DoD Awards $6.6M Contract for Beale Refueler Parking Lot Repairs to Chenega Reliable Services LLC

Contract Overview

Contract Amount: $6,601,082 ($6.6M)

Contractor: Chenega Reliable Services LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-12

End Date: 2026-07-01

Contract Duration: 1,023 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BEALE REFUELER PARKING LOT REPAIRS

Place of Performance

Location: BEALE AFB, YUBA County, CALIFORNIA, 95903

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to CHENEGA RELIABLE SERVICES LLC for work described as: BEALE REFUELER PARKING LOT REPAIRS Key points: 1. Contract awarded for essential infrastructure repair at Beale Air Force Base. 2. Chenega Reliable Services LLC, a large business, secured the award. 3. The contract is for Oil and Gas Pipeline and Related Structures Construction. 4. The award value is $6,601,082.34 with a duration of 1023 days. 5. The contract was not available for competition.

Value Assessment

Rating: fair

The contract value of $6.6M for parking lot repairs appears high for the scope. Benchmarking against similar construction projects for airfield infrastructure is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited procurement approach. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher price than if multiple bids were solicited, impacting taxpayer funds.

Public Impact

Ensures operational readiness of refueling facilities at Beale AFB. Supports critical infrastructure maintenance for the U.S. Air Force. Potential for cost overruns due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the construction sector, specifically related to airfield infrastructure. Spending benchmarks for similar repair and construction projects would provide context for the $6.6M award.

Small Business Impact

The contract was awarded to Chenega Reliable Services LLC, a large business. There is no indication that small businesses were involved in this specific award.

Oversight & Accountability

The limited competition raises questions about oversight and accountability in the procurement process. Further review of the justification for other than full and open competition is warranted.

Related Government Programs

Risk Flags

Tags

oil-and-gas-pipeline-and-related-structu, department-of-defense, ca, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to CHENEGA RELIABLE SERVICES LLC. BEALE REFUELER PARKING LOT REPAIRS

Who is the contractor on this award?

The obligated recipient is CHENEGA RELIABLE SERVICES 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 $6.6 million.

What is the period of performance?

Start: 2023-09-12. End: 2026-07-01.

What is the specific justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair pricing?

The justification for limited competition needs to be thoroughly reviewed. Agencies typically cite reasons like urgent and compelling needs or unique capabilities. Without this justification, it's difficult to assess if fair pricing was achieved. The government should have explored options to maximize competition or ensure the price was reasonable through independent cost estimates or market research.

How does the $6.6M cost compare to similar airfield parking lot repair projects, and what is the risk of cost overruns?

Benchmarking this $6.6M cost against similar projects is crucial. Factors like square footage, materials, and complexity of airfield operations influence costs. The risk of cost overruns is elevated due to the lack of competition, which typically drives down prices. Without competitive pressure, the contractor may have less incentive to control costs.

What is the long-term effectiveness and durability expected from these repairs, and how will it be measured?

The effectiveness and durability of the repairs should be defined by clear performance standards and metrics within the contract. This includes expected lifespan, resistance to wear and tear, and compliance with airfield safety regulations. Regular inspections and performance reviews throughout the contract duration will be essential to ensure the repairs meet the required standards and provide long-term value.

Industry Classification

NAICS: ConstructionUtility System ConstructionOil and Gas Pipeline and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

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: 5253 PRUE RD, SAN ANTONIO, TX, 78240

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: $6,601,082

Exercised Options: $6,601,082

Current Obligation: $6,601,082

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-09-12

Current End Date: 2026-07-01

Potential End Date: 2026-07-01 00:00:00

Last Modified: 2026-04-07

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