Chenega Worldwide Support awarded $11M contract for Moroccan Air Force facility construction

Contract Overview

Contract Amount: $11,050,802 ($11.1M)

Contractor: Chenega Worldwide Support, LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-26

End Date: 2026-03-31

Contract Duration: 1,344 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN, ENGINEERING AND CONSTRUCTION OF VARIOUS FACILITIES AND INFRASTRUCTURE IN SUPPORT OF FOREIGN MILITARY SALES PROGRAM FOR THE KINGDOM OF MOROCCO (KOM) ROYAL MOROCCAN AIR FORCE (RMAF)

Plain-Language Summary

Department of Defense obligated $11.1 million to CHENEGA WORLDWIDE SUPPORT, LLC for work described as: DESIGN, ENGINEERING AND CONSTRUCTION OF VARIOUS FACILITIES AND INFRASTRUCTURE IN SUPPORT OF FOREIGN MILITARY SALES PROGRAM FOR THE KINGDOM OF MOROCCO (KOM) ROYAL MOROCCAN AIR FORCE (RMAF) Key points: 1. Contract awarded for design, engineering, and construction of facilities and infrastructure. 2. Supports the Foreign Military Sales Program for the Kingdom of Morocco's Royal Moroccan Air Force. 3. Contract type is a definitive contract with a firm fixed price. 4. Duration of the contract is 1344 days. 5. The contract was not available for competition. 6. The awardee is Chenega Worldwide Support, LLC.

Value Assessment

Rating: fair

The contract value of $11.05 million for design, engineering, and construction services for foreign military sales facilities is difficult to benchmark without specific details on the scope of work and the complexity of the facilities. As a sole-source award, there is limited opportunity for price comparison against other offers. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. Further analysis would require understanding the specific deliverables and comparing them to similar international construction projects.

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 among multiple potential bidders. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a direct award. The lack of competition means that the government did not benefit from a bidding process that could drive down prices through market forces. The justification for this sole-source award would need to be thoroughly reviewed to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the competitive pressure to offer the best price is absent. Without a competitive bidding process, there is less assurance that the selected contractor's price represents the best value achievable in the market.

Public Impact

The primary beneficiaries are the Kingdom of Morocco's Royal Moroccan Air Force, which will receive upgraded facilities and infrastructure. The contract delivers design, engineering, and construction services. The geographic impact is focused on facilities within Morocco. The contract may have implications for the local Moroccan workforce involved in construction activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition raises questions about whether the best possible value was secured.
Contract duration of over three years requires ongoing monitoring for performance and potential scope creep.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Award to Chenega Worldwide Support, LLC, suggests they possess specialized capabilities for this type of project.
Supports a critical foreign military sales program, enhancing partner nation capabilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting infrastructure development for a foreign military. The global defense construction market is significant, with governments often contracting for specialized facilities to support military operations and training. Benchmarking this contract's value would ideally involve comparing it to similar construction projects for air bases or military installations in other regions, considering factors like labor costs, material availability, and security requirements.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the awardee is Chenega Worldwide Support, LLC, and there is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary contractor is likely a large business, and opportunities for small businesses would depend on their ability to subcontract with the prime. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's contracting and program management offices. Accountability measures would be tied to the firm fixed-price contract terms, requiring the contractor to deliver specified facilities and infrastructure. Transparency regarding the sole-source justification and performance metrics would be key to assessing oversight effectiveness. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Foreign Military Sales Program
Defense Infrastructure Projects
International Construction Contracts
Air Force Facility Modernization

Risk Flags

Sole-source award requires careful review of justification.
Long contract duration necessitates sustained oversight.
Potential for scope changes in international projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to CHENEGA WORLDWIDE SUPPORT, LLC. DESIGN, ENGINEERING AND CONSTRUCTION OF VARIOUS FACILITIES AND INFRASTRUCTURE IN SUPPORT OF FOREIGN MILITARY SALES PROGRAM FOR THE KINGDOM OF MOROCCO (KOM) ROYAL MOROCCAN AIR FORCE (RMAF)

Who is the contractor on this award?

The obligated recipient is CHENEGA WORLDWIDE SUPPORT, 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 $11.1 million.

What is the period of performance?

Start: 2022-07-26. End: 2026-03-31.

What specific facilities and infrastructure are included in this contract, and what is their intended use for the Royal Moroccan Air Force?

The contract specifies the 'DESIGN, ENGINEERING AND CONSTRUCTION OF VARIOUS FACILITIES AND INFRASTRUCTURE' for the Royal Moroccan Air Force (RMAF) under the Foreign Military Sales Program. While the exact nature of these facilities is not detailed in the provided data, they likely include operational buildings, maintenance hangars, training areas, administrative offices, or support structures essential for air force operations. The 'various facilities and infrastructure' suggests a scope that could range from new construction to upgrades of existing sites. The intended use is to enhance the RMAF's operational capabilities and readiness by providing modern and functional infrastructure tailored to their specific needs, as determined by the Kingdom of Morocco and facilitated through the U.S. FMS program.

What is the justification for awarding this contract on a sole-source basis to Chenega Worldwide Support, LLC?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying 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 unique capability of a single contractor, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previously competed effort where only one contractor can provide the necessary services. Without the specific justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to definitively state the reason. However, Chenega Worldwide Support, LLC, may possess specialized expertise in constructing facilities for foreign military sales programs or have unique qualifications relevant to the specific requirements in Morocco.

How does the firm fixed-price (FFP) contract type mitigate risk for the government in this construction project?

A Firm Fixed-Price (FFP) contract is generally advantageous for the government when the scope of work is well-defined and unlikely to change significantly. In this construction project, the FFP structure means that Chenega Worldwide Support, LLC, is obligated to complete the design, engineering, and construction for the agreed-upon price of $11.05 million. This shifts the primary financial risk of cost overruns from the government to the contractor. If construction costs increase due to material prices, labor shortages, or unforeseen site conditions, the contractor absorbs these additional expenses, provided they are not due to changes in the contract scope initiated by the government. This provides budget certainty for the Department of the Air Force and the Kingdom of Morocco.

What is Chenega Worldwide Support, LLC's track record with similar international construction or foreign military sales contracts?

Information regarding Chenega Worldwide Support, LLC's specific track record with similar international construction or foreign military sales contracts is not detailed in the provided data. However, Chenega Worldwide Support is part of the larger Chenega Corporation, which has a significant presence in government contracting, often providing services related to logistics, base operations, and facilities support, including for defense clients. To assess their suitability for this specific project, a review of their past performance on contracts with similar scope, complexity, geographic location, and client type (e.g., foreign military entities) would be necessary. This would typically involve examining contract databases, performance evaluations (e.g., CPARS), and any publicly available project portfolios.

What are the potential implications of this contract's duration (1344 days) on project management and oversight?

A contract duration of 1344 days, approximately 3.67 years, for a construction project of this nature necessitates robust project management and sustained oversight. Such a long timeline increases the potential for scope creep, changes in requirements, and evolving geopolitical or economic conditions that could impact the project. The government will need to maintain consistent oversight to ensure the contractor adheres to the schedule, quality standards, and budget. This includes regular progress reviews, site inspections, and effective communication channels. The extended duration also means that personnel involved in oversight may change over time, requiring thorough knowledge transfer to maintain continuity and effectiveness in managing the contract to successful completion.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1155 KELLY JOHNSON BLVD STE 105, COLORADO SPRINGS, CO, 80920

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: $11,050,802

Exercised Options: $11,050,802

Current Obligation: $11,050,802

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline