DoD's $45.6M Physical Security Contract with Chenega Infinity Raises Value and Competition Questions

Contract Overview

Contract Amount: $45,664,273 ($45.7M)

Contractor: Chenega Infinity, LLC

Awarding Agency: Department of Defense

Start Date: 2018-12-10

End Date: 2023-12-09

Contract Duration: 1,825 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHYSICAL SECURITY SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.7 million to CHENEGA INFINITY, LLC for work described as: PHYSICAL SECURITY SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the duration and scope of services. 2. Limited competition was noted, potentially impacting price discovery. 3. The firm-fixed-price structure offers cost certainty but may limit flexibility. 4. Performance context is crucial to assess the true value delivered. 5. This contract falls within the security services sector, a common area for federal spending. 6. The use of a definitive contract suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract's total value of $45.6 million over five years, averaging approximately $9.1 million annually, seems within a reasonable range for comprehensive physical security support services. However, without specific details on the scope of services, personnel hours, and geographic coverage, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for large-scale federal facilities would provide a clearer picture of whether the pricing is competitive. The firm-fixed-price (FFP) nature of the contract provides cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The record shows 11 bidders participated, suggesting a moderate level of interest. However, the 'exclusion of sources' aspect warrants further investigation to understand why specific companies were not considered, as this could limit the breadth of competition and potentially affect the final price and innovation.

Taxpayer Impact: The moderate number of bidders, coupled with the exclusion of some sources, suggests that taxpayers may not have benefited from the most competitive pricing possible. Further analysis into the reasons for source exclusion could reveal opportunities for cost savings in future procurements.

Public Impact

Provides essential physical security services to protect Department of Defense assets and personnel. Ensures the safety and operational continuity of facilities managed by the Defense Advanced Research Projects Agency (DARPA). Supports the workforce through employment opportunities for security personnel. Geographic impact is likely concentrated around the facilities where DARPA operates, primarily in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion could lead to higher costs for taxpayers.
Lack of detailed performance metrics makes it difficult to assess service quality and effectiveness.
The long duration of the contract (5 years) may not adapt well to evolving security needs or technological advancements.

Positive Signals

Firm-fixed-price contract provides budget certainty for the agency.
Multiple bidders (11) indicate a degree of market interest in providing these services.
The contract supports essential government functions, ensuring the security of critical assets.

Sector Analysis

The physical security services sector is a significant component of the federal contracting landscape, encompassing a wide range of services from guard patrols to advanced surveillance systems. Federal spending in this area is driven by the need to protect sensitive government facilities, personnel, and information. This contract, valued at over $45 million, represents a substantial investment within this sector. Comparable spending benchmarks for similar security contracts across various federal agencies would be necessary to fully contextualize this award.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the best overall offer from the available pool of bidders, rather than prioritizing small business participation. The impact on the small business ecosystem is likely minimal unless Chenega Infinity voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Advanced Research Projects Agency (DARPA) contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases, but detailed operational oversight and Inspector General jurisdiction would depend on specific contract clauses and any identified performance issues.

Related Government Programs

Department of Defense Security Services
Federal Protective Service Contracts
General Services Administration (GSA) Schedule Contracts for Security
Department of Homeland Security Security Contracts

Risk Flags

Limited competition
Potential for higher costs due to source exclusion
Lack of detailed performance metrics in public data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to CHENEGA INFINITY, LLC. PHYSICAL SECURITY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHENEGA INFINITY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $45.7 million.

What is the period of performance?

Start: 2018-12-10. End: 2023-12-09.

What specific physical security services are included under this contract, and how are they measured?

The provided data indicates the contract is for 'PHYSICAL SECURITY SUPPORT SERVICES' and falls under the North American Industry Classification System (NAICS) code 561612, 'Security Guards and Patrol Services.' While the general category is clear, the specific services are not detailed. This would typically encompass uniformed security guards, access control, perimeter security, alarm monitoring, and potentially escort services. Performance metrics are crucial for assessing value; these would likely include response times, incident reporting accuracy, guard post coverage, and adherence to post orders. Without these specifics, it's difficult to evaluate the effectiveness and efficiency of the services rendered beyond the broad description.

How does the $45.6 million contract value compare to similar physical security contracts awarded by the DoD or other federal agencies?

Benchmarking this $45.6 million contract requires comparing it to similar-sized contracts for physical security support services, ideally with comparable durations and scopes, awarded by the Department of Defense (DoD) or other large federal agencies. For instance, contracts for security at major military installations or large federal office complexes could serve as benchmarks. The average annual value of this contract is approximately $9.1 million. If similar five-year contracts for comparable services typically range from $5 million to $15 million annually, then this contract appears to be within a reasonable market range. However, a more granular analysis considering the number of personnel, hours, specific security technologies deployed, and geographic spread would be necessary for a definitive comparison.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type presents several potential risks. Primarily, it suggests that the government may not have considered the full spectrum of qualified vendors in the market. The reasons for excluding certain sources could range from administrative errors to deliberate decisions based on past performance or specific requirements. This exclusion can limit competition, potentially leading to higher prices than might be achieved in a truly open competition. It also raises concerns about fairness and equal opportunity for all potential bidders. Furthermore, if the excluded sources were highly capable, the government might miss out on innovative solutions or more cost-effective service delivery models. Transparency regarding the rationale for exclusion is critical to mitigate these risks and ensure public trust.

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 security and facilities support sectors. As a subsidiary of the Chenega Corporation, it has a substantial portfolio of government contracts across various agencies, including the Department of Defense. While specific performance details for this particular $45.6 million contract are not provided, Chenega entities generally have a history of performing large-scale service contracts. Federal procurement databases often contain past performance information, which would be reviewed during the bidding process. A thorough assessment would involve examining past performance reviews, any contract disputes or terminations, and the company's overall experience in delivering similar security services to government clients to gauge their reliability and capability.

How has federal spending on physical security services evolved over the past five years, and where does this contract fit in?

Federal spending on physical security services has remained a consistent and significant expenditure area, often fluctuating based on national security priorities, threat assessments, and agency-specific needs. Over the past five years, there has been a sustained demand for guarding, patrol, and security system services across departments like Defense, Homeland Security, and Justice. This $45.6 million contract, awarded in late 2018 and ending in late 2023, represents a substantial single award within this category. It aligns with the ongoing need for comprehensive security at critical government facilities, such as those managed by DARPA. While specific year-over-year trends for the entire sector are complex, this contract reflects a significant investment in maintaining physical security posture during that period.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001118R0003

Offers Received: 11

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, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,345,292

Exercised Options: $47,345,292

Current Obligation: $45,664,273

Actual Outlays: $2,794,592

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline