicating reliable service delivery.
Awarded by a major defense agency, suggesting alignment with strategic needs.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under 'Other Computer Related Services'. This category encompasses a wide range of IT support, consulting, and integration services. The IT services market is highly competitive, with numerous providers offering specialized solutions. Benchmarking this contract's value is challenging without detailed service descriptions, but IT services represent a significant portion of federal spending, with billions allocated annually across various agencies for similar support.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, Chenega Analytic Business Solutions, LLC, is not identified as a small business. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

As a sole-source award, oversight will be critical to ensure the necessity and value of the services provided. The Department of the Air Force's contracting officers are responsible for monitoring performance and adherence to the contract terms. Transparency regarding the justification for the sole-source award would enhance accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Computer Systems Design Services
Professional, Scientific, and Technical Services
Department of Defense IT Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Broad service category ('Other Computer Related Services') lacks specificity.
Potential for cost overruns if scope is not tightly managed under FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC. AFRL/IZD - ERITS

Who is the contractor on this award?

The obligated recipient is CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

What specific IT services are being provided under this contract?

The contract data indicates the service category is 'Other Computer Related Services' (NAICS 541519). This is a broad classification that can include a wide array of IT functions such as IT consulting, systems integration, network management, data processing, and IT support. Without further details from the contract's statement of work or performance work statement, the precise nature of the services remains unspecified. Understanding the exact deliverables is crucial for assessing value, performance, and risk.

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

The provided data states the contract was 'NOT COMPETED,' indicating a sole-source award. Federal procurement regulations typically require full and open competition unless specific exceptions apply. Common justifications for sole-source awards include the availability of only one responsible source, urgent and compelling needs, or specific national security requirements. A detailed justification document should exist within the agency's procurement file explaining why competition was not feasible or practicable for this particular requirement.

How does the firm fixed-price (FFP) contract type impact risk and value?

A Firm Fixed Price (FFP) contract establishes a ceiling price that the contractor must not exceed, regardless of the actual costs incurred. This contract type shifts most of the cost risk to the contractor, providing the government with budget certainty. For the government, FFP is generally preferred when the scope of work is well-defined and stable. However, if the scope is not clearly delineated, it can lead to contractor inefficiencies or disputes. The value is maximized when the well-defined scope allows for competitive pricing, which is absent in this sole-source award.

What is the historical spending pattern for similar IT services by the Department of the Air Force?

The Department of the Air Force, as a major component of the DoD, consistently spends billions of dollars annually on IT services, encompassing a wide range of requirements from software development and cybersecurity to network infrastructure and end-user support. Spending patterns vary significantly based on technological advancements, strategic priorities, and specific program needs. Analyzing historical spending on 'Other Computer Related Services' (NAICS 541519) or similar IT support categories would reveal trends in contract values, durations, and types of services procured, providing context for this $10.4 million award.

What is Chenega Analytic Business Solutions, LLC's track record with the federal government?

Chenega Analytic Business Solutions, LLC is a known entity within the federal contracting space, particularly with defense agencies. As part of the larger Chenega Corporation, it has a history of providing various professional services, including analytical, IT, and operational support. A review of federal procurement databases would detail their past performance, including contract values, agencies served, and performance ratings, if available. Their established presence suggests a capacity to handle government contracts, but specific performance on similar IT service contracts would be key to a full assessment.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10505 FURNACE RD, 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: $13,319,736

Exercised Options: $10,462,198

Current Obligation: $10,447,198

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline