DoD's $64M Security Operations Center Contract Awarded to Chenega Infinity, LLC

Contract Overview

Contract Amount: $64,375,968 ($64.4M)

Contractor: Chenega Infinity, LLC

Awarding Agency: Department of Defense

Start Date: 2018-06-20

End Date: 2023-12-31

Contract Duration: 2,020 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SECURITY OPERATIONS CENTER SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $64.4 million to CHENEGA INFINITY, LLC for work described as: IGF::OT::IGF SECURITY OPERATIONS CENTER SUPPORT Key points: 1. Contract value of $64.4 million over its period of performance. 2. Awarded under full and open competition after exclusion of sources. 3. The contract has a firm fixed price type. 4. Performance period spans from June 20, 2018, to December 31, 2023. 5. The contract is a definitive contract type. 6. The Missile Defense Agency is the primary agency utilizing this service. 7. The North American Industry Classification System (NAICS) code is 561612 for Security Guards and Patrol Services.

Value Assessment

Rating: good

The contract's total value of $64.4 million over approximately 5.5 years suggests a significant investment in security operations. Benchmarking this against similar large-scale security support contracts for federal agencies would provide a clearer picture of value for money. The firm fixed-price structure generally offers cost certainty for the government, but the specific unit costs and the efficiency of service delivery would be key determinants of overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders (9) suggests a reasonable level of interest, but the exclusion clause warrants further investigation to understand its impact on price discovery and overall competition.

Taxpayer Impact: The exclusion of certain sources, even within a full and open competition framework, could potentially lead to less competitive pricing than a truly unrestricted competition. Taxpayers benefit from the services provided, but the extent of cost savings due to competition is influenced by the specific nature of the exclusion.

Public Impact

Provides essential security operations center support to the Department of Defense, specifically the Missile Defense Agency. Enhances the security posture and operational readiness of critical defense infrastructure. Supports the agency's mission to defend the United States against ballistic missile threats. Likely involves a workforce of security professionals, analysts, and technical staff, contributing to employment in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type could limit competitive pressure and potentially increase costs.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the services rendered.
The long performance period without clear break clauses could pose a risk if contractor performance degrades over time.

Positive Signals

The contract was awarded under a competitive process, indicating multiple interested parties.
The firm fixed-price contract type provides budget certainty for the government.
The Missile Defense Agency's reliance on this contract suggests its critical importance to national security operations.

Sector Analysis

The federal cybersecurity and security services market is substantial, with agencies increasingly relying on contractors for specialized support. This contract falls within the broader IT and security services sector, which is characterized by rapid technological advancements and evolving threat landscapes. The Missile Defense Agency's need for robust security operations center support is indicative of the critical infrastructure protection requirements within the defense sector, where spending on such services is consistently high.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary participants. There is no information on subcontracting plans for small businesses, which could be a missed opportunity for engaging the small business ecosystem in supporting this critical defense function.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, with potential involvement from the Missile Defense Agency's Inspector General. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency would be enhanced by public reporting of performance metrics and any audits or reviews conducted by oversight bodies.

Related Government Programs

Department of Defense Cybersecurity Services
Missile Defense Agency IT Support
Federal Security Guard Services
Government Security Operations Centers
Defense Agency Contract Support

Risk Flags

Competition Type: 'Exclusion of Sources' may limit competitive pricing.
Performance Metrics: Lack of detailed performance data hinders effectiveness assessment.
Contract Duration: Long-term contract without clear performance-based exit clauses could pose risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.4 million to CHENEGA INFINITY, LLC. IGF::OT::IGF SECURITY OPERATIONS CENTER SUPPORT

Who is the contractor on this award?

The obligated recipient is CHENEGA INFINITY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $64.4 million.

What is the period of performance?

Start: 2018-06-20. End: 2023-12-31.

What is the historical spending trend for Security Operations Center support by the Missile Defense Agency?

Analyzing historical spending data for the Missile Defense Agency (MDA) on Security Operations Center (SOC) support reveals a consistent need for these services. Prior to this $64.4 million definitive contract awarded in 2018, the MDA likely engaged in various contracts, potentially including task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles or smaller, more focused contracts, to meet its SOC requirements. Without access to specific historical contract databases or MDA budget allocations for cybersecurity and operational support, a precise trend is difficult to establish. However, given the increasing sophistication of cyber threats and the critical nature of missile defense systems, it is reasonable to infer that spending in this area has been stable or increasing over time, reflecting the agency's commitment to maintaining a secure operational environment. The $64.4 million awarded to Chenega Infinity, LLC, represents a significant single investment, suggesting a consolidation or expansion of SOC capabilities during that period.

How does the per-unit cost of this contract compare to industry benchmarks for similar security services?

Determining the precise per-unit cost for this contract is challenging without detailed breakdowns of services rendered (e.g., per analyst hour, per monitored system, per alert investigated). The provided data indicates a total award of $64,375,967.53 over a period of approximately 5.5 years (June 20, 2018, to December 31, 2023). If we were to approximate an annual cost, it would be around $11.7 million per year. However, 'per-unit cost' in the context of SOC services is highly variable. Industry benchmarks for SOC-as-a-service can range widely, from a few thousand dollars per month for basic monitoring to tens or hundreds of thousands for comprehensive, high-level managed security services. For a government contract of this scale, supporting a critical agency like the Missile Defense Agency, the costs are likely influenced by stringent security requirements, 24/7 operations, specialized personnel, and compliance mandates, which typically place them at the higher end of the market spectrum. A direct comparison would require granular data on the scope of services and the number of personnel or systems supported.

What are the potential risks associated with a 'full and open competition after exclusion of sources' award type?

The 'full and open competition after exclusion of sources' award type presents a nuanced risk profile. While it aims for broad competition, the explicit exclusion of certain sources can limit the competitive landscape. The primary risk is that the excluded sources might have offered more competitive pricing or superior solutions, thereby reducing the overall value obtained by the government. This exclusion could stem from various reasons, such as past performance issues, specific technical requirements that only a subset of vendors can meet, or even geopolitical considerations. If the exclusion was not strictly justified by objective criteria, it could lead to perceptions of unfairness or a less-than-optimal selection process. Furthermore, understanding *why* sources were excluded is crucial; if it was due to overly restrictive specifications, it could stifle innovation. The government must ensure that such exclusions are well-documented and serve a clear, defensible purpose to mitigate risks of reduced competition and potentially higher costs.

What is Chenega Infinity, LLC's track record with federal contracts, particularly in security services?

Chenega Infinity, LLC, is a significant federal contractor, particularly within the broader Chenega Corporation portfolio, which has extensive experience in government contracting, including security, logistics, and IT services. Chenega Infinity, specifically, has been awarded numerous federal contracts across various agencies, including the Department of Defense, Department of Homeland Security, and others. Their track record often includes providing security services, base operations support, and facility management. Publicly available contract databases show Chenega Infinity has held substantial contracts, indicating a capacity to manage large-scale operations and meet federal requirements. While specific performance details for each contract are not always public, their consistent award of significant contracts suggests a generally positive track record in delivering services. However, as with any large contractor, a deeper dive into past performance reviews, any contract disputes, or instances of corrective action would be necessary for a comprehensive assessment.

How does the $64.4 million contract value compare to the Missile Defense Agency's overall IT and security budget?

The $64.4 million awarded to Chenega Infinity, LLC, for Security Operations Center (SOC) support represents a substantial portion of the Missile Defense Agency's (MDA) operational budget, particularly within the IT and security domain. While the MDA's specific annual budget allocations for IT and cybersecurity are not always publicly itemized in granular detail, their overall budget typically runs into billions of dollars annually, funding research, development, testing, and sustainment of missile defense systems. Contracts for essential support services like SOC operations are critical components of the agency's sustainment and operational readiness efforts. This $64.4 million contract, spanning over five years, averages roughly $11.7 million per year. This figure, when compared to the MDA's total budget, indicates that cybersecurity and operational security are significant, but likely not the single largest, expenditure category. It underscores the importance placed on protecting the complex and vital missile defense infrastructure from cyber threats.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014715R0004

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14295 PARK MEADOW DR STE 400, 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: $67,162,574

Exercised Options: $67,162,574

Current Obligation: $64,375,968

Actual Outlays: $4,738,674

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline